Agenda item

This report which was considered at the Pension Fund Committee on 10 October 2022 set out the high-level results for the whole Fund following the 2022 Valuation, with further work required before the results for the individual scheme employers are available. The report also set out the revised Funding Strategy Statement which sets the ground rules on which the Valuation is based.

The Pension Fund Committee approved the draft Funding Strategy Statement as the basis for consultation and noted the position on the 2022 Valuation and agree the draft Funding Strategy Statement and accompanying annexes as the basis of consultation with scheme employers.

The Board considered a report which was considered at the Pension Fund Committee on 10 October 2022. The report set out the high-level results for the whole Fund following the 2022 Valuation, with further work required before the results for the individual scheme employers are available. The report also set out the revised Funding Strategy Statement which sets the ground rules on which the Valuation is based.

The Pension Fund Committee noted the position on the 2022 Valuation and agreed the draft Funding Strategy Statement and accompanying annexes as the basis of consultation with scheme employers.

The Board was informed that the draft version of the Funding Strategy Statement and policies had gone out for consultation and reference was made to the Employer Forum which had taken place where only 20 out of well over 100 employers had been in attendance.

Reference was made to the Board having the core of the document with six satellite policies. In relation to Cessation Risk, there was more flexibility with realistic cessation set.

Discussion took place on the McCloud case, and that every employer would have to pay a premium, although a decision was required on how the costs would be distributed.    

The Board was informed that the Actuary reported that the Fund was in a much better position than 3 years ago. Based on a set of single assumption, there was 70% achieving 4.6% return and being 100% funded.

The consultation ended on 18 November and Board Members were asked to submit their comments. The final document would be considered by the Pension Fund Committee in December. Discussions would continue with employers till March.

The report was noted.