Issue - meetings

11:10

This report updates the Committee on the work to date on the 2019 Valuation and the update of the Funding Strategy Statement.

The Committee is RECOMMENDED to note the latest position with regard to the 2019 Valuation and the key changes planned for the Funding Strategy Statement.

Recommendations Agreed.

Under the current regulatory framework, the Pension Fund was required to arrange for a Valuation of the Pension Fund every three years.  The latest Valuation was based on the position as at 31 March 2019, with a requirement for the Fund Actuary to produce their report and certify the employer contribution rates for 2020/21 onwards by 31 March 2020. 

In completing the Valuation, the Fund Actuary had to have regard to the Committee’s approved Funding Strategy Statement which set out the key policies to be followed in determining the approach to the Valuation.  As this was the first Valuation for Oxfordshire to be completed by Hymans Robertson, they had reviewed the current Funding Strategy Statement to bring it into line with their preferred approach to the Valuation.

The Committee had before them a report (PF11) which provided information on the work done to date on the 2019 Valuation and discussed key changes likely to be proposed to the Funding Strategy Statement.  The revised Funding Strategy Statement itself would be presented to the December meeting of this Committee via the Pension Board meeting on 25 October 2019, to be agreed for formal consultation with all scheme employers.  The final Funding Strategy Statement and Valuation results would be presented to the March meeting of this Committee.

Mr Collins reported that Brookes had agreed to inject a one-off contribution into the fund to enable them to take advantage of the new risk base.  Work to date suggested district councils were in different positions.  Officers were currently working with Hymans Robertson to find a solution for employees in a risk framework.  In December there would be a redrafting of the funding strategy which would then go out to formal consultation with employees.

The Actuary would be attending the Committee on 6 December and the Forum on the 12 December 2019.

In response to members concerns around a number of pensions fund being caught out by the impact of longevity, Mr Collins assured members that longevity was a key element of valuation, and that local evidence would be applied to national figures.

RESOLVED:  to note the latest position with regard to the 2019 Valuation and the key changes planned for the Funding Strategy Statement.