Issue - meetings

(a)       That  the action required to review the funding framework (including overall return expectations) as part of the 2016 Actuarial Valuation of the Fund be noted; and 

(b)       That the review of the flightpath and liability hedging strategy in conjunction with Actuarial Valuation which is included in the 2016/17 Business Plan be noted.

Mr Middleman, Fund Actuary - Mercer, introduced a report to provide an update on the funding position as at 29 February 2016 and an overview of the hedging implemented to date. 

Mr Middleman advised that the monthly summary report from Mercer on the funding position and an overview of the liability hedging mandate was appended to the report.   He reported on the key considerations and referred to the funding position, and hedging strategy.   Mr. Middleman advised that the funding framework (including overall return expectations) would need to be reviewed as part of the 2016 Actuarial Valuation of the Fund.  The flightpath and liability hedging strategy would also need to be reviewed in conjunction with the Actuarial Valuation included in the 2016/17 Business Plan.  

The Chief Executive asked if benchmarking information could be provided to determine how well the Fund was performing in comparison to other funds.  Mr. Middleman acknowledged the point and explained that this information would emerge as a result of the KPI self-evaluation process and the Scheme Advisory Board considerations.   He agreed to consider how he could provide some data in the interim based on a normalised funding position rolled-up from the 2013 valuations.

RESOLVED:

(a)       That  the action required to review the funding framework (including overall return expectations) as part of the 2016 Actuarial Valuation of the Fund be noted; and 

(b)       That the review of the flightpath and liability hedging strategy in conjunction with Actuarial Valuation which is included in the 2016/17 Business Plan be noted.