Issue - meetings

Investment and Funding Update

Meeting: 13/06/2018 - Clwyd Pension Fund Committee (Item 10)

10 Investment and Funding Update pdf icon PDF 95 KB

To provide Committee Members with an update of investment and funding matters for the Clwyd Pension Fund.

Additional documents:

Decision:

(a)        The Committee considered and noted the steps proposed due to the Regulation changes for exit credits; and

 

(b)        The Committee considered and noted the update for delegated responsibilities and provided comments. 

 

Minutes:

The Chairman passed over this item of the agenda to Mrs Fielder where she gave the Committee an investment update over the last quarter.

 

Mr Middleman explained the introduction of Exit Credits. This is a fundamental change for employers who exit the Fund and their guarantors. The change in the LGPS Amendment Regulations means that if an employer is in surplus, the Fund must pay out the surplus if the employer exits the Fund. Previously the Fund was not required to pay out the surplus.

 

It is critical that employers are aware of this and all policies are aligned with the recent change – in particular in relation to outsourcings or the recent admissions of the wholly owned Local Authority Trading Companies where any commercial contracts could also be affected. It will require consultation on changes to the Funding Strategy Statement (FSS). The Fund is currently writing to all employers regarding the change and to notify of the forthcoming consultation.  The correspondence will have a slightly different emphasis for some employers e.g. Councils who guarantee the liabilities of other employers in the Fund.

 

RESOLVED:

 

(a)        The Committee considered and noted the steps proposed due to the Regulation changes for exit credits; and

 

(b)        The Committee considered and noted the update for delegated responsibilities and provided comments.