Issue - meetings
Funding Strategy Statement
Meeting: 15/02/2023 - Clwyd Pension Fund Committee (Item 39)
39 Funding Strategy Statement 
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To provide Committee Members with the Funding
Strategy Statement for approval, following consultation with
employers.
Additional documents:
Decision:
(a) The Committee noted the activity since the November 2022 meeting, including consultation with employers.
(b) The Committee approved the Funding Strategy Statement.
Minutes:
The Chair handed over to Mr Middleman, the Fund’s Actuary, to talk the Committee through the key points in this report.
- Following approval of the draft Funding Strategy Statement (FSS) by the Committee in November, the consultation with employers encouraged employers to provide feedback. A number of employers fed back generally positive responses regarding the construction of the strategy which allowed employers the flexibility to manage their own financial sustainability in the context of the Fund’s improved funding position.
- The FSS set a framework with a minimum employer contribution requirement that the Fund felt was sustainable, however a number of employers expressed an intention to pay above this minimum requirement in order to further help the sustainability of contributions. Mr Middleman noted that this was a positive outcome and evidenced that the messages on sustainability had been heard and actioned.
- Following consultation with the employers, there were no changes to fundamental assumptions within the report since the draft was received by the Committee. Mr Middleman highlighted paragraphs 1.08 and 1.09, which addressed two changes to the strategy since the draft.
o Climate risk was quantified by the actuary using implications under different scenarios. This had been done on a consistent basis to analysis on the expected returns as per earlier discussions.
o Wording was added to the Termination policy, whereby employers can exit the Fund with an exit debt or credit, enabling the formal ability to review the policy, although it was noted that not any or many employers were expected to exit the Fund.
RESOLVED:
(a) The Committee noted the activity since the November 2022 meeting, including consultation with employers.
(b) The Committee approved the Funding Strategy Statement.