Issue - meetings
Section 13 Valuation Results based on 31st March 2016 Triennial Valuation of Pension Schemes
Meeting: 29/11/2018 - Pensions Committee (Item 6)
Additional documents:
Minutes:
The Chair to invite Bola Tobun, Investments and Treasury Manager to present the report that provided Members with information on the Section 13 analysis completed by the Government Actuary’s Department (GAD) using the 2016 valuations.
The Committee noted that:
- The LGPS is a funded scheme and periodic assessments are needed to ensure the fund has sufficient assets to meet its liabilities. Employer contribution rates may change depending on the results of valuations. Scheme regulations set out when valuations are to be carried out;
- Each LGPS pension fund is required to appoint its own fund actuary, who carries out the fund’s valuation. The fund actuary uses a number of assumptions to value the liabilities of the fund. Liabilities are split between those that relate to the past (the past service cost), and those that relate to the future (the future service cost). The results of the valuation may lead to changes in employer contribution rates for both future and past service costs.
- The report is based on the actuarial valuations of the 91 funds, with data provided by the funds and their actuaries, and a significant engagement exercise with affected funds. GAD is committed to preparing a section 13 report that makes practical recommendations to advance the reporting aims. Also expecting that their approach to section 13 will continue to evolve to reflect ever-changing circumstances and feedback received.
The Chair Moved and it was:-
RESOLVED
To note the report.