Issue - meetings
Fund Liquidity 2020/21 to 2022/23
Meeting: 25/03/2021 - Pensions Committee (Item 5)
5 Fund Liquidity 2020/21 to 2022/23 PDF 474 KB
Additional documents:
Minutes:
Ms Miriam Adams, Interim Head of Pensions and Treasury presented the Pension Fund’s projected cash flow forecast for 2020/21 to 2022/23. The Fund is projecting a £20.335m projected cash balance. This includes the £20m draw down from proceeds of equity protection which the Committee agreed in July for operational use and projected cash flow short falls identified in 2021/22 and 22/23. No further shortfall is forecast for the next 2 financial years.
Ms Adams referred committee members to the table at paragraph 3.3 and said this showed the membership trends over the last few years. She said 324 members were added when the Veolia contract came to an end, with pension numbers increasing slightly. She referred members to the Appendix A which showed the cash flow forecast for future years.
In response to questions from members the following was noted:
- In reference to the ‘other admin expenses’ shown in appendix A, Ms Adams clarified this related to changes that have been made in relation to the pension administration software contract. She said payments were now being made directly from the pensions bank account rather than a recharge to the Council. She said the figures shown also related to invoices received in relation to the work done on the 2019 valuation and work undertaken by Hymans in relation to the Annual Allowance and other areas.
The Pensions Committee RESOLVED to:
- Note the cash flow forecast from operational activities (Appendix A)
Meeting: 22/03/2021 - Pension Board (Item 6)
6 Fund liquidity 2020/21 to 2022/23 report PDF 474 KB
Additional documents:
Minutes:
Ms Miriam Adams, Interim Head of Pensions and Treasury stated the report provided an update on the Pension Fund’s projected cash flow forecast for 2020/21 to 2022/23. She said the Fund was projecting a £20.335m cash balance including the £20m drawn down from the proceeds of equity protection which the Pensions Committee agreed in July 2020 for operational use and projected shortfalls identified in 2021/22 and 2022/23. Ms Adams said no further shortfalls were forecast for the next two financial years.
In response to questions from Members the following was noted:
- Appendix A of the report set out the three-year forecast for the fund. The plan was to pick up on issues and identify where there might be shortfalls. Part of the proceeds received from the equity protection had been used to balance future cashflow of the Fund.
- In respect if the strategy would need to identify sources of income, in three-years’ time Ms Adams said a report had been presented to the Pensions Committee regarding which assets to liquidate first if this was required. She said the existing mandate had been turned around so that instead of just reinvesting the money into equities the mandate required a returns dividend
The Pensions Board RESOLVED to:
- note the recommendations being made to the Pensions Committee who were to consider this matter at their meeting of 25th March 2021:
The Pensions Committee is recommended to:
- Note the cash flow forecast from operational activities (Appendix A)