Issue - meetings
Pension Contribution Prepayment
Meeting: 21/09/2017 - Pensions Committee (Item 5)
5 Pension Contribution Prepayment PDF 87 KB
Minutes:
Bola Tobun, Investment And Treasury Manager presented a report which considered the potential economic benefits to the Council from the pre-payment of the Local Government Pension Scheme (LGPS) deficit contribution for the three years 2017/18 to 2019/20 by being able to access potentially higher investment returns in the Pension Fund.
The Council pays a contribution towards the pension deficit as a lump sum figure calculated by the Actuary. As the pension fund has scope to invest in higher risk investments earning potentially a higher return, there is scope for the Council to prepay the 3 deficit contributions due for 2017/18, 2018/19 and 2019/20 in 2017/18 but at a lower net present value amount of £520,000 per year.
RESOLVED:
1. To approve the principle of accepting the prepayment of pension deficit contributions into the Pension Fund for the three years 2017/18 to 2019/20 in principle.
2. To delegate to the Corporate Director, Resources, the determination of the actual amount to be pre-paid to equate to the £15m annual instalments per the Actuary’s report.