Pensions Update
To receive a verbal update from a representative of the Cheshire Pension Fund.
Minutes:
Stephan Van Arendsen gave a presentation on the Cheshire Pension Fund.
He informed the Committee of progress made in respect of an announcement made by the Local Government Association (LGA) on 31 May 2012, of joint proposals with Trades Unions, relating to the Local Government Pensions Scheme (LGPS)
The Committee was informed that the major issues facing Cheshire East Council were:
· The 2010 valuation had highlighted across all LGPS Funds including Cheshire, a decrease in active membership and combined increase in deferred and pensioner membership
· Specifically in relation to Cheshire active membership had decreased from 50% to 45% between 2007 and 2010
· All employers were downsizing and that this was expected to lead to further active membership reductions
· Arrangements had to be considered in the event of significant future opt outs
· Councils were outsourcing services
· The number of contractors within the scheme was increasing – consideration would need to be given to the contribution strategies in place to ensure that they were the most effective that could be achieved
The Cheshire Pension Fund Committee had considered all of these issues and they now formed a key part of the pension fund managers’ work plan leading up to the next valuation (2013).
The proposed scheme involved moving from a final salary scheme to career average revalued earnings. Other changes included much higher contribution rates for higher salaried officers.
RESOLVED – That the presentation be received and noted.