Neil Buxton, Technical Specialist - Pension Fund Policy and Governance presented this report, explaining that following an amendment to the Local Government Pension Scheme Regulations, a review had been undertaken of the Funding Strategy Statement and subsequent amendments were recommended to provide additional flexibilities to manage the financial impact of certain pension fund issues on employers such as flexibilities in the making of exit payments and the facility to amend contribution in between valuations. Whilst the flexibilities were optional for employers, the Fund retained discretion over their use. Since publication of the report, information had been received about the outcome of a court case which involved the challenge of a scheme manager’s approach to a funding strategy statement and the Local Government Association had recommended all Funds review the wording of their statements going forward.
Members noted that the changes were not significant and, in response to questions, Neil Buxton advised that the funding strategy statement needed to be reviewed annually and that deferment would occur when there were triggers for leaving the scheme, for instance a contractor at the end of their contract or a community organisation with no members.
That the Pension Fund Investment Sub-Committee noted the report.