Issue - meetings

The purpose of this report is provide an update on the 2025 Triennial Valuation & Funding Strategy Statement (FSS) review.

Members are asked to note the report also includes (as an exempt appendix) details on the Whole Fund Result, which will be considered in the closed session of the meeting.

The purpose of this report is provide the Committee with an update on the 2025 Triennial Valuation & Funding Strategy Statement (FSS) review.

Members are asked to note the report also includes (as an exempt appendix) details on the Whole Fund Result, which will be considered in the closed session of the meeting.

George Patsalides (Finance Analyst) introduced a report from the Corporate Director Finance & Resources, updating the committee on the 2025 Triennial Valuation and setting the context for the reports from the Fund Actuaries, Hymans Robertson, to be considered in the closed part of the meeting relating to the initial results of the valuation and review of the Funding Strategy Statement (FSS).

The key issues outlined in relation to the Funding Strategy Statement were noted as follows:

·            The requirement for a formal valuation of the whole Fund to be undertaken every 3 years under Regulation 62 (1) of LGPS Regulations 2013 to assess and examine the ongoing financial position of the Fund.  The purpose of the update was to compare actual experience against assumptions made at the last valuation; value the assets and liabilities of each individual employer and the pension fund as a whole using data from the Fund’s administration system and financial records; set employer contribution rates, including for the Council, for the next 3 years (1 April 2026 to 31 March 2029) and to review the Funding Strategy Statement (FSS) whilst also performing a health check on the Fund’s solvency.

·            The last valuation had taken place as of 31^st March 2022 with the next one due to be carried out as of the 31^st of March 2025. The results of each valuation were required to be reported to the administering authority within twelve months of the valuation date.

·            The actuary was required to calculate the funding level at each valuation. This was calculated as the ratio of the market value of the assets and the value of the benefits built up to the valuation date for the employees and ex-employees. If this figure was less than 100% it meant, there was a shortfall and therefore a deficit; if it was more than 100% then there was said to be a surplus. The previous valuation had shown that the Brent Pension Fund overall had a funding position of 87%.  Sawan Shah noted that the 2025 valuation process had now commenced, with an indicative timeline of the valuation process provided within section 3.3 of the report.

·            In highlighting that the whole fund results look at the overall funding level initial results from the current valuation had identified that various employers had different funding and risk levels.  The initial results of the 31 March 2025 Triennial Valuation had been received from the Fund Actuary (Hymans Robertson) which had been provided for consideration within Appendix 1 of the report (classified as exempt) which members were advised would be subject to a more detailed presentation during the closed part of the meeting with the results outlining how the funding position had changed since the last valuation in 2022.

In terms of a high-level summary, members noted that the results had shown an improvement in the Fund's funding position since the last valuation in 2022. The Fund was now in a surplus position, meaning the value of its assets was higher than the  ...  view the full minutes text for item 8