Issue - meetings

The purpose of this report is to update the committee on the 2025 Triennial Valuation and provide members with the Contribution Rate Modelling.

The purpose of this report is to update the committee on the 2025 Triennial Valuation and provide members with the Contribution Rate Modelling.

Sawan Shah (Head of Finance Pensions and Housing Companies) then moved on to introduce a report from the Corporate Director Finance & Resources presenting an analysis from the Fund’s actuary regarding the contribution rate strategy for the Council for the 3 years from 1 April 2026.

In presenting the report, members noted the process undertaken with the Council having commissioned, in line with the valuation process a contribution rate modelling exercise allowing consideration of a long term funding strategy for the stabilised employers within the Fund including Brent Council, local authority schools and a number of academy schools in Brent with the testing having involved the use of an ‘Asset Liability Modelling’ approach involving the assessment of a range of different simulations and contribution rate scenarios assessed against a number of specific metrics.  Officers had subsequently been working with the actuary to review the contribution rate payable by Brent Council over the period from 1 April 2026 to 31 March 2029 with the results of the modelling assessment felt to be positive suggesting that the mechanism for the long-term funding of the scheme remained fit for purpose with a reduction in the Council contribution rate over the next 3 years therefore identified as meeting the Fund’s criteria for likelihood of success and representing a balanced approach in allowing for the funding improvements to be reflected in affordability for the Council and security for the pension fund.

Craig Alexander (as Hymans Roberston Actuary) was then invited to provide the Sub Committee with a detailed presentation on the 2025 valuation funding review results, as detailed in Appendix 1 of the report circulated with the agenda detailing the objectives and approach towards the funding review along with details outcomes of the modelling approach outlined and recommendations being made as a result.

Issues highlighted in response to the presentation included the use of contributions to fund local economic investment, potential impact any reduction in employer contributions may be able to make towards the Councils budget saving target along with consultation and engagement with employers.

Having thanked Sawan Shah and Craig Alexander for the update provided the Sub Committee RESOLVED on the basis of the recommended approach outlined at the meeting and information provided toapprove the proposed reduction in the employer contribution rate for the next three financial years for Brent Council, as set out in section 3.4.7 of this report and Appendix 1.