The full agenda, reports and minutes of today's meeting of the Strathclyde Pension Fund Committee are now available.

 

Actuarial valuation 2017

The Committee received the preliminary results of the actuarial valuation as at 31 March 2017 which indicate:

  • a total funding level of 105% (assets as a % of liabilities). This is higher than the 2014 level of 94%; and
  • an employer cost for future service of 28.5% of pensionable payroll. Also higher than the 2014 level of 19.9%

The actuary confirmed that the funding objective can be met if the employer contribution rate for our main employers is held at the current rate of 19.3% (of pensionable payroll). 19.3% will remain the rate for our main employers from 1 April 2018 for 3 years.

Employers not in the main group pay contribution rates individual to their own circumstances. These will be advised to employers during December.

Based on these results, the Committee approved a draft Funding Strategy Statement for consultation.

Investments

The Committee approved 2 new investment proposals for the Strathclyde Direct Investment Portfolio:

  • £50m in Hermes Infrastructure Fund II in utilities, renewable energy, transport & social infrastructure assets
  • £50m in Dalmore Capital Fund 3 in a diversified portfolio of low volatility, infrastructure equity assets

The Fund's total return for the quarter ending 30 September 2017 was +1.9% compared to the FTSE World index return of +1.7%.

The Fund's value as at 30 September 2017 was £20,428m.

The Fund's value as at 31 October 2017 was £20,813m.

Administration

The Committee approved a project to reconcile and correct Guaranteed Minimum Pension (GMP) values.

Two new employers have joined the Fund: Live Argyll and Enable Glasgow.

The Committee also noted audit, financial and risk register reports.