WELCOME TO:
HERTFORDSHIRE LGPSEMPLOYERS MEETING
Hertfordshire County Councilwww.hertsdirect.org
OVERVIEW OF PENSION FUND ACTIVITY
Chris SweeneyDirector of Finance, Information &
Commercial Services
Hertfordshire County Councilwww.hertsdirect.org
Agenda
Review of the Year
Membership Statistics Accounts Investments AVCs
Looking to the Future
InvestmentsCost SharingAdministrationScrutiny
Review of the Year
Membership Statistics – Employees
Active members 28,042
Deferred Members 22,096
Pensioners 21,003
71,141
Review of the Year
Membership Statistics – Employers
County / District Councils 11Parish / Town Councils 37Scheduled Bodies 9Foundation Schools 40Contractors 31Other Bodies 66Total 194
Review of the YearAccounts
2007/08 2008/09to 31/12/08
Contributions in £138m £103m
Benefits Paid & Expenses £103m £80m
Net Investment Income £78m £55m
Value of the Fund £2,066m £1,728m
Review of the YearInvestments – Allocation at 31st December 2008
5.8%
44.5%
26.8%
3.6%
4.6%
5.1%
4.6% 5.1%
O/seas Bds O/seas Eqs UK Eqs UK GiltsUK I-L gilts Corp Bds Prop Cash
Review of the YearEconomic Headlines
Interest rates all time low
Technical recession
Unemployment 6.3%
Taxpayers underwriting banks bad debts
FTSE All share down 29.9% in 2008
Review of the Year
Impact on Investments
2008: minus 23.9%
Held: Lehman Brothers, AIG, RBS
Avoided: Hedge Funds, Madoff
Review of the Year
Standard Life AVCs
Reduction in value of Pension Sterling Fund
Subsequent reversal of decision
Clear information on investment decisions needed plus recommend financial advice
Looking to the Future
Investments - Long Term View
Not the time to sell
Fund Managers being cautious
Restructured fund management in May
5 year average performance still positive: + 4.0% per annum
Looking to the Future
Investments – Impact on Contributions
Funding level: 2007 85%now 55%
Next valuation 2010
Contributions fixed until 31st March 2012
Looking to the Future
Cost Sharing
Set out in new 2008 scheme
To be implemented – 2010 valuation
Aim is for employees and employers to share future cost increases
Employee contribution or benefits
Use national model fund – Data Quality Letter
Looking to the Future
Administration
HCC and Serco working together
Scheme Booklets
Newsletters / Bulletins
Improvement Agenda
Looking to the Future
Scrutiny of Public Sector Schemes
Loss of private sector final salary schemes
Pressure from taxpayers
Other public sector schemes unfunded
Management Changes
Director of Finance
to be replaced by
Director of Resources and Performance
