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WELCOME TO: HERTFORDSHIRE LGPS EMPLOYERS MEETING

Hertfordshire County Council www.hertsdirect.org. WELCOME TO: HERTFORDSHIRE LGPS EMPLOYERS MEETING. OVERVIEW OF PENSION FUND ACTIVITY. Hertfordshire County Council www.hertsdirect.org. Chris Sweeney Director of Finance, Information & Commercial Services. Agenda.

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WELCOME TO: HERTFORDSHIRE LGPS EMPLOYERS MEETING

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  1. Hertfordshire County Council www.hertsdirect.org WELCOME TO:HERTFORDSHIRE LGPSEMPLOYERS MEETING

  2. OVERVIEW OF PENSION FUND ACTIVITY Hertfordshire County Council www.hertsdirect.org • Chris SweeneyDirector of Finance, Information &Commercial Services

  3. Agenda • Review of the Year Membership Statistics Accounts Investments AVCs • Looking to the Future Investments Cost Sharing Administration Scrutiny

  4. Review of the Year • Membership Statistics – Employees • Active members 28,042 • Deferred Members 22,096 • Pensioners 21,00371,141

  5. Review of the Year • Membership Statistics – Employers • County / District Councils 11 • Parish / Town Councils 37 • Scheduled Bodies 9 • Foundation Schools 40 • Contractors 31 • Other Bodies 66 • Total 194

  6. Review of the Year • Accounts • 2007/08 2008/09 to 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

  7. Review of the Year • Investments – Allocation at 31st December 2008

  8. Review of the Year • Economic Headlines • Interest rates all time low • Technical recession • Unemployment 6.3% • Taxpayers underwriting banks bad debts • FTSE All share down 29.9% in 2008

  9. Review of the Year • Impact on Investments • 2008: minus 23.9%Held: Lehman Brothers, AIG, RBSAvoided: Hedge Funds, Madoff

  10. 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

  11. 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

  12. Looking to the Future • Investments – Impact on Contributions • Funding level: 2007 85% now 55% • Next valuation 2010 • Contributions fixed until 31st March 2012

  13. 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

  14. Looking to the Future • Administration • HCC and Serco working together • Scheme Booklets • Newsletters / Bulletins • Improvement Agenda

  15. Looking to the Future • Scrutiny of Public Sector Schemes • Loss of private sector final salary schemes • Pressure from taxpayers • Other public sector schemes unfunded

  16. Management Changes • Director of Finance to be replaced by • Director of Resources and Performance

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