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Croydon Pension Fund Employers’ Forum 2009

Pensions Open Day Session 1: Councillor Yvette Hopley Vice-chairman of the Pensions Committee Session 2: Councillor Dudley Mead Chairman of the Pensions Committee. Croydon Pension Fund Employers’ Forum 2009. Local Government Pension Scheme “Facing the Future” (Again?). Bob Holloway.

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Croydon Pension Fund Employers’ Forum 2009

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  1. Pensions Open DaySession 1: Councillor Yvette HopleyVice-chairman of the Pensions CommitteeSession 2: Councillor Dudley MeadChairman of the Pensions Committee

  2. Croydon Pension FundEmployers’ Forum 2009 Local Government Pension Scheme “Facing the Future” (Again?) Bob Holloway

  3. What’s the message? • Affordability – Mark II • Options – • Cost sharing • More flexibilities – 30 year spread periods? • Scheme re-design • Do nothing – and pray to your God • What else is on the horizon • Investment Regulations

  4. Affordability – Mark II • Public Sector reforms • 2004 flexibilities • 2007 valuation (phew!) • Credit Crunch • Icelandic banks • Pressure on public service pension schemes • HM Opposition/Media/Taxpayers Alliance • 2010 Valuation?

  5. Options – Cost Sharing • Part of Public Sector reform package • Arrangement in place by March 2009 • Much discussion • Much agreement? • Agreement in principle • Disagreement about detail/methodology • Essential for scheme sustainability

  6. Options – More Flexibilities? • Government policy on council tax • 2004 “flexibilities” • Spreading periods • Phasing-in periods • Recovery periods – Sacrosanct? • Why not 30, 50 years? • Constitutional permanence • Barriers? • actuarial standards • Pensions jealousy

  7. Options – Scheme Re-design? • Why? • cost pressures • employers’ covenant • pressure on public service pension schemes • Government says so • When? • What? • How?

  8. Options – Do nothing?

  9. Investment Regulations • Consolidation exercise • New regs in place April 2009 • General tidy up, but – • define “investment” (duty of care/conflicts) • separate bank accounts • borrowing • employer-related loans • CIPFA Working Group • Consequences of “credit crunch”

  10. LGPS Reforms

  11. THE BENEFITS OF PAYING ADDITIONAL VOLUNTARY CONTRIBUTIONS Richard Harrison – Account Director Prudential 5th February 2008

  12. WHY PRUDENTIAL? • One of the UK’s leading life and pension providers • Over 150 years’ experience1 • Over 20 million customers world-wide2 • One of the few companies with a with-profits fund rated AA+ by Standard and Poor's3 • An experienced investment team • What Investment “Joint Best Pension Provider” 20074 1. Source: Pru Factfile 2007 2. Source: Pru Factfile 2007 3. Source: Standard & Poor’s, August 2007 4. What Investment July 2007

  13. Pensions Open DayNigel CookHead of Pensions & Treasury

  14. The Challenges facing the LGPS

  15. The State of the Croydon Pension Fund

  16. Our Future Investment Strategy

  17. Embedding the New Scheme

  18. Developments for 2009

  19. Drop in Sessions

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