UNISON produce actuarial report on risks to Barnet Council Pension Scheme
In wake of concerns about the Barnet Councils One Barnet mass outsourcing policy, UNISON commissioned a report on the ‘Potential impact of reduced active membership of the London borough of Barnet Pension Fund’
The report makes scary reading for residents, staff and councillors:
“The net cash flow position of the Fund could reduce from around £22.9 million (positive) in 2010 to between £16.9 million (positive) and £25.0 million (negative) in 2012. Opt outs as low as 40% could result in a move from the Fund being cash positive to cash negative.
The Fund had a deficit (i.e. the difference between the assets and the liabilities) of £190 million as at 31 March 2010, which was partly as a result of the wiping out of around £27 million of the Fund’s assets following the collapse of the Icelandic bank. The Council is currently paying around £10.7 million a year to clear this deficit
The combined impact of the lower assets and higher liabilities will increase the deficit and could almost double the Council’s deficit contributions to £19.7 million a year from 2013. This is ultimately a cost to the taxpayer.
“A significant shift in outsourcing policy by Barnet Council set against a backdrop of mass opt-outs expected as a result of Government’s proposals to increase member contributions in the LGPS from April 2012, could lead to a significantly reduced active membership of the Fund.”
On Thursday 1 September, Agenda Item 9 Pension Fund Committee are informed they have £7 million less than they thought they had
“The overall effect of the adjustments listed below is to decrease Fund assets by £7.0m (Agenda 9)
On 22 June 2011 Pension Fund Committee were informed Barnet Homes had not noticed the Bond for Connaught’s Plc had lapsed. The consequence is an unplanned £1.492 million bill to Barnet council taxpayers
To view summary click here
To view Full report click here
