WELCOME TO: HERTFORDSHIRE LGPS EMPLOYERS MEETING

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WELCOME TOHERTFORDSHIRE LGPSEMPLOYERS MEETING
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OVERVIEW OF PENSION FUND ACTIVITY

• Chris SweeneyDirector of Finance, Information
  Commercial Services

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Agenda

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

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Review of the Year

• Membership Statistics Employees
• Active members 28,042
• Deferred Members 22,096
• Pensioners 21,003 71,141

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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

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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 1,728
m
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Review of the Year

• Investments Allocation at 31st December 2008

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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

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Review of the Year

• Impact on Investments
• 2008 minus 23.9Held Lehman Brothers,
  AIG, RBSAvoided Hedge Funds, Madoff

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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

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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

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Looking to the Future

• Investments Impact on Contributions
• Funding level 2007 85 now 55
• Next valuation 2010
• Contributions fixed until 31st March 2012

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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

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Looking to the Future

• Administration
• HCC and Serco working together
• Scheme Booklets
• Newsletters / Bulletins
• Improvement Agenda

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Looking to the Future

• Scrutiny of Public Sector Schemes
• Loss of private sector final salary schemes
• Pressure from taxpayers
• Other public sector schemes unfunded

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Management Changes

• Director of Finance to be replaced by
• Director of Resources and Performance