One of our core objectives is to ensure we have sufficient assets available to meet members’ benefit payments. These payments are guaranteed by regulations and will be met by contributions resulting from the funding strategy or asset returns and income resulting from the investment strategy. The funding and investment strategies are, therefore, very closely linked.
The employers within the pension fund pay the balance of the cost of delivering pension benefits to members once employee contributions and investment returns have been taken into consideration. The attached funding strategy statement focuses on how employer liabilities are measured, the pace at which the liabilities are funded and how employers, or pools of employers, pay for their own liabilities.
The statement sets out how Derbyshire County Council, as the administering authority of the pension fund, has balanced the conflicting aims of:
- affordability of employer contributions
- transparency of processes
- stability of employers’ contributions
- prudence in the funding basis
The funding strategy statement is prepared by the county council in collaboration with the fund’s actuary, Hymans Robertson LLP and following consultation with the fund’s employers and other stakeholders.
Links to useful documents