Issue - meetings

AGREED RECOMMENDATIONS

Reasons for decision – to support the reduction of the pension fund deficit in a financially advantageous way to both the General Fund and the Pension Fund.  

Other options considered – as detailed in the report, the council also considered treating the deficit recovery payment as an investment, and also a ‘glide path’ approach which contributes additional money to the deficit recovery plan in earlier years and gives a less stark increase in later years.

Conflicts of interest / dispensations granted – none

RESOLVED:

a)     That despite the deficit reducing, the London Borough of Islington Pension Fund was identified by the Government Actuaries Department as the fourth lowest  fund out of 87 in terms of a comparison with time taken to recover the deficit versus the anticipated deficit payments through to 2023, be noted.

b)     That the options in relation to the reduction of the Fund deficit and the consequences of each option be noted.

c)     That implementation of options 4 and 5 be agreed and the Section 151 officer be authorised, in consultation with the Executive Member for Finance and Performance, to approve the payments and budget adjustments necessary.

d)     That the recommendation to Full Council on the 23^rd September 2021 on the adoption of a Flexible Use of Capital Receipts policy in order to achieve an ongoing revenue saving in relation to reduced costs of the Pension Deficit be approved.

e)     That further Executive approval may be sought to make subsequent payments from fortuitous underspends and flexible use of capital receipts where there is a clear rationale for this in the long term interests of residents be noted.

Reasons for decision – to support the reduction of the pension fund deficit in a financially advantageous way to both the General Fund and the Pension Fund. 

Other options considered – as detailed in the report, the council also considered treating the deficit recovery payment as an investment, and also a ‘glide path’ approach which contributes additional money to the deficit recovery plan in earlier years and gives a less stark increase in later years.

Conflicts of interest / dispensations granted – none