The Head of Financial Governance and Revenues presented the 2017/2018 Draft Annual Report and Accounts for the Teesside Pension Fund. The Annual Report and Accounts provided an opportunity for stakeholders to be updated on recent changes to the Fund's membership, income and expenditure and the change in the size of the Fund's investment assets.
The overall financial performance of the Fund for the year to 31 March 2018 was a small positive increase. The Fund's value remained at approximately £3.9 billion, a small increase over the year of approximately £37 million.
The membership of the Fund had increased, with total membership at the year-end now standing at 69,295, an increase of 466 over last year. The number of active members had increased by 382 (0%) over the year, and decreased by 1.85% over the past five years. The number of pensioners increased by 580 (2.6%) over the year, and increased by 9.3% over the past five years. The number of deferred members increased last year by 382 (1.7%), and increased by 4.3% over the past five years.
In the financial year the Fund received over £4.5 million from early retirement re-charges, down on last year's figure of £5.3 million, a 14.4% decrease on last year.
At the last actuarial valuation at 31 March 2016, the actuary declared a funding level of 100%. This allowed many of the employers in the Fund to decrease the amount of their contribution for the next three years. The next valuation would be carried out in March 2019. In response to a query, the Interim Head of Pensions Governance and Investment confirmed that he was happy with the performance of the Fund against the benchmark, since it continued to meet its key objective, which was to be 100% funded.
The Council adopted International Finance Reporting (IFRS) from 1 April 2010 and the Pension Fund accounts complied with the reporting standards.
The Head of Financial Governance and Revenues stated that it had been a challenging year for both Officers and Auditors having to produce the draft accounts a month earlier and the final accounts two months earlier than previously, due to new Government regulations. Council Officers had demonstrated the Councils values of integrity, passion and focussed on what matters, to complete the accounts.
Two minor queries were raised in relation to the meeting attendance and declarations of interest on page 15 of the submitted report and the Interim Head of Pensions of Governance undertook to make the required amendments.
The Vice Chair also acknowledged the work of Officers to ensure the Fund continue to achieve 100% funding, coupled with the challenges of the move to the Border to Coast Pension Partnership (BCPP). The Chair, on behalf of the Committee, endorsed the comments made in relation to Council Officers hard work and dedication.
ORDERED that the Annual Report and Accounts 2017/2018 were adopted.