Pension Fund
- Under
Local Government Pension Scheme Regulations the County Council is required to maintain a Pension Fund
for certain employees together with the majority of employees of District Councils and other bodies
that were formerly under the control of Local Authorities, such as higher education establishments and
the civilian employees of Leicestershire Police and Fire Authorities. Teachers, Firefighters and Police
Officers all have their own schemes. In addition, certain other bodies are eligible to join if the County
Council agrees, and a number of voluntary/charitable bodies and Loughborough University have obtained
membership in this way. Membership of the scheme is optional for all employees, although a written election
not to join must be made if employees wish to remain outside the scheme.
- Actuarial
Position:
Local Government Pension Funds, in common with other pension
funds in both public and private sectors, have periodic valuations to assess the extent to which assets
accumulated are adequate to meet future liabilities. To ensure that the fund remains financially sound
to meet benefit payments, the actuary recommends the rate of employers’ contributions on an individual
employer basis for each employing body in the fund on a triennial basis.
The Council’s
actuary, Hymans Robertson and Co, completed the latest valuation, as at 31 March 2001. This review resulted
in a requirement for the common contribution rate of employer’s contributions to increase from 185%
to 215% of an employee’s contribution. This increase is being phased in over a period of up to 3 years
commencing in 2002/03 and be completed in the 2004/05 financial year. This common rate for all employers
is adjusted to reflect the individual circumstances of different employing bodies.
- The
average total employers rate during 2002/03 was approximately 192% (183% 2001/02) of the employees’
rate. Thus for an employee paying 6% of earnings, the employer on average will pay 11.52% (10.98% 2001/02).
Statement of Accounts Contents
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