Funding Strategy Statement31/07/2017
The Funding Strategy Statement (FSS) has been prepared by Carmarthenshire County Council (the Administering Authority) to set out the funding strategy for the Dyfed Pension Fund (the Fund), as required by legislation.
Ensuring that the Fund has sufficient assets to meet its pension liabilities in the long term is the fiduciary responsibility of the Administering Authority. The long term objective is for the Fund to achieve this 100% solvency level over a reasonable time period and then maintain sufficient assets in order for it to pay all benefits arising as they fall due.
The strategy adopted by the Fund is therefore critical in achieving this. The purpose of the FSS is to set out this strategy as it applies to each Fund employer. Particular areas where employers may wish to focus their comments are the appropriateness of the assumptions, the proposals in relation to the deficit recovery plan, any comments in relation to phasing/stepping of any contributions increases, and information in relation to the affordability of contributions and specifically whether there is any particular year over 2017-2020 which will be more challenging for you.
The general principle is that the assumptions used, taken as a whole, will be chosen sufficiently prudently for pensions already in payment to continue to be paid, and to reflect the commitments that will arise from members’ accrued pension rights. The recovery plan aims to recover any deficits over a reasonable timeframe - the Fund’s average recovery period is 16 years.
The FSS has been developed alongside the Fund’s investment strategy on an integrated basis taking into account the overall financial and demographic risks inherent in the Fund.