Updating the myners principles
The FSS for the London Borough of Bromley Pension Fund was previously updated in 2009 and following a detailed review a revised statement was presented for approval.
The regulations also require the Council to prepare, publish and maintain a written statement of the principles governing its decisions about Pension Fund investments.
The Finance Director referred to actuaries taking a long term view.
This results in the actuarial review being undertaken every three years with no interim review during periods of significant changes in performance in financial markets.
A suggestion was also made about the timing of investments. 7000, the Fund’s past deficit contribution should be lower and where the FTSE100 dropped to a lower level (e.g.
5000) it was suggested that this would be a better time to invest i.e.
We recommend that the SIP should be comprehensive and go beyond the legally required minimum content.If you have fully documented not only your investment decisions, but your investment decision making process and also the rationale for the strategy, then this ought to offer you some protection in the event of you being challenged as a trustee.However, for your SIP to offer you some protection, we believe that it is vital that it reflects your actual policies rather than an idealised version.Officers were not financial advisers and any financial advice would also assist in assessing the performance of the fund managers compared to others.The Chairman suggested that any costs would be offset by the costs incurred in seeking advice from the Council’s actuaries, Barnett , from whom advice is currently sought on an ad hoc basis.