Issue - meetings

Report by the Director of Finance and Support Services.

The Committee is asked to consider the Exit Credit Policy.

18.1     The Committee considered a report by the Director of Finance and Support Services (copy appended to the signed minutes).

18.2     Rachel Wood introduced the report and gave an update on exit credit regulations and the management of surplus funds.  A new exit credit policy had been written for consideration by the committee.

18.3     The Committee raised concerns for future liabilities following an employer exit from the fund.  – Rachel Wood explained that work would be done with the actuary to consider a prudent view on future events.  Once an exit payment had been made, there was no ability to charge an employer in the future for any deficits.  The approach proposed in the policy should reduce the risks for the fund.  Steven Law, Hymans Robertson, added that there were no guarantees on the future and so it was important to take an approach which would put in the fund in a good position to absorb risks.

18.4     Resolved – that the Committee unanimously agrees to adopt the Exit Credit Policy for inclusion in the Funding Strategy Statement, subject to consultation with employers.  The Committee acknowledges that the Director of Finance and Support Services will consider any feedback on the Exit Credit Policy from employers and, subject to material feedback being received which alters the policy’s intent, reflect any amendments to the policy and adopt without further referral to the Committee.