Funding Strategy Statement

Governance

Funding is the making of advance provision to meet the cost of accruing benefit promises. Decisions taken regarding the approach to funding will therefore determine the rate or pace at which this advance provision is made.

Although the Regulations specify the fundamental principles on which funding contributions should be assessed, implementation of the Strategy is the responsibility of the Administering Authority, acting on the professional advice provided by the actuary.

The purpose of this Statement is to:

• Establish a clear and transparent fund-specific strategy which will identify how employers' pension liabilities are best met going forward
• Support the regulatory requirement to maintain as nearly constant employer contribution rates as possible
• Take a prudent longer-term view of funding those liabilities.

The intention is for the Aberdeen City Council Pension Fund Strategy to be both cohesive and comprehensive for each Fund as a whole, recognising that there will be conflicting objectives which need to be balanced and reconciled. Whilst the position of individual employers must be reflected in the statement within each Fund, it must remain a single Strategy for the Administering Authority to implement and maintain.