Purpose

To approve the contribution
strategy for the Employer Pension Contributions for the three
financial years 2026/27, 2027/28 and 2028/29

Decision

The Cabinet:
 
1.1 
Approved the pension contribution strategy being based on option 2B
(detailed in the Cabinet report for 2026/27 to 2028/29.
 
1.2 
Subject to the above approval, approved the upfront payment of the
secondary element in advance (option 2B) in April 2026 and to
update the Medium Term Financial Strategy for 2026/27 to 2028/29
based on a prudent illustrative discount rate of 4.4%.
 
1.3 
Approved an element of the savings being transferred to the
corporate inflation budget to mitigate the risk of a pay award that
is higher than the budgeted level of 2%.
 
1.4 
Noted that the MTFS for 2029/30 onwards will be based on the
Actuary’s current strategy of +/- 1%.