The West Mercia Supplies Pensions Joint Committee met to review the statement of accounts, approve pension liability charges, make policy decisions for the coming year, and confirm the scheme of delegations to the treasurer. Councillor Peter Stoddart was elected Chairman, and Councillor Roger Evans was appointed Vice-Chairman for the ensuing year. The committee approved the pension liability charges for 2025-26, and agreed to defer a decision on the policy for deficit recovery payments until the figures from the latest valuation are available in November.

Policy Decisions for 2026/27

The committee considered the policy decisions for 2026/27, focusing on the deficit recovery payment for the West Mercia Supplies Pension Fund¹. As the triennial actuarial valuation² figures will not be available until November 2025, the committee discussed options for managing the deficit recovery payments, which have been required since the committee's inception due to a deficit in the pension fund.

Three options were presented:

• Option A: The default position, where Shropshire Council would pay a monthly amount equivalent to £10,000 per month into the pension fund.
• Option B: To calculate whether to pay annually in advance or three years in advance once the valuation is known, and then hold a joint committee meeting to decide.
• Option C: Delegate the decision to the treasurer in consultation with the chair, who would share the report and valuations with the joint committee for feedback.

Councillor Rob Wharton expressed his support for option C, provided that all members were kept informed.

I'm happy to leave it to your discretion with the chair, but as long as we're just kept in the loop on what you're doing, I'm comfortable with that, to be honest. Ultimately, the committee approved option C, agreeing to defer the decision until the figures are available in November. Once the figures are received, the committee will consider whether to pay monthly, annually in advance, or for three years in advance. If there are any concerns or debate, a physical meeting will be reconvened to discuss the matter further.

Pension Liability Charges for 2025/26

The committee approved the pension liability charges for 2025/26, as detailed in Section 7 of the treasurer's report. These charges consist of four elements:

1. Deficit recovery payments: As decided previously, the payment of deficit recovery payments would be paid up front for three years. A value of just over £400,000 was paid out in 2023, covering the payments for 2023, 2024 and 2025.
2. Compensatory added years benefits: These relate to previous arrangements for early retirement, where payments are made annually to compensate the pension fund. The estimated figure for this year is just over £37,000, resulting in a cost of £9,265.37 per employer.
3. Local authority costs: These cover Shropshire Council's administration of the scheme, including costs for determining values, drawing up accounts, and managing the joint committee meetings. The total cost for this year is estimated at just over £3,185, or £749 per authority.
4. Other costs: These primarily relate to actuary costs, with no external audit costs as the audit is included in the local authority audit.

The committee also approved the amounts due to be paid by each member authority, as set out in Section 8 of the treasurer's report, and the payment mechanism outlined in Section 9. A single invoice will be sent to each authority, payable within 30 days, for just over £10,150.

Statement of Accounts 2024/25 and Annual Governance Statement

The committee approved the finalised Statement of Accounts 2024/25 and the Annual Governance Statement 2024/25. James Walton, Executive Director and Section 151 Officer at Shropshire Council, explained that the accounts primarily reflect the pension liability position and the small management costs related to its administration. He noted that variations in pension liability from year to year are often due to actuarial valuations and adjustments.

Scheme of Delegations to the Treasurer

The committee reconfirmed the scheme of delegations to the treasurer, as detailed in Appendix A of the treasurer's report. James Walton explained that this is a standard item brought forward annually to ensure the basic mechanics of the scheme can operate effectively, especially with changes in committee membership. The scheme of delegations allows the treasurer to manage the scheme's operations in the background.