Council received a report which had been considered at Cabinet on 4 July.  An extract of the minutes had been circulated.

RESOLVED –

1.      that Watford Borough Council enters into the agreements with the Hertfordshire Pension Fund and Watford Community Housing.

2.      that minor amendments to the legal agreements be delegated to the Director of Finance.

Councillor Watkin introduced the report and explained that it was proposed to remove a risk from Watford Community Housing (WCH) by incorporating staff from WCH into the Watford Borough Council (WBC) pension scheme but still funded by the WCH.

The Head of Finance commented that pension fund actuaries took a long term view of the fund and when the number of people in the fund became very low the fund would close for the organisation and the actuaries would require a payment to meet the liabilities.  The report before Cabinet asked for the agreement to transfer three members of staff to the WBC pension fund.  The fund was presently in surplus and as WBC already guaranteed any deficit for WCH the risk to the council remained unchanged.

RESOLVED

That Cabinet:

1.     Recommends to Council that the agreements with Hertfordshire Pension Fund and WCH are entered into.

2.     Delegates minor amendments to the legal agreements to the Director of Finance.