Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: April 8, 2025

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

Content: 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%.