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Aims and purpose of the Fund

Find out more about the aims and purposes of the Nottinghamshire Pension Fund.

The aims of the Fund

  • to keep the contribution rate as constant as possible at reasonable cost to the taxpayers
  • to manage employers’ liabilities effectively
  • to ensure that sufficient resources are available to meet all liabilities as they fall due
  • to maximise the returns from investments within reasonable risk parameters.

The purpose of the Fund

  • is to receive monies in respect of contributions, transfer values and investment income
  • is to pay out monies in respect of scheme benefits, transfer values, costs, charges and expenses as defined in the relevant government regulations.

Actuarial valuations

The Fund’s actuary Barnet Waddingham carries out a valuation of the Fund every 3 years in line with Local Government Pension Scheme (LGPS) regulations. The purpose of the valuation is to review the financial position of the Fund and to set employer contribution rates.

The actuary estimates the amount of assets that will be required to meet the benefit payments owed to members as they fall due. Separate calculations are carried out to identify the expected cost of members’ benefits in respect of scheme membership completed before the valuation date (past service) and that which is expected to be completed after the valuation date (future service).

As part of this exercise the actuary makes forward-looking assumptions about:

  • rates of inflation
  • salary increases
  • longevity
  • investment returns

Recent actuarial valuation reports of the Fund are available here:

Sustainability

Discover the work Barnet Waddingham's internal sustainability groups have put in to improving its environmental impacts, and also how their consultants are working with clients to showcase how they too can be making changes to help the world around us, highlighting to them both climate risks and opportunities: Sustainability Report 2023

Investment pooling

The aim of investment pooling is to use the combined buying power of partnered funds to reduce costs, improve investment returns and widen the range of available asset classes for investment – all for the benefit of local government pensioners, employees and employers. LGPS Central (“the Pool”) is the asset pool which Nottinghamshire Pension Fund jointly owns with seven other LGPS funds in order to meet the government’s criteria for investment pooling issued in November 2015. The Pool has obtained FCA authorisation and manages collective investment vehicles on behalf of the participating funds.

The other partner funds are:

  • Cheshire Pension Fund
  • Derbyshire Pension Fund
  • Leicestershire Pension Fund
  • Shropshire Pension Fund
  • Staffordshire Pension Fund
  • West Midlands Pension Fund
  • Worcestershire Pension Fund

The LGPS Central Joint Committee consists of one elected member from each Council of the eight partner funds. The Committee meets twice per year, and its papers are available (after clicking, scroll down and expand the section entitled "LGPS Central Joint Committee").