The deputy leader of West Norfolk Council says the fact that the council’s net pension deficit has increased by a further £8 million is “nothing to be unduly worried about”.
The pension deficit has increased during 2012 and 2013 to £45.9 million from £37.2 million.
Deputy leader Brian Long said the figures, revealed in a cabinet report on the statement of accounts, are a “snap shot” and subject to change.
The figures areIt states that the ongoing liabilities to the fund have increased by 15 per cent and that the deficit will be dealt with over a 30-year period.
Mr Long said: “I don’t believe it is something to be unduly worried about. It is not something we have to find straight away.
“If you look at our reserves we have £93 million.
“It is a snapshot of the liabilities taken on a certain day.
“All sorts of companies whether private or public sector will find they show at certain times a deficit in the pension scheme or a surplus.
“When times are good and share prices are high and investment rate returns are good the deficit will go down.”
The pension liability was taken on March 31 this year when the ongoing liabilities were found to increase from £121.6 million to £140 million and the value of council’s assets had gone up from £84.3 million to £94.1 million.
A report to the cabinet meeting on Monday, September 16, stated: “The statutory arrangements for funding the deficit means that the financial position of the authority remains healthy.
“The deficit on the local government scheme will be dealt with over a period of 30 years by the council paying increased contributions over the remaining working life of the employees.”
The report also states that the council’s short-term borrowing has remained steady at £6.5 million. It also states that the council’s short-term investment balance has also remained relatively stable at £19.9 million with an additional £6 million classified as cash and cash equivalents.