North Yorkshire County County has said the value of its £4.9bn pension fund is secure.
It follows this week’s unprecedented move by the Bank of England to step in and calm markets after fears that some pension funds were at risk of collapse.
The bank ended up pledging to buy £65bn of government bonds, which many pension funds invest in, after their value plunged following last week’s government mini-budget.
To pay for retirement pensions, staff from Harrogate Borough Council and 30 other district, city and town councils in the county pay into the North Yorkshire Pension Fund through their salary. The fund is administered by North Yorkshire County Council.
According to the pension fund’s latest annual report, the fund has £141m in government bonds, also called gilts.
However, the investment is worth just 3.1% of the total portfolio. The majority of the fund has been invested in shares and other financial products.
North Yorkshire Pension Fund treasurer Gary Fielding said:
“We are monitoring the current situation closely. Although the UK financial market and the value of sterling have been under pressure, this has had a very limited impact on the fund.
“The investments are spread across the globe and in a range of assets classes, providing the fund with a high degree of resilience.”
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