Annex 2

RECENT TRENDS IN PENSION FUND ACTIVITIES

1. Number of Contributors

For the past twelve years all part-time recruits have joined the LGPS automatically, whereas previously they only joined if they opted in.

2. Number of Pensioners

This graph continues to show a remarkably consistent increase in the number of pensioners in the fund.

3. Annual Income

These diagrams illustrate the growth of the Fund's income since 1978, together with the split over the four main elements. Income has generally grown steeply in recent years, although it dropped slightly in 2000/01. However it has started to increase again since then as a result of increased employers' contribution rates.

4. Realised and Unrealised Profits

This diagram shows the realised profit and, from 1986/87 when figures are available, unrealised changes in market value.

5. Growth of the Pension Fund

Markets have made a continued recovery this year, as the diagram below shows.