Council pension fund is safe with no financial loss

With reference to your article on the London Borough of Barking and Dagenham Pension Fund (Bank gambled pension fund without consent – 12 August). There was no threat to the pension fund whatsoever, and also that the fund earns fees for this activity. It

With reference to your article on the London Borough of Barking and Dagenham Pension Fund (Bank gambled pension fund without consent - 12 August).

There was no threat to the pension fund whatsoever, and also that the fund earns fees for this activity.

It is important to note that no financial loss was suffered in any way as a result of the situation referred to in your article and that the pensions of those who pay into the scheme are safe

The Council's Pension Fund is one of the best funded in the country as a result of many years of prudent financial management.

It is not unexpected that due to recent economic events, the value of the fund's assets was hit in the last financial year, and this picture is consistent for pension funds across the country, and indeed, the world.

As part of a routine audit it was discovered that there was a breach of our lending guidelines .The Council fully accepted the findings of the audit report and acted quickly to ensure that controls were put in place so that this will not happen again..

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We are one of a number of Councils which did not invest funds in high risk deposit accounts. We only invest in blue chip company shares; this is why our fund is weathering the economic downturn and is in good shape.

As your article acknowledged, the Council's finances, as a whole, are in good shape, and we are pleased that despite the recession, we are still delivering and developing high quality services on behalf of local people.

Councillor Graham Bramley

Cabinet member for finance and efficiency

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