Hymans Robertson LLP has carried out an actuarial valuation of the London Borough of Hillingdon Pension Fund 
("the Fund") as at 31 March 2007, details of which are set out in the report dated 19 March 2008 ("the Report"), 
addressed to the London Borough of Hillingdon ("the Client").  The Report was prepared for the sole use and 
benefit of our Client and not for any other party; and Hymans Robertson LLP makes no representations or 
warranties to any third party as to the accuracy or completeness of the Report. 
The Report was not prepared for any third party and it will not address the particular interests or concerns of any 
such third party.  The Report is intended to advise our Client on the past service funding position of the Fund at 
31 March 2007 and employer contribution rates from April 2008, and should not be considered a substitute for 
specific advice in relation to other individual circumstances. 
As this Report has not been prepared for a third party, no reliance by any party will be placed on the Report.  It 
follows that there is no duty or liability by Hymans Robertson LLP (or its members, partners, officers, employees 
and agents) to any party other than the named Client.  Hymans Robertson LLP therefore disclaims all liability and 
responsibility arising from any reliance on or use of the Report by any person having access to the Report or by 
anyone who may be informed of the contents of the Report. 
Hymans Robertson LLP is the owner of all intellectual property rights in the Report and the Report is protected by 
copyright laws and treaties around the world. All rights are reserved. 
The report must not be used for any commercial purposes unless Hymans Robertson LLP agrees in advance.  
 
 
  

---

 
 
 
 
 
Bryan T Chalmers 
 
London Borough of 
Hillingdon Pension Fund 
Fellow of the Faculty of Actuaries 
ctuarial Valuation as at 31 March 2007 
For and on behalf of Hymans Robertson LLP 
A
19 March 2008 
 
 
 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
HYMANS ROBERTSON LLP 
 
 
PAGE 
Executive Summary 
1 
1 
Introduction 3 
2 
About the Fund 
4 
3 
Funding Method and Assumptions 
7 
4 
Funding Position: Are the Objectives Met? 
10 
5 
Changes since the Previous Valuation 
11 
6 
Employer Contributions Payable 
14 
7 
Actuarial Risk Analysis 
16 
 
 
APPENDICES 
Appendix A – About the actuarial valuation 
21 
Appendix B – Summary of the fund’s benefits 
22 
Appendix C – Membership data and assets 
30 
Appendix D – Funding method 
34 
Appendix E – Changes since the previous valuation 
36 
Appendix F – Actuarial assumptions 
40 
Appendix G – Detailed valuation results 
43 
Appendix H – Rates and adjustments certificate 
44 
Statement to the rates and adjustments certificate 
45 
 
 
 
March 2008  
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
001 
HYMANS ROBERTSON LLP 
Executive summary 
I have carried out an actuarial valuation of the London Borough of Hillingdon Pension Fund (‘the Fund’) as at 31 
March 2007 (‘the valuation date’).  The results are presented in this report and summarised below. 
The Fund’s objective of holding sufficient assets to meet the estimated current cost of providing members’ past 
service benefits) was not met at the valuation date.  The funding level was 92% (compared to 88% at 31 March 
2004) and there was a funding shortfall of £50m. 
Without anticipating an element of future equity out-performance, the ‘gilt-based’ funding level would be 72% at 
the valuation date, and there would be a shortfall of £228m. 
The Fund’s financial position at the valuation date is illustrated graphically in the chart below. 
 
 
future 
Future 
out-performance 
gilts basis 
Service 
 
ongoing
 
basis 
future service 
£32m 
contributions 
£22m 
 
 
future out- 
performance  £178m 
gilts basis 
“
deficit 
 
£50m 
£805m 
 
contributions 
Past 
gilts basis 
ongoing
 
Service 
basis 
assets 
£627m £577m 
 
The employers’ average future service contribution rate as at 31 March 2007 (ignoring the past service shortfall) 
is 14.8% of pensionable pay.  Assuming that a funding level of 100% is to be targeted over a period of 25 years, 
the common employers’ contribution rate is 16.8% of pensionable pay.  These figures take advance credit from 
outperformance of the Fund’s assets relative to gilt yields on the valuation basis, as set out in the Funding 
Strategy Statement.  Ignoring this credit for outperformance the future service rate would be 24.2%, and the 
common contribution rate would be 31.8% of pay. 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
002 
HYMANS ROBERTSON LLP 
Adjustments have been made to the common rate of employers’ contribution to take account of certain 
circumstances that are peculiar to individual employers, as required by Regulation 77(6).  The minimum 
contributions to be paid by each employer from 1 April 2008 to 31 March 2011 are shown in the Rates and 
Adjustment Certificate at Appendix H. 
The results of the valuation are very sensitive to the actuarial assumptions made.  If actual future demographic 
and economic experience does not match the assumptions, the financial position of the Fund could deteriorate 
materially.  
 
 
Bryan T Chalmers 
Fellow of the Faculty of Actuaries 
19 March 2008 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
003 
HYMANS ROBERTSON LLP 
1 Introduction 
I have carried out an actuarial valuation of the London Borough of Hillingdon Pension Fund (‘the Fund’) as at 31 
March 2007 (‘the valuation date’) and this is my report to London Borough of Hillingdon (‘the Administering 
Authority’) on the results of the valuation. 
The main purposes of this valuation are: 
• 
to assess the extent to which the Administering Authority‘s funding objectives were met at the valuation 
date; 
• 
to identify the contributions payable by the employers to the Fund in future in order to meet the 
Administering Authority‘s funding objectives; 
• 
to enable completion of all relevant certificates and statements in connection with the Local Government 
Pension Scheme Regulations 1997 (‘the Regulations’), and other relevant regulations (see Appendix A); 
and  
• 
to comment on the circumstances that may give rise to future volatility in the funding level of the Fund or 
employers’ contributions. 
This report is provided solely for the purpose of the Administering Authority to consider the management of the 
Fund and in particular to fulfil their and my statutory obligations.  It should not be used for any other purpose.  It 
should not be released or otherwise disclosed to any third party except as required by law or with my prior 
written consent, in which case it should be released in its entirety.  This report can be passed to Fund 
employers for the purpose of providing information on the funding of the Fund.   
Neither I nor Hymans Robertson LLP accept any liability to any other party unless we have expressly accepted 
such liability in writing. 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
004 
HYMANS ROBERTSON LLP 
2 
About the Fund 
The Fund is part of the Local Government Pension Scheme (LGPS) and is a multi-employer defined benefit 
pension scheme.  It is contracted out of the State Second Pension. 
The funding strategy statement 
The Administering Authority prepares a Funding Strategy Statement (FSS) in respect of the Fund, in 
collaboration with me (the Fund’s actuary) and after consultation with the Fund’s employers and investment 
advisors.  The FSS has been reviewed as part of the 2007 triennial valuation exercise.  I am required to have 
regard to this statement when carrying out my valuation. 
Funding objectives 
The objectives of the Fund’s funding policy, as set out in the FSS are as follows: 
• 
to ensure the long-term solvency of the Fund; 
• 
to ensure that sufficient funds are available to meet all benefits as they fall due for payment; 
• 
not to restrain unnecessarily the investment strategy of the Fund so that the Administering Authority 
can seek to maximise investment returns (and hence minimise the cost of the benefits) for an 
appropriate level of risk; 
• 
to minimise the degree of short-term change in the level of each employer’s contributions where the 
Administering Authority considers it reasonable to do so; and  
• 
to use reasonable measures to reduce the risk to other employers and ultimately to the Council Tax 
payer from an employer defaulting on its pension obligations. 
What are the fund’s liabilities? 
The Fund’s liabilities are essentially the benefits promised to Fund members (past and current contributors) and 
to members’ dependants on their death.  The valuation places a current or present value on these liabilities on 
the valuation date. 
The cost of members’ benefits depends on three main factors: 
(i) 
The benefits promised to members. 
The Fund provides pensions and other benefits to members and their beneficiaries.  The benefits in 
force on the valuation date are set out in the Local Government Pension Scheme (LGPS) Regulations 
1997, as amended (“the Regulations”).  Employee members are required to pay contributions to the 
Fund, generally at the rate of 6% of pensionable pay1.  The principal elements of the Fund’s benefit 
structure are summarised in Appendix B.  These benefits are common to all employers participating in 
the Fund.   
The benefits and member contributions payable by and to the LGPS respectively, have been amended, 
with effect from 1 April 2008.  As the Rates and Adjustments certificate specifies employer contributions 
from 1 April 2008 to 31 March 2011, I have allowed for the changes in assessing the cost of future 
service benefits.   
                                                      
1  A closed group of manual workers who joined before April 1998 contribute 5% of pay. 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
005 
HYMANS ROBERTSON LLP 
The allowance made is based on my understanding of the provisions of the new scheme and is subject 
to change as any changes are made to the new scheme.  A summary of the changes is set out in 
Appendix B. 
There are a small number of discretionary powers that may be exercised by the Administering Authority 
or by individual employers.  The principal discretions are also summarised in Appendix B. With the 
exception of the employers’ powers to pay early unreduced benefits or augment benefits, normally on 
early retirement, I would not expect the exercise of these powers to have a material effect on the 
valuation results.  In any event, I would expect additional employer payments, in addition to the 
employer contributions set out in the rates and adjustments certificate, to be made in respect of such 
early retirements unless agreed otherwise. 
The requirements of sex-equality legislation (for example in respect of differences in the guaranteed 
minimum pensions for men and women) and age-equality legislation are not clear cut.  In this valuation, 
I have not taken account of any additional costs which may arise from any future requirement to amend 
the LGPS benefit structure in respect of these issues. 
(ii) 
The profile of the member. 
The membership of the Fund at the current and previous two valuations are summarised in the chart 
below and described in more detail in Appendix C. 
100%
3,942
4,135
4,490
80%
60%
Pensioners
2,600
3,299
4,260
Deferred Pensioners
40%
Employees
20%
4,570
5,408
6,056
0%
2001
2004
2007
 
The cost of the benefits is expressed as a percentage of the pensionable pay of employee members.  
As the proportion of pensioner and deferred members increases, so the contribution rate (as a 
percentage of pay) becomes more sensitive to the past service position.  The profile of the employee 
members (age, sex and category) also affects how much future benefits will cost. 
 
 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
006 
HYMANS ROBERTSON LLP 
(iii) 
When and for how long will the benefits be paid. 
The timing and amount of benefit payments depends on future experience, such as when members will 
retire and how long they will live in retirement.  In assessing the expected cost of members’ benefits, I 
need to use actuarial assumptions about such experience.  I explain the actuarial assumptions later in 
this report. 
It should be noted that the actual future cost of providing members’ benefits is not known in advance.  
The purpose of the valuation is to assess how much the Fund needs to hold now to pay those benefits, 
taking account the above factors and its funding objectives. 
What are the fund’s assets? 
The Fund’s assets are invested by the Administering Authority.  The market value of assets at the valuation date 
(excluding money purchase AVC funds) was £576.6m as shown in the audited accounts for the Fund for the 
period ending on 31 March 2007.  No part of the Fund is comprised of insurance policies. 
The Fund’s assets at 31 March 2007 are summarised in the chart below and in more detail in Appendix C.  The 
consolidated Revenue Account for the three year period to 31 March 2007 is also summarised in Appendix C. 
Cash, 12.0
Property, 51.9
Corporate 
Bonds, 34.5
UK equities, 
265.9
Government 
Bonds, 32.1
Overseas 
equities, 180.2
 
Notes: (1) 
Cash includes net current assets (liabilities). 
 
(2) 
The assets taken into account for valuation purposes include the present value of future 
contributions scheduled to be made by employers in respect of early retirements granted before 
the valuation date. 
The membership and accounting data has been provided by the Administering Authority and I have relied on the 
accuracy of the information provided.   
 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
007 
HYMANS ROBERTSON LLP 
3 
Funding method and assumptions 
I have used a funding method and assumptions for this valuation consistent with the Administering Authority’s 
funding objectives set out in its Funding Strategy Statement.  The methodology and assumptions are described 
below, and in more detail in Appendices D and F. 
Methodology 
For this valuation, as for the previous valuation, I have used a funding method which identifies separately the 
expected cost of members’ benefits in respect of scheme membership completed before the valuation date 
(‘past service’) and in respect of scheme membership expected to be completed after the valuation date (‘future 
service’).   
The method I have chosen compares the value of assets with the value of past service benefits, taking account 
of all expected future salary increases.  The funding level is the value of the assets divided by the value of the 
past service liabilities.  Where the funding level is greater than 100% there is a surplus in the fund (i.e. where 
assets are greater than the value of the past service benefits).  Where the funding level is less than 100% there 
is a shortfall (i.e. where the assets are lower than the value of the past service benefits).  The funding target is 
to achieve a funding level of 100% over a specific period.  The “past service adjustment” is the additional 
employer contribution calculated to be required to target 100% over that period if there is a deficit (a contribution 
reduction will be calculated if there is a surplus).  The past service adjustments can be expressed as a monetary 
amount or as a percentage of the value of the members’ pensionable pay over the period.  
To determine the employer contribution requirement for future service for the Fund as a whole, and for 
employers who continue to admit new members, I have assessed the cost of future service benefits for the year 
following the valuation date, taking account of expected future salary increases.  The contribution rate required 
to meet the expected cost of future service benefits is derived as this value less expected member contributions 
expressed as a percentage of the value of members’ pensionable pay over the year.  This is known as the 
‘Projected Unit method’ and is explained in further detail in Appendix D. 
To determine the employer contribution requirement for future service for employers who no longer admit new 
members, I have assessed the cost of future service benefits over the expected remaining period of contributory 
membership of employee members, again taking account of expected future salary increases.  The contribution 
rate required to meet the expected cost of future service benefits is derived as this value less expected member 
contributions expressed as a percentage of the value of members’ pensionable pay over their expected future 
working lives.  This is known as the ‘Attained Age method’ and is explained in further detail in Appendix D. 
Finally, an allowance for expenses is added to the Employer contribution rate. 
Actuarial assumptions 
In the actuarial valuation, I must use assumptions about the factors affecting the Fund’s finances in the future.  
The assumptions to which the valuation is most sensitive are described here and a full statement of the 
assumptions is given in Appendix F. 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
008 
HYMANS ROBERTSON LLP 
The main financial assumptions I have adopted for the valuation of members’ benefits are shown below. 
Rate at 31 March 2007
 Assumption
Derivation
Nominal
Real
Market expectation of long term future inflation as 
measured by the difference between yields on 
Price Inflation (RPI)
3.2%
-
fixed and index-linked Government bonds as at 
the valuation date
Assumed to be 1.5% p.a. in excess of price 
Pay Increases *
4.7%
1.5%
inflation
The yield on fixed-interest (nominal) and index-
‘Gilt-based’ discount rate
4.5%
1.3%
linked (real) Government bonds
Assumed to be 1.55% p.a. above the yield on fixed 
Funding basis discount rate 
6.1%
2.8%
interest Government bonds
 
 * Plus an allowance for promotional pay increases. 
Discount rate 
In order to place a current value on the future benefit cashflows expected to be paid from the Fund, I need to 
‘discount’ the future cashflows to the valuation date at a suitable rate.  Different valuations can be categorised 
by the approach taken to setting the discount rate.  For example, under the accounting standard FRS17, the 
discount rate is determined as the yield on AA-rated corporate bonds.  By comparison, a ’gilt-based’ valuation 
will use the yield on suitably dated Government bonds.  These valuations are intended to place a ‘value’ on the 
pension promise. 
The funding valuation is effectively a budgeting exercise, to assess the funds needed to meet the benefits as 
they fall due.  For this purpose, I have set the discount rate taking into account the Fund’s current and expected 
future investment strategy and assumed an asset outperformance assumption of 1.6% p.a.  One way of 
measuring the degree of prudence in the funding strategy is to measure the extent to which advance credit is 
taken for expected future investment returns over and above gilt returns.  Funding strategy should not however 
be considered in isolation and the degree of risk inherent in the Fund’s investment strategy should also be 
considered. 
Longevity 
In addition to the financial assumptions, the main assumption to which the valuation results are most sensitive is 
that relating to future longevity.  For this valuation, I have adopted assumptions which give the following average 
future life expectancies for pensioners aged 65 at the valuation date: 
Assumptions to assess funding 
Assumptions to assess funding 
position and ‘gilt based’ position at 
position at 31 March 2004
31 March 2007
Males (M) or Females (F)
M
F
M
F
Average future life expectancy (in years) for a 
19.6
22.5
18.4
21.3
pensioner aged 65 at the valuation date
Average future life expectancy (in years) at age 65 for 
20.7
23.6
18.4
21.3
a non-pensioner aged 45 at the valuation date
Average future life expectancy (in years) at age 45 for 
40.1
43.0
37.2
40.2
a non-pensioner aged 45  at the valuation date 
  
 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
009 
HYMANS ROBERTSON LLP 
Assets 
I have taken the assets of the Fund into account at their market value as indicated in the audited accounts for 
the period ended 31 March 2007.  
I have included an allowance for the future expected payments in respect of early retirement strain and 
augmentation costs granted prior to the valuation date in the value of assets, for consistency with the liabilities 
and with the previous valuation.   
In my opinion, the basis for placing a value on members’ benefits is compatible with that for valuing the assets:  
both are related to market conditions at the valuation date.  
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
010 
HYMANS ROBERTSON LLP 
4 
Funding position: are the objectives met? 
As I noted earlier, the Administering Authority has prepared a Funding Strategy Statement which sets out its 
funding objectives for the Fund.  In broad terms, the main ‘past service’ objective is to hold sufficient assets in 
the Fund to meet the assessed cost of members’ past service benefits and the main ‘future service’ objective is 
to maintain a relatively stable employer contribution rate.  These objectives are potentially conflicting.  
Past service 
In assessing the extent to which the funding objective was met at the valuation date, I have used the funding 
method and actuarial assumptions described in the previous section of this report.  My results are presented in 
the form of a ‘funding level’ which is the ratio of the value of assets to the assessed cost of members’ past 
service benefits (based on service to the valuation date).  A funding level of 100% would correspond to the 
objective being exactly met.  The table below compares the value of the assets and liabilities at the valuation 
date.  
Valuation date
2007
Past Service Liabilities
£m
Employees
267.5
Deferred Pensioners
109.8
Pensioners
249.1
Total Liabilities
626.4
Assets
576.9
Surplus/(Deficit)
 (50)
Funding Level
92%
 
At the valuation date the funding level was 92%.   
The main funding objective was not met: there was a shortfall of assets to the assessed cost of members’ 
benefits of £50m.  More details of the funding position are given in Appendix G. 
Future service 
I have calculated the long-term contribution rate that the Fund employers would need to pay to meet the 
assessed cost of members’ benefits as they are built up in the future (the ‘future service contribution rate’).  
Again, I have used the method and assumptions set out in the previous section of this report and therefore the 
resulting contribution rate is that which should (if the actuarial assumptions match actual experience) ensure 
that the Administering Authority‘s main funding objective is met for benefits earned after the valuation date.  It 
ignores the shortfall in the Fund at the valuation date. 
The combined employers’ future service contribution rate (after deducting employee members’ contributions) is 
14.8% of pensionable pay, payable with effect from 1 April 2008.  This contribution rate includes expenses and 
the expected cost of lump sum death benefits, but excludes early retirement strain and augmentation costs 
which are payable by Fund employers in addition to the contribution rate.  
The total employer contribution rate requirement is given in section 6, with further detail, including a comparison 
with 2004 rates, shown in Appendix G. 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
011 
HYMANS ROBERTSON LLP 
5 
Changes since the previous valuation 
The previous formal actuarial valuation of the Fund was carried out with an effective date of 31 March 2004.  
Since then, there have been changes to the Fund and its membership, to the economic environment in which 
the Fund operates and to the valuation process.  Many of these changes have affected the valuation results.  
The relevant changes, and their effects on the actuarial valuation, are described in Appendix E and summarised 
below. 
Changes to the Fund’s benefit structure 
Since the previous valuation, a number of changes have been made to the LGPS benefit structure.  Full details 
of the scheme benefits are set out in Appendix B and the changes and their effect on the valuation are detailed 
in Appendix E. 
The overall effect of these changes is to reduce the cost of the benefits. 
Changes to the funding assumptions 
The financial assumptions have changed since the previous valuation.  The financial assumptions used in this 
and the previous valuation are shown in Appendix F.  Further detail on changes is included in Appendix E. 
Changes to the economic environment 
Since the previous valuation, equity markets have risen and bond markets have risen (so yields have fallen).  
Market expectations of inflation have risen.  Overall, changes in economic factors have been favourable in 
terms of their effect on the funding level.  Lower real gilt yields have however increased the assessed cost of 
future service benefits. 
Changes to the Fund membership 
The Fund membership has changed since the previous valuation, as new employee members have joined the 
Fund and members have left the Fund, retired and died.  Whilst membership changes were anticipated at the 
previous valuation, the actual changes have inevitably not exactly matched the assumptions made at the 
previous valuation. 
Further details of the Fund membership and its changes since the previous valuation are given in Appendix C. 
Changes to the Fund’s assets 
The Fund’s assets have been augmented by employer and employee contributions paid in, transfer values 
received, and interest and investment gains.  Conversely, the assets have been depleted by benefit payments 
to members and their beneficiaries, transfer values and refunds paid and payment of administration and other 
expenses.  Overall, there has been a net increase in the market value of the Fund’s assets, only some of which 
was anticipated in the previous valuation. 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
012 
HYMANS ROBERTSON LLP 
In the report on the previous actuarial valuation I recommended that contributions be paid in line with the rates 
shown in the Rates and Adjustment certificate appended to that report over the period from 1 April 2005 to 31 
March 2008.  The Fund employers have paid contributions over the period from 1 April 2005 at least in line with 
those recommended rates.   
Changes to the funding position 
The changes described above have combined to improve the Fund’s funding position since the previous 
valuation.  The chart below illustrates the effect of the various factors on the funding position. 
-53.5
Surplus(Deficit) at Last Valuation
Interest on surplus(deficit)
-10.8
Investment returns greater than expected
106.9
Change in demographic assumptions
-19.7
Experience items
-8.5
Contributions less than cost of accrual
-4.8
Change in financial assumptions
-53.4
Miscellaneous items
-5.8
-49.5
Surplus(Deficit) at This Valuation
-80
-60
-40
-20
0
20
40
60
80
100 120  
£m 
 
Changes to the contribution requirement 
The maturing of the Fund’s employee membership coupled with the fall in real gilt yields and changes to the 
funding assumptions have led to an increase in the assessed cost of future benefit accruing, as shown by the 
chart below. 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
013 
HYMANS ROBERTSON LLP 
 
Future service rate  in 2004
11.25%
Roll forward to  2007
0.2%
Changes in demographic assumptions-0.2%
Allowance for commutation at 50%-0.3%
Change in life expectancy
0.8%
Change in asset outperformance
0.5%
Change in market conditions 
2.0%
Abolition of the rule of 85
0.0%
New scheme 2008
0.6%
Future service rate  in 2007
14.8%
-2% 0%
2%
4%
6%
8% 10% 12% 14% 16%  
 
The past service adjustment has fallen due to the improved funding position.  Overall the common contribution 
rate has increased since the previous valuation to 16.8% of pensionable pay.  
Further detail on the funding level and contribution requirements is shown in section 6. 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
014 
HYMANS ROBERTSON LLP 
6 
Employer contributions payable 
Whole fund position 
The employers’ average cost of future service benefits (i.e. ignoring the past service shortfall) is 14.8% of 
pensionable pay (as defined in Appendix B).  This is the future contribution rate payable over the long term by 
the Fund employers to meet the Administering Authority‘s funding objectives, based on the assumptions set out 
in this report. 
The common contribution rate payable is the cost of future benefit accrual, increased by an amount to bring the 
funding level back to 100% over a period of 25 years as set out in the Funding Strategy Statement.   
I have calculated the additional contribution rate in respect of the past service shortfall to be 2.1% of 
pensionable pay.  This represents the cost of the past service shortfall spread over a period of 25 years.   
The employer common contribution rate based on the funding position as at 31 March 2007 is as follows: 
31 March 2007
Employer contribution rates
% pensionable payroll
Total future service cost
20.7%
Employee contributions (excluding AVCs)
6.6%
Expenses
0.7%
Net employer future service cost
14.8%
Past service adjustment - 25 year spread
2.1%
Employer contribution rate
16.8%
 
In order to achieve some stability of contributions, the required contribution increases for employers may be 
phased in over a period as specified in the Fund’s Funding Strategy Statement. 
Employer contribution rates 
I have made adjustments to the common rate of employers’ contribution to take account of certain 
circumstances that are peculiar to individual employers, or groups of employers.  
To formally confirm these contribution rates, a Rates and Adjustments Certificate is included as Appendix H, 
detailing the minimum contributions to be paid by each Fund employer from 1 April 2008 to 31 March 2011 after 
allowing for any individual adjustments. 
Employers may make voluntary additional contributions to recover any shortfall over a shorter period. 
Further sums should be paid to the Fund by employers to meet the capital costs of any unreduced early 
retirements, reduced early retirements before age 60 and/or augmentation (i.e. additional membership or 
additional pension) using the methods and factors issued by me from time to time or as otherwise agreed. 
In addition, payments may be required to be made to the Fund by employers to meet the capital costs of any ill-
health retirements that exceed those allowed for within my assumptions. 
The contributions shown in the Rates and Adjustment Certificate include expenses and the expected cost of 
lump sum death benefits, but excludes early retirement strain and augmentation costs which are payable by 
Fund employers in addition.   
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
015 
HYMANS ROBERTSON LLP 
Recommendations 
Valuation frequency 
Under the provisions of the Regulations, the next formal valuation of the Fund is due to be carried out as at 31 
March 2010.  In light of the uncertainty of future financial conditions I recommend that the financial position of 
the Fund (and for individual employers in some cases) is monitored by means of interim funding reviews in the 
period up to the next triennial valuation.  This will give early warning of changes to funding positions and 
possible contribution rate changes.   
Investment strategy and risk management 
I recommend that the Administering Authority reviews its investment strategy and ongoing risk management 
programme. 
New employers joining the fund 
Any new employers or admission bodies joining the Fund should be referred to me as the Fund actuary for 
individual calculation as to the required level of contribution.  They should also agree to pay the capital costs (as 
a one-off lump sum payment) of any early retirements or augmentation based on my advice and using methods 
and factors issued by the actuary from time to time, together with any additional contributions that may be 
required if their ill-health early retirement experience is worse than assumed.   
Other matters 
Any Admission Body who ceases to participate in the Fund should be referred to me in accordance with 
Regulation 78 of the Regulations.   
Any bulk movement of scheme members: 
• 
involving 10 or more scheme members being transferred from or to another LGPS fund, or 
• 
involving 2 or more scheme members being transferred from or to a non-LGPS pension arrangement 
should be referred to me to consider the impact on the Fund. 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
016 
HYMANS ROBERTSON LLP 
7 
Actuarial risk analysis 
The valuation results depend critically on the actuarial assumptions made, in particular the net discount rate (the 
gap between the discount rate and the rate at which benefits and pensionable pay increase in future), and the 
assumptions for future life expectancy. 
In section 4, in order to place a current value on the liabilities, I discounted the future cashflows to the valuation 
date assuming that the assets held by the Fund will outperform index-linked gilts by 1.6% p.a.  One way of 
measuring the degree of prudence in the funding strategy is to measure the extent to which advance credit is 
taken for expected future investment returns over and above gilt returns. While the current investment strategy 
is expected to yield investment returns in excess of those available on closely matching Government bonds, 
such returns cannot be guaranteed and can only be achieved with a higher level of risk of underperformance.  
To illustrate the potential costs of reducing this mismatching risk, I have also calculated the amount of assets 
that would be needed at the valuation date to enable the Administering Authority to invest in closely matching 
Government bonds. 
The following chart summarises the effect on the valuation results if no advance credit was taken for additional 
outperformance above gilt returns (i.e. a ‘gilts basis’ was used to value the liabilities).   
 
 
future 
Future 
out-performance 
gilts basis
Service 
 
ongoing
 
basis 
future service
£32m 
contributions
£22m 
 
 
future out- 
performance
£178m 
gilts basis 
“
deficit 
 
£50m 
£805m 
 
contributions
Past 
gilts basis 
ongoing
 
Service 
basis 
assets
£627m 
£577m
 
On this basis, the Administering Authority would need assets of some £805m resulting in a shortfall of £228m at 
the valuation date.  Looked at another way, the assessed cost of members’ past service benefits of £627m 
shown in Section 4 of this report implicitly assume that the Administering Authority‘s investment strategy will 
ultimately generate investment growth of £178m in excess of that available on closely matching Government 
bonds. 
Over time, the funding position and the contributions required will depend on the extent to which future 
experience matches the assumptions made.  In the previous section, I showed the extent to which the 
assumptions made at the previous valuation did not reflect actual experience over the period to 31 March 2007.   
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
017 
HYMANS ROBERTSON LLP 
The valuation results do not include explicit contingency reserves for other unexpected financial and 
demographic effects.   In this section I discuss the potential implications of the actuarial assumptions not being 
met in the future. 
Investment risk 
The valuation results are particularly sensitive to the assumed discount rate (i.e. the assumed future investment 
returns).  If future investment returns are less than the assumed discount rate, the funding level will deteriorate.  
To illustrate the sensitivity of the funding level to changes in equity and bond markets, I have considered the 
impact of the following events occurring soon after 31 March 2007: 
• 
Equities and equity-type investments (such as property) fall by 25%, with no change in bond markets; 
• 
The price of bonds rises so that there is a 1% fall in the nominal redemption yields available on fixed 
interest bonds and a 0.5% fall in the real yield available on index-linked bonds, with no change in equity 
markets. 
The events illustrated are by no means exhaustive.  They should not be taken as the limit of how extreme future 
experience could be. 
The chart below shows how the funding position would be affected if those events occurred on 31 March 2007. 
Sensitivity to Market Conditions
Surplus/(deficit)
-£98
Bond yields fall
Value of assets
-£174
Equities fall
Total liabilities
-£50
Valuation Results
-400
-200
0
200
400
600
800
£m
 
In fact, over the period from 31/3/07 to 05/03/08, UK equity markets have fallen by around 6% and there have 
also been falls in the yields available on index-linked UK government bonds. If these market conditions had 
applied at 31 March 2007, the funding position would have been as shown in the chart below. 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
018 
HYMANS ROBERTSON LLP 
Recent Market Conditions
Surplus/(deficit)
-£108
Value of  assets
Recent market conditions
Total liabilities
-£50
Valuation Results
-200
-100
0
100
200
300
400
500
600
700
800
£m
 
Longevity risk 
The valuation results are very sensitive to unexpected changes in future longevity.  If longevity improves in the 
future at a faster pace than allowed for in the valuation assumptions, the Fund’s funding level will decline and 
the required employer contribution rate will increase.  Recent medical advances, changes in lifestyles and 
generally greater awareness of health-related matters have resulted in longevity improving in recent years at a 
faster pace than most experts had foreseen.  It is unknown whether such improvements will continue in the 
future.  Certain factors, such as advancements in genetic medicine would point towards even greater 
improvements in longevity in the future; conversely, the increase in childhood obesity may result in a decline in 
longevity in future generations. 
As a measure of the sensitivity of the valuation to future life expectancy I have considered the results which 
would arise if I assumed that 
• 
mortality rates at all ages immediately fall by 25%;  
• 
the improvements in longevity of pensioners seen recently cease altogether so that future mortality rates 
are the same as current ones.   
The events illustrated are by no means exhaustive.  They should not be taken as the limit of how extreme future 
experience could be. 
The chart below shows how the funding level would be affected if those events occurred on 31 March 2007. 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
019 
HYMANS ROBERTSON LLP 
Sensitivity to Improvements in Life Expectancy 
Surplus/(deficit)
Value of assets
Total Liabilities
-£28
No further improvement
-£90
Mortality rates fal  by 25%
-£50
Valuation Results
-200
0
200
400
600
800
£m
 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
020 
HYMANS ROBERTSON LLP 
Other risks and sensitivities 
The other main assumptions to which the valuation results are sensitive, together with their associated risks, are 
described below. 
 
 
Risk 
Effect on funding 
Effect on future 
level 
service benefits 
Fund assets fail to deliver returns in line with the 
Reduction None 
anticipated returns underpinning valuation of liabilities 
over the long-term 
Fall in risk-free returns on Government bonds, leading  Reduction 
Increase if future 
to rise in value placed on liabilities 
returns are expected 
to be lower than 
previously assumed 
Pay and price inflation more than anticipated 
Reduction 
Increase if expected 
to continue 
Pensioners living longer than anticipated in the 
Reduction 
Increase if expected 
valuation assumptions. 
to continue 
More members retiring early on ill-health grounds, 
Reduction 
Increase if expected 
and/or retiring at a younger age than assumed 
to continue 
Fewer active members withdrawing from pensionable 
Reduction 
Increase if expected 
service (with refunds of contributions or deferred 
to continue 
pensions) than assumed 
Members convert less pension to cash at retirement 
Reduction 
Increase if expected 
than assumed  
to continue 
Average age of the employee membership rises 
Marginal effect 
Increase 
Changes to regulations to be more favourable in 
Reduction if changes 
Increase 
respect of benefits package 
affect past service 
Changes to national pension requirements and/or 
Reduction if changes 
Increase 
HMRC rules to be more favourable to members e.g. 
affect past service 
effect of abolition of earnings cap for post 1989 
entrants from April 2006  
 
 
Bryan T Chalmers FFA 
For and on behalf of Hymans Robertson LLP 
19 March 2008 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
021 
HYMANS ROBERTSON LLP 
Appendix A – About the actuarial valuation 
 
This valuation is carried out in accordance with Regulation 77 of the Local Government Pension Scheme 
Regulations 1997, as amended, (‘the Regulations’), which specifies that the Administering Authority must 
obtain: 
• 
an actuarial valuation of the assets and liabilities of the Fund as at 31 March 1998 and every three years 
thereafter; 
• 
a report by an actuary; and 
• 
a rates and adjustments certificate. 
Within the rates and adjustment certificate I am required to specify: 
• 
the employers’ common contribution rate which, in my opinion, should be paid by all employers so as to 
ensure the Fund’s solvency, and 
• 
any individual adjustments (increases or decreases) to the common contribution rate which, in my 
opinion, are required by reason of any circumstances peculiar to that employer, 
which for this valuation apply for each year of the period of three years beginning with 1 April 2008. 
Under the provisions of the Regulations, I am required to have regard to: 
• 
the existing and prospective liabilities of the Fund arising from circumstances common to all those bodies 
participating in the Fund,  
• 
the desirability of maintaining as nearly constant a rate as possible, and 
• 
the Administering Authority's funding strategy statement. 
This report has been prepared in accordance with version 8.1 of the guidelines ‘GN9: Funding Defined Benefits 
- Presentation of Actuarial Advice’ published  the Board for Actuarial Standards.  However the following aspects 
of GN9 are not relevant to the LGPS and its funds in the current circumstances and I have not reported on 
them: 
• 
Paragraph 3.4.16 of GN9 requires the actuary to include the certification of technical provision in relation 
to a valuation under Part 3 of the Pensions Act 2004.  As Part 3 of the Pensions Act 2004 does not apply 
to the LGPS, this report does not comply with paragraph 3.4.16 of GN9; and 
• 
Part 3.5 of GN9 requires the actuary to report on the value of the liabilities that would arise had the Fund 
wound up on the valuation date (based on the cost of buying out the accrued benefits with insurance 
policies).  As the LGPS is a statutory scheme, there is no regulatory provision for scheme wind up and 
the scheme members have a statutory right to their accrued benefits.  Therefore the concept of solvency 
on a buy-out basis does not apply to the Fund.  Accordingly, this report does not comply with part 3.5 of 
GN9. 
The previous formal actuarial valuation was carried out as at 31 March 2004 by myself and the results were set 
out in my report dated 31 March 2005. 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND                                                                                        022 
HYMANS ROBERTSON LLP 
Appendix B – Summary of the fund’s benefits 
The non-discretionary Fund benefits that I have taken into account in this valuation for active members are summarised below. 
Provision 
Benefit Structure To 31 March 2008 
Benefit Structure From 1 April 2008 
Normal retirement age 
Age 65. 
Age 65. 
(NRA) 
 
 
Earliest retirement age 
As per NRA (age 65). 
(ERA) on which 
immediate unreduced 
Protections apply to active members in the scheme immediately prior to 1 October 2006 who would have been entitled to immediate payment of 
benefits can be paid on 
unreduced benefits prior to 65, due to: 
voluntary retirement 
(a) having previously had an NRA of age 60 (or after age 60 on attaining 25 years of scheme membership), due to being a member of the 
scheme immediately prior to 1 April 1998; or  
(b) having the potential to satisfy the rule of 85 prior to age 65 (if the sum of age (whole years) and membership (whole years) is 85 or more).  
The benefits relating to various segments of scheme membership are protected as follows, which means their benefits are calculated based on 
the above definitions of earliest retirement age in relation to these protected periods of scheme membership: 
(a) A member born on 31 March 1956 or earlier – membership up to 31 March 2016 protected; 
(b) A member born between 1 April 1956 and 31 March 1960 inclusive and who would reach their Earliest Retirement Age by 31st March 2020 
– Membership prior to 31 March 2008 fully protected and membership between 1 April 2008 and 31 March 2020 subject to some protection 
(tapered); 
(c) All other members in the scheme immediately prior to 1 October 2006 – membership up to 31 March 2008 protected. 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND                                                                                        023 
HYMANS ROBERTSON LLP 
Provision 
Benefit Structure To 31 March 2008 
Benefit Structure From 1 April 2008 
Member contributions 
Officers - 6% of pensionable pay 
Banded rates (5.5%-7.5%) depending upon level of full-time equivalent 
pay.  This will apply to all members formerly paying 6%.  Protected 
Manual Workers – 5% of pensionable pay if has protected lower rates 
manual workers will be subject to transitional rates.  From 2010 a 
rights or 6% for post 31 March 1998 entrants or former entrants with 
mechanism for sharing any increased scheme costs between 
no protected rights. 
employers and scheme members  may be implemented.    
 
Pensionable pay 
All salary, wages, fees and other payments in respect of the employment, excluding non-contractual overtime and some other specified 
amounts. 
Some scheme members may be covered by special agreements. 
Final pay 
The pensionable pay in the year up to the date of leaving the scheme.  Alternative methods used in some cases, e.g. where there has been a 
break in service or a drop in pensionable pay. 
Period of scheme 
Total years and days of service during which a member of the Fund.  Additional periods may be granted (e.g. transfers from other pension 
membership 
arrangements, augmentation, or from April 2008 the award of additional pension). 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND                                                                                        024 
HYMANS ROBERTSON LLP 
Provision 
Benefit Structure To 31 March 2008 
Benefit Structure From 1 April 2008 
Normal retirement 
Annual Retirement Pension - 1/80th of final pay for each year of 
Scheme membership to 31 March 2008: 
benefits at NRA 
scheme membership. 
Annual Retirement Pension - 1/80th of final pay for each year of 
Lump Sum Retirement Grant - 3/80th of final pay for each year of 
scheme membership. 
scheme membership.  Additional lump sum can be provided by 
commutation of pension (within overriding limits) on a basis of £12 
Lump Sum Retirement Grant - 3/80th of final pay for each year of 
additional pension for each £1 of pension surrendered. 
scheme membership.   Additional lump sum can be provided by 
commutation of pension (within overriding limits) on a basis of £12 
additional lump sum for each £1 of pension surrendered. 
Scheme membership from 1 April 2008: 
Annual Retirement Pension - 1/60th of final pay for each year of 
scheme membership. 
Lump Sum Retirement Grant – none except by commutation of 
pension 
Option to increase or 
At the time that benefits come into payment, members have the option 
Scheme membership to 31 March 2008: 
decrease retirement 
to exchange (‘commute’) some of the retirement pension into 
lump sum benefit 
additional lump sum up to HMRC limits.  The terms for the conversion 
At the time that benefits come into payment, members have the option 
of pension in to lump sum is £12 of lump sum for every £1 of annual 
to exchange (‘commute’) some of the retirement pension into 
pension surrendered.  
additional lump sum up to HMRC limits.  The terms for the conversion 
of pension in to lump sum is £12 of lump sum for every £1 of annual 
  
pension surrendered.  
Scheme membership from 1 April 2008: 
No automatic lump sum. Any lump sum is to be provided by 
commutation of pension.  The terms for the conversion of pension in to 
lump sum is £12 of lump sum for every £1 of annual pension 
surrendered. 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND                                                                                        025 
HYMANS ROBERTSON LLP 
Provision 
Benefit Structure To 31 March 2008 
Benefit Structure From 1 April 2008 
Voluntary early 
On retirement after age 60 a pension and lump sum based on actual scheme membership completed may be paid, subject to reduction on 
retirement benefits (non  account of early payment in some circumstances (in accordance with ERA protections). 
ill-health) 
Employer’s consent 
On retirement after age 50 with employer’s consent a pension and 
On retirement after age 55 with employer’s consent a pension and 
early retirement 
lump sum based on actual scheme membership completed may be 
lump sum based on actual scheme membership completed may be 
benefits (non ill-health) 
paid. 
paid. 
Benefits paid on redundancy or efficiency grounds are paid with no 
Benefits paid on redundancy or efficiency grounds are paid with no 
actuarial reduction. 
actuarial reduction. 
Otherwise, benefits are subject to reduction on account of early 
Otherwise, benefits are subject to reduction on account of early 
payment, unless this is waived by the employer. 
payment, unless this is waived by the employer. 
Active members in the scheme immediately prior to 1 April 2008 who 
leave before 31 March 2010 have a protected earliest retirement age 
of 50. 
Ill-health benefits 
In the event of premature retirement due to permanent ill-health or 
In the event of premature retirement due to permanent ill-health or 
incapacity, an immediate pension and lump sum are paid based on 
incapacity and a reduced likelihood of obtaining gainful employment 
actual scheme membership plus an enhancement period of scheme 
(local government or otherwise) before age 65, an immediate pension 
membership.   
and lump sum are paid based on actual scheme membership plus an 
enhancement period of scheme membership.   
The enhancement period is dependent on scheme membership at 
date of leaving and is seldom more than 6 years 243 days.   
The enhancement period is: 
 No reduction is applied due to early payment. 
•  25% of the period to age 65, if there is some likelihood of 
obtaining gainful employment prior to age 65; or 
 
•  100% of the period to age 65, if there is no likelihood of obtaining 
gainful employment prior to age 65.   
No reduction is applied due to early payment.  A third tier, with no 
enhancement, is expected to apply in the event that there is an 
immediate likelihood of gainful employment. 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND                                                                                        026 
HYMANS ROBERTSON LLP 
Provision 
Benefit Structure To 31 March 2008 
Benefit Structure From 1 April 2008 
Flexible retirement 
After 5th April 2006, a member who has attained the age of 50, with 
A member who has attained the age of 55 and who, with his 
his employer's consent, reduces the hours he works, or the grade in 
employer's consent, reduces the hours he works, or the grade in which 
which he is employed, he may elect in writing to the appropriate 
he is employed, may make a request in writing to the appropriate 
administering authority and such benefits may, with his employer's 
administering authority to receive all or part of his benefits under 
consent, be paid to him notwithstanding that he has not retired from 
these Regulations, and the authority may pay those benefits to him 
that employment. 
notwithstanding that he has not retired from that employment. 
Benefits are paid immediately and subject to actuarial reduction unless  Benefits are paid immediately and subject to actuarial reduction unless 
the reduction is waived by the employer. 
the reduction is waived by the employer. 
Pension increases 
All pensions in payment, deferred pensions and dependant’s pensions other than benefits arising from the payment of additional voluntary 
contributions are increased annually.  Pensions are increased partially under the Pensions (Increases) Act and partially in accordance with 
statutory requirements (depending on the proportions relating to pre 88 GMP, post 88 GMP and excess over GMP). 
Death after retirement  
A spouse’s or civil partner’s pension of one half of the member's 
A spouse’s, civil partner’s or nominated cohabiting partner’s pension 
pension (generally post 1 April 1972 service for widowers’ pension and  payable at a rate of 1/160th of the member's total membership 
post 6 April 1988 for civil partners) is payable; plus   
multiplied by final pay (generally post 1 April 1972 service for 
widowers’ pension and post 6 April 1988 for civil partners and 
If the member dies within five years of retiring and before age 75 the 
nominated cohabiting partners) is payable; plus   
balance of five years' pension payments will be paid in the form of a 
lump sum; plus 
If the member dies within ten years of retiring and before age 75 the 
balance of ten years' pension payments will be paid in the form of a 
Children’s pensions may also be payable. 
lump sum; plus 
 
Children’s pensions may also be payable. 
Death in service 
A lump sum of two times final pay;  plus  
A lump sum of three times final pay; plus 
A spouse's or civil partner’s pension of one half of the ill-health 
A spouse’s, civil partner’s or cohabiting partner’s pension payable at a 
retirement pension that would have been paid to the scheme member 
rate of 1/160th of the member's total (augmented to age 65) 
if he had retired on the day of death (generally post 1 April 1972 
membership  (generally post 1 April 1972 service for widowers’ 
service for widowers’ pension and post 6 April 1988 for civil partners); 
pension and post 6 April 1988 for civil partners and nominated 
plus 
cohabiting partners), multiplied by final pay; plus 
Children’s pensions may also be payable.  
Children’s pensions may also be payable 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND                                                                                        027 
HYMANS ROBERTSON LLP 
Provision 
Benefit Structure To 31 March 2008 
Benefit Structure From 1 April 2008 
Leaving service options 
If the member has completed three months’ or more scheme membership, deferred benefits with calculation and payment conditions similar to 
general retirement provisions ;  or 
A transfer payment to either a new employer's scheme or a suitable insurance policy, equivalent in value to the deferred pension; or 
If the member has completed less than three months' scheme membership, a return of the member's contributions with interest, less a State 
Scheme premium deduction and less tax at the rate of 20%.  
State pension scheme  
The Fund is contracted-out of the State Second Pension and the benefits payable to each member are guaranteed to be not less than those 
required to enable the Fund to be contracted-out. 
 
 
Note: Certain categories of members of the Fund are entitled to benefits that differ from those summarised above.
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND                                                                                        028 
HYMANS ROBERTSON LLP 
 
Discretionary benefits 
The Regulations give employers a number of discretionary powers, including: 
• 
the awards of periods of augmentation under Regulation 52; 
• 
the payment of benefits on employer’s consent prior to age 60 under Regulation 31; 
• 
the payment of benefits due to flexible retirement under Regulation 35; 
• 
not applying the suspension of spouses’ pensions on remarriage or cohabitation for members who retired 
before 1 April 1998. 
From 1 April 2008, the employers will also be able to award additional pension. 
The effect on benefits or contributions as a result of the use of these provisions prior to 1 April 2007 has been 
allowed for in this valuation to the extent that this is reflected in the membership data provided.  No allowance 
has been made for the future use of discretionary powers.  My assumptions do not anticipate any saving from 
the suspension of spouses’ pension; to the extent that this continues, there will be a saving. 
Changes to the Fund’s benefit structure 
Since the previous valuation, there have been a number of changes to the benefit structure of the LGPS, 
including:  
• 
A reduction of the total periods of membership required for an entitlement to deferred LGPS benefits from 
two years to three months with effect from 1 April 2004; 
• 
The requirement for elections to aggregate former scheme membership with current membership to be 
made within 12 months of becoming an active member with effect from 1 April 2004 (this option was 
previously open-ended); 
• 
The removal of the right for re-employed pensioners to elect to aggregate former LGPS membership on 
ceasing the re-employment (limited transitional arrangements were included for existing members who 
might be affected); 
• 
The introduction of survivor benefits for civil partners, effective from 5 December 2005.  This change 
entitled a surviving civil partner to receive survivor benefits on the same basis and calculated in the same 
manner as spouses benefits, albeit that account is only taken of scheme membership from 5 April 1988; 
• 
Members in the scheme prior to 1 October 2006 are entitled to take benefits relating to service to 1 April 
2008 at their ‘rule of 85’ age, with benefits relating to service thereafter payable from 65.  There are some 
transitional protections in place for some older members which will provide full or partial protection for 
those reaching the age of 60 by 2020. Allowance was made in anticipation of this change at the 2004 
valuation; 
• 
The option for members to exchange part of their retirement pension for additional lump sum benefits, 
with effect from 6 April 2006; 
• 
Other changes were also introduced with effect from 6 April 2006 in relation to the Finance Act 2004. 
Notably the removal of Schedule 4 (Revenue Restrictions) including removal of the earnings cap and 
maxima restrictions relating to membership, pension and lump sum; 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND                                                                                        029 
HYMANS ROBERTSON LLP 
• 
Flexible retirement, with effect from 6 April 2006, whereby a member who has attained the age of 50, with 
his employer's consent, reduces the hours he works, or the grade in which he is employed, may elect in 
writing to the appropriate administering authority and such benefits may, with his employer's consent, be 
paid to him notwithstanding that he has not retired from that employment. Flexible retirement before a 
member’s earliest retirement age results in actuarially reduced benefits unless the reduction is waived by 
the employer. 
 
 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
 
 
030 
HYMANS ROBERTSON LLP 
 
Appendix C – Membership data and assets 
Membership data - employee members 
31-Mar-07
31-Mar-04
 Pensionable pay
Pensionable pay
Number
Number
[£000]p.a.
 [£000]p.a.
Full-time members
Male officers
312
11,071
405
12,328
Female officers
539
15,037
666
15,972
Male manuals
142
3,250
177
3,503
Female manuals
35
766
38
677
Post April 1998 males
740
21,026
514
12,910
Post April 1998 females
893
23,894
719
16,379
Total full-time members
2,661
75,042
2,519
61,767
Part-time members
Male officers
17
249
26
356
Female officers
586
8,253
749
8,798
Male manuals
30
326
34
425
Female manuals
268
2,530
351
2,843
Post April 1998 males
199
2,130
133
1,369
Post April 1998 females
2,295
22,097
1,596
12,476
Total part-time members
3,395
35,585
2,889
26,266
Total members
6,056
110,627
5,408
88,034
 
 
The average age of employee members is 50.7.  The average expected future working life of existing 
employee members is 8.2 years.  All of these figures are weighted by liability. 
GMP information has been provided for deferred and pensioner members.  No information was provided for 
active members and full salary history is not available to estimate GMP.  GMP pensions have therefore 
been ignored for active members.   
Note that the numbers in the above table refer to the number of records and so will include ‘double 
counting’ of members in more than one employment. 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
 
 
031 
HYMANS ROBERTSON LLP 
 
Membership data - pensioners, spouses and children 
31-Mar-07
31-Mar-04
Pensions
Pensions
Number
Number
[£000] p.a.
[£000] p.a.
Normal/early retirements
Male officers
769
6,733
728
5,799
Female officers
1,370
4,544
1,157
3,388
Male manuals
380
1,117
383
1,024
Female manuals
428
496
377
419
Ill-health retirements
Male officers
143
1,274
147
1,129
Female officers
364
1,773
304
1,271
Male manuals
199
902
217
896
Female manuals
161
302
217
614
Dependants
Widows
512
1,257
482
1,020
Widowers
116
156
77
88
Children
48
57
46
49
Total
4,490
18,611
4,135
15,698
 
The average age of pensioner members (weighted by liability and excluding spouses’ and civil partners’ 
pensions and children’s pensions in payment) is 65.9.  Note that the numbers in the above table refer to the 
number of records and so will include ‘double counting’ of members in receipt of, or potentially in receipt of, 
more than one benefit. 
Membership data - deferred pensioners 
31-Mar-07
31-Mar-04
Pensions
Pensions
Number
Number
[£000] p.a.
[£000] p.a.
Men
1,299
3,076
1,094
2,840
Women
2,961
4,085
2,205
3,347
Total
4,260
7,162
3,299
6,187
 
The deferred pension shown includes revaluation up to and including that granted by the 2007 Pension 
Increase Order.  The average age of deferred pensioners (weighted by liability) is 50.2.  The figures above 
also include status 2 and status 9 members as at the valuation date. 
Note that the numbers in the above table refer to the number of records and so will include ‘double 
counting’ of members in receipt of, or potentially in receipt of, more than one benefit. 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
 
 
032 
HYMANS ROBERTSON LLP 
 
Membership data – membership split by fund employer 
Number of Members
Pensionable Pay
Employer Code
Employer
Employees
Deferreds
Pensioners
PTE (£000s)
1
London Borough of Hillingdon
5458
3952
4379
96,935
64
Heathrow Travel Care
4
1
0
103
66
Hillingdon & Ealing Citizens Advice
12
18
3
309
85
Uxbridge College
196
197
42
3,925
90
Breakspear Crematorium
0
7
17
0
103
Hillingdon Homes
298
51
40
7,466
104
Central Parking Services
1
7
1
19
106
Park Lodge Farm
0
2
0
0
107
Stockley Academy
19
12
1
366
108
Harefield Academy
43
11
1
665
109
London Housing Consortium
12
2
6
539
110
Lookahead Housing and Care
13
0
0
299
 
 
 
Assets at 31 March 2007 
A summary of the Fund’s assets (excluding Members’ money-purchase Additional Voluntary Contributions) 
as at 31 March 2007 is as follows: 
Market Value
Percentage of total Assets
[£000]
%
UK equities
265,859
46%
Overseas equities
180,186
31%
UK fixed interest bonds
16,188
3%
UK index linked bonds
15,904
3%
UK corporate bonds
10,688
2%
Overseas bonds
23,773
4%
Property
51,923
9%
Cash and net current assets
12,047
2%
Total
576,568
100%
 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
 
 
033 
HYMANS ROBERTSON LLP 
 
Revenue account for the three years to 31 March 2007 
Revenue Accounts
£000
Year to
31-Mar-07
31-Mar-06
31-Mar-05
Total
EXPENDITURE
Retirement pensions
17,782
17,012
16,186
50,980
Retirement grants
3,732
1,949
1,926
7,607
Death benefits
464
336
376
1,176
Transfer values
3,856
4,417
3,599
11,872
Refunds/CEPS
25
79
119
223
Admin expenses
673
732
782
2,187
Investment expenses
2,477
1,918
1,535
5,930
Other expenditure
INCOME
Employee contributions
6,886
6,368
5,872
19,126
Employer contributions
14,913
12,200
9,773
36,886
Transfer values
3,928
5,896
5,730
15,554
Investment income
16,808
15,039
12,122
43,969
Other income
3
6
11
20
Assets at start of year
543,622
435,693
392,672
392,672
Net cashflow
13,529
13,060
8,974
35,563
Change in value
19,417
94,863
34,036
148,316
Assets at end of year
576,568
543,622
435,693
576,568
ANNUAL RETURNS
Approx rate of return
6.2%
24.8%
11.4%
 
 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
 
 
034 
HYMANS ROBERTSON LLP 
 
Appendix D – Funding method 
Using the actuarial assumptions described in section 3 (and Appendix F) I estimate the payments which will 
be made from the Fund throughout the future lifetimes of existing employee members, deferred pensioners, 
pensioners and their dependants.  I then calculate the amount of money which, if invested now, would be 
sufficient to make these payments in future, assuming that future investment returns are in line with the 
discount rate.  This amount is the estimated cost of members’ benefits.  I make separate calculations for 
benefits arising from scheme membership before the valuation date (‘past service’) and from scheme 
membership after the valuation date (‘future service’). 
Past service funding position 
I compare the value of the assets with the estimated cost of members’ past service benefits.  The ratio of 
the asset value to the estimated cost of members’ past service benefits is known as the ‘funding level’.  If 
the funding level is more than 100% there is a ‘surplus’; if it is less than 100% there is a ‘shortfall’. 
Future service contribution rate: whole fund and employers admitting new entrants 
I calculate the estimated cost of benefits accruing to existing employee members over the year following 
the valuation date allowing for all expected future pay and pension increases.  This amount is expressed as 
a percentage of the members’ pensionable pay over the year following the valuation date and is known as 
the ‘future service contribution rate’. 
This method of assessing the future contribution requirement is applied only to the Fund membership at the 
valuation date.  If new entrants are admitted to the Fund to the extent that the membership profile remains 
broadly unchanged (and if the actuarial assumptions are unchanged) then the future service contribution 
rate assessed at future valuations should be reasonably stable.  However, if the average age of employee 
members rises (for example if few or no new entrants are admitted to the Fund), and if the actuarial 
assumptions are unchanged, then the future service contribution rate will increase. 
This funding method is known as the Projected Unit Method. 
Future service contribution rate: employers not admitting new entrants 
I calculate the estimated cost of benefits accruing to existing employee members over their expected future 
working life allowing for all expected future pay and pension increases.  This amount is expressed as a 
percentage of the members’ pensionable salaries over their expected future working life and is known as 
the ‘future service contribution rate’. 
This method of assessing the future contribution requirement is applied only to the Fund membership at the 
valuation date.  If no new entrants are admitted to the Fund, so that the membership profile gradually ages, 
(and if the actuarial assumptions are unchanged) then the contribution rate assessed at future valuations 
should be reasonably stable, provided that any surplus or shortfall in the past service position is reflected in 
the contribution rate. 
This funding method is known as the Attained Age Method. 
Future service contribution rate: all cases 
Under each of the two methods described above to calculate the future service contribution rate, the cost of 
the lump sum death in service benefit is separately assessed as the amount which is likely to be paid out in 
an average year, based on the membership structure at the valuation date. 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
 
 
035 
HYMANS ROBERTSON LLP 
 
The total ‘future service contribution rate’ is then the sum of either the ‘Projected Unit Method’ rate or the 
‘Attained Age Method’ rate, plus the lump sum death benefit cost.  It is the rate at which the Fund 
employers, together with the employee members, should contribute to the Fund to meet the cost of 
members’ benefits expected to arise from service after the valuation date.  For the period from 1 April 2008 
to 31 March 2010, employee members will be contributing at fixed rates (albeit with various tiers).  
Therefore the Fund employers’ future service contribution rate is the total future service contribution rate 
less the member contribution rate.  An addition is made to cover the expected future expenses of 
administering the Fund. 
 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
 
 
036 
HYMANS ROBERTSON LLP 
 
Appendix E – Changes since the previous valuation 
Changes to the Fund’s benefit structure 
Since the previous valuation, a number of changes have been made to the LGPS benefit structure, some of 
which are listed below.  Full details of the scheme benefits are set out in Appendix B. 
• 
removal of the Rule of 85 for some or all service; 
• 
introduction of commutation; 
• 
a reduction to the minimum membership required for entitlement to a deferred benefit; 
• 
restrictions on aggregation of former membership; 
• 
introduction of survivor benefits for civil partners. 
The overall effect of these changes is to reduce the cost of the benefits. 
Changes to the Fund’s benefit structure from 2008 
A new scheme is to be introduced from 1 April 2008. Regulations have been laid but corrective changes 
are still expected to be made in the lead up to the introduction of the new benefit structure.  As a general 
principle, benefits accrued up to 31 March 2008 will continue to be calculated in accordance with the 
scheme rules at that date.  The details of the benefit structure relating to scheme membership from 1 April 
2008 are included in Appendix B and the main changes are summarised below: 
• 
pension calculated as 1/60 x final pay x period of scheme membership; 
• 
option to exchange part of retirement pension for lump sum, up to a maximum of 25% of the capital 
value of benefits; 
• 
employees’ contribution rates ranging from 5.5% to 7.5% of pensionable pay, determined by a seven 
tier structure based on the level of whole-time pensionable pay as at the 1 April in each year, or date 
of joining the scheme if different and may also be subject to re-determination on a ‘material’ change 
in circumstances; 
• 
earliest retirement age for non ill-health retirements of age 55 (with employer consent) or from age 
50 for existing members opting to draw benefits with employer consent before 31st March 2010; 
• 
ill-health benefits if member found to be permanently unfit and has a reduced likelihood of obtaining 
gainful employment prior to age 65.  Enhancement either 25% or 100% of the period to age 65, 
depending on likelihood of obtaining gainful employment prior to age 65.  A third tier ill-health 
provision, with no enhancement, is also expected to be included in the scheme; 
• 
death grant of 3 times final pay for death in service; 
• 
death grant of 10 times pension less total of pension payments already paid for death after 
retirement; 
• 
introduction of pensions to nominated co-habiting partners on the death of a scheme member; 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
 
 
037 
HYMANS ROBERTSON LLP 
 
• 
spouses, civil partners and co-habiting partners pensions calculated using a 1/160 accrual rate; and 
• 
changes to the options for members to purchase or employers to award extra scheme pension. 
In addition, a cost sharing mechanism is to be introduced.  This, however, will only be effective from April 
2010 and therefore does not need to be considered as part of this actuarial valuation. 
Changes to the funding assumptions 
The financial assumptions have changed since the previous valuation.   The financial assumptions used in 
this and the previous valuation are shown in Appendix F. 
The assumptions relating to the mortality of current and future pensioners have changed since the previous 
valuation, to reflect recent experience in the Fund and more up-to-date standard mortality tables produced 
by the actuarial profession.   The effect of the change in assumptions on the expected future lifespan of 
Fund members is illustrated in Appendix F. 
Some of the other demographic assumptions have also changed since the previous valuation.  The 
changes reflect updated expectations of future experience based on an analysis of recent past experience 
in the Fund. 
Changes to the economic environment 
Since the previous valuation, equity markets have risen and bond markets have risen (so yields have 
fallen).  Market expectations of inflation have risen.  Overall, changes in economic factors have been 
favourable in terms of their effect on the funding level.  Lower real gilt yields have however increased the 
assessed cost of future service benefits. 
Changes to the Fund membership 
The Fund membership has changed since the previous valuation, as new employee members have joined 
the Fund and members have left the Fund, retired and died.  Whilst membership changes were anticipated 
at the previous valuation, the actual changes have inevitably not exactly matched the assumptions made at 
the previous valuation. 
In general, the Fund has matured since the previous valuation: employee members are, on average, closer 
to retirement and the portion of the total assessed cost of benefits attributable to pensioner members has 
increased.  Further details of the Fund membership and its changes since the previous valuation are given 
in Appendix C. 
Changes to the Fund’s assets 
The Fund’s assets have been augmented by employer and employee contributions paid in, transfer values 
received, and interest and investment gains.  Conversely, the assets have been depleted by benefit 
payments to members and their beneficiaries, transfer values and refunds paid and payment of 
administration and other expenses..  Overall, there has been a net increase in the market value of the 
Fund’s assets, only some of which was anticipated in the previous valuation. 
In the report on the previous actuarial valuation I recommended that contributions be paid in line with the 
rates shown in the Rates and Adjustment certificate appended to that report over the period from 1 April 
2005 to 31 March 2008.  The Fund employers have paid contributions over the period from 1 April 2005 at 
least in line with those recommended rates.   
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
 
 
038 
HYMANS ROBERTSON LLP 
 
Changes to the funding position 
The changes described above have combined to improve the Fund’s funding position since the previous 
valuation.  The chart below illustrates the effect of the various factors on the funding position. 
-53.5
Surplus(Deficit) at Last Valuation
Interest on surplus(deficit)
-10.8
Investment returns greater than expected
106.9
Change in demographic assumptions
-19.7
Experience items
-8.5
Contributions less than cost of accrual
-4.8
Change in financial assumptions
-53.4
Miscellaneous items
-5.8
-49.5
Surplus(Deficit) at This Valuation
-100
-50
0
50
100
150  
£m 
 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
 
 
039 
HYMANS ROBERTSON LLP 
 
Changes to the contribution requirement 
The maturing of the Fund’s employee membership coupled with the fall in real gilt yields and changes to 
the funding assumptions have led to an increase in the assessed cost of future benefit accruing, as shown 
by the chart below. 
Future service rate  in 2004
11.25%
Roll forward to  2007
0.2%
Changes in demographic assumptions-0.2%
Allowance for commutation at 50%-0.3%
Change in life expectancy
0.8%
Change in asset outperformance
0.5%
Change in market conditions 
2.0%
Abolition of the rule of 85
0.0%
New scheme 2008
0.6%
Future service rate  in 2007
14.8%
-2% 0%
2%
4%
6%
8% 10% 12% 14% 16%  
The past service adjustment has fallen due to the improved funding position.  Overall the common 
contribution rate has increased since the previous valuation to 16.8% of pensionable pay.  
Further detail on the funding level and contribution requirements is shown in section 6. 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
 
 
040 
HYMANS ROBERTSON LLP 
 
Appendix F – Actuarial assumptions 
Financial assumptions 
 
Assumptions to 
Assumptions to 
Assumptions to 
assess funding 
assess funding 
assess ‘gilt based’ 
position at 31 March  position at 31 March  position at 31 March 
2004
2007
2007
Annual rate of price inflation
2.9%
3.2%
3.2%
Annual rate of pension increases
- on pensions in excess of GMPs
2.9%
3.2%
3.2%
- on pensions accrued after April 1997
2.9%
3.2%
3.2%
- on post-88 GMPs in payment
2.0%
2.8%
2.8%
- on pre-88 GMPs in payment
0.0%
0.0%
0.0%
Annual rate of increase of deferred pensions
2.9%
3.2%
3.2%
Annual rate of pay increases
4.4% (2)
4.7% (1)
4.7% (1)
Discount rate
6.3%
6.1%
4.5%
Expenses
1.0%
0.7%
0.7%
 
 
(1) plus an allowance for promotional increases (see table below). 
(2) plus an allowance for promotional increases. 
Mortality assumptions 
 
PMA92/PFA92 tables based on calendar year projections 
 
For current pensioners mortality is projected to Calendar Year 2017, whilst for members yet to retire it is 
projected to 2033.  
Age ratings set out in the table below 
 
  
Males 
Females 
Officers (& post-98 joiners) 
No age rating 
No age rating 
Manuals 
+3 years 
+2 years 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
 
 
041 
HYMANS ROBERTSON LLP 
 
Ill Health Retirement -   as above, except rated up by 5 years (6 years for male officers and male post-98 
joiners) 
Widows – one year older than female pensioners 
 
Other demographic valuation assumptions  
 
Retirements in ill health 
Allowance has been made for ill-health retirements before 
Normal Pension Age (see table below). 
 
 
 
Withdrawals  
Allowance has been made for withdrawals from service (see 
table below). 
 
 
Family details  
A varying proportion of members are assumed to be married (or 
have an adult dependant) at retirement or on earlier death.  For 
example, at age 60 this is assumed to be 80% for males and 
75% for females. 
Husbands are assumed to be 3 years older than wives. 
 
 
Commutation 
50% of future retirements elect to exchange pension for 
additional tax free cash up to HMRC limits. 
 
 
The tables below show details of the assumptions actually used for specimen ages.  The promotional pay 
scale is an annual average for all employees at each age.  It is in addition to the allowance for general pay 
inflation described above.  For membership movements, the percentages represent the probability that an 
individual at each age leaves service within the following twelve months. 
 
Incidence per 1000 active members per anumm
Male Officers & Post 98
Male Manuals
Female Officers & Post 98
Female Manuals
Age
Ill Health
Ill Health
Ill Health
Ill Health
Death
Death
Death
Death
FT
PT
FT
PT
FT
PT
FT
PT
20
0.30
0
0
0.38
0
0
0.16
0
0
0.20
0
0
25
0.30
0
0
0.38
2.24
1.79
0.16
0.42
0.34
0.20
2.60
2.08
30
0.36
0.42
0.34
0.45
3.64
2.91
0.24
0.70
0.56
0.30
3.60
2.88
35
0.42
0.56
0.45
0.53
5.46
4.37
0.40
1.40
1.12
0.50
5.20
4.16
40
0.72
0.98
0.78
0.90
7.56
6.05
0.64
1.82
1.46
0.80
7.20
5.76
45
1.20
2.24
1.79
1.50
10.92
8.74
1.04
2.94
2.35
1.30
9.20
7.36
50
1.92
6.16
4.93
2.40
15.96
12.77
1.52
5.74
4.59
1.90
13.60
10.88
55
3.00
12.60
10.08
3.75
25.76
20.61
2.00
15.12
12.10
2.50
25.60
20.48
60
5.40
25.20
20.16
6.75
49.00
39.20
2.56
0
0
3.20
0
0
 
 
 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
 
 
042 
HYMANS ROBERTSON LLP 
 
 
Promotional Salary Scales
Female Officers & Post 98 
Age
Male Officers & Post 98 Males
Male Manuals
Female Manuals
Females
FT
PT
FT
PT
FT
PT
FT
PT
20
100
100
100
100
100
100
100
100
25
100
100
100
100
100
100
100
100
30
123
113
100
100
115
105
100
100
35
138
123
100
100
126
110
100
100
40
148
128
100
100
136
115
100
100
45
158
128
100
100
136
115
100
100
50
168
128
100
100
136
115
100
100
55
168
128
100
100
136
115
100
100
60
168
128
100
100
136
115
100
100
 
 
Incidence for 1000 active members per annum
Male Officers & Post 98 Males
Male Manuals
Female Officers & Post 98 
Female Manuals
Age
Withdrawals
Withdrawals
Withdrawals
Withdrawals
FT
PT
FT
PT
FT
PT
FT
PT
20
176.26
293.76
293.76
587.52
167.18
232.20
278.64
371.52
25
116.42
194.04
194.04
388.08
112.46
156.20
187.44
249.92
30
82.58
137.64
137.64
275.28
94.25
130.90
157.08
209.44
35
64.51
107.52
107.52
215.04
81.29
112.90
135.48
180.64
40
51.91
86.52
86.52
173.04
67.61
93.90
112.68
150.24
45
42.48
70.80
70.80
141.60
55.66
77.30
92.76
123.68
50
32.90
54.84
54.84
109.68
42.41
58.90
70.68
94.24
55
28.51
47.52
47.52
95.04
32.69
45.40
54.48
72.64
60
17.28
28.80
28.80
57.60
15.19
21.10
25.32
33.76
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
 
 
043 
HYMANS ROBERTSON LLP 
 
Appendix G – Detailed valuation results 
In section 4 of this report, I showed that at the valuation date, the funding level calculated in relation to the 
Administering Authority‘s chosen funding objective was 92% and there was a funding shortfall of £50m.  
The table below shows these results, together with those from the previous valuation, in more detail. 
Funding position ([£000s])
31-Mar-07
31-Mar-04
A. Value of assets
576,909
393,000
Assessed cost of past service benefits in respect of:
Employee members
267,518
173,704
Pensioner members
249,117
195,158
Deferred pensioner members
109,798
77,611
B. Total assessed cost of past service benefits
626,432
446,473
Funding surplus/(shortfall) (A minus B)
(49,523)
(53,473)
Funding level (A as a percentage of B) 
92%
88%
 
Section 4 also showed that I calculate the overall ‘future service contribution rate’ payable by the Fund 
employers (ignoring the shortfall in the Fund at the valuation date) to be 14.8% of pensionable pay payable 
with effect from 1 April 2008.  The derivation of this contribution rate, together with that calculated at the 
previous valuation and the past service adjustment, is shown below. 
31 March 2007
31 March 2004
Employer contribution rates
% pensionable payroll
% pensionable payroll
Total future service cost
20.7%
16.3%
Employee contributions (excluding AVCs)
6.6%
6.0%
Expenses
0.7%
1.0%
Net employer future service cost
14.8%
11.3%
Past service adjustment - 25 year spread
2.1%
3.2%
Employer contribution rate
16.8%
14.4%
 
 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
 
 
044 
HYMANS ROBERTSON LLP 
 
Appendix H – Rates and adjustments certificate 
In accordance with Regulation 77 of the Local Government Pension Scheme Regulations 1997, as 
amended, I have made an assessment of the contributions that should be paid to the Fund by the 
employing authorities as from 1 April 2008 in order to maintain the solvency of the Fund. 
The required contribution rates are set out in the attached statement. 
 
 
 
 
 
Signature:  
 
 
Date: 
  19 
March 
2008 
Name: 
 
  Bryan 
T 
Chalmers 
   
 
 
 
Qualification: 
 
Fellow of the Faculty of Actuaries 
Firm: 
Hymans Robertson LLP 
 20 
Waterloo 
Street 
 Glasgow 
 G2 
6DB 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---

LONDON BOROUGH OF HILLINGDON PENSION FUND 
 
 
045 
HYMANS ROBERTSON LLP 
 
Statement to the rates and adjustments certificate 
The Common Rate of Contribution payable by each employing authority under Regulation 77 for the period 
1 April 2008 to 31 March 2011 is 16.8% of pensionable pay (as defined in Appendix B). 
Individual Adjustments are required under Regulation 77 for the period 1 April 2008 to 31 March 2011 
resulting in Minimum Total Contribution Rates expressed as a percentage of pensionable pay are as set 
out below: 
Employer 
 
code
Employer
Minimum contributions for the year ending
31 Mar 2009
31 Mar 2010
31 Mar 2011
 
1
London Borough of Hillingdon
15.6%
16.35%
17.1%
 
64
Heathrow Travel Care
15.6%
16.35%
17.1%
66
Hillingdon & Ealing Citizens Advice
14.5%
14.5%
14.5%
 
85
Uxbridge College
12.9%
12.9%
12.9%
103
Hillingdon Homes
15.9%
15.9%
15.9%
 
104
Central Parking Services
14.7%
14.7%
14.7%
107
Stockley Academy
18.5%
18.5%
18.5%
 
108
Harefield Academy
13.0%
13.0%
13.0%
109
London Housing Consortium
15.6%
16.35%
17.1%
 
110
Lookahead Housing and Care
18.6%
18.6%
18.6%
 
Notes 
Contributions expressed as a percentage should be paid into the London Borough of Hillingdon Pension 
Fund (‘the Fund’) at a frequency in accordance with the requirements of the Regulations. 
Further sums should be paid to the Fund to meet the costs of any early retirements and/or augmentation 
using methods and factors issued by me from time to time. 
Further sums may be required to be paid to the Fund by employers to meet the capital costs of any ill-
health retirements that exceed those included within my assumptions. 
The certified contribution rates represent the minimum level of contributions to be paid.  Employing 
authorities may pay further amounts at any time and future periodic contributions may be adjusted on a 
basis approved by the Fund actuary. 
 
March 2008 
G:\ACT\LGPS\HLDN\2007 VAL\REPORTS\080319 WITH CAVEAT - VALUATION AS AT 31 MARCH 2007.DOC 

---