The pensions issue is a national one and the Berkshire fund to which Slough belongs is no different in that it has experienced lower returns on its investments compared to historically higher rates. Whilst it is good news that pension fund members are living longer, this has meant an increased liability to the fund.

The current estimated unfunded liability of SBC's employee pension scheme is £3.5m. The Council's plan is to reduce this liability over time as part of the Council's medium term financial strategy. The Council has been increasing employer contributions by 1% per annum and this will increase to 2%, to close the gap over the long term. The current employer rate is 9.3% in 2004/05.