UK - The London Borough of Wandsworth is raising its council tax bill in order to plug a £70m pension scheme deficit.
The deficit was disclosed by an interim valuation at the £540m Wandsworth Borough Council Pension Fund which is 62.8% invested in equities.
A spokesman said the council was looking to plug the deficit by either putting in a one-off lump sum or by increasing its contribution rate, which is currently set at 12%.
The proposals will be discussed by its corporate resources committee on February 27 and at two subsequent council meetings on March 3 and 10.
The spokesman said: “Every single council’s pension fund will be in this position, and it’s going to have quite an impact upon council tax bills.”
Whichever method Wandsworth chooses, the spokesman said that council tax payers would be hit as councillors had ruled out following other local authorities which have sold off properties to plug their deficits.
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