Warwickshire County Council takes loan to plug pension cash shortfall

Warwickshire County Council has taken a £5 million short-term loan to make up a cash shortfall in its pension scheme.

The shortfall followed austerity measures, which resulted in redundancies and early retirement programmes at bodies associated with the local authority’s pension fund.

A spokesperson for Warwickshire County Council said: “The short-term loan made up a shortfall at 31 March 2011 and is a temporary measure with the cash flow still positive on the fund. 

“The situation will be monitored with pooled funds immediately available if required.

“It is, however, envisaged that the positive cash flow will result in this option not being taken up.”

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