8.1 In my judgement, the assets held by
the House of Commons Members' Fund as at 30 September 2006 were
likely to be more than sufficient to meet the liabilities in respect
of existing commitments, including future awards to surviving
spouses of former Members receiving benefit, and future administration
8.2 In view of the substantial surplus in
the Fund consideration could be given to reducing the level of
Grant in Aid.
8.3 In view of the fact that most of the
liabilities are expected to increase in line with price inflation,
it is recommended that consideration be given to matching these
liabilities with index-linked bonds, in order to reduce the potential
volatility of the funding position.
C D Daykin, CB FIA
20 July 2007