·  Fair deaL

·  LOcal valuation cycle and management of risk

·  Good Governance SURVEY

Board Members had received a Government Consultation document entitled “Local Government Pension Scheme: Fair Deal – Strengthening pension protection - Policy consultation” and the Council’s response. 

Board Members also considered the Council’s response to Government consultations on:

·  Changes to the Valuation Cycle and Management of Employer Risk; and

·  The Good Governance Project Survey (Council response tabled at the meeting)

Local Government Pension Scheme: Fair Deal – Strengthening pension protection - Policy consultation

The Government sought views on proposals to make amendments to the LGPS in England and Wales requiring service providers to offer LGPS membership to individuals who have been compulsorily transferred from an LGPS employer. The proposed reforms would mean that independent providers would no longer have the option of providing transferred staff access to a broadly comparable scheme. Instead, employees would always have continued access to the LGPS.

In outlining aspects from the draft Fair Deal regulations, the Pensions Manager referred to the proposed Deemed Employer Status explaining how this might work and how the Council could be expected to be considered a Deemed Employer for schools under the regulations. But an Academy could also be considered a Deemed Employer where it commissions arrangements such as a cleaning contract.

Brief details were also outlined on exiting arrangements, including how surpluses would be treated in the case of a Deemed Employer.

Changes to the Valuation Cycle and Management of Employer Risk

Under Government proposals, it is intended to change the LGPS valuation cycle from three to four years in order to bring the LGPS valuation cycle in line with other Public Sector schemes. 

The Pensions Manager provided a brief overview of the consultation document. The Council is working on a response which will be shared with Board members in due course.

Reference was also made to employer risk, reviewing the risk that employers have in LGPS pension funds, and looking at how this risk is assessed and managed.

The Good Governance Project Survey

A brief outline was given of governance proposals set out in the survey and certain points were highlighted to Board Members. The proposals centred on the following four options:

·  Option 1 - Introduce guidance or amendments to LGPS Regulations 2013 to enhance the existing arrangements by increasing the independence of the management of the fund and clarifying the standards expected in key areas;

·  Option 2 - Greater ring-fencing of the LGPS within existing structures - greater separation of pension fund management from the host authority, including budgets, resourcing and pay policies;

·  Option 3 – Use of new structures: Joint Committees; and

·  Option 4 -An alternative single purpose legal entity that would retain local democratic accountability and be subject to Local Government Act provisions. This might be through a combined authority route or through a public body established by statute.

A detailed response to the survey had been provided by the Council and this was circulated at the meeting.

A question was asked on what responses had been provided by other local authorities. The Pensions Manager had not seen any responses but suspected there may be similarities.