Report attached.

Contact: Debbie Sharp (01743) 252192

66.1  The Board received the report of the Pensions Manager – copy attached to the signed Minutes – which provided Members with the latest administration and regulatory updates affecting the Local Government Pension Scheme. 

66.2  The Pensions Manager drew attention to the update on the exit payments cap consultation (paragraph 5.1 of the report) and explained how this would affect the inclusion of pension strain if an employer were to leave within three months and wished to draw down cash from the scheme.  She also drew attention to the updates on the new Fair Deal and changes to the local valuation cycle and the management of employer risk, set out at paragraphs 5.2 and 5.4 of the report respectively.

66.3  In relation to the McCloud and Sergeant Case, the Pensions Manager reported that this had been covered at both the Employers meeting and the Annual meeting when it was explained what was required and what it would mean for employers.  She confirmed that as transitional protections had been found to be unlawful, something would need to be done to correct this, which may affect the valuation. She further explained that the cost cap could not be fully enacted until the McCloud cost was known but that one would slightly counteract the other.

66.4  The Pensions Manager explained why it had been suggested that funds contact scheme employers to check whether individual member hours history from 1 April 2014 was available in relation to the underpin (the definition of which was ‘within 10 years of normal retirement, employee would be no worse off than previous final salary scheme’).  So the final salary data of leavers was still required in order to calculate core benefits.  In the absence of these records, a best guess of benefit would have to be done.

66.5  A brief discussion ensued in relation to the results of The Pensions Regulator (TPR) deep dive.  It was felt that two meetings per year may not be sufficient and the option of holding three per year was considered by the Board.  Discussion also took place around whether more than the current four Members were required and the necessity for a work plan setting out the items to be considered at each meeting.  It was requested that the Chairman of the Central Fund be invited to at least one meeting per year.

66.6  The Pensions Manager drew attention to the 2019 Scheme return data quality scores and data improvement plan set out in paragraph 8 of the report.  She reported that there had been some improvement in both the common and scheme specific data scores reported to The Pensions Regulator.  The Fund’s Data Improvement Plan was being updated in light of these results and Members of the Board agreed with the suggested priority areas for improvement.

66.7  The Pensions Communications Officer informed Members that the Communications Policy was being updated and she requested that Members feed in their comments and thoughts on what Members/Employers required in terms of communication.  She agreed to work with the Chairman on pulling together a Work Programme for the Board which would then be circulated to the other Board Members.

66.8  RESOLVED:

          A.  That the contents of the report be noted.

          B.  That the Fund’s approach to updating the data improvement plan (set out in paragraph 8.3 of the report) be agreed.