Ms Miriam Adams, Interim Head of Pensions and Treasury said the report provided members with information relating to the administration and performance of the Fund over the last quarter as well as an update on the key LGPS issues which impact the Fund.

In response to comments and questions from members the following was noted:

·       In answer to why there was a low take up rate for active members, Ms Adams explained that the role of the LGPS was to manage and administer the scheme. She said it was for Employers and the Unions to promote the benefits to its staff/members. She said the Pension Board and Pension Committee may also want to be involved in the promotion of the scheme. Ms Adams said there had been a high percentage of opt-outs at the auto-enrolment stage which the scheme must carry out every three years. She said opt-outs were for several reasons, including affordability and religious reasons.

The Pensions Committee RESOLVED to:

1.    Note and comment on the contents of this report and appendix.

Ms Miriam Adams, Interim Head of Pensions and Treasury said the report provided members with information relating to the administration and performance of the Fund over the last quarter as well as an update on the key LGPS issues which impact the Fund.

In response to comments and questions from members of the Board the following was noted:

• Referring to paragraph 3.12, Mr Gray stated the Local Government Association had also been pushing the recruitment and retention issue within LGPS. He said it was not a unique problem as it effected all Funds.
• Referring to opt-outs, Mr Gray asked if any research had been done to see why employees opt out of the scheme. Ms Adams said having a pension is an employee benefit and the Employer needs to make the employee aware of the benefits. She said people opted-out for several reasons, including affordability and religious reasons. She said in some cases employers aren’t telling their staff, about the scheme as it reduces the expense to employer. However, the Unions could help with promoting schemes to their members.
• Referring to paragraph 3.2., and the table therein, Mr Thompson said the Pension team should be acknowledged for its work in reducing the number of tasks outstanding. He said he was pleased to see the CIPFA targets being shown as these were important and helpful.
• Referring to the table at paragraph 3.7, Mr Thompson asked what was being done to develop the workflows for some of the areas shown in the table. Mr Adams responded stating 9 workflows were outstanding. She said these had been developed and were being tested before they could be released.
• Referring to paragraph 3.8, Mr Thompson said the final sentence referred to the fund not being ‘authorised to provide any financial advice to our members’, yet just above it was talking about the breach of the Annual Allowance. He asked how the fund made people aware of this. Ms Adams said they made fund members aware through the annual newsletter as well as through workshops. She said this affected high earners who were provided with a statement. However, the onus was on them to declare their tax to HMRC, as they may have other sources of income such as saving and properties etc. Hence the Fund could not give advice on their tax.

The Pensions Board RESOVLED to:

Note the recommendation being made to the Pensions Committee who are to consider this report at their meeting of 27th June 2022. 

The Pensions Committee is recommended to:

1. Note and comment on the contents of this report and appendix