Agenda item
Administration and LGPS Recent Update
Minutes:
Ms Miriam Adams, Interim Pensions and Investments Manager stated the report provided an update on the administration and performance of the Fund since the July 2020 meeting and the key recent LGPS issues and initiatives which impact the Fund.
She referred members to paragraph 4.2 and said the Council had outsourced catering and cleaning services in schools and the Pensions Team had been working alongside new employers. Ms Adams said several tenders were in the pipeline and she hoped to provide an update at the March 2021 meeting.
Ms Adams referred members to paragraph 6.1 and said the £95K cap came in effect as of 4th November 2020. She said the LGPS regulations needed to be updated. Ms Adams said this would affect high earners but also those with long service. She said ill health was not affected by the cap. Ms Adams said there were several grey areas that needed to be resolved. Ms Adams continued saying guidance was required on how to deal with this, however she had a meeting with the Actuary, to help understand the complexity of the cap.
Ms Adams then provided updates in relation to paragraph seven onwards.
Mr Kevin Bartle, Interim Divisional Director for Finance, Procurement and Audit provided an update regarding the issue with staffing, that had been highlighted by Mr John Jones, the Chair of the Pensions Board. Mr Bartle informed members the recruitment of staff had been slow and time consuming however additional members of staff had been recruited. Mr Bartle said they would share with the Committee the update that had been provided to the Pensions Board. He said he’d like to provide some comparative data looking at the progress made over the last twelve months.
o ACTION: Ms Adams to circulate the information relating to staffing, with members of the Pensions Committee by end of next week. i.e. 27th November 2020.
In response to questions from members the following was noted:
· Ms Kehinde Akintunde, Trade Union Representative stated the £95K cap was causing considerable anxiety amongst staff and members of the trade union, especially given the backdrop of ongoing restructuring and reviews. Ms Akintunde asked if local guidance could be provided in respect to the deferment of pensions and its impact. Ms Akintunde said the trade unions had instigated a Judicial Review against the £95k cap.
· In response, Ms Adams stated there was a distinction to be drawn between the Fund and the Council as an employer. She said from a Fund perspective it was dealing with the administration of members’ pensions after the employer had made a decision whereas from an employer perspective, there was a duty to manage the impact this cap would have on employees. She said she was aware the issue was subject to a judicial review and would be taking legal advice on the matter. Mr Bartle added the Fund and the Committee’s role related to the administration side of the pension fund and whilst this would have a big impact on employees there were a whole series of questions that remained unanswered.
o ACTION: Ms Adams was requested to provide information and guidance on how locally the £95K cap is being administered, regardless of the role of the Pension Committee and the General Purposes Committee.
· In response to staff being TUPE to new employers, Ms Akintunde said this would be occurring in January 2021.
· Ms Adams clarified performance figures were reported at the July 2020 meeting however she would circulate again, as requested.
o ACTION: Ms Miriam Adams, Interim Pensions and Investments Manager to provide committee members with the performance data relating to quarter two.
The Pensions Committee RESOLVED to:
1. Note the report contents; and
2. Note that three employers are in the process of joining the scheme – Taylor Shaw Cleaning, Ridgecrest Cleaning and Atlantic Cleaning following successful joint tender process involving a number of primary and secondary schools include Ian Mikado Academy.
Supporting documents: