Agenda item
Pension Scheme Administration Update
Minutes:
It was reiterated that the Chair would be exempted from the discussion pertaining to Tower Hamlets Community Housing and that the Vice-Chair would lead the meeting during that time.
The Committee heard an update on the pension scheme administration from Tim Dean, Pensions Manager.
Key points from discussion:
· The Committee requested to see data on the number of employees who decide to opt out of the scheme.
· In principle, Tower Hamlets Youth Sports Foundation was admitted into the Fund however, the Committee asked for Officers to investigate appropriate protection in relation to this organisation as a condition to formal admission. This could be in the form of a bond or other suitable approach to minimise the potential for a cessation event having an adverse impact on the Pension Fund..
· KM Cleaning and Maintenance was admitted into the Fund.
· East London Arts and Music Academy was admitted into the Fund.
· One Housing - the Committee accepted One Housing’s withdrawal from the Fund, however, they requested it be noted that the decision was improperly consulted on. Ideally One Housing should have discussed their intention to withdraw from the Fund with the Pension Committee before they independently took the decision. The Committee also said they would have liked to see the business case for withdrawal. They asked officers to feedback their comments to One Housing.
· The Committee welcomed the roll out of the i-connect system, it was noted it would be useful in benchmarking.
· The Committee noted the three schools cited in pages 55-56 of the report pack had been turned into academies, a number of staff members will retain their local government pension.
· Tower Hamlets Community Housing – (THCH) made a proposal to convert from a company to a community benefit society. Santander bank THCH’s lender have asked for priority status as a creditor, this could impact on the Councils ability to recoup any pension deficit. It was suggested the proposal be delegated to the Chief Financial Officer (CFO) and Monitoring Officer (MO) for decision, subject to assurances that the pension fund would not be disadvantaged. The legal officer said that the delegation would need to be checked for legality so the Committee agreed to the proposal on the condition that the CFO and MO could assure there would be no impact to recouping the pension fund deficit.
RESOLVED
· To note the information provided in the report.
· To note the change of status of the following schools: Ian Mikardo Academy, Letta Trust, Clara Grant/Stepney Green College, to academies.
· To note the intention of One Housing to close their scheme.
· To accept the transfer of East London Arts and Music Academy into the Fund.
· To agree in principle the admission of the following bodies into the Fund; KM Cleaning and Maintenance Limited, Tower Hamlets Youth Sports Foundation. The admission of THYSF to be subject to appropriate protection being in place to protect the Pension Fund.
· To approve the Communications Strategy as set out in the appendix to the report.
· To agree to the conversion of THCH from a company to a community benefit society, subject to the Chief Finance Officer and Monitoring Officer satisfying themselves that there would be no impact on recouping the Pension Fund deficit.
Supporting documents:
- Pensions Committee Report March 2018 v6 (NA comments) (2), item 6.2 PDF 120 KB
- Appendix 1 Activity and performance October 2017, item 6.2 PDF 30 KB
- Appendix 2 Activity and performance 2017 to 18 Summary, item 6.2 PDF 28 KB
- Communications Strategy Statement v3 March 2018, item 6.2 PDF 156 KB