Agenda item

The Committee considered a report of the Corporate Director of Resources which provided an update on the Cost Management mechanisms in the LGPS, and the current pause on the process (for copy see file of Minutes).

Councillor Carr referred to the implications of an increase in employer contributions as a result of a change in the design of public sector pension schemes, and was advised that this had been identified as a risk to the Fund and reflected in the MTFP.

Councillor Temple advised that the Actuary would take cognisance of the potential risks as part of his review, and asked that the Committee be informed of the outcome of the legal case.

Neville Hancock stated that the Shadow Advisory Board had discussed employer contribution rates and Government assumptions regarding factors such as longevity of members and pay awards had been incorrect. Running costs of the scheme were below the cost cap floor, resulting in available funds for a package of possible member benefit improvements. This may change the cost of the scheme through the cost cap mechanism, impacting upon employer contributions. 

Resolved:

That the information contained in the report be noted, and the Committee be informed of the outcome of the legal case.