The Committee considered a report of the Corporate Director of Resources (Interim) which briefed the Committee on developments in matters that were both Local Government Pension Scheme (LGPS) specific, as well as providing an update on non-LGPS specific matters of interest (for copy see file of Minutes).
Councillor Atkinson asked a question about the Pensions Regulator. Paul Cooper advised that the Regulator’s role was to oversee for example the services delivered to scheme members and how Funds worked with Scheme Employers. The investment requirements within the LGPS were set out in legislation, and the 2016 Regulations determined how Funds should invest.
Following questions from Councillor Fletcher regarding the cost control mechanism and the McCloud Judgement, Paul Cooper stated that the purpose of the cost control mechanism was to control overall scheme costs to ensure they did not increase above what was anticipated. Tramlines were introduced nationally of 2%, which meant that the scheme could become up to 2% more expensive, or 2% cheaper, without triggering the cost control mechanism. The proposed increase to 3% would be a positive change for Employers. In terms of the McCloud judgement, LGPS Regulations were expected in 2023 which would require all public sector pension schemes to apply the same protections afforded to older members to all scheme members.
That the information contained in the report be noted.