Agenda item

The Committee considered a report of the Corporate Director of Resources which sought agreement on implementing a policy approach to new powers

allowing Administering Authorities to exercise discretion in respect of

Employer Flexibilities (for copy see file of Minutes).

The Pensions Manager explained LGPS Regulations required the Fund to maintain and publish a Funding Strategy Statement (FSS) and noted the FSS had been amended to reflect the approach recommended by the Actuary in respect of the Department for Levelling Up, Housing and Communities’ partial response to its ‘Changes to the Local Valuation Cycle and the Management of Employer Risk’ consultation.  He noted that, additionally, the Fund had drafted a Policy approach to the range of flexibilities in respect of Participating Employers (the ‘Employer Flexibilities’) set out in the ‘Changes to the Local Valuation Cycle and the Management of Employer Risk’ consultation.

In response to a question from Councillor J Atkinson as regards discussions with employers and where the decision would rest, the Pensions Manager noted it would be the same as the existing Exit Policy, notably with the Corporate Director following an application being submitted and consultation with the Actuary so that the decision could be made in the best interests of the wider fund.  He added the cost of the Actuary work would fall to the employer making the request.

Resolved:

a)     to note the report and to advise of any comments the Committee may have on the draft policy set out in the appendices to the report,

b)     to authorise the Corporate Director of Resources to finalise the wording of, publish and implement the finalised policy; taking into account comments of the Committee and employer feedback received, and amend the Funding Strategy Statement (FSS) to signpost the new policy and approach, and;

to authorise the Corporate Director of Resources to make a determination in respect of the flexibilities implemented as the requirement to do occurs.