Agenda item

The Committee considered a report of the Corporate Director of Resources which briefed the Committee on developments in matters that were both LGPS specific, as well as providing an update on non-LGPS specific matters of interest (for copy see file of Minutes).

Councillor J Shuttleworth entered the meeting at 10.22am

Councillor J Atkinson asked for further information as regards the changes to pension tax following the Spring Budget. The Head of Pensions (LGPS), Paul Cooper noted the limits were for Scheme Members, not the Fund, with the Lifetime Allowance being £1.07 million for 2022/23, with anything above that being taxable.  He added that changes were such that from 6 April 2023 the charge for breaching that limit would be abolished. He noted that the Annual Allowance also increased from £40,000 to £60,000. Councillor J Atkinson asked if there were many in that bracket and affected. 

The Head of Pensions (LGPS) noted that the allowance had been frozen for this Parliament and now would be abolished, but stressed however, that the Opposition had noted their intention to roll back that change. He noted that whilst there are limited numbers of scheme members affected, those numbers had been increasing. The Head of Pensions also noted that the policy intention was aimed at the NHS to encourage Surgeons, Consultants and other higher earners to stay in their roles longer or return to those roles.

Councillor B Kellett asked as regards any movement in relation to McCloud, noting draft for October 2023.  The Head of Pensions (LGPS) noted that Funds were awaiting regulations, and while Officers had a good line of sight, the information had not yet been received.  He noted work was ongoing in the background in terms of data collection and working with our software provider.

Councillor D Sutton-Lloyd noted the amount of general information from relating to the Government Budget and ask if we had sufficient for our purposes.  The Corporate Director of Resources, Paul Darby noted that was correct and that the details would come through in due course, with Officers looking at how the details would impact the Pension Fund and its administration.  He added that the initial view was there was no major impacts for the Fund, other than the wider implications on the economy.

Councillor K Early asked as regards the number of those within the LGPS that would be affected by the abolition of the lifetime allowance.  The Head of Pensions (LGPS) noted it would likely be a small number.

Anthony Fletcher reiterated that it was greater issue in the NHS and how it would impact those higher earners in that Scheme.  The Corporate Director of Resources noted that in the same way that McCloud had started within the Fire Service Pension Scheme, any changes to just NHS pension funds could result in wider legal challenge if not applied across the public services areas equally.

Resolved:

That the information contained in the report be noted.