Agenda item

The Board considered a report from the Corporate Director of Resources which provided details 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). 

The Head of Pensions (LGPS) noted that the key changes were set out at Appendix 3 to the report, noting that in relation to the Taskforce on

Climate-related Financial Disclosures (TCFD), with expected implementation from 2024 and first reporting in late 2025.  It was noted that the Fire Brigade Union had been granted permission to appeal High Court judgement on Cost Control Mechanism.  It was added that the issues as a result of the McCloud judgement the matter were still ongoing, with consultation being held on the detail of the required changes.  The Head of Pensions (LGPS) noted that the some of the issues related to aggregation and Teachers.  He noted that further information would be brought back to both the Committee and Board.

In respect of the LGPS and Sharia Law, it was explained that evidence was being sought on LGPS compliance with Sharia, noting some Muslims may leave the LGPS if they felt it was not in line with Sharia Law.  He noted that the Scheme Advisory Board were working with a Sharia Scholar to determine whether the LGPS was compatible with Sharia Law. 

The Head of Pensions (LGPS) noted that in relation to scams and similar issues, there had been a major data breach at Capita, a third-party administrator, with the Committee having reviewed cyber security as part of the Fund’s Risk Register.  He noted that a pause had been placed on any transfers to Capita, with a process to write to individuals to double check that they wished to proceed with the exchange of any data.  It was added that the Fund would consider a cyber-security scorecard produced by the Fund Actuary, AON.  The Head of Pensions (LGPS) noted changes to pension taxation, with confirmation of changes to Annual Allowance and Lifetime Allowance, with affected scheme members to be informed over the summer.

The Chair asked as regards the Sharia Law issue and whether staff legally had to be included within a pensions scheme.  The Head of Pensions (LGPS) noted that employers had a legal obligation to enrol employees into a scheme, however, the employee could then opt out should they wish to do so. He added that when looking at the numbers and geography of where disproportionate numbers of LGPS members were opting out, there was evidence that this was in Muslim communities.  The Chair asked whether the Sharia Scholar would be providing details of a scheme that would be compatible with Sharia.  The Head of Pensions (LGPS) explained that LGPS Regulations at Local Authorities were set by the Department for Levelling Up, Housing and Communities (DLUHC) and therefore it would be for the Ministry to determine any actions, following a response from the Scholar.

RESOLVED:

That the information given be noted.