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).

The Head of Pensions (LGPS) noted significant current issues related to Government’s LGPS Consultation, noting cross-party support in terms of the push in respect of pooling and allocations which support Levelling Up missions.  He outlined updates in the report including scheme-wide enhanced key performance indicators. He added that, in respect of the McCloud judgement, he had attended a recent regional meeting where progress was discussed with other Pension Funds; explaining that with a limited number of software providers in the LGPS, Funds’ progress was broadly aligned to the availability of software solutions. He noted there was a DCC Project Team in place working on the relevant dataset.

The Head of Pensions (LGPS) noted that the review into whether the LGPS complied with Sharia Law had concluded that as a part of the contractual arrangement between employer and employees, Muslim employees can continue to contribute to, and benefit from, the excellent benefits offered by the LGPS. It was hoped that the report will offer comfort to Muslim members of the LGPS in the knowledge that they can continue to participate in the scheme and may encourage some who had opted out to opt back in. 

In respect of the Boycotts, Divestments and Sanctions Bill (BDS), the Government’s policy was that Pension Funds should not be taking investment decisions that were contrary to UK foreign policy and legislation was going through Parliament at the moment. 

In respect of the Pension Dashboard, it was explained that the process of data cleansing was ongoing.  He added that while this was mandatory, the Council’s own Pension’s Portal already provided the Fund’s members quality information online.

The Head of Pensions (LGPS), noted that the publication of the Pensions Regulator’s Code of Practice, which consolidates multiple codes int the sector into a single code; effective from March. 

He added that there would be a need to undertaken a gap analysis to understand which elements would apply to the LGPS specifically and what must be adhered to and which would be best practice.  He added there would be a report on this to the Local Pension Board, to inform their work programme.

Councillor M Porter noted reference at Paragraph 81 of the report to Public Sector Exit Payments Caps.  The Head of Pensions (LGPS) noted that it was an issue adjacent to the LGPS, however, Government had yet to issue guidance.  Councillor M Porter asked as regards the impact upon Local Authorities, as employers to those within the LGPS.  The Head of Pensions (LGPS) noted that the cap was £95,000 in terms of redundancy and ‘strain on the fund’ or ‘early release’ costs and, if enacted, there could be impact.

Councillor M Porter asked if Local Authorities were aware.  The Head of Pensions (LGPS) noted they were, with the proposals having been mooted in 2019 and had been a clear policy objective of Government at that time.

Councillor B Kellett referred to paragraph 21 of the report, which referred to ‘since 2025’.  The Head of Pensions (LGPS) noted this was a typographical error and should have read ‘2015’.

Resolved:

That the information contained in the report be noted.