Agenda and minutes

The minutes of the meeting held on 3 December 2018 were taken as read, confirmed and

signed.

In regards to the ongoing review of the Local Pension Board’s  Terms of Reference (ToR), it was intended that members of the Board would  meet in April to discuss the matter. It was envisioned that the Board would be asked to approve a revised ToR document at its meeting in June.

The Chief Executive reported that no questions had been received under Standing Order 35.

The Chief Executive reported that no questions had been received under Standing Order 7(3) and 7(5).

There were no items for consideration.

The Chairman invited members who wished to do so to declare any interest in respect of items on the agenda for the meeting.

No declarations were made.

The Board considered a report of the Director of Corporate Resources which detailed relevant issues concerning the administration of Fund benefits, including the performance of the Pension Section against its Performance Indicators. The Report is filed with these minutes marked ‘Agenda Item 6’.

Members expressed their continued concern regarding the seven outstanding transfer of undertakings protection of employment (TUPE) and noted the continued work of officers to try and resolve the matter The Director reported that it was hoped a recent change to the Fund’s Funding  Strategy Statement that would introduce pass-through arrangements from 1^st April 2019 which would help negate the risk of TUPE transfers moving forward. The new arrangements would enable the risk relating to the admission body’s membership of the fund to be shared between the letting employer and new contractor.

Concern was also expressed that some employers had not yet completed their Fund discretions.

The Pension Section continued to work with Fund employers to implement monthly posting. Leicester City Council had experienced some difficulties with the implementation due to their previous payroll system, however new system had been recently implemented it was expected they would be able to provide monthly posting from April 2019.

RESOLVED:

a)    That the report be noted.

b)    That the Chairman writes to the following employers to remind them of the need to complete their Fund discretions.

Leicestershire Fire Authority

Harborough District Council

Life Academy Trust

Oadby and Wigston Borough Council

Rawlins Academy

South Leicestershire College

Success Academy Trust

Tudor Grange Academy Trust

c)    That the Chairman writes to Tudor Grange, Mercenfeld, Rushey Mead and Melton Borough Council to express the Board’s concern over the lack of progress made in regards to their outstanding TUPE transfers.

The Board considered a report of the Director of Corporate Resource concerning changes to the Additional Voluntary Contribution (AVC) fund choices. A copy of the report ‘Agenda Item 7’, is filed with these minutes.

The Director reported that the AVC choices allowed members of the scheme the ability to invest extra pension contributions which they could then access upon retirement. Members were able to view the 20 investment choices on the Fund’s website and additional information was supplied to Fund members upon request.

Arising from discussion it was noted that while the Fund formally reviewed its AVC choices every two to three years, the Pensions Manager informally reviewed the scheme annually by comparing its offering with other neighbouring Funds, if a fundamental change was made to the scheme a report would be brought to the Board earlier.

RESOLVED:

That the report be noted.

The Board received a report of the Director of Corporate Resources the purpose of which was to detail any concerns relating to the risk management and internal controls of the Fund. A copy of the report marked ‘Agenda Item 8’ is filed with these minutes.

The Director clarified that the risk response ratings of ‘Terminate’ and ‘Transfer’ were part of the Administering Authorities’ corporate risk register template and was universally used across all of its registers. The term ‘Terminate’ meant removing the risk entirely whereas ‘Transfer’ referred, in most cases, to where the Council would externally transfer the risk. It was unlikely either would be used in relation to the Fund.

Members agreed that it would be useful to undertake training on the Risk Register at a future session.