Agenda item

The Board received a report from the Director of Corporate Resources regarding administration of the Fund July to September 2021. A copy of the report marked ‘Agenda Item 5’ is filed with these minutes.

Arising from the discussion the following points were noted:-

i.          As with other pension schemes, the Leicestershire Pension Fund had started to receive an increasing number of claims from Claim Management Companies, related to previous Fund members who had transferred out their benefits to a scam, or on bad advice. The Fund had taken external legal advice due to the high transfer values involved. The Ombudsmen would consider any claim and could require the Fund to make a compensatory payment to reinstate Member benefits into the scheme, or an element of compensation to pay the pension for the cost of their pension benefits. The Pensions Manager would continue to monitor the situation, and keep the Board informed.

ii.         The Pensions Manager informed the Board that there had been progression on the 2016 cost cap breach in October, and that HM treasury planned to proceed with all three proposed changes. As a result, the chance of a cost cap breach would be reduced for future valuations, from the 2020 exercise.

iii.        Due to the McCloud judgement it was not expected that the 2016 breach would remain breached once the McCloud costs had been included. However, Members noted that it did not resolve the ongoing challenge from Unions, as the outcome of the Judicial Review was still unknown. If the Unions were to win, scheme member benefits would still need to be recalculated.

iv.        The Fund had started to receive enquiries from a small number of multi academy trusts considering full transfers out to other funds, where the main source of the academy sat. Members noted that the process to transfer out employers was very time consuming for the administration. The Board were pleased to note a policy had been developed to manage the cases.

v.         For bulk transfers, the Fund looked at all active members, pensioners and reserve members for an employer and provided the information to the Actuary who assessed the Fund and liability. The Fund’s Actuary would then agree with the Actuary of the receiving scheme a cost value based on the Membership, which would be paid across to remove all assets and liabilities. This meant the Fund would no longer have any responsibility, even for preserved and retired members. The Pension Manager could only speculate on the benefit for multi academy trust’s transfers out, which likely related to an administrative benefit by minimising the number of Fund’s it needed to liaise with and provide information to. Any bulk transfer would ultimately be approved by the Secretary of State, meaning academies could not renege on their decision.

vi.        Members were concerned to note that the admission agreement for Beacon Academy to Hutchinson Catering remained outstanding as Hutchinson wanted to wait for the completion of their commercial contract with Beacon.

vii.      Members noted the outstanding bond and admission agreements and were pleased that since publication of the report there had been progress with the completion of LIFE MAT to Total Swim.

viii.     Members noted that 14 scheme members did not receive an annual statement, which involved members who worked for Hutchinson and Atalian Servest.  Members noted had once the admission agreement had been signed the scheme members would receive their annual benefit statement. The Pensions Manager assured the Board that the delays were due to the employers, not administration of the Fund.  

RESOLVED:

a)    That the report be noted.

b)    That the Chairman write to Hutchinson Catering and Beacon Academy expressing concern regarding the outstanding admission agreement.