Issue - meetings

Report by the Chairman of the Pension Advisory Board.

The Board is asked to note the current issues relating to Scheme Regulations and Guidance.

40.1     The Chairman presented his report, Regulations and Guidance Update, to the Board and the following key points were noted;

·       the Scheme Advisory Board (SAB) meeting discussed the Good Governance Project. As consultation was required, it was expected that any changes to Governance would emerge later in the summer;

·       the £95K cap had been revoked by HM Treasury;

·       the Pensions Regulator’s 2020 survey had been issued and a response had been submitted on behalf of the Board;

·       Appendix A was referred to as the report that was submitted to the Pensions Committee in January 2021 on Scheme Changes.

40.2     Resolved – That the Board notes the current issues relating to Scheme Regulations and Guidance.

Report by the Director of Finance and Support Services.

The Committee is asked to consider the recommendation within the report.

56.1     The Committee considered a report by the Director of Finance and Support Services (copy appended to the signed minutes).

56.2     Rachel Wood, Pension Fund Strategist, introduced the report explaining that it provided an update on the national landscape and the funds response to the McCloud judgment in relation to public sector exit payments.  Ms Wood highlighted the conflict between regulations and the impact this would have on members made redundant who are over 55.  This was detailed in section 3.7 of the report and the legal advice received by Administering Authorities on how to deal with this was set out in section 3.8 of the report.

56.3     Ms Wood also drew the Committees attention to section 6 of the report that detailed a consultation with employer in relation to employer flexibilities.  Ms Wood reported that this consultation resulted in limited feedback.

56.4     Steven Law, Hymans Robertson, added that a ministerial statement was expected in February 2021 in relation to the McCloud judgment, so all benefit changes are on pause until that is announced.

56.5     Members asked how many employers had responded to the letter sent about the data required for work to rectify member records as a result of the McCloud judgement.  Andrew Lowe stated that of the 206 written to, 145 had acknowledged receipt of which 28 had queries.  Rachel Wood confirmed there were no comments of concern.

56.6     Resolved that:

1)   The update, including the impact on the pension’s administration team and the actuary to process the outcome of these scheme changes and the risks presented to the Administering Authority in respect of the restriction of Public Sector exit payments, is noted by the Committee.

2)   The completion of the Funding Strategy Statement consultation is noted by the Committee.