Agenda item

Consider briefing paper by Chief Executive. (Copy attached).

With reference to paragraph 6 of the minute of 17 December 2019, there had been circulated copies of a briefing paper by Executive Director Finance and Regulatory Services providing members of the Pension Fund Committee and Pension Board with updates on a number of areas which were being monitored and where work was progressing.  Full reports on individual actions would be tabled as decision and actions were required.  

6.2         GMP Reconciliation

With reference to paragraph 6.2 of the Minute of 17 December 2019, it was noted that there had been no progress since the previous meeting as the final report from HM Revenue and Customs was still awaited.

6.3         Cessation Policy

Cessation actions would be reviewed and presented to the next Pension Fund Committee and Pension Board within the Admission Policy and Funding Strategy Statement.

6.4         Members’ Self Service

Following discussion with Aquila Heywood, the Pensions Administration software provider, an outline plan had been agreed with the service going live in June 2020.

  6.5          Data Quality – Common Data

The HR Shared Services Manager highlighted that in terms of missing National Insurance numbers, it would not be possible to rectify the Common Data.  These were not available due to the recipient of the pension benefit being under the age of 16.

6.6         Local Government Valuation – Consultation

The report explained that the Scottish Public Pensions Agency (SPPA) recently launched a consultation on the frequency of future valuation cycles.  The consultation looked at an option to extend it from the current three yearly cycle to four yearly in line with non fund public schemes.   Due to the closing date for responses being 9 March, officers in conjunction with the Actuary, agreed the submission detailed in Appendix 3 to the report.   Mr Robertson discussed the responses with the Pension Fund Committee and Pension Board members, who endorsed the submission. 

Scheme Advisory Board

With reference to paragraph 6.5 of the Minute of 17 December 2019, the Chair, Councillor Parker, advised that the Scheme Advisory Board (SAB) was to undertake work to scope the works required for the next steps on the future structure of the Scottish Local Government Pension Scheme (LGPS).    The SAB had accepted that a comprehensive evaluation of the benefits and risk associated with pooling or merging funds was required. Their evaluation would have a significant cost implication as data analysis of different funds would be required to enable a Ministerial decision on the findings.  Details of the procurement process and timescales would be considered at the next SAB meeting in March.    Following discussion, a number of question were raised: Councillor Parker explained that one of the drivers for change was to encourage investment in infrastructure.    However, the Fund was already collaborating with Lothian Pension Fund, on a range of infrastructure investments.  Appropriate investment projects were also required to be created by government.   With regard to the SAB consultation, the results of which were 9 out of the 11 funds rejected pooling or merging of Funds, Councillor Parker explained that Unison and Lothian Pension Fund appeared to be the main drivers behind the push for merger. If SAB’s evaluation recommended a merger, then changes would be implemented by Ministerial direction, parliamentary approval might also be required. Councillor Mountford added that the Convention of Scottish Local Authorities (COSLA) considered that any merging of funds should not be mandatory.   It was noted that a further update would be presented to the next joint meeting and further discussion would follow thereafter.

Training Opportunities

With reference to paragraph 6.8 of the Minute of 19 December 2019, Ms Robb advised that all members had completed their minimum training requirements for 2019/20.  The annual training assessment for 2020/21 would be circulated to all members shortly for completion.

decision

(a)             AGREED To endorse the submission to the SPPA consultation, as detailed in Appendix 3 to the report.

(b)             NOTED the update.