Issue - meetings

Report of the Assistant Chief Executive, People and Organisational Development, to consider regulatory changes affecting the administration of the Local Government Pension Scheme together with relevant issues covered in circulars issued by the Local Government Pensions Committee (LGPC) and Department for Communities and Local Government (DCLG).

Ian Benson, Pensions Manager, presented the fund administration update. The report included information on the Heyday Judgement, in which the High Court had upheld the law allowing employers to force an employee to retire at 65 without redundancy, following a challenge by Age Concern. It was noted that a government review of the default retirement age had been brought forward to 2010. The report also covered the TUPE transfer of Learning Skills Council staff to Local Education Authorities, as part of which three staff would be transferred to Haringey, for which costs would be covered by a bulk transfer payment. Civil Service Scheme retirement dates for the staff affected would be protected in accordance with the Fair Deal provisions. An update was also provided on the Councillors Scheme to advise that the intended CLG consultation paper on councillors’ pensions would be produced by the end of the financial year. The report also included updates on early and flexible retirements and appeals.

Further to an enquiry made by the Committee at the previous meeting, the Chair provided information on those scheduled and admitted bodies whose contributions had been received late by the Pension Fund.

The Committee noted that the earliest age at which an employee could be involuntarily retired would be raised from 50 to 55 from 1 April 2010, and asked whether there was any intention to make use of the intervening period to make any retirements from age 50. Mr Benson confirmed that there was no intention to do this. In response to a question from the Committee regarding the difference between flexible and early retirement, Mr Benson advised that early retirement was when an employee left their post, whereas flexible retirement meant that an employee remained in employment at reduced hours or at a lower grade, enabling the Council to retain their skills. The Committee asked about the employing bodies’ ability to exercise discretion in determining the approval of early retirements, in response to which it was confirmed that any such decision by an employing body would require a contribution to the Fund to cover the capital costs, so that there was no cost to the Fund as a result of such decisions.

RESOLVED

That the Administration Report update be noted.