Issue - meetings

The Local Government Pension Scheme (LGPS) Regulations were updated in May 2018 by a new set of ‘amendment’ regulations – these update the previous 2013 Regulations.  This report highlights changes made within these regulations for the Committee and Board to note for information purposes.

The Committee considered the report, presented by Thomas Skeen, on the Local Government Pension Scheme (LGPS) Regulations. The Committee noted that LGPS Regulations were updated in May 2018 by a new set of ‘amendment’ regulations – these update the previous 2013 Regulations. The report highlighted changes made within these regulations for the Committee and Board to note for information purposes.

The committee considered ‘exit credits’. It was explained that employers who cease to participate as scheme employers can be due a credit payment, if it is assessed that they are leaving the fund in a surplus position – that is to say, that the assets held on behalf of that employer exceed the liabilities accrued to pay pension benefits for its employees. It was noted that the Fund could potentially have to pay exit credits, affecting its liquidity, investments and overall financial standing.

It was further noted that it is probable that some form of policy may need to be created that will address situations regarding exit credit. The new LGPS regulations came out at short notice and the Council was still looking into how to address any impact they might have.

It was queried whether the Fund had made an assumption on the potential sum of credit that it would be liable to pay if any given number of employees were to leave. The Committee was told that the Fund was looking at what the position is now and is considering various factors such as when contracts are due to end. 

Resolved

The Committee and Board note the contents of this report.