Agenda item

This report provides updates regarding:

·         Resourcing of the pensions administration team

·         Details of an employer joining the pension fund

·         Details of the intention to accept the pension scheme assets and liabilities of Clerkenwell Parochial School into the pension fund

The Interim Pensions Manager introduced the report which provided an update on the resourcing of the Pensions Administration Team, details of an employer joining the Pension Fund, and details of the intention to accept the pension scheme assets and liabilities of Clerkenwell Parochial School into the Pension Fund.

It was explained that there were still plans to recruit an apprentice in the Pensions Administration Team and that this was crucial for the long term stability of the team. It was commented that the apprentice role would require significant face to face training which would be difficult to deliver remotely and that a plan for reintroducing the team to the office would need to be put in place before an apprentice was appointed. It was explained that this was part of the wider programme for staff returning to the office, which was an evolving and ongoing conversation, and it was anticipated that the recruitment process would commence shortly. Following a question from the Committee, it was clarified that there would be one apprenticeship position, at least initially, as the Pensions Administration Team was small in size and had approximately 10 people.

The Interim Pensions Manager highlighted that the report sought approval for the admission of Lunchtime Catering Company (Devonshire Hill Nursery and Primary School) as a new employer to the Pension Fund. It was explained that this company employed a number of existing Pension Fund members and the admission would enable their continued membership.

It was also noted that the LDBS Academy Trust had recently approached the Pension Fund as their last active member at Clerkenwell Parochial School had ceased or was due to cease and, as a result, the school was facing a large cessation payment to the Islington Pension Fund for outstanding liabilities. It was explained that the Local Government Pension Scheme (LGPS) rules required a scheme to be closed as soon as there were no more active or contributing members. Following a conversation with the actuary and officers, it was proposed that the most effective way to manage the risk faced by the school having to make a large payment for pensions rather than focusing on education would be for the Haringey Pension Fund to absorb the school, subject to the school obtaining a direction from the Secretary of State and confirmation of the numbers with the actuary. It was clarified that, although the school in question was based in Islington, LDBS had a number of schools in Haringey which could be affected by the requirement to make a large cessation payment.

The Committee noted that the academy had been paying a larger contribution rate and deficit recovery contributions and it was enquired whether the Pension Fund should be absorbing this. The Assistant Director of Finance explained that academies often had smaller numbers of staff which could lead to statistically random funding positions. It was also noted that the position would be assessed by the actuary at the next Pension Fund valuation and that, if there was an increased risk, the contribution rate would be increased. It was highlighted that this would also ensure that the schools in Haringey could continue to meet their educational requirements. The Committee enquired whether this would materially impact other people’s contributions. The Head of Pensions and Treasury confirmed that any increases should be specific to the employer.

RESOLVED

1.    To note the report which gave an update on the plans for the future resourcing of the Pensions Administration Team.

2.    To note and approve the admission of Lunchtime Company Limited (Devonshire Hill Nursery and Primary School) as a new employer to the Pension Fund, as set out in paragraph 6.3 of the report.

3.    To note and agree to the bulk transfer of the Clerkenwell Parochial School’s assets and liabilities into the Haringey Pension Fund in principle, subject to further actuarial assessments and the LDBS Academy Trust obtaining a Ministry of Housing, Communities, and Local Government (MHCLG) direction order for the transfer to take place. If agreed, to delegate to the Assistant Director of Finance (Deputy S151 Officer) to implement the transfer after consultation with the Chair of the Pensions Committee and Board, as set out in paragraphs 6.4 to 6.7 of the report.

Councillor Berryman did not take part in the voting on this item as he was not present for the full item.