Issue - meetings

44.1     The Board considered a report providing an update on various governance workstreams completed and changes affecting LGPS and the ESPF. 

Additional Pension Contributions

44.2     Michael Burton (MB) highlighted to the Board that the policy on Additional Pension Contributions (APCs) was being updated to ensure there is clarity around the Fund’s right to refuse an application on ill health grounds.

44.3     MB added that it was necessary to assess a member’s health before they are allowed to pay APCs as should they die before retirement there  is an increased dependents’ pension  which could result in a large liability to the Fund which will not have been covered by the contributions made by the member.

44.4     MB further updated the Board that members will be required to fill out a form providing health status and where concerns are identified, a medical report will be requested.   APC purchase will not be approved to those identified with a length of life impacting ill health condition.

Membership of the Pension Board

44.5     MB provided an update on the appointment of Tim Oliver from University of Brighton to the Board replacing Stephen Osborn.  Tim joins the Board for a 4-year term as an employer representative.

44.6     MB further updated that Nicoletta Palermo’s term has ended.  Nicoletta’s was a member representative put forward by GMB Union.  This position remains vacant; however, recruitment is ongoing, and a recommendation will be made to the Governance Committee in July’s meeting to make an appointment. RM commented that it would be sensible to advise the preferred candidate that they are being nominated to make sure they still wanted to take the role following the recruitment process,

44.7     Cllrs Druitt and Illingworth have stood down following recent elections leaving two employer representative vacancies.  Brighton and Hove City Council (BHCC) and the District and Boroughs have been requested to submit nominations.

44.8     RM commented that some responses received from the the recent Policy Consultation on the employer side indicated sound pension knowledge and it may be worth considering approaching those people as potential candidates.

Policy Consultations

44.9     MB highlighted to the Board that there were no major concerns arising from responses received and that the suggested wording will be taken forward to the next Pension Committee meeting on 16 June 2023.

44.10   Neil Simpson (NS) asked with regards to the Cessation methodology if it was normal practice for an acting scheme employer to act as guarantor for those bodies.

44.11   SK responded that with passthrough admission agreements its normal for the scheme employer to guarantee, however this is dependant on the covenant of the employer and bonds are still required in some situations. Recent change in the guidance from Department of Education now allows academies to act as guarantors to cover Contractors. 

44.12   RM asked for a further explanation around Prudence Level as it was not clear.

44.13   SK responded that this was an area covered by the consultation and agreed further clarity is required.  SK suggested that an appendix could be  ...  view the full minutes text for item 44