Agenda item

72.1     The Committee considered a report providing an update on various governance workstreams and changes affecting Local Government Pension Schemes (LGPS) and the East Sussex Pension Fund (ESPF or the Fund).

72.2.    The Committee’s discussion included the following issues:

• The Committee discussed arrangements for member representation on the ACCESS Pool Joint Committee following the guidance issued by the Scheme Advisory Board (SAB). The Chair of the Pension Committee outlined the ACCESS Pool’s current proposal, which is to have six rotating observers for each meeting drawn from three of the eleven constituent authorities. The six representatives would be comprised of one employer and one scheme member representative from the Pension Board of each of the three authorities. The Committee heard that the Chair of the Pension Board has written to the Chair of the ACCESS Pool Joint Committee to propose an alternative arrangement that would entail electing two permanent representatives from the respective Pension Boards, which would allow them to build up expertise and feedback views from all the Pension Boards. The Chair of the Pension Committee considered that having non-rotating representatives would be a better option for governance. The Committee agreed that this would be a better approach and that the Chair of the Pension Committee should write to the ACCESS Pool to request consideration of this approach. It was also agreed that the Chair should represent this view at the ACCESS Pool Joint Committee meeting on 7 March 2022.
• The Committee discussed the possible use of training videos from Hymans Robertson at an annual cost of £3,750 for 15 licences for a minimum subscription of two years. The Committee heard the Pension Board’s view that it considered that full use may not be made of this training resource and to pursue lower cost training options. The Committee agreed not to proceed with the use of the training videos provided by Hymans Robertson.
• It was clarified that the ‘out performance’ rate is a way in which Actuaries can reflect different levels of prudence when conducting valuations. An Actuary takes a subjective view in valuations and can create a higher discount rate by adding the out performance rate. For example, a lower discount rate would reflect a more prudent approach and a higher discount rate would decrease the level of prudence.

72.3     The Committee RESOLVED to:

1) Note the change to normal minimum pension age and state pension age;

2) Note the possible additional requirement for dealing with transfer requests involving Additional Voluntary Contribution (AVC) benefits;

3) Note the change to audit deadlines;

4) Note the Government Actuary’s Department (GAD) report on the 2019 Valuation across the LGPS;

5) Note the ongoing steps being taken to fill the Pension Board vacancy;

6) Consider a possible approach which may improve member representation in the ACCESS Pool;

7) Not to make use of Hymans Robertson’s LGPS Learning Academy training videos; and

8) Agree that the Chair write a letter to the ACCESS Pool Joint Committee outlining the Committee’s view on member representation on the ACCESS Pool Joint Committee as agreed in paragraph 72.2 above.