Issue - meetings

Regulation Changes Affecting the LGPS

Meeting: 25/11/2020 - Clwyd Pension Fund Committee (Item 123)

123 Regulation Changes Affecting the LGPS PDF 124 KB

There are a number of regulatory changes progressing that impact on the LGPS, and therefore the Clwyd Pension Fund. This report provides background information for Committee members on four key areas of reform and the actions required including delegations to officers.

Additional documents:

Decision:

(a) The Committee considered the report.

(b) The Committee considered and agreed the recommendation for the consultation response in relation to the GMP Indexation Consultation, as outlined in paragraph 1.07, and delegated the completion of the response to the Head of the Clwyd Pension Fund.

Minutes:

Mr Latham noted that the work surrounding the McCloud remedy was going to plan as the Fund was in the process of gathering data from employers. However, there was a risk with delays to regulations. The consultation on GMP indexation/equalisation was also noted along with the recommendation.

Information was shared from a letter from Welsh Government regarding the 95k cap. The Fund would only be impacted by this regulation if employers within the Fund had members who were leaving and fall under the relevant category.

Mr Everett stated that risks taken are at the risk of the employer, not the Clwyd Pension Fund. Mr Middleman agreed and said that the separate governance and decisions by the Fund and the employer need to be clear on this. Mr Middleman said that this was an extremely complex area and it needed to be discussed with employers to ensure the correct processes are in place.

Mr Everett noted the extremely challenging issue surrounding these changes. Mr Middleman agreed with the complexity and noted that a potential policy on this matter may need to be agreed for the Fund. Mrs McWilliam confirmed that the Fund can use urgency delegations to deal with this situation.

RESOLVED:

(a) The Committee considered the report.