Issue - meetings

Report of Councillor Troy Tester on behalf of the Cabinet.

This matter was proposed by Councillor Tester on behalf of the Cabinet and seconded by Councillor Howlett.

Resolved:  (with one abstention) That the policy for the exercise of the employer’s discretion within the Local Government Pension Scheme 2008 and 2014, as set out in appendix 2 and 2a of the report to Cabinet, be adopted.

7.1 Cabinet considered the report of the Deputy Chief Executive.  The Local Government Pension Scheme (Benefits, Membership and Contributions Regulations 2008) required member employers to publicise a statement of policy on a number of compulsory regulation discretions.

7.2 In 2010, the Government commissioned an independent review into public service pensions. The review chaired by Lord Hutton, published its final report in March 2011 and set out a number of recommendations for change to ensure that pension arrangements were sustainable and affordable in the long term.

7.3 Following extensive consultation on the proposed changes, regulations to amend the Local Government Pension Scheme (LGPS) were laid before Parliament on 19 September 2013 and will come into force on 1 April 2014.

7.4 The regulations made a number of changes, in particular, the major changes were:

• The basis of the pension will now be based on a career average revalued earnings scheme as opposed to the current final salary arrangement.
• More employee contribution bands.
• A new definition of pensionable pay.
• A 50/50 option whereby members can choose to pay 50% contributions for 50% of the pension benefits.

Appendix 1 summarised the key changes.

7.5 In additions, the regulations also required each scheme employer to formulate and publish its policy in relation to how it would exercise its discretionary functions.  In the main, the employer discretions were very similar between the current and new scheme.  Appendix 2 & 2a summarised the discretions and the proposed policy for the council to adopt for both schemes.

* 7.6 Resolved: That full Council be recommended to adopt the policy for the exercise of the employer’s discretion within the Local Government Pension Scheme 2008 and 2014 as set out in appendix 2 and 2a of the report.

(Note: Councillors Tutt and Mattock both declared personal interests in this matter – see minute 2 above.)