Decision details

The Committee considered a report setting out details of a covenant review process which had been undertaken in advance of the 2016 Actuarial Valuation.

Andy Brown, Policy and Operations Manager, LCPF, reported that the two principal pieces of work were to:

-  Specifically assess covenant for the majority of Fund employers;

-  Devise and implement an ongoing covenant assessment and risk management framework.

It was proposed to adopt the risk management framework as set out and to concentrate resources on the higher risk areas.

The Committee raised a number of issues around the classification of Universities and Further Education Colleges in Category B (higher risk) despite them being scheduled bodies, together with Academies being classified in Category A (lowest risk). In response, it was agreed that the description for each category would be removed and that Academies were considered to be state funded and part of the public sector and, as such, would be subject to a degree of financial protection.

Resolved: - That, subject to the comments made, the proposed risk classification methodology and approach to implementing risk management/security arrangements, as set out in the report, now presented, be approved.