Agenda item

At its meeting on 5 July 2011, the Sub-Committee considered a report on the relatively low take up of the Local Government Pension Scheme (LGPS) by County Council employees.  It was agreed that officers should explore the reasons why 25% of eligible employees were not in the Scheme and consider measures to improve communications with employees about the future operation of and changes to the LGPS.

The Sub-Committee received a progress report which set out the results of a survey sent to 8,000 County Council employees who were not in the LGPS. 

Members were informed that the survey had resulted in a 10% response rate and revealed the following headline results: -

• 33% of respondents said "can't afford it/don’t earn enough" was the main reason for opting out of the Scheme; 
• 17% of respondents said "not working enough hours/being part time"was the main reason for opting out of the Scheme; 
• 28% of respondents said that "more money" would encourage them to opt in to the Scheme; 
• 11% of respondents said that "working more hours/being full time" would encourage them to opt in to the Scheme; 

A proposed Communications Strategy to encourage a greater take up of the LGPS by County Council employees was presented.  It was noted that the government required the County Council to automatically enrol its workforce in the LGPS with effect from January 2013 and it would be appropriate to launch the internal communications campaign to coincide with the auto-enrolment date.

Members acknowledged that the level of take up of the LGPS had a significant impact on the long term viability of the Fund.  It was recognised that the greater the number of contributing members the longer the Fund was likely to remain cash flow positive. 

The Sub-Committee welcomed the proposed Communications Strategy and agreed that it would be key to preparing staff for auto enrolment, to improving the perception of the LGPS and to promoting the on-going (ill health cover, life assurance) and long term benefits of the LGPS to employees of the County Council and other employers within the Scheme. 

Members agreed that the communications activity needed to be clear, concise and provide employees with as many tangible examples of the benefits of the LGPS as possible.  With this in mind, it was agreed that a further detailed report on the development and proposed roll out of the Communications Strategy should be presented to the Sub-Committee in Autumn. 

It was also felt that consideration should be given to widening the membership of the Sub-Committee to enable other (non-County Council) employer representatives on the main Committee to be involved in taking forward the development and roll out of the Communications Strategy.

Resolved: 

1.  That the Communications Strategy, as now presented, be approved to   coincide with the County Council's auto enrolment date of January   2013.

2.  That a further detailed report on the development and proposed roll out of the Communications Strategy be presented to the Sub-Committee in Autumn and before the end of November.

3.  That the Pension Fund Committee be asked to consider expanding the membership of the Sub-Committee to include all other employer representatives who currently serve on the Committee.