Lancashire County Pension Fund - Regulatory Update
Decision Maker: Lancashire Local Pension Board
Decision status: Recommendations Approved
Is Key decision?: No
To assist members of the Pension Board to
exercise their functions as a member of the Pension Board
effectively, a regular item regarding regulatory updates is
Mr Smith, Technical Adviser Pensions, updated the Board on various pension regulatory matters, including the following.
A ballot of eligible policyholders on the removal of policy guarantees as well as the transfer arrangements for Equitable Life and all its policies to Reliance Life would be available early next year.
The Scheme Advisory Board had established a small working group to evaluate options for change in relation to Tier 3 employers such as colleges, universities and housing associations. Stakeholders would be given an opportunity to comment on any recommendations later this year before any formal approach was made to government for changes to the scheme regulations and guidance.
Historically the Local Government Pension Scheme national scheme valuations had been aligned with their triennial local fund valuation cycle whereas all other major public service schemes had quadrennial scheme valuations. It was reported that HM Treasury intended to bring the LGPS onto the same quadrennial cycle as the other public service scheme valuations in order to minimise complications, and assist with comparisons between schemes. Members of the Board expressed concern regarding the increased workload that would result from having the scheduled local valuation in March 2019 followed by a national (cost cap) valuation in 2020. It was also noted that even if local and national valuations were aligned to every 4 years they would still be out of sync with valuations for teachers.
In response to a query regarding the LCPF scheme return the Head of Fund confirmed that the Actuary had been asked to review data quality and that a report on the findings would be presented to the Pension Fund Committee in November 2018.
1. That the updates set out in the report presented and given at the meeting are noted.
2. That the Chair of the Pension Fund Committee be informed of the concerns of the Board regarding the increased workload that would result from having the scheduled LGPS local valuation in March 2019 followed by a national (cost cap) valuation in 2020.
3. That the findings of the Actuary review of LCPF data quality (to be reported to the Pension Fund Committee in November 2018) be presented to the next meeting of the Board for discussion.
Report author: Colin Smith
Date of decision: 16/10/2018
Decided at meeting: 16/10/2018 - Lancashire Local Pension Board