62 Review of the AVC Arrangments
12:55
The Local Government Pension Fund Regulations require the Administering Authority to appoint an Additional Voluntary Contributions (AVC) provider, to fulfil the statutory requirement of section 12 of the Social Security Act 1986. The authority must provide facilities whereby members may elect to pay additional contributions, within Her Majesty’s Revenue and Customs limits, to provide additional benefits at retirement or in the event of death in service. These additional contributions do not form part of the Oxfordshire County Council Pension Fund and do not require an employer’s contribution.
The Administering Authority appointed The Prudential Assurance Company Limited (Prudential) in 1998 to provide its AVC scheme. The Administering Authority is responsible for determining and periodically reviewing the performance of the range of fund options from which the members can select. A review of Oxfordshire County Council Pension Fund’s AVC provider has been undertaken periodically by officers. It was determined that it would be appropriate to undertake an external review of the Fund’s AVC arrangements including an assessment of the arrangements against other providers in the market. Aon Hewitt were appointed to undertake this review and their report is included at PF20.
The public should be excluded during this item because its discussion in public would be likely to lead to the disclosure to members of the public present of information in the following prescribed category:
3. Information relating to the financial or business affairs of any particular person (including the authority holding that information) and since it is considered that, in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, in that such disclosure would prejudice the trading activities of the fund managers involved.
The Committee is RECOMMENDED to:
(a) note the report;
(b) continue to use Prudential as the AVC provider of the Administering Authority; and
(c) instruct officers to implement the recommendations of the Aon Hewitt report as deemed appropriate following discussion with Prudential.
Decision:
(a) Noted;
(b) Agreed; and
(c) Agreed.
Minutes:
The Local Government Pension Fund Regulations require the Administering Authority to appoint an Additional Voluntary Contributions (AVC) provider, to fulfil the statutory requirement of section 12 of the Social Security Act 1986. The authority must provide facilities whereby members may elect to pay additional contributions, within Her Majesty’s Revenue and Customs limits, to provide additional benefits at retirement or in the event of death in service. These additional contributions do not form part of the Oxfordshire Pension Fund and do not require an employer’s contribution.
The Administering Authority appointed The Prudential Assurance Company Limited (Prudential) in 1998 to provide its AVC scheme. The Administering Authority is responsible for determining and periodically reviewing the performance of the range of fund options from which the members can select.
A review of the Oxfordshire Pension Fund’s AVC provider had been undertaken by officers and it had been determined that it would be appropriate to undertake an external review of the Fund’s AVC arrangements, including an assessment of the arrangements against other providers in the market. Aon Hewitt was appointed to undertake this review and its report is attached at PF20.
The public were be excluded during this item because its discussion in public would be likely to lead to the disclosure to members of the public present of information in the following prescribed category:
3. Information relating to the financial or business affairs of any particular person (including the authority holding that information) and since it was considered that, in all the circumstances of the case, the public interest in maintaining the exemption outweighed the public interest in disclosing the information, in that such disclosure would prejudice the trading activities of the fund managers involved.
RESOLVED: to
(a) note the report;
(b) continue to use Prudential as the AVC provider of the Administering Authority; and
(c) instruct the officers to implement the recommendations of the Aon Hewitt report as deemed appropriate following discussion with Prudential.