Issue - meetings

Cabinet Member: Finance & Property and Schools Improvement

Forward Plan Ref: 2012/027

Contact: Sean Collins, Service Manager (Pensions, Insurance & Money Management) Tel: (01865) 797190

Report by Assistant Chief Executive & Chief Finance Officer (CA 12).

This report responds to a letter sent to all Local Authority Leaders and Chief Executives in England.  This letter set out the statutory position regarding Academies and the Local Government Pension Scheme.  The letter expressed concerns that the basis of the calculation of the employer contribution rate for some Academies across the Country was inconsistent, and led to Academies paying unjustifiably higher contributions compared to maintained schools in the same area.  The letter set out the preferred approach of allowing Academies to be pooled with their former local authority.

This report sets out the background to the position in Oxfordshire, the issues surrounding pooling and asks the Cabinet to determine its views on the option of allowing academies to pool with the County Council.  Final decisions will be made by the Pension Fund Committee including any changes to their Funding Strategy Statement which sets out the current approach to pooling, at its meeting on 16 March 2012.

In light of the future financial risk to the Council, and the availability of alternative options open to the Pension Fund Committee, the Cabinet is RECOMMENDED not to support the option of allowing academies to be pooled with the County Council for LGPS purposes, and to inform the Pension Fund Committee accordingly.

The Cabinet had before them a report which, in response to a letter sent out to all Local Authority Leaders and Chief Executives in England, set out the statutory position regarding Academies and the local Government Pension Scheme.

RESOLVED:  not to support the option of allowing academies to be pooled with the County Council for LGPS purposes, and to inform the Pension Fund Committee accordingly.