Return
to Agenda
ITEM PF23
PENSION
FUND COMMITTEE 21 NOVEMBER 2003
APPLICATION
FOR ADMITTED BODY STATUS
Report
by Head of Finance
Introduction
- This report introduces
to the Committee an application from a qualifying employer, ALM London.
ALM London is a successor body of the London Museums Agency, which is
itself one of the successor bodies of the South East Museums Service
(SEMS). These predecessors have all been employers within the Oxfordshire
Fund and the new body wishes to continue this long association to provide
pension continuity for current staff in the Local Government Pension
Fund and new employees. This application follows the categories introduced
to the Pensions and Investment Sub–Committee in November 2000.
- ALM London was
formed on 16 October 2003 and will commence trading on 1 April 2004
when staff will transfer to the Agency from the London Museums Agency.
The new body will continue to support education through the establishment,
maintenance, operation and development of museums, libraries and archives.
There are close associations between this body and local authorities
as shared objectives include the provision of support, advice and assistance
to museums, art galleries, libraries and archives.
- This application
comes within the regulation 5(3)(a)(i) of the Local Government Pension
Scheme Regulations 1997, as amended, and follows the category 1 route
as explained in the report to the Sub-Committee on 17 November 2000.
The category 1 route covers employers who provide a ‘not for profit’
public service and where there are links with an existing scheme employer,
sharing their aims and objectives with elements of interdependency.
These bodies would be associated for Inland Revenue purposes. The Committee
have previously approved admission applications from employers using
this category 1 route.
- With this application
ALM London would seek to maintain pension arrangements within the LGPS
for current members (there are currently 8 employees in the pension
scheme) and any future employees; and would accept liability for any
members with a deferred benefit from the London Museums Agency. ALM
London have been informed of the responsibilities of an employer within
Oxfordshire’s fund including the requirement to prepare, review and
publish a policy about its use of discretionary powers. These requirements
would all be included in the proposed admission agreement.
- ALM London is
funded by Resource: The Council for Museums Archives and Libraries,
who are aware of the responsibilities and have submitted a guarantee
to underwrite any default by ALM London in the event they cease trading.
Financial
Implications
- ALM London has
had information about admission agreement costs and is aware these costs
are to be reimbursed to the County. They are aware of employer financial
responsibilities of membership. They have been informed that the current
employer contribution rate is linked to the full valuation of the pension
fund. It is proposed that this body would continue with the employer
contribution rate used currently by London Museums Agency. This is a
small group rate shared with the other successors of SEMS, at least
until the next fund valuation on 31.3.2004. Resource: The Council for
Museums Archives and Libraries who support ALM London financially have
submitted their annual report and accounts for years ending 2002 and
2003.
Environmental
Implications
- There are no environmental
issues.
Staff
Implications
- As a replacement
agreement for the London Museums Agency there should be no additional
ongoing workload after the initial setting up arrangements. This initial
additional work with the new employing body will be absorbed.
RECOMMENDATION
The
Committee is RECOMMENDED to approve the application from ALM London
subject to all parties agreeing to the terms of the Admission Agreement,
and this Committee being informed when agreements have been signed.
CHRIS
GRAY
Head of Finance
Background
Papers: Nil
Contact
Officer: Jenny Wylie, Pensions Services Tel: (01865) 815530
November
2003
Return to TOP
|