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ITEM PF16

1. This report introduces to the Committee two applications from qualifying employers Oxford Night Shelter and NORCAP seeking admission to the Local Government Pension Fund. These applications follow the categories introduced to the Pensions and Investment Sub–Committee in November 2000.

Application for consideration: Oxford Night Shelter

2. Oxford Night Shelter was established in June 1987. It was initially set up to offer emergency shelter each night, but over the years the needs and services have grown. The provision now includes a daily drop-in centre, resettlement advice and support as well as laundry and shower facilities. Recent grants will enable the company to replace the existing shelter, with a purpose built structure which will be better suited to the needs of staff and the homeless.
3. With this application the Oxford Night Shelter would provide pension arrangements within the LGPS for up to 15 employees. The Trustees 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.
4. The Night Shelter’s funding is from various sources including the City and County Councils and also the Housing Association. The amount from any single ‘scheduled body’ (within the LGPS Regulations these bodies for the Oxfordshire Fund are the County, the Districts, Colleges, Oxford Brookes University and The Thames Valley Magistrates Courts Committee) did not exceed 50% of overall funding during the period 2001/2002. A major source of income for the Shelter is through rents at the night shelter and from the managed housing provision.

National Organisation for the Counselling of Adoptees and Parents (NORCAP)

5. Established in 1982 Norcap provides a national service to support adults affected by adoption, whether parents, birth and adoptive, or the adopted adult. Additionally Norcap provide training for local authority staff, which provides an additional source of funds. The Charity is based in Wheatley and currently has six employees, two having previous local government pension scheme membership.
6. Norcap’s funding is primarily subscriptions and donations from individual service users, mostly directed to them by local authority social workers. The Trustees 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 will all be included in the proposed admission agreement.
7. Both applications come 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 17 November 2000.
8. 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.

Financial Implications

9. Oxford Night Shelter and NORCAP have been supplied with information about admission agreement costs and the 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 and that the small employers are currently grouped together for valuation purposes. Both applicants have supplied copies of their accounts for the previous two years and show healthy balances in the judgement of the Assistant County Treasurer. They are both aware that reimbursement of costs incurred by the County Council to draw up the agreement is part of the admission agreement.

Environmental Implications

10. There are no environmental issues.
11. Staffing Implications

CHRIS GRAY
Head of Finance

Background Papers: Nil

Contact Officer: Jenny Wylie, Pensions Manager Tel:(01865) 815530

May 2003

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