Meeting documents

Tuesday, 19 September 2006


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Report by Director for Resources


  1. There has been considerable debate over the last few years around the LGPS in terms of the changes in the workforce, the implications of increasing longevity – and the balance between members’ benefits and the cost to taxpayers.
  2. The Department for Communities and Local Government (DCLG) have promoted discussion of these issues through a tri-partite forum of Government, LGPS employers and Trade Unions and the June 2006 consultation document "Where next? – Options for a new-look Local Government Pension Scheme in England and Wales" is the product of these discussions.
  3. The consultation document sets out four options for a new look LGPS to be introduced from 1 April 2008, along with a range of related issues and views are requested by 29 September 2006 – although stakeholders are encouraged to promote their own proposals or variations on the core options suggested.
  4. The DCLG will consider all responses in determining which option to take forward, through a statutory consultation on draft Scheme regulations starting in late Autumn 2006.
  5. Background

  6. The report attached at Annex 1 (download as .doc file) was considered by Pension Fund Committee on 25 August 2006. The Committee’s views are currently being incorporated into a draft response to the DCLG in consultation with the Committee’s Chairman, Deputy Chairman and Opposition Spokesman and this will be forwarded to the DCLG by 29 September 2006.
  7. In considering this report, the Cabinet will be mindful of the significance of the LGPS arrangements for the Council as employer (in terms of a tool to recruit and retain the workforce) and as a representative of the local taxpayer (the likely cost of any preferred option).
  8. In this context, Members’ attention is drawn to paragraph 10 of the attached report which highlights the fact that the costings in the DCLG consultation are derived from a sample of pension funds. The Government Actuary’s Department (GAD) have strongly advised individual pension schemes to obtain their own valuations which are tailored to their own scheme demographics and investment performance to provide costings which more accurately reflect local circumstances. Hewitts, the pension fund actuaries have now produced this financial perspective for the Oxfordshire Pension Fund. Unfortunately this was received too late for incorporation into the report.
  9. This is currently being analysed and it is therefore proposed to circulate a supplementary paper which sets out the detailed financial implication of each option for the Oxfordshire pension fund in advance of Cabinet on the 19 September. This supplementary paper will also incorporate specific comments from Corporate HR on the employment implications for the Council of the consultation proposals.
  10. Financial and Staff Implications

  11. Financial and staff implications are discussed in Annex 1 to the report.

  13. The Cabinet is RECOMMENDED to consider the issues raised in Annex 1 to the report and authorise the Director for Resources, following consultation with the Cabinet Members for Finance and Change Management, to submit a response to the DCLG by 29 September 2006.

Director for Resources

Background papers: DCLG June 2006 Consultation document: "Where next? – Options for a new-look Local Government Pension Scheme in England and Wales".

Contact Officer: Ken Bell, Assistant Head of Finance, Tel (01865) 815411

September 2006

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