ITEM PF17
PENSION FUND COMMITTEE – 13 DECEMBER 2007
ADMISSION AGREEMENTS
Report by Assistant Chief Executive & Chief Finance Officer
Introduction
1. This report details three applications from bodies who are, potentially, seeking admission to the Local Government Pension Scheme (LGPS), as Admitted Bodies. The Committee is asked to approve the applications in principle and to delegate authority to the Assistant Head of Finance (Shared Services) to agree final admission.
Applications for Consideration
2. QTASS Limited took over the catering contracts for six Oxfordshire schools in September 2006. From the staff who transferred, there are thirteen people who are members of the LGPS.
3. QTASS Limited contacted Pension Services in May 2007 to discuss the option of their joining the LGPS as a Transferee Admission Body. Since this date, legal and actuarial advice have been sought to determine the options available to QTASS and Oxfordshire County Council (as the letting body).
4. The current situation is that both legal and actuarial advice are indicating that the admission agreement cannot be backdated prior to May 2007 when the possible admission was first discussed, which leaves QTASS with the option of augmenting members’ service to cover the gap between September 2006 and April 2007. This option is further complicated by the length of time that has elapsed and the changes in regulations that have occurred during this period and the costs of this option.
5. Discussions are currently taking place to ascertain the details of the contractual provisions and the implications for admission to the Pension Fund.
A2 / Dominion Housing Group
6. Dominion Housing Group, of which Cherwell Housing (a scheme admitted body) is a subsidiary, is in negotiations with A2 Housing Group to create an enlarged group structure. As part of this proposal Cherwell would become a subsidiary of A2 Housing Group.
7. This proposal would affect 65 current scheme members.
8. Solicitors representing Dominion Housing Group have written to explore the options available to them either by the current admission agreement being novated or by seeking admission as a new body.
Banbury Homes / Sanctuary Housing Group
9. Banbury Homes (an admitted body) is part of the Shaftesbury Housing Group. Shaftesbury Housing Group is due to become a part of the Sanctuary Housing Group, which will involve a group restructuring project.
10. Shaftesbury Housing has confirmed that it wishes to seek admission to the fund following this restructuring. This change affects 4 active scheme members.
Financial and Staff Implications
11. In all of the above cases, information is being sought from the actuary regarding the past and future liabilities. This information is being discussed individually with each company.
12. The Assistant Head of Finance (Shared Services) has, as normal procedure, assessed the financial documentation provided by each company to assess their financial standing.
RECOMMENDATION
13. The Committee is RECOMMENDED to:
(a) approve the above applications in principle;
(b) delegate authority to the Assistant Head of Finance (Shared Services) to agree final admission.
SUE SCANE Assistant Chief Executive & Chief Finance Officer
Background papers: Nil
Contact Officer: Sally Fox, Pension Service Manager – Community Safety Tel: (01865) 797111
November 2007
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