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ITEM PF23

1. 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.
2. 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.
3. 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.
4. 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.
5. 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

6. 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

7. There are no environmental issues.

Staff Implications

8. 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.

CHRIS GRAY
Head of Finance

Background Papers: Nil

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

November 2003

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