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ITEM PF16
PENSION
FUND COMMITTEE - 23 MAY 2003
APPLICATIONS
FOR ADMITTED BODY STATUS
Report
by the Head of Finance
Introduction
- 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
- 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.
- 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.
- 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)
- 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.
- 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.
- 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.
- 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
- 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
- There are no environmental
issues.
- Staffing Implications
The
additional work involved with the new employing bodies will be absorbed.
RECOMMENDATION
The
Committee is RECOMMENDED to approve the applications of Oxford Night
Shelter and NORCAP subject to all parties agreeing to the terms of
the Admission Agreements, and this Committee being informed when agreements
have been signed.
CHRIS
GRAY
Head of Finance
Background
Papers: Nil
Contact
Officer: Jenny Wylie, Pensions Manager Tel:(01865) 815530
May
2003
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