Meeting documents

Pension Fund Committee
Friday, 25 February 2005

PF250205-21

Division(s): N/A

Report by Head of Finance & Procurement

Introduction

This report introduces to the Committee two applications from qualifying employers Reading Quest and Connexions Berkshire Partnership Limited seeking admission to the Local Government Pension Fund. These applications are as Community Admission Bodies.

Application for Consideration – Reading Quest

Reading Quest was established some eight years ago to enable children to become successful independent learners at home and school. Over the years the service has grown and in the last year has taught literacy skills to 278 children in 33 schools. Oxfordshire Local Education Authority enabled 14 schools to use Reading Quest as the recommended method of providing the 3^rd wave to the Early Literacy Strategy. 70 children were funded in this way and teaching assistants from many of the 14 schools have trained with Reading Quest in order to provide sustained support in the school.

With this application Reading Quest would provide pension arrangements within the LGPS for up to 10 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.

Application for Consideration – Connexions Berkshire Partnership Limited

Connexions Berkshire are company limited by guarantee and were set up as a subcontracting organisation. The contract for the delivery of the Connexions core service was awarded to CfBT Advice and Guidance (who are an admitted body of the Oxfordshire Pension Fund), but following a board decision it was decided to run the service in-house.

Connexions already have an admission agreement with the Berkshire Pension Fund but are seeking admission to the Oxfordshire Pension Fund so that the 3 members staff already contributing to the Oxfordshire Pension Fund may continue to do so. The reasoning for this is that as an employer Connexions will then have explored all opportunities relating to the transfer of these staff.

With this application Connexions would provide pension arrangements within the LGPS for 3 employees specified but would not make the Oxfordshire Fund available to any other employees and are consequently seeking a closed agreement. 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.

Financial Implications

Reading Quest and Connexions Berkshire 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 Head of Finance. They are both aware that reimbursement of costs incurred by the County Council to draw up the agreement is part of the admission agreement.

RECOMMENDATIONS

approve the applications of Reading Quest subject to their agreeing to the terms of the Admission Agreements, and this Committee being informed when the agreement has been signed;

reject the application from Connexions, Berkshire on the basis that this would be a closed agreement for 3 people and the remainder of their staff would be signed to the Berkshire Pension Fund.

SUE SCANE
Head of Finance & Procurement

Background Papers: Nil

Contact Officer: Sally Fox Tel: 01865 816080

February 2005

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