Issue - meetings

The report explains the statutory changes to pension fund scheme rules that will allow LGPS members over the age of 55 to transfer their LGPS benefits to defined contribution (DC) arrangements, or take advantage of the new trivial commutation limits.

Declarations of interest:

None.

Key points raised during the discussion:

1.    The Strategic Finance Manager (Pension Fund and Treasury) introduced the item.  He explained that any potential effect on cash flow from the statutory changes to pension fund scheme rules would become apparent this year.  Hymans Robertson had been commissioned to undertake further analysis concerning the effect on the Surrey Pension Fund. 

2.    The Hymans Robertson representative presented the highlights of the analysis and informed the Board that he had concluded that there was unlikely to be a significant run on money.

3.    In response to a question, the Senior Advisor (Pension Fund) confirmed that it is the responsibility of the administering authority to check that a member has received advice from a qualified and accredited advisor.  However, it was important to note that members must evidence receipt of advice but not that they have followed that advice.

4.    The Chairman explained that it was not necessary for the Fund to have a floating cash balance as it was always possible to borrow short term if necessary.

5.    The Senior Advisor (Pension Fund) confirmed that there was a specific unit within central government providing information on the Local Government Pension Scheme.  Also, the Fund has to provide information to all individuals reaching retirement and all Members of the Fund receive a regular newsletter.

Actions/Further information to be provided:

None.

Resolved:

That the report be NOTED.

Next steps:

Further updates on outcomes will be presented at future Board meetings.