Current Issues in the LGPS - October 2017
29 Sep 2017 - Estimated reading time: 5 minutes
MiFID II - Needs must
After all the talking (and background work), funds have started requesting to be opted up to professional status ahead of the introduction of MiFID II in January 2018 (MiFID was discussed further in last month’s Current Issues). The initial signs are positive, with the template on the Scheme Advisory Board's website (largely) simplifying the assessment process. One area where requests have tended to be lighter has related to members’ training needs analysis not always being carried out. If you haven’t already done so, this might be something you want to consider carrying out over the coming months.
2017 valuations picking up pace
Autumn not only heralds the start of darker nights but, for those north of the border, it also sees the 2017 valuations start to pick up pace. With this in mind, we recently hosted a webinar focussing on the Scottish Section 13 valuation dry-run with John Bayliss of the Government Actuary’s Department; recorded a podcast with Neil Sellstrom of CIPFA discussing what should go into a Funding Strategy Statement and updated our valuation toolkit with two additional sections focussing on setting assumptions and longevity.
What’s the objective? Academies in the LGPS
The SAB has just completed a consultation with funds around objectives for academies to check it is going along the right lines. In essence, the thinking is to keep academies within their existing funds, but with a concerted effort to improve data quality and administrative efficiency. Further details, and some of our own thoughts, can be found in this summary.
Charitable concerns in Scotland
The Institute of Chartered Accountants in Scotland (ICAS) issued a press release asking the Scottish Government to help charities to exit the LGPS in a controlled and affordable manner. A range of measures were suggested to resolve the issue of charities being saddled with large and immediate exit debts. Our view, as outlined in a recent blog, is that many funds across the UK already have exit arrangements in place that can satisfy both parties.
On 19 September, we hosted a webinar for academies which was very well attended. Douglas Green, Martin Curran and Craig Alexander discussed the costs and risks associated with participation in the LGPS, how to better understand 2017 accounting reports and how to mitigate the costs associated with ill-health early retirement. You can listen to the full webinar here or download a copy of the webinar slides here.