Current issues in the LGPS - July 2018
03 Jul 2018 - Estimated reading time: 2 minutes
It’s kicked off!
We announced it last month and our LGPS national confidence assessment went ‘live’ on 26 June. Every LGPS committee and local pension board member now has the chance to say how knowledgeable and confident they feel running their fund. This national assessment should provide unique insights into the men and women tasked with running LGPS funds and we get to answer the question – just how confident are they? If you have any questions on the assessment, please contact your usual Hymans Robertson contact.
Equitable Life, as part of its gradual wind up, has agreed to transfer its polices to Reliance Life. The proceeds are to be invested into the With Profits Fund, which will then close, increasing the expected capital distribution on non-guaranteed With-Profits values from 35% to around 70%. The transfer, and increase in the capital distribution, are expected to take place in late 2019. This is a significant change and is yet another, in a growing list, taking place among the providers that have traditionally offered AVCs to the LGPS.
The National Framework is in the process of issuing its own GDPR variation agreement for the Actuarial and Third Party Administration frameworks. This will apply instead of our own variation agreement. Please, however, also sign our variation agreement as it applies to contracts beyond the Framework, such as e-business services, including focalPOINT. If you’re keen to learn more about how Hymans Robertson has risen to the GDPR challenge, please visit our Trust Centre.
Structural reform – Scotland
In June, the anticipated consultation into the future structure of the Scottish LGPS was launched. It asks LGPS employers and employee representatives for their views on four options 1) Retain status quo 2) Promote co-operation in investment and administration 3) Pool investments and 4) Merge into one or more funds. Responses must be received by 7 December this year. The four options are similar to those considered during the English and Wales structural discussions. We are considering the consultation and will write something on this over the summer.
Government wins appeal
The Court of Appeal has ruled that government guidance on LGPS investment strategies did not stray into ‘unauthorised purposes’ when it said that administering authorities ought not to use the Scheme to pursue boycotts, divestment and sanctions that are contrary to the UK’s foreign or defence policies. We understand that an appeal to the Supreme Court is likely.