Decision details

H&F Pension Fund has seven Community Admission Bodies. Three no longer have any active members. Regulation 38 of the Local Government Pension Scheme (Administration) Regulations (the Regulations) now requires the Fund to treat these organisations as exiting employers. There are three options for doing this. Each deals differently with their outstanding liabilities and the exit payments required to cover those liabilities.

The preferred option for exiting the organisations allows the Fund to fulfil its obligations under the Regulations while recovering some of their deficit to the Fund. The paper recommends that H&F Council should agree to act as guarantor for all three organisations to enable the Pension Fund to exit them on an on-going basis and agree repayment plans with two of the three organisations.

The recommendation has financial implications for the Council. It creates a liability which would be another factor to consider at the time of the next triennial review and might, therefore, impact on the Council’s contribution rate. However, it may be helpful to have in mind here that the Community Admission Bodies accounted for only 0.8% of the deficit when it was last measured at the triennial valuation at 31st March 2013.

That the recommendations in the exempt report be approved.

Councillor Wesley Harcourt declared a significant other interest as the Chair of Old Oak Housing Association which is a subsidiary of Family Mosaic Housing Association. Councillor Vivienne Lukey also declared a significant other interest as a Trustee of H&F Mind.

They both took part in the discussions and voted on the matter.