The Head of Pensions Administration, Yvonne Murphy, introduced a report that covered the long-awaited HM Treasury (HMT) response to the consultation on ‘Restricting Exit Payments in the Public Sector’ and the publication of draft regulations, issued on 22 July 2020.

In addition, the report covered the related Ministry of Housing, Communities and Local Government (MHCLG) consultation – ‘Reforming Local Government Exit Pay’, issued on 7 September 2020.  This consultation had requested feedback and comments on the proposed reforms to Local Government regulations, in order to meet overarching government policy to limit exit payments to a maximum of £95k for public sector employees.

The report also provided an update on a further interim response on proposals set out in the consultation dated 8 May 2019, ‘Changes to Local Valuation Cycle and The Management of Employer Risk’.

Finally, the report raised awareness of the Written Ministerial statement on survivor benefits payable from public service pensions in response to an Employment Tribunal relating to the Teachers’ Pension Scheme. The case had concerned the lower survivor benefits paid to a widower of a female scheme member compared to those paid to a same sex survivor.

The Head of Pensions Administration raised awareness that SAB (LGPS Scheme Advisory Board) had sought legal advice  in relation to the conflicting regulatory position governing the payment of  pension benefits on redundancy grounds and officers had considered the  legal commentary  along with SAB’s opinion when determining the  course of action  which would present the least financial risk to the administering authority. It was noted that the Fund was in an invidious position as all available payment options may be subject to challenge by either the member or the Government. The draft response to the MHCLG consultation was being shared with the Chair of the Local Pension Board and the Pensions Committee. The Head of Pensions Administration responded to questions from Members and set out the implications for pensions administration.

Moved by the Chair and formally seconded by Councillor Cherry Povall, it was:

Resolved – That the report and the resource implications in administering imminent changes to the regulations be noted.