A report by the Director of Pensions provided Board Members with a copy of a report on developments in the Local Government Pension Scheme (LGPS) taken to Pensions Committee since the previous Board meeting.

The Head of Pension Administration advised Members of the Board that the report had been considered by the Pensions Committee on 29 November 2021 and advised that on 15 October 2021, the Scheme Advisory Board published the result of its cost management process for the 2016 Scheme Valuation, following publication of amendments to the HM Treasury Directions on 7 October 2021.

The report also covered the HM Treasury response to its consultation on the proposed reforms to the cost control mechanism which emerged due to industry concern that the mechanism was not operating in line with its original objectives in that it would only be trigged by extraordinary, unpredictable events.

The Head of Pension Administration responded to questions and discussed the costs of required enhancements to pension administration systems necessary to deliver the McCloud remedy as these directly result from the actions of the Government.  The removal of Tier Three was also discussed.

Resolved – That the report be noted.