Issue - meetings

Rob Powell (Executive Director for Resources) introduced the report. He advised that on 16 April 2024, the Minister for Local Government had contacted all councils by letter to request submission of productivity plans by 19 July 2024. However, this letter made no mention of separate productivity plans for pensions. On 15 May, a second letter was received to request that a Pensions Productivity Plan be submitted by the same deadline. This presented a challenging timescale and work was underway to respond to the Minister. The Committee was asked to endorse the key themes of the Council’s response and to authorise the Executive Director for Resources, in consultation with Chair of the Committee, to finalise the response for submission to the Government.

Rob Powell outlined the nature of the request from the Minister for Local Government which covered arrangements for pension asset pooling and sought a view about potential consolidation of pension funds. Section 4 of the report provided details of the key themes likely to feature in Warwickshire Pension Fund’s response to the Minister. He stated that the response would emphasise the Fund’s fiduciary duty to its members and employers which was fundamental to decision making. He outlined the proposed key points to be included in the response.

The Chair stated that the prospect of consolidation of pension funds presented serious concerns. There were risks to this course of action which potentially outweighed the benefits.

Councillor Kettle stated that there was a need for the Government to clearly set out the demonstrable benefits of consolidation before making any fundamental changes to current arrangements which would not necessarily be to Warwickshire Pension Fund’s advantage.

The Chair emphasised the value of consultation with the chairs of the Pension Fund Investment Sub-Committee and Local Pension Board prior to finalisation of the response by the Executive Director for Resources in consultation with the Chair of the Staff and Pensions Committee.

In response to the Chair, members expressed unanimous support for the recommendations of the report. 

Resolved:

That the Staff and Pensions Committee:

1.     Endorses the proposed key themes for the Council’s response to the Government’s request for information about the Warwickshire Pension Fund and asset pool’s plans for efficiencies in Local Government Pension Fund.

2.     Authorises the Executive Director for Resources, in consultation with the Chair of the Staff and Pensions Committee, to finalise the productivity plan for submission to Government, having consulted the chairs of the Pension Fund Investment Sub-Committee and Local Pension Board on its content.