Agenda item

The Head of Pensions will provide an update on latest developments from the Scheme, Legal, Regulatory and Fund, alongside a report which presents the Wiltshire Pension Fund’s response to the amendment regulations consultation and provides an update on the insurance indemnity issue for Local Pension Board members.

The Board is asked to note:

a)    the proposed draft response outlined on the attached report on the LGPS amending regulations consultation; and

b)    the latest position on the indemnity insurance issue for Local Pension Board Members.

The Head of Pensions updated on the current consultation on the Amendment Regulations, the new regulations would pick up anomalies from the LGPS 2014 scheme. The Fund had already drafted a response to the consultation, which had been approved by the Pension Fund Committee.

Members also heard that in light of the Counsel view on the legal status of Local Pension Boards officers had spoken to the Council’s insurers about adding indemnity cover for Board members to this policy, however the insurer did not consider Board members at risk so would not extend the policy. Officers had approached other providers for quotes however they were very costly, it was thought that this was because companies were uncertain as to the risks involved. The Council’s legal advisors considered the risk to Board members not covered by indemnity insurance to be extremely minimal, since the Board was not a decision-making body. The Head of Pensions was to await further advise from the Scheme Advisory Board (SAB) and would report back at the October meeting. Members agreed that it would be beneficial to wait for SAB guidance as a national solution was needed and considered no immediate action was required given the minimal risks. It was requested that officers also ask the SAB for guidance on cover needed for non-voting observers on Pension Fund Committees. Members were advised that the Board Chairman was already covered by his own professional indemnity cover.

Resolved:

To note the proposed draft response to the LGPS amending regulations consultation.

To note the legal advice that the absence of insurance indemnity cover presented minimal risk to Local Pension Board members.

To await further guidance from the Scheme Advisory Board on the issue of insurance indemnity and to consider this at the next ordinary meeting.