Meeting Agenda:
Personnel
| Meeting Date: | Friday 13 Jun 2025 |
|---|---|
| Time: | 11:00 |
| Councillors | Angela Baker, Michael Gemmell Smith, Alan Layland, Margot McArthur Chair, Stuart McGregor, Michael Stockdale, Bob Todd. |
| Committee: | Personnel |
| Venue: | Doggetts Barn. 72a High Street Edenbridge, TN8 5AR Kent |
| Notes: | |
| Summary: |
Agenda
Minutes
The disclosure must include the nature of the interest. If an interest becomes apparent to a member during the course of a meeting that has not been disclosed under this item, the member must immediately disclose it.
| Confidential Annex Omitted from Papers. |
| Confidential Annex Omitted from Papers. |
| 2024-25 pay scales NJC |
Introduction
In preparation for the 31 March 2025 triennial valuation results, the Kent Pension Fund (the Fund) is formally consulting with town and parish councils currently participating in the Fund, and other interested parties (e.g. borough, district and city councils), on proposals to form a Local Government Pension Scheme (LGPS) funding pool (the Pool) specifically for town and parish councils as at 31 March 2025, with a possible universal LGPS pooled employer contribution rate for all involved, operative from 1 April 2026.
Responding to this consultation
Responses are invited during the above consultation period via email to kentpensionfundconsultation@kent.gov.uk
Background
The Local Government Pension Scheme (LGPS) is a Defined Benefit pension scheme in which the funding risks lies with the employer and not with the individual members. Employer admission to the LGPS is currently governed by the Local Government Pension Scheme Regulations 2013 (as amended from time to time).
The Fund is not formally segregated so individual employers do not have legal ownership of any of the Fund’s assets. However, in order to set contribution rates for individual employers, the Fund Actuary notionally allocates assets in the Fund to employers based on how much has been paid in and out of the Fund in relation to the employer’s membership, and allocates a proportionate share of the investment returns achieved on the Fund’s assets (which may be positive or negative). Employer contributions are set by calculating the cost of benefits accruing to the employer’s employee members (net of employee contributions) and making adjustments as required where the notional asset share is more or less than the value of the employer’s liabilities.
Town and parish councils do not participate as employers in the Fund by default as do for example, bodies such as county, borough, district or city councils. Instead town and parish councils may resolve to join the Fund by making a written resolution in accordance with Regulations 2, 3 and Schedule 2 Part 2 of the Regulations LGPS regulations Schedule 2 PART2 2. As a town or parish council participating in the Fund, you have been included in this consultation.
There are currently 61 town or parish councils participating in the Fund who vary in membership, size and by the longevity of their participation in the Fund. However, most are small employers with a small number of active members. In order to deliver greater stability of contributions for employers (which is easier to achieve based on a greater number of members), as well as reduce the burden on the Fund of administering separate contribution rates for all 61 councils, we are proposing to “pool” contributions for town and parish councils. In simple terms this means calculating a single contribution rate across the group.
Further details of the proposals and why we are suggesting pooling are set out in the attached note which has been prepared with input from the Fund Actuary.
Next steps
In advance of the expected consultation on the Funding Strategy Statement, the Fund is offering a formal period of consultation, allowing you to comment, ask questions regarding and to give feedback on the proposed pooling of the individual funds of town and parish councils for funding purposes.
The attached Report explains the options regarding pooling and the consequences of those options.
We would be grateful if you could now take the time to read and consider the attached report on the pooling of town and parish councils.
Please let us have your views, feedback, comments, or questions as early as possible, but in any event no later than 4 August 2025. After this date the responses to the consultation will be considered before a final decision is made by the Kent Pension Fund Committee.
If, after considering the outcome of the consultation process, the Pension Fund Committee, decide to proceed with entering into a Pooling arrangement it is anticipated that those arrangements will be implemented on and from 1 April 2026 in line with the operative date of the 31 March 2025 triennial valuation results.
How do Members want to proceed?
| Confidential Annex Omitted from Papers. |