Issue - meetings

To consider a report of the Leader of the Council (Policy, Finance & Devolution) and Executive Councillor (Reform & Governance)

The purpose of this report is to outline the options available to the Council when setting its employer pension contribution rates for 2017/18 to 2019/20. Following the actuarial review of the Greater Manchester Pension Fund (GMPF), the Actuary has advised the Council of its recommended employer pension contribution rates in order to maintain the pension liability funding level over the next 3 years.

Following discussions with colleagues at GMPF, an option is available for the Council to make an advance payment of its pension contributions to GMPF over the next three years. This will result in the Council receiving a discount from GMPF on the Actuaries advised contribution rates generating a cost saving for the Council when compared to the previously reported MTFP forecasts.

The level of discount and resulting cost saving achieved by the Council is dependent upon the length of the advance payment made.

If the Council decided not to make an advance payment to GMPF, it is recommended that the Council set its employer pension contribution rates for 2017/18 to 2019/20 in line with the MTFP forecasts reported to the Executive in October.

GMPF need confirmation of the Council’s intentions in relation to the setting of its 2017/18 to 2019/20 employer pension contribution rates before the end of the financial year.

The Executive is recommended to:

·                Note the contents of the report in relation to the setting of the Council’s employer pension contribution rates with GMPF for 2017/18 to 2019/20;

·                Approve a 3 year advance payment to GMPF for its forecast employer pension contributions for the period 2017/18 to 2019/20; and

·                Delegate the final decision on the detail and arrangements of the advance payment to GMPF to the Borough Treasurer in consultation with the Leader of the Council and the Executive Councillor for Reform and Governance.

Officer contact: Michael Cullen, 0161 474 4631, michael.cullen@stockport.gov.uk

A joint report of the Leader of the Council (Policy, Finance & Reform) and the Executive Councillor (Reform & Governance) submitted a report (copies of which had been circulated) inviting the Executive to consider options available to the Council when setting its employer pension contribution rates to the Greater Manchester Pension Fund for 2017/18 to 2019/20 following the actuarial review of the Fund. One option available to the Council was to make an advance payment of contributions to the Fund covering three years that would result in the Council receiving a discount.

RESOLVED – That in relation the Council’s Payment of Employers Contributions to the Greater Manchester Pension Fund (GMPF):-

·           the contents of the report in relation to the setting of the Council’s employer pension contribution rates with GMPF for 2017/18 to 2019/20 be noted;

·           approval be given to a 3 year advance payment to GMPF for its forecast employer pension contributions for the period 2017/18 to 2019/20; and

·           the final decision on the detail and arrangements of the advance payment to GMPF be delegated to the Borough Treasurer in consultation with the Leader of the Council and the Executive Councillor (Reform & Governance).

To consider a report of the Borough Treasurer.

The purpose of this report is to outline the options available to the Council when setting its employer pension contribution rates for 2017/18 to 2019/20. Following the actuarial review of the Greater Manchester Pension Fund (GMPF), the Actuary has advised the Council of its recommended employer pension contribution rates in order to maintain the pension liability funding level over the next 3 years.

The advised contribution rates include an element for monies to be set aside to meet the costs of non-ill health early retirements (ER) during the period. The Actuary has used a rate 1% to set aside provision with the pension fund. The Council is able to adjust the ER rate (if it wishes) to set the employer pension contribution rate over the next 3 years in line with the MTFP assumptions presented to the Executive in October 2016.

Following discussions with colleagues at GMPF, a further option is available to the Council whereby an advance payment of its pension contributions can be made to GMPF. This will result in the Council receiving a discount from GMPF on the Actuaries advised contribution rates generating a cost saving for the Council when compared to the previously reported MTFP forecasts.

The level of discount and resulting cost saving achieved by the Council is dependent upon the length of the advance payment made.

The Corporate Resource, Management and Governance Scrutiny Committee are asked to comment on the matters raised in the report.

Officer contact Michael Cullen    on Tel: 0161 474 4631 or by email on michael.cullen@stockport.gov.uk

The Borough Treasurer submitted a report (copies of which had been circulated) outlining the options available to the Council when setting its employer pension contribution rates for 2017/18 to 2019/20. Following the actuarial review of the Greater Manchester Pension Fund (GMPF), the Actuary had advised the Council of its recommended employer pension contribution rates in order to maintain the pension liability funding level over the next 3 years.

The Leader of the Council (Councillor Alexander Ganotis) attended the meeting to answer members’ questions.

The following comments were made/ issues raised:

·         It was noted that Bury, Oldham and Rochdale Council’s were looking to adopt the same approach as recommended in the report and the remaining Council’s with Greater Manchester were considering their position.

·         The Scrutiny Committee discussed the operation of the current Greater Manchester Superannuation Scheme.

RESOLVED – (1) That the recommendations to the Executive be supported.

(2) That the Borough Treasurer be requested to provide further information to the Scrutiny Committee in relation to the operation of the current Greater Manchester Superannuation Scheme and the constraints placed on the Council in relation to any possible changes.