Contact: Chris Sharratt; ext. 7506.

1 Summary

1.1 This report seeks approval to a scheme of delegation between the County Council and Test Valley Borough Council, as provided for under Section 101(1)(b) of the Local Government Act 1972.

2. Proposed Scheme

2.1 The scheme would enable the Borough Council to exercise some of the County Council's powers as a pension fund administering authority, so that it could appoint an insurance company to accept additional voluntary contributions (AVCs) to provide life cover for over 400 Borough Council employees who contribute to the Local Government Pension Scheme (LGPS). This would streamline administrative arrangements as AVCs fall outside the pension fund's accounts.

2.2 The Borough Council proposes to use its existing powers under LGPS Regulations 67 ("Establishment of shared cost AVC schemes (SCAVCs))" and 68 ("Applications to pay SCAVCs") to set up a scheme whereby each contributor could pay £1 annually for a death in service gratuity of two years pay and the Borough Council would pay the balance of their premiums. The LGPS automatically pays a death grant of two years pay so the SCAVCs would pay as much again at a cost to the contributor of just £1 per annum for the extra cover.

2.3 The scheme of delegation would enable the Borough Council to exercise the County Council's functions under Regulations 69 ("Functions of employing and administering authorities") and 70 ("Application and investment of SCAVCs") to pay the premiums to the insurance company which the Borough Council will appoint for this purpose.

2.4 In the event of a contributor's death in service the gratuity would be paid by the insurance company to the Borough Council as trustees. They would in their absolute discretion distribute it amongst such dependents of the deceased as they may decide after considering any person named by the deceased for that purpose, in accordance with Regulation 63 ("Death benefits"). Otherwise they would pay it within a year of the person's death to the deceased's legal personal representative.

2.5 The Local Authorities (Functions and Responsibilities) (England) Regulations 2000 list, in schedule 1, the functions which are not the responsibility of an authority's executive. The list includes an authority's functions under (and decisions to be taken in accordance with) regulations made under Sections 7, 12 or 24 of the Superannuation Act 1972, including the LGPS Regulations 1997. The County Council would therefore need to be asked to approve this proposal.

3. Recommendation

3.1 That it be a recommendation to the County Council:

That pursuant to Section 101(1)(b) of the Local Government Act 1972, Test Valley Borough Council be authorised to exercise the functions of the County Council under Regulations 63, 69 and 70 of the Local Government Pension Scheme to enable it to operate a shared cost additional voluntary contribution scheme with an insurance company of their choice for death in service gratuities.

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

Published works.

Documents which disclose exempt or confidential information as defined in the Act.

TITLE FILE

None.