Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report

Decision Maker:

Pension Fund Panel

Date of Decision:

21 July 2009

Decision Title:

Zurich AVC Provider Update

Decision Reference:

842

Report From:

County Treasurer

Contact name:

Nick Weaver, Pensions Services

Tel:

01962 847587

Email:

[email protected]

1. Executive summary

1.1. The purpose of this report is to provide the Pension Fund Panel with an update on the take-up rates and process improvements with the Fund's provider for additional voluntary contributions (AVC), Zurich.

2. Contextual Issues

2.1. A report to the Panel in May 2008 noted the improvements that Zurich had made with member communication and administrative processes.

2.2. It was agreed that a further progress report should be made to the Panel in 2009 so that an assessment could be made on the need for a further external review of the AVC provider.

3. Take-up rates

3.1. Regular AVC contributions have increased since December 2006 with £331,166 being paid in the quarter to December 2008. The number of regular contributors has risen by 10% in 2008 from 823 to 903 members.


3.2. The total funds under management have risen by £0.4m to £6.6m during 2008. Zurich has also added new funds (all of which are managed by external fund managers) and all funds are offered to all members.

4. Process improvements

4.1. The process improvements noted in the last report to the Panel have now bedded in and offer substantial improvements for members. These improvements include online access to plan information for existing members as well as increased promotion of the scheme via information packs and flyers.

5. Governance

5.1. Zurich has continued to provide quarterly governance reports covering:

    · administrative process performance statistics

    · membership changes

    · contributions received

    · Fund performance.

5.2. Members who have invested in funds that fail to achieve the benchmark in at least 6 out of 8 quarters are informed of the situation (without giving any advice or recommendation).

6. Fee information

6.1. The table below shows the fees charged for the top ten funds in 2008.

7. Conclusions

7.1. Zurich have continued to make good progress with the improvements initiated last year, despite very difficult market conditions.

8. Recommendation

8.1. That, subject to the Panel's views, no further action to be taken in reviewing, or adding to, the existing AVC provider.

CORPORATE OR LEGAL INFORMATION:

Links to the Corporate Strategy

Hampshire safer and more secure for all:

yes/no

Corporate Business plan link number (if appropriate):

Maximising well-being:

yes/no

Corporate Business plan link number (if appropriate):

Enhancing our quality of place:

yes/no

Corporate Business plan link number (if appropriate):

OR

This proposal does not link to the Corporate Strategy but, nevertheless, requires a decision because the future arrangements for AVC provisions need to be agreed.

Other Significant Links

Links to previous Member decisions:

  

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Reference

Date

     
     

Direct links to specific legislation or Government Directives

 

Title

Date

   
   

Section 100 D - Local Government Act 1972 - background documents

 

The following documents discuss facts or matters on which this report, or an important part of it, is based and have been relied upon to a material extent in the preparation of this report. (NB: the list excludes published works and any documents which disclose exempt or confidential information as defined in the Act.)

 

Document

Location

None

  

IMPACT ASSESSMENTS:

1. Equalities Impact Assessment:

1.1. Equality objectives are not considered to be adversely affected by the proposals in this report.

2. Impact on Crime and Disorder:

2.1. The proposals in this report are not considered to have any direct impact on the prevention of crime.

3. Climate Change:

a) How does what is being proposed impact on our carbon footprint / energy consumption?

    No specific impact.

b) How does what is being proposed consider the need to adapt to climate change, and be resilient to its longer term impacts?

    No specific impact.