Issue - meetings

[To provide a summary of the review of the Fund’s Additional Voluntary Contribution (AVC) arrangements and the proposed changes to ensure these provide good value and options for members]

Simon Taylor, Head of Pensions presented the report on a summary of the review of the Fund’s Additional Voluntary Contribution (AVC) arrangements and the proposed changes to ensure they provide good value and options for members.

Malcolm Cantello (Unison) reported that the Fund previously had two providers of AVCs for its members. He asked whether the provision in the market enabled the Fund to offer an additional AVC provider to scheme members. The Head of Pensions reported that there are other alternatives.  As part of the AVC review, consideration had been given to whether the Fund should have a second provider.

Rachel Brothwood, Director of Pensions added that the Fund had just under 5000 members who currently participate with the AVC arrangements. Part of the review of the arrangements was to challenge the current provider on a range of aspects including cost.  Following responses to this and review of the market providers suitable for an LGPS fund, the Fund was not looking to extend the number of providers at this stage

Resolved:

1.     That the proposed changes to the default fund and investment options provided to members who hold Additional Voluntary Contribution accounts with the Fund’s provider Prudential, as summarised in section 4 of the report be approved.

2.     That the work undertaken to monitor, review and enhance the arrangements for members with Additional Voluntary Contribution accounts be noted.

3.     That the update in relation to the Equitable Life legacy additional voluntary contributions arrangement, with communications set for issue to members in coming months be noted.