Agenda item

2.1 The Chair welcomed Paul Carberry and Kevin Milton from Wragge & Co to the meeting.

2.2 The Board considered each response to the consultation, which was issued in July 2014.

2.3 The Board noted the response from Welsh Liberal Democrats, which indicated that the Group were content with the Board’s proposals.

2.4 The Board considered comments from other respondents and agreed to respond to them individually.

2.5 Wragge & Co stated that they were ready to start preparing the draft scheme rules and that they could do so without further information from GAD on the level of employer cost cap.

2.6 The Board requested that Wragge & Co discuss the initial draft of the AM pension scheme with Mary and Stuart to inform the meeting on 28 November 2014.

2.7 The Board felt it was critical that there be a professional independent Chair of the board, in addition to the employer and employee reps. The Board agreed they would take responsibility for appointing the independent Chair – Wragge & Co advised that this could be built into the scheme rules.

2.8 There needs to be a clear definition of the roles and responsibilities of a pension board member.

2.9 It was noted that the Remuneration Board was the “responsible authority” for the purposes of PSPA.

2.10 The Board agreed to discuss employer representation with the Commission at the meeting in November. The Board agreed that it would be critical for the pension board members/Trustees of the scheme to have appropriate training for the role.

2.11 The Board agreed that the pension board should comprise of five members [2+2+1]

2.12 It was noted that the new pension board would replace the existing Board of Trustees. There would need to be a robust transfer of assets during the transition.

2.13 The Board agreed that the governance arrangements of the scheme would need to be transparent, fair and equitable to the public and Assembly Members.

Action points:

·         Staff to prepare responses to letters from the Labour Group and the AM pension Trustees addressing the points they raise. The letter should provide clarity on:

-       Provisions for Death in Service;

-       The Scheme Operation;

-       Details comparing the Board’s proposals for Acrual Rate with the scheme implemented by IPSA in Westminster (this must also be included in any communications strategy);

-       The Board’s stance on Additional Voluntary Contributions (AVCs); and

-       The contribution split.

·         Staff to contact HMT to discuss their view of how a light touch approach to the PSPA requirements could be implemented in practice and whether any changes have occurred following the Reform of Funded Public Body Pension Schemes. Depending on the outcome of the discussions, it might be necessary to arrange a meeting which would include the external Legal Advisers.

·         Staff to invite Stuart Castledine to attend the next AM representative group meeting.

·         In order to get a sense of how the contribution split in the proposed pension scheme would work in reality, the Board requested further information on the financial consequences of a 23.8 per cent contribution rate by the Assembly Commission over a one year period.

·         Staff to double check the code rules for compulsory accruals.

·         Wragge and co to draft two or three options (including a note on the pros and cons of each) for a dispute resolution mechanism regarding the cost cap for the Board to consider – ideally at their October meeting. 

·         Draw up a conflict of interest policy for the pension scheme.

·         Wragge & Co agreed to include robust substitution arrangements for the pension board when designing the scheme rules.

·         Staff to prepare a paper for the next Board meeting in October outlining a number of options for achieving best governance in the pension scheme, including the configuration of the pension board. The paper should also include details on the procedure for appointing an independent member to the pension board.

·         Staff to arrange a meetings/teleconference between Mary, Stuart and Wragge & Co to discuss the first draft of the pension scheme.

·         Staff to arrange a meeting between Stuart/Mary and HMT to approve the final scheme design. Wragge & Co should also be in attendance.