Innovation and Efficiency

22.12.16

Wandsworth and Richmond pension fund merger authorised

The government has confirmed that it will lay regulations to enable Wandsworth and Richmond Upon Thames councils’ proposal to merge their pension funds as part of a cost-saving measure.

The two London boroughs announced in January 2015 that they planned to enter shared staffing arrangements with the aim of achieving £10m savings and the government opened a consultation regarding the topic in August.

After consulting the LGA and three local authorities directly affected by the proposed merger, the government has proposed minor amendments to the draft regulations, largely to clarify the transitional arrangements.

“In light of the responses received the government has … agreed to require the statement of allocation of assets and liabilities, and the respective responsibilities of each borough tobe made within three months of the regulations being made, rather than from the mergerdate as originally proposed,” the government responded.

“One response requested that the regulations clarify the appropriate accounting treatment of the merger. However it was felt that this went beyond the scope of the power under which these regulations were being made.”

Under the merger, all the assets and liabilities owned by Richmond’s pension fund and any associated responsibilities will transfer to Wandsworth.

Even if the shared staffing arrangement ends at a later date, the merged fund would continue with each local authority placing into it as separate employers.

“The merged fund approach benefits from producing outcomes which would be legal from an accounting and actuarial perspective and avoid any risks of challenge to each authorities’ annual accounts,” the two councils said at the time of their decision,” the government stated.

“Any other approach lacks legal certainty and creates risks and insurmountable overheads that mean we do not believe that there is any other choice but to merge the two pension funds.”

Shared pension funds between councils is becoming increasingly common, with the London Pensions Authority and Lancashire County Pension Fund joining together at estimated savings of £30m, and eight West Midlands councils also agreeing to pool their funds in the last year.

The new regulations for the Wandsworth and Richmond Upon Thames merger will now come into force on 26 January 2017.

Have you got a story to tell? Would you like to become a PSE columnist? If so, click here 

Comments

There are no comments. Why not be the first?

Add your comment

 

related

public sector executive tv

more videos >

latest public sector news

District and borough authorities begin challenge against Nottinghamshire super-council

20/07/2018District and borough authorities begin challenge against Nottinghamshire super-council

Gedling council members have emphatically outlined their stance against a potential mega-merger in Nottinghamshire that could see borough and dis... more >
Northamptonshire new CEO approved by Full Council to lead area through ‘unprecedented time of change’

20/07/2018Northamptonshire new CEO approved by Full Council to lead area through ‘unprecedented time of change’

Northamptonshire County Council’s new chief executive has been endorsed at the authority’s Full Council meeting yesterday, with the a... more >
‘Naming and shaming index’ for bankrupt councils fails to offer genuine solution

20/07/2018‘Naming and shaming index’ for bankrupt councils fails to offer genuine solution

An index designed to measure councils’ financial resilience in order to avoid another Northamptonshire-style fiasco would actually risk ove... more >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this... read more >

last word

The importance of openness after Grenfell

The importance of openness after Grenfell

Following the recent Grenfell Tower tragedy, Lord Porter, chairman of the LGA, argues that if the public are going to have faith in the safety testing process then everything must be out in the o... more > more last word articles >
District and borough authorities begin challenge against Nottinghamshire super-council

20/07/2018District and borough authorities begin challenge against Nottinghamshire super-council

Gedling council members have emphatically outlined their stance against a potential mega-merger in Nottinghamshire that could see borough and district authorities being scrapped. Nottinghams... more >
Northamptonshire new CEO approved by Full Council to lead area through ‘unprecedented time of change’

20/07/2018Northamptonshire new CEO approved by Full Council to lead area through ‘unprecedented time of change’

Northamptonshire County Council’s new chief executive has been endorsed at the authority’s Full Council meeting yesterday, with the authority’s leader saying the new CEO “... more >

the raven's daily blog

One step closer to voter IDs at elections

19/07/2018One step closer to voter IDs at elections

Chloe Smith MP, Minister for the Constitution, evaluates the outcomes of the voter ID pilots conducted at the last local elections. We are one step closer to strengthening the integrity of our electoral system through requiring electors to confirm their identity before they vote, building on the government’s commitment to safeguard ... more >
read more blog posts from 'the raven' >

comment

One step closer to voter IDs at elections

19/07/2018One step closer to voter IDs at elections

Chloe Smith MP, Minister for the Constitution, evaluates the outcomes of the voter ID pilots conducted at the last local elections. We are o... more >
Accountability in government: what next?

02/07/2018Accountability in government: what next?

Benoit Guerin, senior researcher at the Institute for Government (IfG), explains why accountability in government needs improving and sets out wh... more >
Potholes: The scourge of the roads

02/07/2018Potholes: The scourge of the roads

Potholes are a scourge on our roads and can have much farther-reaching consequences than one might think. Re-routing just a small amount of exist... more >
Can data save the future of children?

02/07/2018Can data save the future of children?

Ingrid Koehler, service innovation lead at the LGiU, takes a look at the untapped potential for a digital, data-led transformation of children&rs... more >

interviews

Data at the heart of digital transformation

03/04/2018Data at the heart of digital transformation

SPONSORED INTERVIEW Grant Caley, UK & Ireland chief technologist at NetApp, speaks to PSE’s Luana Salles about the benefits of movin... more >
GDPR: The public sector scarecrow

03/04/2018GDPR: The public sector scarecrow

SPONSORED INTERVIEW PSE’s Josh Mines chats to Martin de Martini, CIO of Y Soft, about what the General Data Protection Regulation (GDPR)... more >
Keeping London safe

05/03/2018Keeping London safe

Theo Blackwell, London’s first-ever chief digital officer (CDO), speaks to PSE’s Luana Salles about the role he plays in ensuring the... more >
BIM: Digitising the public sector

19/02/2018BIM: Digitising the public sector

PSE’s Josh Mines talks to Stephen Crompton, CTO at GroupBC, and Stuart Bell, the company’s sales and marketing director, about how Bu... more >

public sector focus

View all News