Amendment to Hoople pension admission agreement
Decision Maker: Cabinet member finance and corporate services
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
To amend the admission agreement between Herefordshire Council, Hoople Ltd and Worcestershire County Council, which will inform the preparation of the 2018/19 financial statements, in relation to the pension deficit of previous council employees transferred to Hoople Ltd.
Accounting for pension liabilities is a complex area and the council has sought independent expert advice in this area.
(a) the admission agreement between Herefordshire Council, Hoople Ltd and Worcestershire County Council (as administering authority to the Worcestershire County Council Pension Fund) be amended in relation to pension liabilities so that Herefordshire Council is liable to the Fund for pension liabilities directly (under the terms of the admission agreement) rather than Hoople Ltd being directly liable. The effect of this will be that a ‘flow through’ agreement is put in place in relation to Hoople Ltd’s pension liabilities.
Alternative options considered:
1. The alternative option is to not change the admission agreement; this report is to inform on the impact of the admission agreement change.
Reason Key: Expenditure;
Wards Affected: (All Wards);
Contact: Audrey Clements, Head of management accounting Email: email@example.com.
Publication date: 11/01/2019
Date of decision: 11/01/2019
Effective from: 18/01/2019