News

4th April 2017

"In conjunction with the Department for Communities and Local Government and the Department for Education, the Local Government Association has today published “Local Government Pension Scheme – arrangements for academies”"

4th April 2017 LGPS academies Update - On the 29th March, Councillor Roger Phillips, Chair of the Board, met with the local government Minister, Marcus Jones, and Lord Nash, Parliamentary Under Secretary of State for the school system to discuss the findings of the PwC report and agree next steps. Councillor Phillips set out the three mechanisms for change highlighted in the report including non-regulatory measures within the LGPS; regulatory measures within the scheme and thirdly, measures outside of the LGPS including through primary legislation.
Ministers were supportive of the Board’s conclusion that nothing would be gained without some degree of change. Ministers agreed that the immediate focus should be to explore the scope for resolving the identified issues within the LGPS, either by way of general guidance, statutory guidance or, where necessary, through changes to the scheme’s regulatory framework. Although agreeing to focus on solutions within the scheme at this stage, Ministers were also clear that should these not prove effective, more radical measures outside of the LGPS would not be completely ruled out.
Next steps – Ministers agreed that DfE, DCLG, GAD and the Board should continue to work closely together to pursue solutions, engaging key stakeholders including pension funds, actuarial firms and academy trusts as appropriate. The next stage will be to gather relevant evidence and develop specific proposals for change that the Board will consider before submitting its recommendations to Ministers for their consideration.
23rd March 2017

Board Statement on Pool Governace Following the meeting of the Board on 6th March 2017, the following statement was agreed:

"The Board recognises that it is for scheme managers within each pool to develop appropriate governance to assure all stakeholders of the transparent and effective implementation of strategy. In this respect the Board notes the comments made by the Local Government minister Marcus Jones MP on this matter in the Westminster Hall debate on 24th October 2016.
The board recognises that strategic decisions on asset allocations and responsible investment will remain at the local level and therefore the involvement via local pension boards of those employers beyond the scheme manager along with member representatives in those areas would continue.
However the Board also encourages scheme managers to involve those same employers and member representatives in assisting with the assurance of transparent reporting from pools and ensuring the effective implementation of strategies by pools. Such involvement should include the consideration of provision of direct representation on oversight structures.”

14th March 2017

LGPS Academies At the meeting of the Scheme Advisory Board on 6th March 2017, PwC presented the draft report “Options for Academies in the LGPS”. The report was commissioned by the Board to review current issues faced by the LGPS and associated stakeholders in relation to academies participating in LGPS funds in England. The Board is anxious to point out that the draft report makes no attempt to make any recommendations. Instead, it outlines a number of issues raised by stakeholders and how they envisage these concerns being resolved.
Although, in principle, the Board accepted the draft report’s findings, it was agreed that no statement should be made ahead of discussions with DfE and DCLG about PwC’s findings and next steps. The Board is hopeful that such a meeting will be possible later in March to be followed as soon as possible by a formal statement from the Board regarding publication and next steps.

4th January 2017

MiFIDII - FCA consultation

The Scheme Advisory Board responsed to the MiFIDII consultation, a copy of the response can be viewed here.
27th October 2016

SF3 Statistical Release 2015/16

The 2015/16 SF3 statistical release was published by DCLG on 26 October. The statistical release can be found on the DCLG web site.
18th October 2016

Implementation of Markets in Financial Instruments Directive II (MiFID II).

The FCA are consulting on their third set of implementation proposals for MiFID II and are seeking views on the proposed changes to the FCA Handbook.
MiFID II takes effect from 3 January 2018 and the proposed changes will have significant implications for LGPS administering authorities.
The full consultation document can be found on the FCA website.
17th August 2016 Election to fill practitioner seat on the LGP Scheme Advisory Board. Please click here to view the voting process. Note that the since the original email, the closing date and time for the submission of votes has been extended until noon on Friday 16th September 2016.
10th August 2016 The Chair, on behalf of the Board, wrote to the Secretary of State for Communities and Local Government regarding LGPS investment in infrastructure LGPS investment in infrastructure, and the Parliamentary Under Secretary of State Department for Communities and Local Government regarding Investment Reform Criteria and Guidance. The outcome of any discussions will be reported to the next Board meeting.
3rd August 2016 GAD Section 13 dry run report

The Government Actuary's Department (GAD) have completed a “dry run” section 13 analysis based on the 2013 local valuations. This analysis assesses whether the four main aims; compliance, consistency, solvency and long term cost effectiveness; have been achieved:

GAD Section 13 dry run report pdf 51 pages 1.22MB

29th July 2016 New section on the Boards' Code of Transparency for investment fees
25th July 2016 Committee update - Update on committees and list of representatives
17 May 2016 Scheme Annual Report 2015 published
8th April 2016 Message from Cllr Roger Phillips, Chairman of LGPS Advisory Board, for Chairs of Pension Committees

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