Select the headings on this page to open or collapse each item. Updates published up to May 2020 are also available in the PDF archive of Advisory Board updates.


Full details of the meeting and agenda papers can be found on the board meetings page.

The minutes of the meeting on 4th December were approved and the main points arising from the meeting are shown below. 

Cllr Phillips confirmed that he and the Board Secretary Jo Donnelly had met with the new Local Government Minister, Simon Hoare MP in person on 16th January 2024. Topics discussed included McCloud; the government’s response to the next steps on investments consultation; as well as government progress on the Good Governance recommendations and on the climate risk reporting consultation response. 

The BDS Bill, had its second reading in the House of Lords on 20th February 2024. It was expected that the Bill would be entering committee stage on 20th March 2024. The amendments that had been supported or proposed by the LGA to date have not yet been incorporated. The Government are keen for the Bill to receive Royal Assent as soon as possible.  

The Board received a Spring Budget and Investment policy reforms update from DLUHC. Officials confirmed that Ministers wanted to move at pace on the pooling agenda and this greater certainty of direction was welcomed by the Board. However, the Board expressed concern about a number of recent announcements which seemed to view the LGPS as an alternative source of funding of local government services. DLUHC would work closely with the SAB to discuss its proposals and support funds in meeting the requirements of any new guidance. 

The results of 2020 SAB Scheme Cost Assessment were received, the assumptions were agreed at the last meeting. The Board was also briefed in confidence on HMT’s Cost Control Mechanism Results. These are embargoed until publication by HMT (which is expected in the coming weeks). 

The Pensions Regulator’s new General Code was laid in Parliament on 10 January 2024 and was expected to come into force on 27 March 2024. The Secretariat had held a workshop with funds and was still working through the Code to provide advice to funds on what they may need to do in response. They are also working with DLUHC to identify areas of overlap with other proposals, such as DLUHC’s response to the Board’s Good Governance recommendations.  

The Board was given an update on actions to address the Gender Pensions Gap (GPG). A virtual event on closing the equality gap on pay and pensions will be held on 9th May 2024 at 14:00 in conjunction with the LGA Workforce Team.  

A revised budget and workplan for 2024/25 was approved by the Minister. The budget was broadly the same as the previous year but would allow for additional capacity in the Secretariat team and improvements to the SAB website.  

Date of Next Meeting – 22nd July 2024


Full details of the meeting and agenda papers can be found on the board meetings page.

The minutes of the meeting on 17th July were approved.

The main points arising from the meeting are shown below:

Cllr Phillips confirmed that he had written to welcome the new Local Government Minister, Simon Hoare MP, to his role, and would be seeking a meeting with him in the New Year.

On the BDS Bill, it was reported that no date had yet been set for 3rd reading. All amendments so far presented in Parliament had been defeated although the Minister had given a commitment to clarify the Explanatory Notes to be clear that councillors could express personal views at a Pension Committee or outside of meetings where they were not speaking on behalf of the Administering Authority. The Secretariat would continue to offer technical briefing to MPs and Lords in relation to the Bill.

It was noted that DLUHC’s response to their consultation on LGPS investment policy was announced alongside the Autumn Statement. The Board gave some initial reactions to the response and agreed that it would make further formal representations to the Department on those issues where its advice did not appear to have been taken on board.

The Board discussed a draft Surplus statement and agreed that it would take a little longer to make sure that the tone and content were right. They also considered how best to communicate their message to funds and employers, as well as to members through the trade unions.

The Board agreed that it would take up the option in the current contract with Byhiras to extend by two years the provision of a Code of Transparency monitoring and reporting system. The Board also approved its own budget and workplan submission to the Minister for 2024/25.

TThe Board heard from GAD that the results of the HMT Cost Control Mechanism were expected to be announced early in the New Year. The Board set its own assumptions for the separate Scheme Cost Assessment that is managed by the Board.

The Board noted that there was a timeline now for production of new Annual Reporting guidance in the Spring, which would initially apply on a voluntary basis from December 2024 for 2023/24 fund annual reports. A timetable for revision of the Funding Strategy Statement Guidance was being worked up with CIPFA's input.

The Board noted the contents of the report it commissioned from a respected Islamic finance scholar on the issue of Sharia law and the LGPS, and the range of views that Muslim members and potential members might have on that question. It was agreed that the report would be published on the SAB website in the next few weeks, with appropriate context and commentary.

Finally, the Board thanked Cllr Yvonne Johnson (Ealing, Labour) for all of her input as her five-year term came to an end at this meeting. She will be replaced Cllr Peter Mason (Ealing, Labour).

Date of Next Meeting – 11th March 2024


Full details of the meeting and agenda papers can be found on the board meetings page.

The minutes of the meeting on 22nd May were approved.

The main points arising from the meeting are shown below:

Economic Activity of Public Bodies (Overseas Matters) Bill - On June 30th, the then LGA Chairman Cllr James Jamieson, supported by the LGA’s Head of Pensions Jo Donnelly, met the DLUHC Minister Felicity Buchan to discuss the Bill, with a particular focus around the proposed enforcement regime. The Bill is now at Committee stage and the SAB will be submitting evidence to the Committee in September 2023.

McCloud - DLUHC’s second McCloud consultation closed on 30th June 2023. The LGPC response comprised largely of responses to technical issues raised. There were ongoing concerns about the timing of regulations and resource capacity within DLUHC to do this work. The LGPC team had begun work to procure a provider to draft communications for scheme members with input from the Communications Working Group.

Investments - DLUHC’s long-awaited consultation, titled “Next Steps on Investments” was issued on 11th July 2023. The consultation closes on 2nd October 2023.

The Board had a lengthy discussion about the consultation and in particular DLUHC’s proposals to accelerate the pooling of investments. A working group was established to help draft the SAB response.

Cost Control Mechanisms - The results of the Treasury Cost Control Mechanism are expected in the Autumn and the intention is for the SAB Scheme Cost Assessment (SCA) process to feed into GAD who will provide advice to the Board on assumptions, e.g. the appropriate discount rate for a funded scheme like LGPS. Both cost assessments examine the overall cost of the scheme, but the SAB process also examines the split of costs between employers and employees.

Code of Transparency Reporting System - The Board is considering the future of the Code of Transparency reporting system. The contract to provide this system, currently held by Byhiras, expires in August 2024 and so the Board discussed the options on the most suitable next steps

The Secretariat are also carrying out a series of roadshows to promote better understanding of, and engagement with, the system. As part of these sessions, feedback was being sought on whether the system specification was meeting funds’ needs. The Board wanted feedback from the roadshows to shape a paper for their December 2023 meeting.

Annual Report update - The tenth Scheme Annual Report was published on 27th June 2023. The Chair thanked Gareth Brown, the SAB’s Research and Data Analyst, for his work in creating the report.

Board Budget 2023/24 - The Board discussed the delayed approval of the 2023/24 Budget and Workplan by the Minister. The Chair informed the Board that he had recently met with the Minister and had a substantive discussion on this issue. The Minister had requested alternative options for the 2023/24 budget before making a final decision on which option to approve. The Board discussed and approved the options presented in the paper. It was agreed to develop a medium-term financial plan to give further clarity about expenditure in future years with the aim of reducing late approval of the budget and workplan, and therefore giving more certainty to the Board.

Terms of Reference - The Board received a paper on the Terms of Reference (ToR) which included a recommendation that the ToR be updated to amend the minimum number of four meetings per year to three. The Board agreed this change.

Date of Next Meeting – 4th December 2023


Full details of the meeting and agenda papers can be found on the board meetings page.

The minutes of the meeting on 22nd February were approved.

The main points arising from the meeting are shown below:

Code of Transparency Compliance System - The Board agreed that the Transparency Code itself had been very successful in providing funds with the information that they needed from managers to report and manage investment costs. However, awareness of the compliance system was more mixed and the Secretariat reported that it had set up a series of “roadshows” in six locations in England and Wales to promote its use over the summer months. The contract for provision of this system expires in August 2024 and the Board asked the Secretariat to bring a paper to the July meeting on procurement options and a timetable for decision making.

Annual Report update - The final scheme level report will be published online at the time of the PLSA conference in week commencing 26 June.

HM Treasury Scheme Valuation / Cost Control Mechanism Draft Directions - Although there is not a formal public consultation process for HMT Valuation Directions, the Board had been given sight of and been asked to give its views on draft directions ahead of them being finalised. These would be discussed at the CMBDA meeting on 26 June, with GAD providing some further explanation.

Pooling/Levelling Up -DLUHC officials confirmed that they were no longer saying to expect this consultation on investment issues “soon” but “by summer recess”, which is 20 July.

Climate Risk reporting - DLUHC have confirmed that implementation of climate reporting obligations would be delayed at least until next year. Presuming regulations are forthcoming in time for 1st April 2024, reports covering the period 1 April 2024 - 31 March 2025 would need to be produced by December 2025. In the meantime, the Responsible Investment Advisory Group (RIAG) would look at what advice could be given to funds wishing to do a shadow reporting year, and also what could be done to standardise the development of climate reporting approaches at the pool level.

Survivor benefits and death grants - The Board heard that the Minister has rejected advice that the scheme rules needed to be amended to address the clear age discrimination of having a cut off at age 75 for payment of death grants. The rationale for his decision had not been shared but it constitutes a clear legal risk for funds. The Chair stated that this was a matter of concern for the Board, and that he would raise this in the meeting he was seeking with the Minister.

Good Governance - The Board noted that the Minister had given DLUHC officials a steer that any changes to the regulations would not be made until the next calendar year. DLUHC were considering what could be achieved through guidance. The Secretariat would review the Good Governance recommendations and see what might be appropriate for pursuing on that basis, whilst acknowledging that this meant that some of the benefit of including some elements in legislation could be lost.

Pension fund audit - The Board noted the very productive and pragmatic audit summit which had been held on 20 April. This brought together representatives of funds, their actuaries and the main auditors involved in auditing LGPS fund and scheme employer accounts. A further summit would be held on 12 July to update on actions that were agreed in April. It was expected that these summits would become annual events, to ensure that any unnecessary friction could be taken out of the process, or at least reduced.

Academy Conversions - It was agreed that the note on actuarial treatments for the establishment of academies on conversion should be published on the Board’s website. This had been produced by a working group set up by the Board, which included GAD, DLUHC, fund actuaries, fund practitioners and academy representatives. Publication would follow a short consultation with the actuaries who had not participated in the working group.

Date of Next Meeting – 17th July 2023


Full details of the meeting and agenda papers can be found on the board meetings page.

The minutes of the meeting on 5th December were approved.

The main points arising from the meeting are shown below:

SAB 2022/23 Workplan and Budget - The Board approved a draft budget and workplan for 2023-24. The budget would be a substantial increase from last year, largely due to the Secretariat’s absorption of the CIPFA Pensions Panel’s work, work to improve cost transparency and expenditure associated with running the Scheme Cost Assessment. This last item is a one-off cost paid every four years in line with the quadrennial scheme valuation cycle. The Board agreed to look into whether it was possible to smooth its annual budget profile so that these cyclical costs were spread.

Fund Valuation Reports - With emerging fund valuation reports increasing surpluses, the Board agreed to consider at its next meeting what opportunities and challenges that might bring for administering authorities in the future. Work continued to collect and analyse data from fund annual reports and valuation reports, for aggregation at scheme level. The Scheme Annual Report for 2021/22 was expected to be released in May and the Scheme Valuation Report (collating 2022 fund valuation reports) later in the summer.

DLUHC Update - The Board received an update from officials at the Department of Levelling Up, Housing and Communities (DLUHC) on its proposed consultations and work to develop the detail of the McCloud remedy. The Board was told that the second consultation on McCloud would potentially be pushed back beyond local government elections in May. Final regulations were now due to be published in September 2023 with the regulations coming into effect from 1st October 2023. On Climate Risk Reporting, DLUHC was yet to issue its response to the consultation which closed on 24th November 2022. Their target date for publishing the regulations implementing the reporting requirements was now “before summer recess”. Progress on other workstreams was moving more slowly than anticipated.

The Board received a briefing on the proposed LGPC response to the consultation on changing the revaluation date, which closed on 24th February. The consultation document set out that anywhere between 20,000 and 13,000 members of the LGPS would be prevented from breaching the annual allowance in 2023/24 if the proposed changes were implemented – depending on the assumed pay increase.

Audit Issues - On local audit issues, the Board received an update on work to explore the separation of pension fund accounts from administering authority accounts. Meetings had been held with the PSAA, FRC and Audit Wales to evidence the benefits of pension fund audit separation. The Minister has responded positively to the Board’s request for separation and officials confirmed that a suitable statutory vehicle to implement the change was being sought. The Board also agreed to convene a discussion between fund practitioners, auditors and actuaries to explore how to improve assurance and ways of working. This has been arranged for 20 April.

Knowledge and Understanding - The Board also approved a survey of funds, aimed at collecting information on the current standards of knowledge and understanding, as well as provision of training in pension funds. The information collected from the survey would assist in the development of a new Knowledge and Skills framework.

Gender Pensions Gap - The Board agreed to publish the initial findings of the Gender Pensions Gap and commissioned GAD to undertake some additional analysis. It was noted that the new Pensions Minister, Laura Trott, had recently committed to undertaking work on the gender pensions gap in the private sector. The Board expressed its desire for this kind of analysis to become part of the standard output of fund valuations in future.

Sharia Compliance - The Board approved the procurement of a report to consider whether there is any contradiction between the principles of sharia law and membership of the Local Government Pension Scheme for a Muslim local government employee in the UK. The report will also consider the governance and investment practice of the Scheme.

Code of Transparency - The Board agreed that it was necessary to improve the awareness and communications of both the Code and associated on-line reporting system that had been developed. It asked the Secretariat to arrange a series of workshops around the country to brief local pension committee board members and officers about the importance of this issue.

AOB (Bob Holloway Retirement) - The Board’s Chair, Councillor Roger Phillips thanked Bob Holloway for his contributions to the Scheme and the Board over the length of his career ahead of his retirement on 24th February 2023.

Date of Next Meeting – 22nd May 2023


Full details of the meeting and agenda papers can be found on the board meetings page.

The minutes of the meeting on 10th October were approved.

The main points arising from the meeting are shown below:

SAB 2022/23 Workplan and Budget - The budget for 2022-23 was still awaiting approval from the Minister; the levy invoices could not be issued to funds until this had been done. There was expectation of significant upwards pressure on the levy for 2023-24 due to various active items on the workplan for the new year. The Secretariat would also need to recruit another staff member to maintain current capacity levels after Bob Holloway’s retirement. The approval of additional expenditure for improvements to the Code of Transparency online reporting tool would also lead to upwards pressure on the levy. Jeremy Hughes (JH) explained that a definite figure will be brought to the next Board. Cllr Phillips confirmed that he would discuss the approval of the current year’s SAB budget at his meeting with Lee Rowley MP.

Agenda Steering Group Update - Members were informed that the steering group had met and discussed reporting standards and consistency, MIFID II and climate risk reporting. On reporting standards and consistency, it was agreed that the SAB Secretariat would provide an update to the Board of which annual reports had been published and which included audited data.

McCloud/Exit Pay Update – On McCloud, LGPC and SAB had met with its working group and drawn up guidance which was being reviewed by lawyers. Timings for DLUHC’s work on this issue had been pushed back; a response to the last McCloud consultation was not now expected before the new year. There was still an expectation that there will be a further consultation on issues not addressed by the initial consultation in the new year. It was expected that the new regulations would be in place before the summer recess. The Department will reconvene its working group on McCloud remedy implementation in the new year and will seek LGPC/SAB input. On exit pay, SAB had responded to Treasury’s consultation, but Government had not yet indicated a timeline for its response or next steps in local government.

SAB/Committee Membership – The Board was informed that Councillor Christopher Weaver’s Board membership was awaiting approval from DLUHC. John Cornett (Audit Scotland) was no longer a member of the Compliance and Reporting Committee and had been replaced by John Boyd (Audit Scotland). The Board also approved Oliver Simms (Institute of Chartered Accountants in England & Wales) joining the CRC as an observer.

Risk Register – The first iteration of this register was presented to the Board and included the Scoring Matrix, Risk Heat Map and the Risk and Mitigation Register. The document remains a “work in progress” and would be developed further in line with any comments from the Board in relation to the format, the kinds of risks that it should cover and the suggested mitigations. Board members commented on the risk register and it was agreed that the comments made by Board members would be considered in the next iteration of the risk register.

Good Governance Review -The Department had held meetings of its working group; most recently on 29th November 2022. The Department’s plans included the streamlining of the annual report document, with funds reporting their performance against their various strategies (rather than just reproducing their strategy statements). There were also plans for more formal training requirements for pension committee members and a standard set of administrative KPIs to allow comparisons of relative performance between funds. The Department’s consultation on this is expected to happen in 2023. JH reminded the group that the Department’s proposals were likely to include the need for funds to have a workforce strategy. He felt that it would be beneficial for the Board, LGPC and LGA to work out what opportunities that presented. The Chair welcomed the update and the work being done by the Department.

Compliance and Reporting Committee Report - The Chair of the committee reported to the Board details of the meeting held on 14th November. All of the workstreams were now underway and had either already had or were soon to have their first meeting. There were a host of volunteers on these workstreams who had already made invaluable contributions. The Chair’s priority now was to ensure that these working groups had clear delivery plans and that, where relevant, links were made between them.

Cost Management, Benefit Design and Administration Committee Report -The Chair of the committee reported to the Board details of the meeting held on 21st November. The Chair gave an overview of the proposals from GAD on scheme level assumptions for the cost control mechanism and the standardised valuation assessment. These were accepted by the Board. On the Gender Pensions Gap, the Board gave approval for GAD to provide some initial analysis by mid-January. The Cost Management Committee would then agree the scope of the more detailed analysis of factors which may be driving gender differences next year. The cost of the work was approved and would be recouped through the levy next year. The Secretariat reported that it had collected data from funds on members opting out from the Scheme and was in the process of analysing the returns. These would be reported to the Committee at its next meeting.

Investment, Governance and Engagement Committee Report -The Chair of the committee reported to the Board details of the meeting held on 28th November. The committee was given an update on compliance with the Code of Transparency and discussed the next steps to be taken with the Code of Transparency online reporting tool. The development of quarterly reporting of data and integrating email reminders to complete templates, with the associated expenditure, had been approved by the Board Chair. It was now necessary to ensure that funds and pools are aware of and are deriving maximum value from the tool’s current functionality and the Investment Committee would be developing proposals to improve awareness of the tool.

AOB -On Sharia Compliance in the LGPS, it was agreed that the Secretariat would explore procurement of a report into LGPS assets with a view to determining what proportion were acceptable from a Sharia point of view. The Board was informed that the ONS review had concluded, and the Further Education sector had been reclassified from private to public sector. The Department for Education had confirmed that there were no immediate consequences for their participation as employers in the LGPS, but that the wider implications were under consideration. On collection of the 2021-22 levy, the Board was informed that to date, there were two funds that had not yet paid.

The Board was also informed that the response to DLUHC’s climate risk reporting consultation had been submitted and published. On the Autumn Statement, JD informed the Board that there were no announcements in the statement that would have direct impact on the LGPS or the SAB, aside from the confirmation that state pensions would be uprated by the September measure of CPI (the “triple lock”) and that therefore LGPS pensions in payment would also be uprated by the same amount for 2023-24.  

The Board was notified of a letter that had been sent to the Chair from the Royal Borough of Kensington and Chelsea (RBKC) Pension Fund regarding a proposed change in its approach to the pooling of investments. The Board had been invited to reply to the consultation on changes to RBKC’s investment strategy statement by 31 December. The Board discussed the issue at length. The need for greater clarity and transparency in the pooling agenda was emphasised, and the Board Chair said that he would discuss the issue at his meeting with the Local Government Minister later in the week. It was not felt that a response to the RBKC consultation from the Board was necessary.

Date of Next Meeting – 20th February 2023


Full details of the meeting and agenda papers can be found on the board meetings page.

The minutes of the meeting on 6th June were approved.

The main points arising from the meeting are shown below:

SAB 2022/23 Workplan and Budget - The SAB budget and workplan had been sent to DLUHC for Ministerial approval. The workplan included continued work on the Code of Transparency and work on the Good Governance review. There was a need for additional resource in the team to complete the workplan. The additional resource would potentially include a Data Analyst to assist with the completion of scheme wide reports and a replacement for Bob Holloway, once he had retired. The expansion of the team would lead to upward pressure on the levy. The Chair agreed that the successful delivery of the workplan would require additional resource to deal with the increased workflow. It was agreed that more detailed plans would be brought to SAB in December.

Agenda Steering Group Update - Members were informed that the steering group met for the first time and discussed current fund valuations, Good Governance proposals and pensions fund administration capacity and capability. On fund valuations, it was agreed the Board publish a statement drawing attention to the need for long term stability in employer contributions.

McCloud/Exit Pay Update – On McCloud, it was expected that the Department would publish their response to the consultation on McCloud remedy and draft regulations by the end of the calendar year. As there was now less than a year before the implementation deadline (1st October 2023), it was imperative for the regulations to be agreed before then. On exit pay, the HMT consultation was issued in mid-August and would be closing on 17th October 2022. The process for handling exit pay only affected central government staff; they did not apply to local authority staff. The proposals will apply to some LGPS members (primarily members working at academy schools) so the Secretariat are developing a response and the Board delegated authority for the Chair and Vice-Chair to clear the Board’s response.

SAB/Committee Membership – The Board approved a number of appointments to the Board and both committees that do not require formal approval from the Secretary of State. These included the nomination of Andrew Dobbie (UNISON) replacing Colin Meech (UNISON) as a scheme member representative on the Investment, Governance and Engagement Committee, Richard Lane (Academies Representative) joining the IGE Committee and Charity Main (Academies Representative) joining the Cost Management, Benefit Design and Administration Committee. Alan Wilkinson (SPPA) had stepped down as an observer to the Board; Kimberly Linge (SPPA) attended the meeting for the SPPA. Jon Richards (UNISON) stepped down as a Scheme Employer Representative from the Compliance and Reporting Committee; his post had yet to be filled. Councillor Christopher Weaver’s Board membership was awaiting approval from DLUHC.

Risk Register – It was agreed to develop a formal document outlining identified risks to the Board. The Secretariat agreed to bring a first draft to the Board at the next meeting.

Climate Risk Reporting Consultation - The Board was informed that the Responsible Investment Advisory Group (RIAG) had discussed and advised on SAB’s response to DLUHC’s climate risk reporting consultation. The discussion included the type of methodology the LGPS should use in data collection, scenario analyses, the approach to target setting and the impact that climate risk reporting cold have on fiduciary duty. It was agreed that the Climate Risk Reporting consultation response would be written, circulated to the Board and signed off by the Chair and Vice-Chair.

Good Governance Review - The Department had taken on the recommendations the Board had made regarding Good Governance and a working group would be meeting soon to discuss the implementation of these recommendations. The Chair welcomed the update and the work being done by the Department.

Compliance and Reporting Committee Report - The Chair of the committee reported to the Board details of the meeting held on the 5th September. The Committee had discussed the development of FSS guidance, and the resulting product will be free to users and will be a joint product of the SAB and CIPFA. The committee workplan was starting to mature; workstreams had been agreed, each had volunteers who would lead progress with them. The Board was informed that CRC Chair, Mark Wynn had been speaking with senior CIPFA colleagues to establish reporting routes into the organisation.

Cost Management, Benefit Design and Administration Committee Report - The Chair of the committee reported to the Board details of the meeting held on the 12th September. The committee was informed that work to collect data on opt outs was being scoped by the Secretariat. On survivor benefits, it had been confirmed by the Department that they would propose to amend the LGPS Regulations to implement the Elmes and Goodwin judgments (i.e. remove the disapplied provisions in the Transitional Regulations which had required nomination of cohabitees and equalise survivor pension calculation for male and female survivors of members in line with that of widows) and also to remove the upper age limit on entitlement to death grants (which is currently 75). On the Gender Pensions Gap, GAD had informed the Secretariat that much of the data requested on the gap will be part of the 2020 valuation report. GAD were still preparing an estimate for the additional reporting and analysis needed. On Fair Deal, the Board agreed to write to the Minister to request an update on the New Fair Deal consultation.

Investment, Governance and Engagement Committee Report - The committee was given an update on compliance with the Code of Transparency and had a discussion about the next steps to be taken with the Code of Transparency online reporting tool. Recommended changes included allowing for quarterly reporting of data and integrating email reminders to complete templates into the system. Members were also informed about the suggestion of producing a manual for the system. It was agreed that a working group of fund representatives be established to discuss improvements and that the Secretariat would consider conducting a survey at fund level to gather wider opinions about improvements to the system. The deadline to agree changes for implementation in 2023 would be 1st December 2022, before the next meeting Board meeting on 5th December 2022. The Board agreed on the delegated approval for the expenditure incurred to implement email reminders and quarterly reporting of data.

AOB -- The Chair informed the Board that a request had been made by Martin George of the LGC to attend SAB meetings. The Board were of the opinion that this would not be necessary as public attendance at other public sector scheme advisory board meetings was not common practice. The papers and minutes for the Board’s meetings, however, are public record and available to access. DLUHC representatives confirmed that CMA will be updating their website to include the Department’s position on the CMA Order. On the UKLFI, the Board agreed that the secondary revised published statement was accurate.

 

Date of Next Meeting – 5th December 2022


Full details of the meeting and agenda papers can be found on the board meetings page.

The minutes of the meeting on 7th March were approved.

The main points arising from the meeting are shown below:

SAB 2022/23 Workplan and Budget - The Board approved the budget and workplan for 2022/23. Members were advised that the workplan comprised the main ongoing workstreams and that there is flexibility to develop it in more detail and to include new workstreams that might develop during the year, for example, further work on fiduciary duty arising from DLUHC’s consultation on levelling up, TCFD reporting, etc. Members were informed that a second Pensions Secretary will join the LGA on the 20th June to help provide the resources necessary to implement the agreed workplan. The Chair also suggested that provision for a workstream on the participation of academy schools in the Scheme should also be included, reflecting the Government’s ambition for full academisation by 2030.

Forward Look Update - Members were informed that the Board had agreed to establish a small steering group to steer the Board’s agenda and to put it on the front foot on key issues. Membership of the group will include Cllr Roger Phillips, Jon Richards, Cllr John Fuller and a treasurer and practitioner representative. The group will meet for the first time shortly and will report to the next SAB meeting in October 2022.

SAB/Committee Membership – The Board approved a number of appointments to the Board and both committees that do not require formal approval from the Secretary of State. These included the nomination of George Graham (South Yorkshire Pensions Authority) as the Board’s practitioner representative following Rachel Brothwood (West Midlands Pension Fund) standing down; Jeff Dong (Swansea Council) as the replacement for Mark Wynn (Cheshire West and Chester) as the treasurer’s representative on the Investment, Governance and Engagement Committee and Glyn Jenkins (UNISON) replacing Colin Meech (UNISON) as a scheme member representative, also on the Investment, Governance and Engagement Committee.

Queen’s Speech Update – The Board was informed that a number of government Bills relevant to the LGPS were introduced in the Queen’s speech including the Boycotts, Divestment and Sanctions Bill, the Levelling Up and Regeneration Bill, the Schools Bill and Private Sector Audit Bill.

Compliance and Reporting Committee Report -The Chair of the committee reported to the Board details of the meeting held on the 9th May. Members were reminded that the new committee was established to take on the work of the former CIPFA Pensions Panel and on that basis would have a dual reporting role to both this Board and CIPFA. The committee will be meeting on the 27th June to discuss how that dual reporting role will work in practice. The Board was invited to approve a draft workplan prepared by a small working group within the committee which highlighted the need for the committee to work alongside the other committees and groups in taking it forward. The draft workplan consisted of three sections: those workstreams that could be commenced immediately; those workstreams that couldn’t commence immediately because they are contingent on actions being taken outside of the committee and those workstreams that are initiated solely by CIPFA. The Board approved a recommendation from the committee that the SAB Chair should send a letter to the Minister expressing concerns around external audit and proposing a potential remedy, the separation of pension fund accounts from main local authority accounts, as had already happened in Wales and Scotland. The Chair agreed that sending this letter could be a significant step forward in resolving the significant delays in accounts being signed off.

Investment, Governance and Engagement Committee Report - As part of the report to the Board members were advised that the Responsible Investment Advisory Group had reported to the committee various concerns around the forthcoming public consultation on TCFD reporting. The committee heard that the LGPS was falling behind the private sector on this issue, with TCFD reporting for private sector pension schemes already moving forward. A consultation on the reporting framework for LGPS is expected in the Autumn which will include a number of mandatory metrics potentially including carbon intensity, data quality and whether the associated global temperature increase aligned with the outcome of the Paris Agreement. There was discussion about the difficulties in reliably assessing the impact of investments and the importance of having a compelling narrative to explain what is an inherently complex issue. The Scheme was likely to come under scrutiny for its performance against climate-change metrics and the Board was asked to develop proposals for how funds could be encouraged to report on a consistent basis so that a Scheme wide report could be produced.

AOB - The Board was advised that there were 20 levy payments outstanding. The Board was informed that despite their apparently positive response in May to the earlier letter from the Chair, there remained significant issues with administration and payment of benefits by Prudential in relation to its AVC contracts. The Board was asked to consider what more could be done to pursue this matter. It was agreed that the Chair would consider next steps with the Secretariat. The additional information Michael Lynk, the then UN Special Rapporteur on Human Rights in the Occupied Palestinian Territories, undertook to provide at the meeting in January has now been received. The Board invited the Chair to reply to the letter from the UK Lawyers for Israel group asking for amendments to be made to the Board’s statement on its earlier meeting with Mr Lynk. The Chair agreed that a reply would be sent.

 

Date of Next Meeting – 10th October 2022


Full details of the meeting and agenda papers can be found on the board meetings page.

The minutes of the meeting on 13th December were approved.

The main points arising from the meeting are shown below:

Welcome and Introduction - In the absence of Cllr Roger Phillips, the meeting was chaired by Jon Richards. In response to recent events in Ukraine the Board was informed that a statement advising fund authorities to review their investments in Russia has been posted on the SAB website. Fund authorities have also been asked to submit details of any direct holdings in Russian assets over 1%.

Levelling Up White Paper - Members were informed that following publication of the White Paper on the 2nd February the Secretariat has met with the pensions team at DLUHC to clarify a number of issues. It has now been made clear that the 5% target for local projects is an ambition and not mandatory but that having a plan to achieve the 5% will be mandatory. Fund authorities may also exceed the 5% target if they wish. DLUHC has also confirmed that in the context of the White Paper’s proposals local means the UK rather than just the area local to each individual fund authority.

Sharia Compliant Investments - Members were advised that the Investment Committee had recommended that the Board considers the advice from Counsel on issues for scheme employers around the Sharia compliance of LGPS investments. The advice covered whether scheme employers have the power to offer an alternative scheme. The commission was in response to representations from some authorities that a number of scheme members are opting out of the scheme because they feel that the nature of scheme investments does not comply with their religious beliefs.

PSPJO Bill – The Board was advised that the Queen’s Speech had included reference to a new Boycotts, Divestment and Sanctions Bill relating to the expenditure, procurement and investments of all public bodies including the authorities administering the LGPS. Separately and in advance of that Bill, an amendment to the Public Service Pensions and Judicial Offices Bill was tabled by Robert Jenrick MP to create a new clause granting responsible authorities the power to issue guidance or directions on investment decisions which it is ‘not proper for a scheme manager to make in light of UK foreign and defence policy’ The amendment was successfully passed as contrary to earlier expectations, the government had changed its position and supported the amendment.

Board/Committee Membership - The Board approved a number of appointments to the Board and both committees that do not require formal approval from the Secretary of State. The Board also agreed that the Chair should send letters to former members thanking them for their service to SAB and its committees.

Board Budget, Workplan and Forward Look – The Board agreed that the proposed budget should be submitted to DLUHC for consideration, and that special "forward look" meetings should be held in April to discuss the Board’s strategic priorities and annual workplan with the new Board Secretary once she is in post.

Cost Management, Benefit Design and Administration Committee Report - The Board agreed with the committee’s recommendation that the Board's cost management process be amended in response to forthcoming changes to HMT’s Cost Control Mechanism (CCM), as set out in the relevant committee paper.

Investment, Governance and Engagement Committee Report - The report to members covered a range of issues including the Levelling Up White Paper, the 2020 Stewardship Code, an update on the new Compliance and Reporting Committee, Sharia compliant investments, an update on compliance with the Code of Transparency and a report from the Chair of RIAG.

 

Date of Next Meeting – 6th June 2022


Full details of the meeting and agenda papers can be found on the board meetings page.

The minutes of the meeting on 27th September were approved.

The main points arising from the meeting are shown below:

Welcome and Introduction - Councillor Roger Phillips, Chair, opened the meeting by informing members that Jeff Houston, Board Secretary, will be retiring at the end of March 2022. The Chair also informed members that the new Minister, Kemi Badenoch, had yet to agree to a meeting and that steps will continue to be taken to meet the new Minister at the earliest opportunity.

Delegation from The Prudential - In response to concerns expressed by the Board on behalf of scheme stakeholders about the performance and level of communication, the delegation from the Prudential explained that migration to a new platform coupled with the disruption of normal working methods caused by the Covid emergency had resulted in a performance level below acceptable standards. The Board was assured that performance in key areas such as servicing updates and client customer support has improved and will continue to do so as new working methods and training of new staff unfolds. The Prudential agreed to work with the Secretariat to formulate a communication for scheme stakeholders.

Cost Transparency Update - The Board was advised that when the Investment, Governance and Engagement committee met on 22nd November it had recommended that the Board approves the proposed three stage process for removing Code signatories from the list. The Board was further advised that the Secretariat had met a number of potential providers of a benchmarking service for administering authorities. None of the providers were able to provide a product “off the shelf” and all accepted that more details of requirements would be needed before any further work could be undertaken. Members were advised that administering authorities would need to be asked about what they require from a benchmarking service. The Board agreed that the Secretariat should undertake further work to explore the scope for introducing a benchmarking service, including a survey of administering authorities to ascertain their requirements.

New Compliance and Reporting Committee – The Board was advised that meetings had been held with both Committees and with members of the former CIPFA Pensions Panel to discuss handover arrangements and a draft Terms of Reference for the new Committee. Members approved one amendment to the Terms of Reference to ensure that recommendations to Ministers extend to Parliaments in Scotland and Northern Ireland. The Board agreed that the arrangements for the new Committee, including the amended Terms of Reference, are approved and that the Secretariat should undertake the work necessary to launch the new Committee as early as possible in the New Year.

Letter from Michael Lynk - The Board was informed that a letter had been sent by Michael Lynk, UN Special Rapporteur on the Palestine Occupied Territories, to Chairs of some LGPS pension committees regarding investments with companies on the UN database of companies with operations in the Palestine Occupied Territories. A Freedom of Information Request requesting the release of such details has also been sent to some fund authorities. The Board agreed that consideration should be given to publishing advice or guidance to assist administering authorities in responding to the campaign letter and FOI request. The Chair advised members that he would be meeting Councillor Doug McMurdo, Chair of the Local Authority Pension Fund Forum (LAPFF), to discuss a possible joint meeting with Michael Lynk.

SAB/Committee Membership - Members agreed that the Board’s Terms of Reference should be amended to provide a non-voting seat for the Chair of the new Compliance and Reporting Committee. The Board also agreed that the Secretariat should make necessary arrangements for academy representatives to have seats on both cost management and investment committees.

SAB Annual Report – The Board was informed that delays in local authority accounts being signed off had resulted in the deadline for publishing pension fund annual reports by the 1st December being missed in many cases. In most cases, audit issues have not been raised against items in the pension fund section of local authority accounts.

Investment Committee Report - In the context of pooling the Board was asked if it wished to make a statement on the continuing refusal of ACCESS to extend their joint committee to include a scheme member representative, in accordance with the Board’s policy. Members agreed that the Board should express its disappointment and urge the joint committee to reconsider their position.

 

Date of Next Meeting – 7th March 2022


Full details of the meeting and agenda papers can be found on the board meetings page.

The minutes of the meetings on 10th May and 1st July were approved.

The main points arising from the meeting are shown below:

Cost Transparency – The Board was advised of the results of the consultation carried out earlier in the Summer regarding amendments to the Cost Transparency Code. In total, nine responses were received. The Board was further advised that when it met on the 20th September the Investment, Governance and Engagement Committee recommended that the Board agrees in full to the proposed changes. The Board also agreed that the Secretariat should consider ways in which cost transparency data could be used for benchmarking purposes.

The Board also agreed the removal of Woodford and Markham Rae from the list and the recommendation from the Investment Committee that the Secretariat should explore a process to approve removal of code signatories without necessarily needing to bring that to the Board first.

New Compliance and Reporting Committee – The Board was advised that following an internal review CIPFA had decided to replace the current board and pensions panel structure with a series of forums or fora. It was suggested that the pensions panel played an important role in the development of accounting and reporting standards for the LGPS as well as a source of statutory guidance. The Board agreed in principle the establishment of a new Compliance and Reporting Committee and for the Secretariat to open discussions with CIPFA and existing committees to assess any potential overlap between their work and that of the proposed new committee.

The Board was further advised that the proposed new committee would have a dual role reporting to both to the Board and to CIPFA and that the UK scope of the former pensions panel would be reflected in the new committee’s draft terms of reference that the Secretariat has undertaken to prepare for the Board’s consideration when it meets in December.

SAB Membership - The Board was presented with a table showing the appointment dates of existing Board members and, where appropriate, their re-appointment date.

The Board agreed to the re-appointment of Councillor John Fuller whose first five year term of office ended in July 2021 and tasked the Secretariat to seek formal approval from DLUHC.

AOB – The Board was advised by DLUHC that the planned launch of the TCFD consultation at the end of October was likely to be missed given recent changes in the Department’s Ministerial team but that the Department remained confident that the necessary regulations and guidance would be in place by April 2022.

 

Date of next meeting – 13th December 2021


Full details of the meeting and agenda papers can be found on the board meetings page.

Background - The Board held a special single issue meeting on 1st July 2021 following a discussion on the SAB cost management process and McCloud at the Board meeting on 10th May.

When it met earlier on 10th May the Board had requested further information from GAD in respect of both the spreading and the ‘decay’ of McCloud costs.

The Board was advised that GAD had been asked to provide a range of costs against a scale of spreading periods. This was completed for periods from 4 years (the HM Treasury proposed spread period) to 20 years (LGPS funds must report the % of liabilities spread over longer than 20 years in the Section 13 dashboard section of their valuation reports). The results forecast that any spread over 8 years would result in a total cost below the 19.5% target.

GAD was also asked to identify the ‘decay’ of McCloud costs over time. This was difficult to achieve given the uncertainty on future pay movements which drive such costs, therefore a proxy of a forecast of when qualifying members would leave the scheme had been used. The results forecast that on taking an average by group all* qualifying members would have left within 16 years with the majority (60%) leaving within 10 years.

Next steps - The Board then agreed the following matters:

 

Recommendations - The Board further agreed the following based on recommendations made in the report which was taken on the day:

 

Date of next meeting – 27th September 2021


Full details of the meeting and agenda papers can be found on the board meetings page.

The minutes of the meeting on 8th February 2021 were approved.

The main points arising from the meeting are shown below:

2016 SAB Cost management process - The Board was informed that separate briefing meetings for both employer and employee representatives have been held to set out the background and history of both the HMT and the Board’s 2016 cost Management process and outline the various options open to the Board to consider in respect of its process and McCloud.

The Board was further advised that when it met on 12th April the CMBDA Committee agreed to recommend to the Board that the financial and demographic assumptions agreed previously for the SAB process should be carried forward without change. The Board agreed this recommendation.

The Board had a constructive debate around the options with a variety of views expressed. However, there was a general consensus that further work on identifying a spread period more appropriate to the LGPS than the 4 year period used by the HMT process would be useful. The Board agreed to commission GAD to produce McCloud costs against a range of spread periods, to include an indication of the level of ‘decay’ of those costs at the end of each period.

Given the timings necessary to complete the SAB process prior to the finalisation of the HMT process the Board agreed to meet again to discuss this data prior to the next scheduled meeting, preferably at the end of June or early July.

Climate Change and Reporting Regulations - The Board was informed that at MHCLG’s request the Responsible Investment Advisory Group (RIAG) had been invited to comment on early proposals that may form the basis of a public consultation later in the year. In particular, RIAG will be asked to comment on four areas where MHCLG is proposing to divert from the proposals set out by DWP earlier in the year for trust based schemes:

 

SAB 2021/22 Workplan and Budget - The Board was reminded that the 2021/22 workplan and budget agreed by the Board in February had been submitted to MHCLG for approval and that the submission included a request for an additional levy of £80k to cover McCloud costs subject to agreement by the Association of Local Authority Treasurers (ALATS).

The Board was further advised that MHCLG had yet to respond to the proposed workplan and budget and that the Secretariat will continue to work closely with MHCLG colleagues to expedite a response at the earliest opportunity.

AOB- Reference was made to the LARIS 2021 responsible investment seminar held on 28th and 29th April organised jointly between DG Publishing and SAB where 77% of attendees voted the event as being either excellent or very good.

The Board was also advised that at the date of the meeting twelve SAB levy invoices remained unpaid, of which ten relate to London Borough funds. Councillor Johnson agreed to raise the matter with the funds directly.

The Chair invited Board members to comment on whether future Board meetings should once again be held at Smith Square. Given the August holiday period and the need for a meeting in late June/early July to discuss GAD’s new costings on spread periods, members agreed that the meeting scheduled for 2nd August should be postponed to September.

Date of next meeting – 27th September 2021


Full details of the meeting and agenda papers can be found on the board meetings page.

The minutes of the meeting on the 2nd November were approved.

The main points arising from the meeting are shown below :-

McCloud – The Board was advised that on February 4th HM Treasury published a Written Ministerial Statement (WMS) outlining the government’s response to the consultation on the McCloud remedy for the unfunded public service schemes. Given the proposed options of offering affected scheme members either immediate or deferred choice the government has decided that deferred choice will apply. The LGPS will require its own remedy process.  MHCLG advised that a Written Ministerial Statement is expected in mid-March which will include details on timing of the necessary amending regulations.

The government’s WMS also covered the impact of the McCloud remedy on HM Treasury’s cost cap arrangement. Board members were advised that separate discussions on the Board’s own cost management arrangement for the LGPS will remain paused until HM Treasury Directions, detailing how remedy costs are to be calculated and taken into account, have been published. In the meantime, the Board agreed that discussions with the Government Actuary’s Department to assess the extent of McCloud costs should commence when HM Treasury has shared its draft Directions. These provisional costings will help the Board to consider how McCloud remedy costs should be taken into account in their own cost management arrangement.

The Board also agreed the need for further communications aimed at managing scheme member expectations around potential benefit increases resulting from McCloud.

95K Cap – The Board was advised that the legal uncertainty caused by the inconsistency between HM Treasury’s exit cap regulations and the scheme’s 2013 Regulations will continue for the foreseeable future until the current judicial review cases, and any subsequent appeals, have been determined. The judicial review hearing is scheduled for the 24th, 25th and possibly 26th March when 16 separate grounds of appeal will be heard. The key question for the Board will be how HM Treasury’s exit payment regulations impact on scheme members’ entitlement to unreduced pensions, and the calculation of such benefits under current LGPS regulations.

Discussions with the Pensions Ombudsman’s legal team continue to assess the scope for fast-tracking complaints from scheme members relating to the cap. Although the Ombudsman is likely to be prevented from accepting any complaint based on decisions made under the regulations while the judicial review cases are ongoing there may be other instances when cases could be accepted, for example, where the complaint involves maladministration.

The Board agreed that more work should be undertaken to assess the scope for converting cash equivalents under Regulation 8 of the exit payment regulations into pension benefits. At present, the 2013 regulations allow such cash payments to be made into the scheme but there remains uncertainty about how this can then be converted into scheme members’ pension benefits.

SAB 2021/22 Workplan and Budget

The Board considered and agreed a draft 2021/22 workplan and budget which will now be discussed with MHCLG before being formally considered when the Board next meets on the 10th May. In summary the workplan proposed no new items but rather a continued focus on the existing workplan projects, scheme developments and continuing to support stakeholders on COVID issues.

Responsible Investment – The Board was advised that work on preparing the responsible investment A to Z website continues. The first milestone, a working version of the website, has been reached and work will now commence on populating the underlying database with relevant items. The aim remains for the website to go live towards the end of March.

The Board also agreed membership of the new Responsible Investment Advisory Group (RIAG) as recommended by the investment, governance and engagement committee. The first meeting of the RIAG is scheduled for early March.

Details of both the website and RIAG can be found at https://lgpsboard.org/images/PDF/BoardFeb2021/Item_6_Paper_D-Responsible_Investment.pdf

Work is also underway to review the recent consultation from DWP on reporting against TCFD recommendations by trust based occupational pension schemes to identify any issues that might have a specific and particular relevance to the LGPS. The intention is for the board to submit a response to MHCLG to assist in the preparation of their consultation on how broadly similar provisions should be introduced for the LGPS.

The Board was also advised that a follow up event to the responsible investment workshop held in January 2020, organised in conjunction with DG Publishing, is now planned for the 28th and 29th April. This will be a virtual event with a two-hour session on the afternoon of each date. Further details will be circulated when available.

Good Governance project - The Board considered and agreed an action plan based on the final report prepared by the project team at Hymans Robertson. The Board’s Chair will now write to the Local Government Minister, Luke Hall, inviting him to consider the Board’s action plan. (Copies of the final report and action plan can be found on the Board’s website at www.lgpsboard.org).

The Board also agreed that the Chair should write to the project team at Hymans Robertson thanking them for all their work and support during the project.

AOB – The Chair expressed thanks to the Board’s Secretariat for all their help and support in particularly difficult times during the COVID emergency, and highlighted the help and support given to scheme stakeholders on 95k cap and McCloud.   

Date of next meeting – 10th May 2021


Full details of the meeting and agenda papers can be found on the board meetings page.

In the absence of the Chair the meeting was opened by Vice-Chair, Jon Richards.  The minutes of the meeting on the 28th August were approved.

Main points arising from the meeting include :-

95K Cap – Work is underway in preparing a response to MHCLG’s policy consultation by the 9th November to be followed by a technical response to the draft regulations for submission by the 18th December. Regarding the legal issues caused by the time difference between HM Treasury’s and MHCLG’s regulations being introduced the Board was informed that a letter from the Local Government Minister to administering authorities is expected to recommend that Regulation 30(7) of the 2013 regulations that provides for the payment of unreduced pensions to those members aged 55 and over whose employment is terminated on redundancy is overridden by HM Treasury’s exit payment regulations and that instead administering authorities should pay either deferred or fully reduced pensions plus scheme employers should pay a cash alternative under Regulation 8 of the exit payment regulations.

The Board commissioned advice from James Goudie QC who concluded that there was an obligation on administering authorities to pay full unreduced pensions and that the risk of successful challenge was high if they did not. Under the government’s recommendation of a cash alternative instead of an unreduced pension the risk of successful challenge was judged to be moderate.

The Board was advised that the government’s recommendation is based on the doctrine of implied repeal which, if applicable, would mean that the payment of unreduced pensions under Regulation 30(7) would be unlawful as the regulation would fall for scheme members who are capped.

If on the other hand reduced benefits are paid under Regulation 30(5) then the risk of challenge from scheme members will be high. From an employer’s perspective, any successful challenge could mean the employer having to fund the full pension even if a cash alternative had been paid.

On that basis, an administering authorities’ route of least risk would appear to be an offer of either deferred or reduced benefits and for employers to defer any payment of a cash alternative. This route would avoid the need for overpaid benefits having to be recouped from scheme members or additional costs on scheme employers resulting from any challenge. It was recognised however that the final decision lies with administering authorities and scheme employers.

The Board agreed that the Secretariat should open discussions with the Pensions Ombudsman to explore the scope for fast tracking challenges made by scheme members.

The current issues were summarised as :-

 

McCloud – The Board was reminded of the decision it took when it last met in August to unpause its own cost cap arrangement until HM Directions including proposals on how McCloud costs are going to be taken into account are published in the New Year. Members were also advised that the Government Actuary’s Department is undertaking a review of the cost cap arrangement but that it is unlikely to have any impact on the outstanding 2016 cost cap process or the forthcoming 2020 process.

Good Governance Project -  A paper was presented to the Board setting out the current position of the project including a set of near complete draft papers on the key areas of standard KPIs; senior officer role and new governance compliance standards. Members were advised that discussions between the project team and members of the implementation will now resume with the intention of finalising draft papers in time for the next round of committee and board meetings in January and February.

AOB – The Board was advised that in future major SAB projects will be undertaken in-house and that as agreed,  a new member of the Secretariat will be joining the team in January.

Date of next meeting – 8th February 2021


Full details of the meeting and agenda papers can be found on board meetings page.

The Chair opened the meeting by welcoming Councillor Andrew Thornton, Chair of the West Yorkshire Pension Fund, as the Board’s Metropolitan Authorities’ representative.

Main points arising from the meeting include :-

McCloud – Consultations have been issued by MHCLG and HM Treasury on the McCloud remedy for the LGPS and unfunded schemes respectively. SAB will be submitting a technical response to the consultation which will include representations to allow the LGPS’ regulations to be on the statute book ahead of those of the unfunded schemes where the coming into force date is expected to be Spring 2022. Unlike the unfunded schemes, LGPS remedy regulations will not have to wait for changes in primary legislation to be made so different timescales should be possible.  Getting LGPS McCloud regulations in place sooner rather than later will give administering authorities, software providers, etc, more opportunity to put the necessary processes in place before they come into effect in 2022. The Board also agreed that work should commence on central guidance on how the regulations are to be applied and,  in particular, how individual cases of poor or missing scheme member data should be handled.

Cost Cap – The Board was advised that unlike the HM Treasury arrangement, there is no compulsion on SAB to include McCloud costs in their arrangement. However, it was agreed that no decision should be taken until the HM Treasury Direction on how McCloud costs are to be taken into account has been published. In principle, the Board agreed that their cost cap arrangement should be unpaused in the same way as the HM Treasury arrangement but that no action should be taken until more is known about how McCloud costs are to be taken into account.

95K Cap – Regulations for capping public sector exit payments were published on the 21st July. The Board was advised that the Secretariat will produce a technical response to the MHCLG consultation to ensure that draft regulations accurately reflect the policy as set out in the consultation document. The consultation response will be circulated to all members of the CMBDA committee for comment. The Board agreed that the Chair of the committee should have delegated authority to agree the final version.

SAB work on covid-19 issues – The Board was advised that the overwhelming majority of administering authorities had responded to the follow up scheme resilience survey and request for mortality data. Publication of outcomes is expected within the next few weeks.

Good Governance Project – Catherine McFadyen (Hymans Robertson) outlined the work the project team has undertaken during the covid-19 emergency. Draft papers on how the recommendations set out in the Phase II report are to be implemented will be completed by the end of September for consideration by the Board when it meets on the 2nd November. If approved,  the Board will then go on to consider the process and timing of implementation.

MHCLG Update – The Board was informed that the government’s response to last year’s consultation on employer flexibilities, etc, should be published within a matter of days. (Postscript – The response was published on the 26th August. A link to the response can be found at www.lgpsboard.org)

Date of next meeting – 2nd November 2020.


Full details of the meeting and agenda papers can be found on this website. The Chair opened the meeting by welcoming Rachel Brothwood (WMPF) to her first meeting as the Board’s practitioner representative. Members were also advised that steps are well under way to fill the vacant Labour employer seat from the Met District administering authorities.

Main points arising from the meeting include :-

McCloud – Discussions with MHCLG continue on remedy. A consultation is still expected in late June with separate proposals for the LGPS. Members were also advised that a judicial review has been launched by the FBU, and four other public sector trade unions against the government’s decision to pause the cost cap arrangement.

Covid-19 issues – Members were advised of the following work being undertaken by SAB to assist the scheme :-

 

DHSC Life Assurance arrangement – Members were advised that full details of the DGSC life assurance scheme were still awaited but that questions are already being asked about whether similar arrangements are being considered for local government employees not covered by the DHSC scheme. Members were advised that no formal discussions have taken place but that representations have been made to MHCLG about the possibility of extending the scheme to other frontline local government staff.

Impact of covid-19 on SAB projects and workload :-

 

Supreme Court judgement – Members were advised that the judgement of the Supreme Court in the Palestine Solidarity Campaign case was handed down on the 29th April 2020 and were asked to approve a short statement that has earlier been agreed by the Chair and Vice-Chair. The Board agreed publication of the statement that is now on the SAB website at www.lgpsboard.org. The Board also agreed that the Secretariat should work in conjunction with the Board’s legal adviser to prepare a draft summary of the judgement for publication covering the following areas :-

 

Date of next meeting – 10th August 2020 but members were advised that beforehand virtual meetings with the Chairs of both the Board and investment and cost management committees will meet on a regular basis to deal with any urgent business.

 

Updates published up to May 2020 are also available in the PDF archive of Advisory Board updates.