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Scheme governance, management, administration, transparency, and accountability

At the national level the LGPS is governed by the Department of Communities and Local Government (DCLG) and the LGPS Advisory Board. The LGPS has to take account of guidance issued by the Pensions Regulator and Pensions Ombudsman determinations.

The investment and management of LGPS assets, the collection of employer and employee contributions, and payment of pension benefits is the responsibility of LGPS administering authorities.

The DCLG issues statutory guidance and each administering authority is required to publish a governance compliance statement and explain any non-compliance. Each administering authority is subject to an annual external audit and has to publish an audited financial statements and annual report.

The role of the Scheme Advisory Board is to help and support DCLG and administering authorities fulfil their statutory duties and obligations. Training has been delivered to the Board on an ongoing basis at its meetings and through its professional advisers and attendance at LGPS conferences and other events.

Board membership and meeting attendance

Name 9 Jun 2014 15 Sep 2014 8 Dec 2014 06 Feb 2015 23 Mar 2015
Joanne Segars (Chair) Yes Yes Yes Yes Apologies
Cllr Kieran Quinn Yes Yes Yes Apologies Yes
Cllr Ian Bond Apologies Yes Yes Yes Yes
Cllr Denise Le Gal Yes Yes Yes Apologies Yes
Cllr Mary Barnett Yes - Apologies Yes Yes
Cllr Roger Phillips Yes Yes Apologies Apologies Yes
Emelda Nicolroy Yes Yes Yes Yes Yes
Jon Richards Yes Yes Yes Yes Yes
Chris Tansley Yes Yes Yes Yes Apologies
Brian Strutton Apologies Yes Yes Yes Yes
Garry Warwick Yes Yes Yes Yes Yes
Fiona Farmer Yes Yes Yes Yes Yes
Dick Banks Apologies Yes Yes Apologies Yes

Administering authorities

At the local level, each LGPS fund is administered by its administering authority. From 1st April 2015, under the provisions of section 5 of the Public Service Pensions Act 2013 and regulation 106 of the LGPS Regulations 2013 (as amended) each administering authority must establish a Local Pension Board.

To assist in the establishment of these Boards, the Shadow Scheme Advisory Board (SSAB) has developed guidance on the creation and operation of Local Pension Boards for Administering Authorities. Information on Local Pension Boards will be added to this website when available.

Pension Fund name

Key

Administering authority

Avon Pension Fund

U

Bath & North East Somerset Council

Barking and Dagenham Pension Fund

LB

London Borough of Barking and Dagenham

Barnet Pension Fund

LB

London Borough of Barnet

Bedfordshire Pension Fund

U

Bedford Borough Council

Berkshire Pension Fund

U

Royal Borough of Windsor and Maidenhead

Bexley Pension Fund

LB

London Borough of Bexley

Brent Pension Fund

LB

London Borough of Brent

Bromley Pension Fund

LB

London Borough of Bromley

Buckinghamshire Pension Fund

CC

Buckinghamshire County Council

Cambridgeshire Pension Fund

CC

Cambridgeshire County Council

Camden Pension Fund

LB

London Borough of Camden

Cardiff Pension Fund

W

City of Cardiff Council

Cheshire Pension Fund

U

Cheshire West and Chester Council

City of London Corporation Pension Fund

O

City of London Corporation

City of Westminster Pension Fund

LB

Westminster City Council

Clwyd Pension Fund

W

Flintshire County Council

Cornwall Pension Fund

U

Cornwall Council

Croydon Pension Fund

LB

London Borough of Croydon

Cumbria Pension Fund

CC

Cumbria County Council

Derbyshire Pension Fund

CC

Derbyshire County Council

Devon Pension Fund

CC

Devon County Council

Dorset Pension Fund

CC

Dorset County Council

Durham Pension Fund

U

Durham County Council

Dyfed Pension Fund

W

Carmarthenshire County Council

Ealing Pension Fund

LB

London Borough of Ealing

East Riding Pension Fund

U

East Riding of Yorkshire Council

East Sussex Pension Fund

CC

East Sussex County Council

Enfield Pension Fund

LB

London Borough of Enfield

Environment Agency - active Pension Fund

O

The Environment Agency

Environment Agency - closed Pension Fund

O

The Environment Agency

Essex Pension Fund

CC

Essex County Council

Gloucestershire Pension Fund

CC

Gloucestershire County Council

Greater Gwent (Torfaen) Pension Fund

W

Torfaen County Borough Council

Greater Manchester Pension Fund

M

Tameside Metropolitan Borough Council

Greenwich Pension Fund

LB

Royal Borough of Greenwich

Gwynedd Pension Fund

W

Gwynedd Council

Hackney Pension Fund

LB

London Borough of Hackney

Hammersmith and Fulham Pension Fund

LB

London Borough of Hammersmith and Fulham

Hampshire Pension Fund

CC

Hampshire County Council

Haringey Pension Fund

LB

London Borough of Haringey

Harrow Pension Fund

LB

London Borough of Harrow

Havering Pension Fund

LB

London Borough of Havering

Hertfordshire Pension Fund

CC

Hertfordshire County Council

Hillingdon Pension Fund

LB

London Borough of Hillingdon

Hounslow Pension Fund

LB

London Borough of Hounslow

Isle of Wight Pension Fund

U

Isle of Wight Council

Islington Pension Fund

LB

London Borough of Islington

Kensington and Chelsea Pension Fund

LB

Royal Borough of Kensington and Chelsea

Kent Pension Fund

CC

Kent County Council

Kingston upon Thames Pension Fund

LB

Royal Borough of Kingston upon Thames

Lambeth Pension Fund

LB

London Borough of Lambeth

Lancashire Pension Fund

CC

Lancashire County Council

Leicestershire Pension Fund

CC

Leicestershire County Council

Lewisham Pension Fund

LB

London Borough of Lewisham

Lincolnshire Pension Fund

CC

Lincolnshire County Council

London Pensions Fund Authority Pension Fund

O

London Pensions Fund Authority

Merseyside Pension Fund

M

Wirral Council

Merton Pension Fund

LB

London Borough of Merton

Newham Pension Fund

LB

London Borough of Newham

Norfolk Pension Fund

CC

Norfolk County Council

North Yorkshire Pension Fund

CC

North Yorkshire County Council

Northamptonshire Pension Fund

CC

Northamptonshire County Council

Northumberland Pension Fund

U

Northumberland County Council

Nottinghamshire Pension Fund

CC

Nottinghamshire County Council

Oxfordshire Pension Fund

CC

Oxfordshire County Council

Powys Pension Fund

W

Powys County Council

Redbridge Pension Fund

LB

London Borough of Redbridge

Rhondda Cynon Taf Pension Fund

W

Rhondda Cynon Taf County Borough Council

Richmond Pension Fund

LB

London Borough of Richmond upon Thames

Shropshire Pension Fund

U

Shropshire Council

Somerset Pension Fund

CC

Somerset County Council

South Yorkshire Pension Fund

M

South Yorkshire Pensions Authority

South Yorkshire Passenger Transport Pension Fund

O

South Yorkshire Integrated Transport Authority
(Sheffield City Region Combined Authority)

Southwark Pension Fund

LB

London Borough of Southwark

Staffordshire Pension Fund

CC

Staffordshire County Council

Suffolk Pension Fund

CC

Suffolk County Council

Surrey Pension Fund

CC

Surrey County Council

Sutton Pension Fund

LB

London Borough of Sutton

Swansea Pension Fund

W

City & County of Swansea

Teesside Pension Fund

U

Middlesbrough Council

Tower Hamlets Pension Fund

LB

London Borough of Tower Hamlets

Tyne and Wear Pension Fund

M

South Tyneside Council

Waltham Forest Pension Fund

LB

London Borough of Waltham Forest

Wandsworth Pension Fund

LB

London Borough of Wandsworth

Warwickshire Pension Fund

CC

Warwickshire County Council

West Midlands Pension Fund

M

Wolverhampton City Council

West Midlands Passenger Transport Pension Fund

O

West Midlands Integrated Transport Authority

West Sussex Pension Fund

CC

West Sussex County Council

West Yorkshire Pension Fund

M

City of Bradford Metropolitan District Council

Wiltshire Pension Fund

U

Wiltshire Council

Worcestershire Pension Fund

CC

Worcestershire County Council

DCLG draft regulatory consultations, final regulations and other issued documents

Between 31st March 2014 and 31st March 2015, the DCLG has issued the following:

Link to document

Date

Item

Transforming rehabilitation programme and the local government pension scheme 12-May-14 Consultation outcome
Local government pension scheme regulations: information on who should be consulted 08-Apr-14 Policy paper

Board actions and achievements

Details of the agenda and papers of the Board and sub-groups can be found under About the Board and Sub Committee menus.

During 2014/2015 the main work of the Board and its Sub-Groups has been:

 

During 2014/2015 the main work of the Board's Sub-Committees has been:

Board Advice, guidance and news releases

During 2015 the Board has provided the following advice, guidance, and news releases:

a) to DCLG

20 June 2014 - Shadow Scheme Advisory Board responds to LGPS governance regulations consultation

The shadow Scheme Advisory Board (SSAB) responded to the Government's consultation, The Local Government Pension Scheme (Amendment) Regulations 2014 - Draft Regulations on Scheme Governance.

The response set out the Board's views on the draft regulations which will bring about the new governance arrangements for the LGPS in England & Wales, as mandated for under the Public Service Pensions Act 2013.

24 November 2014 - Shadow Scheme Advisory Board responds to consultation on governance and cost control

The Shadow Scheme Advisory Board submitted its response to the DCLG consultation Better Governance & Improved Accountability in the Local Government Pension Scheme on Friday 21st November 2014.

The Board's response was based on the discussions held at its meeting of 29th October and in its response, the Board outlined:

  • it's belief that governance regulations should mandate that the total number of employer and member representatives on a local pension board should outnumber the members of a local pension board sitting on there as 'otherwise appointed' representatives to ensure proportionate representation, and
  • it's wish to see that further details regarding the establishment of the statutory scheme advisory board are clarified as soon as possible.

b) to admin authorities

17 October 2014 - Shadow Scheme Advisory Board issues consultation on draft Local Pension Board guidance

Comments were invited from interested parties on draft guidance on the creation and operation of Local Pension Boards. Guidance was developed by the Shadow Scheme Advisory Board through the Governance and Standards sub-committee and is designed to assist Administering Authorities with the legal requirement to establish a Local Pension Board from 1 April 2015.  The draft guidance as well as a covering note setting out further detail on this 5 week consultation can be found here.

24 December 2014 - Shadow Scheme Advisory Board publishes cost control briefing notes

The Shadow Scheme Advisory Board (SSAB) published two briefing notes in respect of the cost control processes which will be used to assess the costs of the reformed LGPS in England & Wales.  A briefing note for members and employers was published in order to:

  • give a broad overview of the background to the cost control processes,
  • outline the differences between the cost control processes and local funding valuations, and
  • detail the possible impacts on the benefits structure and/ or employee contribution rates which could arise from the results of the cost control processes.

The SSAB asked that administering authorities made this briefing note accessible to fund employers and members so that they can familiarise themselves with the processes and the possible impacts that the cost control mechanisms could have on the Scheme benefits structure and/or employee contribution rates.

A second briefing note was prepared for administering authorities in order to outline the role that LGPS pension funds will play in the cost control process and in particular focusses on the practicalities of delivering accurate and timely cost control figures.

In addition, the SSAB published a process map (located here) and a timetable (located here) setting out its plans for the interactions between the HM Treasury Employer Cost Cap (ECC) process and the Scheme Advisory Board Future Service Cost (FSC) process.

Any questions or queries arising from the publication of these documents should be referred to the Board secretariat in the first instance.

22 January 2015 - Shadow Scheme Advisory Board publishes further Counsel's opinion on the LGPS

Background

The Shadow Scheme Advisory Board for the Local Government Pension Scheme (LGPS) in England and Wales was established in July 2013. It is the forerunner to the Local Government Pension Scheme Advisory Board, which is established under Section 7 of the Public Service Pensions Act 2013. The Board has been set up prior to the formalisation of the regulations setting out the formal remit of the Scheme Advisory Board, which are expected to come into force in early 2015.

Last year, the Board sought and published advice from Counsel on fiduciary duty in the LGPS, a copy of which is located here.

Following this, further advice has been commissioned to cover:

  • confirmation of the requirement to meet benefit payments separate from the status of funds; and
  • the interaction between the LGPS and the EU Institutions for Occupational Retirement Provision (IORP) Directive 2003.

This advice is available as a PDF document here .

The benefit 'guarantee'

The generally accepted position in the LGPS was that the Administering Authority was required to meet benefit payments on a statutory basis regardless of the circumstances of the fund it operates. In the event, Nigel Giffin QC finds that the assumed position above is not reflected in the regulations resulting in a potential (if extremely unlikely given the strength of local government finance requirements) circumstance of there being an uncertainty around benefit payments should the funds be unable to meet them.

Such a situation, however unlikely, is in the Board's view untenable and therefore the Board will be asking DCLG to amend regulations in order to clarify the requirement for administering authorities to pay benefits on a statutory basis.

The IORP

In Counsel's view the requirements of article 8 (which sets out that there should be legal separations between sponsoring employers and pension schemes) are met by the regulations but he accepts that regulations could be more explicit on the use of fund monies and that model structures such as South Yorkshire present no possible issues for compliance. The Board will continue to look at the issue of separation between fund and authority and will consider the content of this opinion as part of that work.

In terms of article 18 (which details how investments should be made in institutions for occupational retirement provision), Counsel makes some suggestions to strengthen regulations to ensure full compliance but reminds Administering Authorities that they should act in accordance with the Directive regardless of the current state of the regulations. The Board will be making recommendations to DCLG for changes to investment regulations which take on board this opinion to ensure that the relevant parts of Article 18 are adopted, reflecting the legal views provided by the Law Commission and Michael Furness QC.

This commentary is available as a PDF document here .

28 January 2015 - Shadow Scheme Advisory Board publishes Local Pension Board Guidance, template terms of reference and response to the governance guidance consultation

The Shadow Scheme Advisory Board (SSAB) of the Local Government Pension Scheme (LGPS) in England and Wales issued guidance for Administering Authorities on the creation and operation of local pension boards.

One of the final pieces of the public service pensions reform jigsaw for the Local Government Pension Scheme (LGPS) in England and Wales which started with Lord Hutton's recommendations back in March 2011 fell into place on 1 April 2015. This meant that each Administering Authority in the LGPS must have established a local pension board by 1 April 2015.

The introduction of Local Pension Boards via the Public Service Pensions Act 2013 and through LGPS scheme regulations from 1 April 2015 marked a sea change in the governance of LGPS funds. In recognising this huge change in the governance of the LGPS, the SSAB provided practical assistance to Administering Authorities in the form of this comprehensive guidance which has benefited from the input of and consultation with a wide cross section of LGPS stakeholders.

A template terms of reference and response to the consultation on the Guidance were also released.

All the above documents are available on the Board Guidance page of the website.

Board advisors

The Board has been supported and advised by the Board secretariat, a small team comprising Jeff Houston – Head of Pensions, and the pensions team at the Local Government Association.

The Board is also supported by a number of professional advisors and other service providers.