The Local Government Pension Scheme Advisory Board is a body set up under Section 7 of the Public Service Pensions Act 2013 and The Local Government Pension Scheme Regulations 110-113.
The purpose of the Board is to be both reactive and proactive. It will seek to encourage best practice, increase transparency and coordinate technical and standards issues.
It will consider items passed to it from the Department for Levelling Up, Housing and Communities (DLUHC), the Board's sub-committees and other stakeholders as well as items formulated within the Board. Recommendations may be passed to DLUHC or other bodies. It is also likely that it will have a liaison role with the Pensions Regulator. Guidance and standards may be formulated for local scheme managers and pension boards.
Establishment of the Board
In 2013 the Board was set up in 'Shadow' or pilot form in order to test the format, terms of reference, membership and committees prior to the formalisation of these items in the LGPS Regulations. On 1st April 2015 the Board was established as a statutory body, and the formal membership was confirmed early in 2016 with non voting members and advisors added in the summer of the same year.
Budget and work programme
The Board is required to submit a budget and work programme to the Secretary of State each year for approval. Once approved the budget for the Board is funded via a statutory levy on LGPS administering authorities which is classified as administration expenses and therefore can be recharged to the pension fund.