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Jo Walton

Northamptonshire Pension Fund Governance Update. Jo Walton. Northamptonshire Pension Fund. Current Governance Arrangements Pension Fund Board Investment Sub-Committee What the Boards do Future Governance Arrangements Local Pension Boards Scheme Advisory Board The Pensions Regulator.

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Jo Walton

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  1. Northamptonshire Pension Fund Governance Update Jo Walton

  2. Northamptonshire Pension Fund Current Governance Arrangements • Pension Fund Board • Investment Sub-Committee • What the Boards do Future Governance Arrangements • Local Pension Boards • Scheme Advisory Board • The Pensions Regulator

  3. Existing Governance Arrangements Northamptonshire Pension Fund Board To set the Pension Fund objectives and determine and maintain appropriate strategies, policies and procedures with ongoing monitoring. + Investment Sub-Committee To provide operational governance of investments.

  4. Activities of the Pension Fund Board

  5. Activities of the Investment Sub-Committee

  6. Northamptonshire Pension Fund Board and Investment Committee • Represented by • County Councillors • Employer Representatives • Member Representatives • Pension Fund Board meetings - 4 per annum + 1 AGM • Investment Sub-Committee meetings – 4 per annum • All meetings held in public* • All Board Members have equal voting rights • All Board Members have access to relevant and regular training to ensure their knowledge facilitates effective decision making • Minutes, reports and agendas available for viewing before the meeting and after.

  7. Board Representatives

  8. Board Substitute Representatives

  9. Northamptonshire Pension Fund Investment Sub-Committee

  10. Independent Public Service Pensions Commission • 2010 – Lord Hutton commissioned to chair the IPSPC review of public service pension provision. • 2011 - Final report issued – 27 recommendations • 2/27 recommendations affecting the governance arrangements of all public service pension schemes regardless of existing established arrangements • Recommendation 17 – More independent oversight • Recommendation 19 – Much stronger governance of ALL public service pension schemes

  11. IPSPC – Recommendation 17 • “Every public service pension scheme should have a board that: • is properly constituted; • is represented by trained and competent individuals; • consisting of employee/scheme member representatives; • is responsible for meeting good standards of governance including effective and efficient administration. • There should be a pensions policy group for each scheme at national level for considering major changes to scheme rules.” • This led to the creation of Local Pension Boards and LGPS Scheme Advisory Board via the Public Services Pensions Act 2013.

  12. Local Pension Boards • Public Services Pensions Act 2013 (section 5)/IPSPC – Recommendation 17 • “Assist the scheme manager (the administering authority) in securing compliance with the scheme regulations and other legislation relating to the governance and administration of the scheme.” • Effectively – oversight of the Pension Fund Board & Investment Sub-Committee but without decision making powers. • managing risks and ensuring adequate internal controls; • keeping records and ensuring the quality of member data; • ensuring correct contributions are paid to the scheme; • managing conflicts of interest; • publishing information about the board; • communicating information to members; • resolving disputes and reporting certain breaches of the law.

  13. Local Pension Boards • Requirements to create and operate the new Local Pension Boards: • to be established in the County Council’s Constitution by 1.4.15; • to consist of equal number of employer and employee/scheme member representatives; • representatives must be fully competent and knowledgeable upon appointment; • knowledge cannot be collective; • the board may contain independent experts; • board members must act in accordance with scheme regulations and other governing documents; • the board must meet a minimum of twice per year; • members of the Pension Fund Board and Investment Sub-Committee cannot sit on the Local Pension Board. • Pending final LGPS regulations and subsequent guidance.

  14. Scheme Advisory Board • The Public Services Pensions Act 2013 (section 7)/IPSPC – Recommendation 17 • Pensions Policy Group for each Public Service Pension Scheme • Consider major changes to scheme rules • LGPS Scheme Advisory Board (SAB) • LGPS Scheme Advisory Board (Shadow) • Encourage best practice • Increase transparency • Co-ordinate technical and standards issues • Consider items passed from DCLG, SAB sub-committees and other stakeholders • Liaison role with the Pensions Regulator • Formulate guidance and standards for administering authorities and pension boards. • The LGPS Scheme Advisory Board will remain in shadow form pending its formalisation within the LGPS Regulations during 2014-15.

  15. IPSPC – Recommendation 19 • “Improvement of governance, availability, and transparency of information relating to public service pension schemes by establishing a framework that ensures independent oversight of the governance, administration and data transparency of public service pension schemes.” Resulted in the regulatory powers of the Pensions Regulator being extended.

  16. The Pensions Regulator • Only certain areas will be of the Regulator’s interest; • knowledge and understanding of board members; • record keeping/quality of data; • communications – accuracy, timeliness and clarity. • Powers of the Pensions Regulator: • Risk based prioritisation; • Education and enablement; • Enforcement.

  17. Questions?

  18. Additional Information Pension Fund Board Agendas and Reports http://cmis.northamptonshire.gov.uk/cmis5live/DecisionMakingCommittees/tabid/110/ctl/ViewCMIS_CommitteeDetails/mid/558/id/412/Default.aspx Investment Sub-Committee Reports http://cmis.northamptonshire.gov.uk/cmis5live/DecisionMakingCommittees/tabid/110/ctl/ViewCMIS_CommitteeDetails/mid/558/id/439/Default.aspx Pension Fund Strategies http://pensions.northamptonshire.gov.uk/index.php/governance2/key-documents-for-the-northamptonshire-fund/ Shadow Scheme Advisory Board http://www.lgpsboard.org/ The Pensions Regulator – Public Service Pension Schemes http://www.thepensionsregulator.gov.uk/public-service-schemes.aspx

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