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Information on Pension Boards for the Local Government Pension Scheme

Background information

The Public Service Pensions (PSP) Act 2013 included several provisions relating to better governance and improved accountability of all the various public sector pension schemes. These arrangements will also apply to the Local Government Pension Scheme (LGPS) with effect from April 2015.

There are a number of requirements within the PSP Act 2013 which impact on the LGPS.

One of these is the requirement to establish a local Pension Board for each LGPS Fund, with responsibility to assist the administering authority (also known as, the scheme manager):

  1. to secure compliance with; the LGPS regulations; other legislation relating to the governance and administration of the LGPS, and; the requirements imposed by the Pension Regulator in relation to the LGPS.and
  2. to ensure the effective and efficient governance and administration of the LGPS

The Current Position and what will now happen to create the Local Pension Board

The final regulations relating to the creation of Pension Boards within the LGPS were published on 28th January 2015.

The administering authority/scheme manager (which is the County Council in relation to the Gloucestershire LGPS), is responsible for preparing the terms of reference for the Pension Board, based on the above requirements. These terms of reference were agreed at a meeting of the County Council on Wednesday 18th February 2015 and a copy of the terms of reference is attached below. These include details on the role and remit of the Board.

LGPS - Local Pensions Board - Terms of Reference

The County Council as administering authority of the Gloucestershire LGPS Fund is now inviting applications for members of the local Pension Board for the Gloucestershire LGPS. If you would like to apply, please complete the application form attached below and return it to the County Council, (as detailed on the application form), by no later than Wednesday 22nd April 2015.

LGPS Local Pensions Board - Application Form

The Pension Board will consist of two Employer representatives, two Scheme Member representatives and one independent Chairperson.The intention is to have appointed all members of the Pension Board by the end of June 2015 and the first meeting of the Board to take place by the end of July 2015.

The Pension Regulator has issued a draft code of practice on the Governance and administration of public service pension schemes and a copy of this draft code of practice is attached to this web page for information.

Pensions Regulator - Governance and Administration of Public Sector Pension Schemes

Amongst other things, this details the levels of knowledge and understanding required by pension board members (paragraphs 32 to 56) and also gives guidance on any conflicts of interest (paragraphs 57 to 84).

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