2021

17th December 2021 Letter to all pension funds from Mr. Michael Lynk

Further to the 24th November update (below), the Board discussed the letter from Michael Lynk at its meeting on December 13th. It was agreed that the Chair and Vice Chair of the Board should proceed to engage with the LAPFF Chair to discuss a proposed response, and that the Secretariat would liaise with Mr Lynk’s office to arrange a meeting early in the new year. Contact has now been made with Mr Lynk’s office to inform them that dates and times for an online meeting will be forthcoming ASAP.

The Board was also made aware of a number of FOI requests received by LGPS funds related to this matter.

17th December 2021 Representation on LGPS pools

A statement from the Board on fund member representation within LGPS pool governance structures has been added to the Investment Pooling Updates page

16th December 2021 Review of the LGPS E&W 2019 Fund Valuations - Section 13 Report Published

Today the Department for Levelling Up, Housing and Communities has published the Government Actuary's Department report on the 2019 fund valuations which is required by section 13 of the Public Service Pensions Act 2013

24th November 2021 Letter to all pension funds from Mr. Michael Lynk

On 22nd November a letter was sent to all LGPS pension committee chairs, copied to LAPFF and the Board. The letter is from Mr. Michael Lynk, United Nations Special Rapporteur on the Palestinian Territories and asks a number of questions of LGPS funds regarding their investments. The Board will discuss the letter at its meeting of the 13th December but in the meantime the Chair and secretariat will liaise with LAPFF to seek clarification with Mr Lynk on a number of points in the letter and LGPS funds may wish to await that clarification before responding.

8th November 2021 Updated Code of Transparency now online

Following a consultation with Code signatories over the summer, proposed amendments to the LGPS Code of Transparency were agreed by the Board at its last meeting on 27th September. The updated Code wording can be found on the Code of Transparency page.

15th October 2021 2016 SAB cost management result published

Now that HMT Directions regarding the 2016 scheme valuations are available the result of the Board's own cost management process which were agreed in the summer subject to confirmation of those Directions can be published. Details can be found on the Cost management page.

8th October 2021 HMT Cost Control Directions

On 7th October The Public Service Pensions (Valuations and Employer Cost Cap) (Amendment) Directions 2021 were published by HM Treasury. These Amending Directions allow schemes to conclude their 2016 valuations by setting out how they must carry out the cost control element of those valuations.

6th October 2021 New minister for the LGPS

We understand that Kemi Badenoch MP will be the new minister for Local Government and will therefore take up responsibility for the LGPS. We would expect that the change of minister would lead to some delays in the current workstream but will seek to work with the Department to minimise those as much as possible. The Board Chair, Cllr Phillips, has written to the minister to welcome her to her new role.

4th October 2021 HMT responds to Cost Control consultation

HM Treasury has published the outcome to the Public service pensions: cost control mechanism consultation which closed on 19th August 2021. The response confirms that the mechanism will, from the 2020 scheme valuation, move to a reformed scheme only design with a 3% corridor and will introduce an economic check.

Although not directly addressing the concerns of the LGPS the response does acknowledge them and commits to discussing with stakeholders appropriate ways to introduce these changes, how the E&W SAB cost management process can be adapted and how the principle of that process could be extended to the Scotland and NI schemes.

21st September 2021 Public Service Pensions Bill moves toward committee stage

The Public Service Pensions and Judicial Offices Bill received its second reading on 7th September and now moves to committee stage from 11th October 2021. It is expected that government amendments at this stage will provide more detail on the application of remedy to the LGPS. The Bill page on the the parliament website contains details on timings and a first draft of the BIll and will include amendments put forward at committee.

24th August 2021 TPR publishes interim response on combined code

The Pensions Regulator has published its Interim Response to the consultation on TPR’s new code of practice. The response highlights some of the issues raised by respondents including the governing body and unregulated investments.

19th August 2021 Board responds to cost control consultation

The Board has today submitted a response to HMT consultation on the cost control mechanism (PDF 7 pages 185kb). The response was compiled by the secretariat with input from the Cost Management, Benefit Design and Administration (CMBDA) committee.

19th July 2021 Public Service Pensions Bill gets first reading

Today the The Public Service Pensions and Judicial Offices Bill started its progress through parliament in the House of Lords with its first reading. Further details will follow once details of the bill itself are published.

8th July 2021 Launch of OPSC

The DWP has today launched the Occupational Pensions Stewardship Council (OPSC) which aims to develop a stronger overall voice of trustees within the market, especially in relation to service providers. It also enables opportunities for schemes to collaborate on stewardship activities such as shareholder resolutions, climate change, corporate governance and other topics.

2nd July MHCLG commences consultation on special severance payments

MHCLG has notified the SAB of a consultation on statutory guidance in respect of special severance payments. The consultation will run for 6 weeks until 13th August 2021.The guidance and covering letter can be downloaded below:

Statutory guidance on the making and disclosure of Special Severance Payments by local authorities PDF 6 pages 236kb

Covering letter PDF 4 pages 143kb

2nd July 2021 MHCLG publishes summary exit payment data

MHCLG has today published Local authority exit payments (first estimates), England, 2019-20 and 2020-21. Note that the file on the site is in OpenDocument format which you may need to convert into Excel in order to see all the data. This is the first summary of the exit payment data submitted by councils and will be followed by a further publication in the coming weeks however initial indications are that the average exit payment made in 2020-21 across local authorities was £26,000 including pension strain.

1st July 2021 TPR publishes public sector survey

The Pensions Regulator (TPR) has published its annual Public service governance and administration survey. The primary objective of the survey was to track governance and administration practices among public service pension schemes. In addition, the 2020-21 survey also included new questions on schemes’ response to the COVID-19 pandemic, awareness and perceptions of the pensions dashboards, and the actions taken by Local Government schemes in relation to climate related risks and opportunities

25th June 2021 SAB publishes response to DWP call for evidence

The SAB has submitted a response to the DWP's Call for Evidence on Consideration of social risks and opportunities by occupational pension schemes following consultation with the Board's Responsible Investment Advisory Group. The response can be downloaded using the link below:

 Response to Call for Evidence PDF 7 pages 301kb

24th June 2021 HM Treasury Ministerial statement and publication of consultations

A Written Ministerial Statement has been laid today, announcing the publication of two consultations. The first is about proposed reforms to the cost control mechanism (CCM), following the publication of the Government Actuary’s review of the mechanism. There are 3 proposed changes to the existing mechanism, the 1st would change the mechanism to operating only in the reformed schemes; the 2nd would widen the “corridor” from the existing 2% margin to 3%; and the 3rd would introduce an additional “economic check” when there is a breach of the mechanism to ensure that broader economic conditions are considered before any breach is implemented. On page 16 of the consultation document, HM Treasury notes that further consideration will need to be given to the detailed implementation of the “reformed scheme only design” in the LGPS, given the effects of the underpin. The second consultation is about the discount rate used in valuations of unfunded public service pension schemes and potential changes to the SCAPE methodology used. The primary use of the SCAPE discount rate is to determine the level of employer contribution rates in the unfunded public service pension schemes, but it is also used in the production of actuarial factors in the LGPS. Both consultations run for 8 weeks, closing on August 19th 2021.

15th June 2021 HM Treasury Ministerial statement on the Government Actuary’s final report on his review of the cost control mechanism

A Written Ministerial Statement has been laid today, announcing the publication of the Government Actuary’s final report on his review of the cost control mechanism. The WMS states that HM Treasury will respond to the report in due course. The report has 56 pages in total, including 4 appendices. There are 5 separate recommendations on potential changes to the mechanism – which applies across all public service pension schemes. Paragraph 1.17 of the report confirms that the review did not consider the separate cost control mechanism for the LGPS which is operated by the Scheme Advisory Board. The report acknowledges that the differences between the LGPS and the unfunded schemes mean that some of the recommendations, if adopted, may need revising to accommodate those differences.

15th June 2021 Updated COVID mortality impact reports published

The mortality impact reports on two LGPS funds commissioned in September 2020 have now been updated to include mortality data from the winter period and can be found on the COVID-19 Mortality page

8th June 2021 DWP publishes regulations and guidance on TCFD requirements for private sector schemes

The Department for Work and Pensions (DWP) today published regulations in parliament to require schemes with £5bn or more in assets, and all authorised master trusts, to report on how they will manage their climate risk from October this year, alongside Guidance for trustees of occupational schemes. These requirements will not apply to the LGPS however MHCLG will be consulting on regulations which will require similar levels of risk assessment and reporting later this year.

4th June 2021 SAB responds to TPR Combined Code

The Board secretariat in consultation with the Investment, Governance and Engagement committee have submitted a response to The Pension Regulator's consultation on a combined code of practice. The response is available to download on the Responses to consultations page of this site

28th May 2021 HMT issues severance guidance for rest of public sector

HM Treasury have issued Guidance on the use of Special Severance payments in relation to the public sector. This guidance does not relate to local authorities but we understand that a consultation on similar guidance may be forthcoming from MHCLG shortly

20th May 2021 Statement on local pension board meetings

The Board has issued a statement on local pension board meetings following the lapsing of the The Local Authorities and Police and Crime Panels (Coronavirus) (Flexibility of Local Authority and Police and Crime Panel Meetings) (England and Wales) Regulations 2020. The statement can be found on the Local Pension Boards page of this site.

18th May 2021 Chair launches 2020 Scheme Annual Report

At the PLSA Local Authority Conference 2021 the Board Chair announced that the Scheme Annual Report is now available on the board website.

13th May 2021 Ministerial Statement on McCloud

A Written Ministerial Statement was published today setting out the high level objectives of government in applying the remedy as required following the McCloud judgement to the Local Government Pension Scheme in England and Wales

11th May 2021 Public Service Pensions and Boycotts Bills in Queen’s speech

Today the government’s legislative programme was laid out and as expected a Public Service Pensions and Judicial Offices Bill was announced that will deal with the amendments necessary to incorporate the McCloud judgment into public service schemes including the LGPS. The Bill is UK wide in scope.

The programme also includes a Boycotts, Divestment and Sanctions Bill the purpose of which will be to stop public bodies from taking a different approach to UK Government sanctions and foreign relations and will cover purchasing, procurement and investment decisions. The gov.uk website includes a briefing note on the full programme.

28th April 2021 - Board Chair announces RI A-Z

The Board Chair Cllr Roger Phillips announced the launch of the A-Z of Responsible Investment at the Local Authority RI Seminar (LARIS). This online resource contains definitions and links to further information on the wide variety of the acronyms, organisations, measures and standards in this area as well as example case studies. The guide will be regularly updated to take account of this fast changing area and is part of the Board's ongoing RI project. A link to the guide can be found on the right hand side of this page.

25th March 2021 - Remote meetings legislation not to be extended

Luke Hall MP wrote to councils on 25th March 2021 explaining that the legislation enabling remote meetings will not be extended. The letter sets out examples of actions, and includes a link to guidance, to mitigate the potential risks of face to face meetings and encourages the continued use of remote facilities for public access.

24th March 2021 - DWP call for evidence on social investment

A call for evidence entitled Consideration of social risks and opportunities by occupational pension schemes was launched by DWP on 24th March and will run until 16th June 2021. The consultation seeks views on the effectiveness of occupational pension scheme trustees’ current policies and practices in relation to social factors, how trustees understand “social” factors and how they seek to integrate considerations of financially material social factors into their investment and stewardship activities.

23rd March 2021 -Government publishes response to indexation consultation

HM Treasury has published its response to the Guaranteed Minimum Pension Indexation consultation, which ran from October to December 2020 . The response sets out that the government has decided to discount conversion as a long-term policy solution for equalisation and make full GMP indexation the permanent solution for public service pension schemes.

10th March 2021 - Exit cap guides on lgpsregs updated

The step by step guides for Administering Authorities and Employers on the lgpsregs site have now been updated to take account of the revocation regulations and the requirement for payment of interest on exit payments by employers. See the public sector exit payments page. for further information.

10th March 2021 - SAB Chair's statement on the RIAG

At the first meeting of the Board's brand new Responsible Investment Advisory Group on 3rd March 2021 the SAB Chair welcomed its membership and stressed the importance of the work of the Group going forward. The Responsible Investment page includes the statement in full together with more information on the RI project and the RIAG

8th March 2021 - Lifetime Allowance frozen

In the Budget on March 3rd 2021 the Chancellor announced that the Lifetime Allowance (LTA) – the maximum amount (of pension plus lump sum) that can be drawn from a pension scheme without triggering an extra tax charge – will, instead of being increased each year in line with the annual (September) CPI figure, be frozen at its current level (£1,073,100) until April 2026. Further details on the LTA can be found on the news page of the lgps member website ..

4th March 2021 - MHCLG letter to authorities on exit cap and further reform

Today MHCLG issued a letter withdrawing its letter of 28th October 2020. More details and a link to the letter can be found on the public sector exit payments page.

2nd March 2021 - Employer Flexibilities guidance published

MHCLG has today published statutory guidance to assist LGPS administering authorities and scheme employers in implementing and operating the regulations on employer flexibilities introduced in September 2020. The guidance covers Regulation 64 (Deferred debt agreement); Regulation 64A (Revision of rates and adjustment certificate) and 64B (Spreading of exit payments). More detailed guidance prepared by the Scheme Advisory Board to be read in conjunction with MHCLG’s statutory guidance has been prepared.

26th February 2021 - Exit cap revocation regulations laid

On 25 February 2021 revocation regulations were laid before parliament. More details and a link to the regulations are on the public sector exit payments page.

24th February 2021 - Exit cap guides on lgpsregs updated

The guides for administering authorities and employers have been updated in line with legal advice. See the public sector exit payments page. for further information.

19th February 2021 Commentary on legal advice - pre 12 Feb leavers and cash alternative payments

There is now a commentary on legal advice received from the Board's legal advisor in relation to pre Feb 12 leavers and cash alternative payments on the public sector exit payments page.

17th February 2021 - Exit cap guides updated

The Employer and Administering Authority guides on lgpsregs have been updated- see the public sector exit payments page for more information

15th February 2021 - Good Governance report published with Board statement

When it met on the 8th February the Board agreed that the Good Governance – Final Report should be published and for the Chair to submit the Board’s Action Plan  to the Local Government Minister for consideration. See the Good Governance project page for a statement from the Board and more information on the project.

12th February 2021 - Exit cap switched off by HMT

HMT directions have disapplied parts of the exit cap regulations effectively switching off the cap from today in England - see the public sector exit payments page for more information

11th February 2021 - Government launches consultation on minimum pension age

A consultation entitled Increasing the normal minimum pension age: consultation on implementation was launched on 11th February and runs until 22nd April 2021. The consultation proposes that the minimum pension age would increase from 55 to 57 in 2028.

11th February 2021 - Pension Schemes Bill receives royal assent

The Pension Schemes Bill has now received royal assent and becomes the Pension Schemes Act 2021. Elements which will impact on the LGPS include Climate risk reporting and the pensions dashboard.

27th January 2021 - Government launches consultation on climate risk

A policy consultation response and Consultation on regulations entitled Taking action on climate risk: improving governance and reporting by occupational pension schemes was launched today and runs until 10th March 2021. The scope of the regulations do not include the LGPS however regulations are expected from MHCLG to substantially mirror the requirements set out in this document.

13th January 2021 - Exit payments page updated - Impact of Judicial Review timing

The public sector exit payments page of this website has now been updated to include the impact of the timing of the Judicial Reviews on MHCLG regulations and Pensions Ombudsman cases

4th January 2021 - Exit payments page updated - Judicial Reviews to go ahead

The public sector exit payments page of this website has now been updated to include news on the Judicial Reviews of the exit cap regulations

2020

9th December 2020 - Exit payments page updated - SAB response to MHCLG draft regulations

The public sector exit payments page of this website has now been updated to include the SAB response to the draft MHCLG regulations on exit payments and further reform

9th November 2020 - Exit payments page updated - Information for Administering Authorities

The public sector exit payments page of this website has now been updated to include a link to exit cap information for administering authorities on the lgpsregs.org site

5th November 2020 - Exit payments page updated - Information for Employers

The public sector exit payments page of this website has now been updated to include a link to exit cap information for employers on the lgpsregs.org site

2nd November 2020 - update to COVID-19 page - Follow up survey results

The Covid-19 information and updates page has been updated with the results of the follow up survey.

30th October 2020 - Exit payments page updated

The public sector exit payments page of this website has now been updated to include a commentary on legal advice received in connection with the introduction of the £95k cap before pension regulations have been amended

28th October 2020 - £95k cap letter

A letter has been sent from the Local Government minister to all administering authorities, in respect of the implementation of the public sector exit payment regulations from 4th November. The Board has also been sent a copy of the letter and are considering its contents alongside legal advice it is currently obtaining on this matter. Once HMT guidance and directions on the cap are published (expected to be later this week) the Board will publish the legal advice together with a commentary for administering authorities and scheme employers.

21st October 2020 - Exit payments page updated

The summary on the public sector exit payments page of this website has now been updated to include a statement regarding the period of legal uncertainty faced by LGPS administering authorities from 4th November until LGPS regulations are amended

15th October 2020 - Exit cap regulations made

The summary on the public sector exit payments page of this website has now been updated to take into account the making of the public sector exit payment regulations which will come into force on 4th November.

6th October 2020 - Final SAB McCloud response

The Final SAB response (PDF 19 pages 291kb) to MHCLG's consultation on Local Government Pension Scheme is now available to view and will be submitted by the end of this week: 8 October 2020

28th September 2020 - Draft SAB McCloud response

The Draft SAB response (PDF 20 pages 376kb) to MHCLG's consultation on Local Government Pension Scheme – amendments to the statutory underpin is now available to view. It has been cleared by the Board's McCloud policy group but has been circulated to the full Board for any final comments by the end of this week.

14th September 2020 - Public sector exit payments summary updated

The summary on the public sector exit payments page of this website has now been updated to take into account the MHCLG consultation on changes required to implement the £95k cap and further reform of compensation payments.

7th September 2020 - MHCLG £95K cap consultation published

MHCLG have today published a consultation on changes to pension and compensation regulations to introduce the £95k cap and elements of further reform of exit payments. The exit payment cap summary will be revised once we have had chance to read through the consultation in detail.

28th August 2020 - SAB Chair responds to TPR funding code consultation

Following on from his letter to the LG minister raising concerns with regard to Clause 123 of the Pensions Schemes Bill the Chair has now written a further letter to TPR in response to their funding code consultation.

27th August 2020 - Employer flexibility regulations published

MHCLG have today laid the regulations on employer contribution and exit payment flexibility which will come into force on 23rd September.

26th August 2020 - Response on employer contribution and exit payment flexibility

MHCLG have today published a partial response to last year's consultation on changes to the local valuation cycle and management of employer risk. The response will be followed shortly by regulations which we expect to come into force in the early autumn. The response includes the review of employer contributions between valuations, spreading exit payments and deferred debt arrangements. The regulations will be accompanied by guidance on the necessary revisions to Funding Strategy Statements and the Board will be inviting practitioner and employer representatives to assist in the development of that guidance.

27th July 2020 - SAB statement on Local Pension Board meeting cancellations

Following concerns raised at a recent Local Pension Board workshop the following statement on the position of local pension boards meeting during the covid-19 emergency has been agreed:- SAB statement on Local Pension Board meeting cancellations (pdf 1 page, 60Kb)

22nd July 2020 - Exit payments cap summary updated

The exit payments cap summary on the public sector exit payments page of this website has now been updated to take into account the HMT response and regulations.

22nd July 2020 - Exit payments cap regulations published

The regulations for capping public sector exit payments have now been published. The regulations are affirmative in nature and therefore will need to be approved by both houses of parliament, they will come into force 21 days after that process is complete. The regulations also contain a schedule of employers covered by the cap. We still await revised HMT directions and guidance on the implementation of the cap and the waiver process.

21st July 2020 - Restricting exit payments in the public sector - 'the £95k cap'

Today the government published its response to the April 2019 consultation on restricting exit payments in the public sector.

20th July 2020 - Statement on equalising male survivor benefits in public service pension schemes

On 20th July the Chief Secretary to the Treasury made a written statement on Public service pensions, survivor benefits for opposite–sex widowers and surviving male civil partners. The statement was in relation to a Teachers Pension Scheme Employment Tribunal case where 'male survivors of female scheme members remain entitled to a lower survivor benefit than a comparable same-sex survivor' and confirmed that 'government believes that this difference in treatment will also need to be remedied in those other public service pension schemes, where the husband or male civil partner of a female scheme member is in similar circumstances.'

17th July 2020 - McCloud Q&A updated

In the light of the publication of the HMT and MHCLG consultations the McCloud page contains a link to the updated Q&A for administering authorities.

17th July 2020 - Pension Schemes Bill - Clause 123

The SAB Chair has written to the Local Government minister expressing support for the principles behind Baroness Bowles amendment to clause 123 of the Pension Schemes Bill which was successfully passed in the Lords. These principles include the recognition of the differing objectives and funding and investment strategies of DB schemes which are open to new members. The LGPS is not subject to those parts of the Pensions Act 2004, which the Bill amends, however the broad powers conferred by the Bill could potentially result in unintended consequences for the scheme, particularly with regard to pressure to change the current funding regime. The secretariat has joined discussions with DWP officials and representatives of private open DB schemes to seek to confirm these principles, preferably on the face of the Bill, should government wish to reverse the Bowles amendment in the Commons.

16th July 2020 - MHCLG consultation on McCloud

MHCLG have now published a consultation on changes to the LGPS to meet the requirements of the McCloud case.

A summary of the consultation is available on the McCloud page

16th July 2020 - HMT consultation on McCloud and update on cost cap process

HM Treasury have published a consultation on McCloud and an update on the cost cap process - which will be restarted. Please note a separate consultation has been published for the LGPS on McCloud by MHCLG.

Further information can be found on the McCloud and Cost Management pages of this site.

25th June 2020 - update to COVID-19 page - Corporate Insolvency and Governance Bill receives royal assent

The Covid-19 information and updates page has been updated with information on the Corporate Insolvency and Governance Act 2020 and its potential impact on employer contributions.

19th June 2020 - Cost Transparency Initiative launches additional tools following strong industry take up

A year after the Cost Transparency Initiative (CTI) published a framework of tools and guidance to help institutional investors better understand their investment costs, the initiative is today launching additional resources and encouraging remaining schemes and asset managers to adopt the standards.

Please see the CTI website for more information: CTI launches additional tools following strong industry take up - Press release

8th June 2020 - Summary of Supreme Court boycotts judgment

The legal opinions and summaries page has been updated with a link to a summary of the judgment of the Supreme Court in the LGPS investment guidance boycotts and disinvestment case.

22nd May 2020 - update to COVID-19 page - Governance survey results

The Covid-19 information and updates page has been updated with a link to a results summary of the Covid-19 governance survey.

21st May 2020 - update to COVID-19 page - NHSC Life Assurance Scheme

The Covid-19 information and updates page has been updated with a link to a summary of the NHSC Life Assurance Scheme.

11th May 2020 - SAB issues statement on Supreme Court boycotts judgment

‘The SAB welcomes the clarity brought by the judgment of the Supreme Court in the case of R (on the application of Palestine Solidarity Campaign Ltd and another) Appellants) v Secretary of State for Housing, Communities and Local Government (Respondent). In seeking to restrict the outcome as well as the considerations taken account of by an LGPS administering authority when developing its responsible investment policy, the government has been judged to have overstepped its powers. It is the Board’s view that Responsible Investment policy decisions belong at the local level reflecting: the need to pay pensions both now and in the future; local democratic accountability and the views of scheme members; and that outcomes of policy developments should not be subject to restrictions based on unrelated matters’

The Board's secretariat and legal advisor have commenced work on a draft summary of the judgment which will be published on this site as soon as it is available.

1st May 2020 - updates to Covid-19 page - Governance survey

The Covid-19 information and updates page has been updated with a link to a survey on the impact of COVID-19 on LGPS governance.

29th April 2020 - Supreme Court Judgment on LGPS boycotts

The Supreme Court today handed down its judgment in the case of R (on the application of Palestine Solidarity Campaign Ltd and another) Appellants) v Secretary of State for Housing, Communities and Local Government (Respondent) which was originally heard on 20th November 2019. The court found in favour of the appellants and would appear to take the position that the Government has the power to direct authorities on the approach they take to investment decisions, but not the investments they make.

A Summary of the judgement (PDF 2 pages 180kb) published by the practice at 11KBW is available - please note this summary is the view of 11KBW not necessarily the Board which has yet to consider the implications of the judgment for itself.

21st April 2020 - updates to Covid-19 page - Cash flow survey summary

The Covid-19 information and updates page has been updated with a summary of an LGPS cash flow survey which took place during the first two weeks of April.

17th April 2020 - delay to RPI consultation announced by HMT

Following representations from a number of industry bodies including a letter from the SAB chair (PDF 1 page 85kb) the Chancellor has announced that the consultation on changes to the Retail Price Index will be extended by four months from 22nd April to 21st August

14th April 2020 - updates to Covid-19 page - Extension of accounting deadlines

The Covid-19 information and updates page has been updated with links to the regulations extending local authority accounting deadlines and the accompanying explanatory note

9th April 2020 - PIRC provisional LGPS performance 'not the same magnitude as 2008'

Provisional performance figures for 2019/20 from PIRC Local Authority Universe show estimated average returns across its LGPS members (62 funds with an aggregate value of almost £180bn) of around -5% for the year.

This return is of a very different magnitude to the almost 20% falls seen following the dotcom bubble and the financial crisis. The medium term numbers also all still remain positive with 3 year returns at 1.8% pa, 5 yrs at 5.2% pa and 10yrs at 6.9% pa.

7th April 2020 - updates to Covid-19 page - LGPS resilience survey and additions to FAQs

The Covid-19 information and updates page has been updated with a summary of a survey on the resilience of LGPS administering authorities to deliver critical processes and the administrator FAQS have been added to.

3rd April 2020 - updates to Covid-19 page - TPR guidance and virtual council meetings

The Covid-19 information and updates page has been updated with links to TPR's guidance of 3rd April for public sector schemes and regulations providing for virtual council meetings

2nd April 2020 - updates to Covid-19 page - FAQs and board statement on valuations

The Covid-19 information and updates page has been updated to link to the FAQ's for scheme administrators and to add a statement from the Board on the 2019 valuations in the light of the recent movements in equity markets

1st April 2020 - LGPS Cost Transparency compliance and validation system

Byhiras goes live with the Cost Transparency compliance and validation system for the Scheme Advisory Board. Please see press release below for more:

Press release Byhiras Cost Transparency Platform for LGPS live pdf, 2 pages, 462KB

30th March 2020 - McCloud Q&A updated

Following last week's ministerial statement the Q&A has been updated. Please see the link below:

The McCloud case Q&A for administering authorities page (opens in new window)

26th March 2020 – Ministerial Statement on McCloud

On March 25th Lord Agnew made a ministerial statement regarding progress toward remedy in public service pension schemes following the McCloud/Sergeant age discrimination case. Please go to the McCloud Page for more information on the implications for the LGPS.

25th March 2020 - New Coronavirus and LGPS page

A new page has been added under the scheme developments menu to provide information, updates and links about Covid-19 and its impact on the LGPS click here to open the page

25th February 2020 - Board meeting summary 3rd February 2020

The Board has published a summary of the 3rd February meeting, please see the Board updates page

24th February 2020 - Scheme Advisory Board – Practitioner Representative

The Chair of the Board is pleased to announce that following votes from administering authorities in England and Wales, Rachel Brothwood (West Midlands Pension Fund) has been successful in her nomination as practitioner representative on the Board to fill the vacancy left by Nicola Mark. Commenting on Rachel’s appointment Councillor Roger Phillips said “Stepping into Nicola’s shoes was never going to be an easy task but Rachel joins the board with a wealth of knowledge and experience of the scheme and I know that she will continue to represent scheme practitioners to the same high standard enjoyed by the Board in recent years.”

24th February 2020 - Statement from the Scheme Advisory Board on Responsible Investment Guidance

The Scheme Advisory Board wishes to thank all those who responded to the request for comments on Part 1 of the Responsible Investment draft guidance and has issued a statement regarding the next steps which can be found on the Responsible Investment page

2019

15th November 2019 - good Governance Report Phase II

When it met on the 6th November the Board agreed that the Good Governance – Phase II Report (PDF 16 pages 4.33MB) should be published and that the Secretariat, in conjunction with the project team at Hymans Robertson and scheme stakeholders, should proceed to develop Phase III of the project including draft statutory guidance on governance compliance statements and establishing a set of key performance indicators.

Any comments on the Phase II report and its recommendations should be sent to [email protected]. Final proposals for Phase III of the project will be considered by the Board when it next meets on the 3rd February 2020.Commenting on the report, Councillor Roger Phillips, Chair, said “We have reached another critical stage in this key area of work to improve the governance and administration of the scheme on a consistent and measured basis that will match the standards expected by the Pensions Regulator. We now look forward to the next stage in the project and implementing the recommendations approved by the Board.”

14th November - Board meeting summary 6th November 2019

The Board has published a summary of the 6th November meeting, please see the Board updates page

5th November 2019Response to NHS consultation

(NHS).An informal response from the Boards secretariat to the consultation on pension flexibility within the NHS pension scheme was submitted on the 1st November 2019.

16th October 2019 - MHCLG SF3

Ministry of Housing, Communities & Local Government publishes Statistics on the local government pension scheme in England and Wales 2018 2019. and Local government pension scheme funds for England and Wales: 2018 to 2019 PDF, 582KB, 17 pages

15th October 2019 - Update on CMA Order

Following further clarification from DWP and MHCLG it is now our understanding that Remedy 1 (obligation to tender Fiduciary Management service) will NOT apply to the LGPS but that amendments to MHCLG's ISS statutory guidance will implement remedy 7 (obligation to set strategic objectives for Investment Consultants). We still await clarification on the possible extension of FCA's regulatory perimeter to include advice on strategic asset allocation.Although amendments to the ISS guidance are not expected this year the Order will apply remedy 7 from 10th December 2019 and therefore LGPS authorities should review their arrangements accordinglyThe Board briefing note (PDF 5 pages 449kb) on the CMA Order and its impact on the LGPS has been further revised to take into account the understood position that Remedy 7 will apply to the LGPS.

19th September 2019 - The Pensions Regulator publishes its report on governance and administration risks in public service pension schemes

The Pensions Regulator has today published its report into the governance and administration risks in public service pension schemes including the 10 UK local government funds who were engaged with between October 2018 and July 2019. The report summarises the key findings against the Regulator’s Code of Practice 14 both in terms of exceeding and falling short of required standards and will be discussed in detail when SAB next meets on the 6th November 2019. In commenting on the report, Chair of the Board, Councillor Roger Phillips said “This key area of work ties in closely in with the Board’s own Good Governance project. In identifying examples of best practice as well as areas for further improvement the report will undoubtedly be of great assistance to LGPS funds in seeking to enhance their own governance and administration arrangements."

1st September 2019 - Board announces Byhiras as provider of Compliance and Reporting system

The Board has appointed Byhiras to develop and host a system designed to enable managers to evidence compliance with its Code of Transparency and provide a range of reporting and comparison tools for LGPS funds and pool companies, for more information go to the Code of Transparency page.

8th August 2019 - Good Governance Working Groups

The Scheme Advisory Board has invited the Hymans Robertson project team to assist the Secretariat in taking forward the next stage of the good governance project. Two working groups will be established, one to focus on defining good governance outcomes and the guidance needed to clearly set them out and the other to focus on options for the independent assessment of outcomes and mechanisms to improve the delivery of those outcomes. Both groups will comprise a wide range of scheme stakeholders to ensure a full range of views and options are considered. The aim is for an options report to be ready for the Board's consideration when it meets in November. Any proposals agreed by the Board would be subject to a full stakeholder consultation before being put to MHCLG. Details of both working groups will be published here shortly.

7th August 2019 - LGPS EW mortality data: approach from CMI

GAD have been approached by the actuarial profession’s Continuous Mortality Investigation (CMI) to request LGPS (E&W) mortality data. Below is a letter from CMI to GAD setting out their proposal (and information for pension schemes). GAD, MHCLG and the SAB Secretariat are supportive of this proposal in principle, but would welcome the views of stakeholders. Also below is a letter setting out a summary of the CMI proposal, and the questions on which GAD are seeking views to be considered by the Cost Management, Benefit Design and Administration Committee.

LGPS mortality data CMI 7 Aug 2019 (PDF 2 pages 626kb)

Letter CMI to GAD 23 July 2019 (PDF 3 pages 316kb)

CMI SAPS data information for pension schemes July 2019 (PDF 3 pages 242kb)

31st July 2109 - TPR publishes consultation on guidance to implement CMA Order

The Pensions Regulator has published a consultation on new guidance to support tougher rules on investment governance. This consultation along with that issued by the DWP on the 29th of this month appears to reflect a position of the LGPS only being in scope for CMA remedy 7 - the obligation to set strategic objectives for investment consultants.Authorities should therefore take note of and consider responding to the consultation in particular the draft guide Setting objectives for providers of investment consultancy services

The Board briefing note (PDF 5 pages 449kb) on the CMA Order and its impact on the LGPS has been further revised to take into account the currently understood position that only remedy 7 will apply to the LGPS.

31st July 2019 - Luke Hall MP appointed as Local Government Minister

On 31st July it was announced that Luke Hall MP had been appointed Parliamentary Under Secretary of State, Minister for Local Government and Homelessness.Luke Hall MP was born and grew up in South Gloucestershire and worked in retail from the age of 16 prior to being elected as the Member of Parliament for Thornbury & Yate in May 2015. He has been an active member of the local Conservative Party since 2009, was Constituency Chairman in South Gloucestershire and has served as the Deputy Chairman of the Bristol and South Gloucestershire Conservatives.Luke Hall MP is the 6th holder of the post since 2010 following in the footsteps of Bob Neil MP: May 2010 to September 2012, Brandon Lewis MP: Sept 2012 to July 2014, Kris Hopkins MP: July 2014 to May 2015, Marcus Jones MP: May 2015 to January 2018 and Rishi Sunak MP who served from January 2018 until his move to become Chief Secretary to the Treasury in July 2019.The Chair of the Board has written to wish the previous minister well in his new post and will shortly be writing to the new minister to introduce the Board and its role within the LGPS.

31st July 2019 - Board publishes Good Governance Report

When it met on the 8th July, the Board agreed that the Good Governance Report (PDF 34 pages 848kb) should be published before the end of July and that the Secretariat should, in conjunction with the project team and scheme stakeholders, work to develop a detailed plan to present to the Board in November to implement the report's findings and conclusions. This will ensure continued progress in this important area of the workplan. Scheme stakeholders will be given the opportunity to comment on the Board's recommended implementation plan before any formal approach is made to MHCLG Ministers for changes to the scheme's regulations or guidance

29th July 2019 - DWP publishes consultation on Fiduciary Management and Investment Consultants

The DWP has published a consultation on regulations to enact the provisions of the June CMA Order on the obligations of Schemes with regard to FM and IC services.LGPS authorities should note that Chapter 2 of the consultation documents itself covers scope and explicitly rules out coverage of the LGPSA revised briefing note can be viewed here (PDF 8 pages 495kb)

24th July 2019 - The Pensions Regulator publishes report on Public Service Pension Schemes

The Pensions Regulator has published a full research report which details all the 2018 survey results, together with commentary intended to draw out the key points and areas of concern identified.

17th July 2019 - Board meeting summary 8th July 2019

The Board has published a summary of the 8th July meeting, please see the Board updates page

15th July 2019 - Government announces that McCloud case will affect all public service pension schemes

The Chief Secretary to Treasury confirmed that remedies relating to the McCloud judgement will need to be made in relation to all public service pension schemes. The statement and an updated McCloud Q&A can be found on the cost management page of this site

12th July  2019 - Board briefing on CMA Order.

On 10th June the CMA published an Order covering Fiduciary Management and Investment Consultants which has implications for LGPS funds and pool companies. A briefing note can be viewed here (PDF 8 pages 495kb)

27th June 2019 - McCloud Case Government denied leave to appeal

The Supreme Court today (27th June) denied the Government’s request for an appeal in the McCloud and Sargeant case in respect of age discrimination and pension protection. Further news will follow once we can confirm the next steps in the process. The McCloud Q&A page has been updated accordingly

21st May 2019 Code of Transparency - CTI releases templates and guidance

The Board welcomes the release today of a framework of templates and guidance by the Cost Transparency Initiative (CTI) as an important step in achieving clarity in cost and value for asset owners and pension scheme members.These templates will from today be adopted as an integral part of the Board’s Code of Transparency. Existing Code signatories which number in excess of 110 will be encouraged to make use of the new templates as soon as possible but will have a transition period of up to 12 months to ensure they can adapt systems without interrupting the current flows of data. New signatories, including those property and private markets managers who can take advantage of the new templates will be expected to use them immediately.We are eager to work with existing and new signatories in ensuring the new framework is a success and will welcome feedback from managers as they implement or transition to the new templates.The Board recognises the importance of the timely and accurate receipt of cost data but also that effective analysis and ‘decision maker’ education is equally vital in the delivery of investment value. Template data can and will lead to better management of cost but it is only one element alongside risk and performance contributing to the returns necessary to secure the pensions of our scheme members for the future.Today’s announcement by the CTI will ensure providers benefit from a standard reporting framework and their customers from regular and comprehensive cost data. The adoption of the framework by the Board will see it implemented across £275bn of assets to the benefit of over 6m LGPS scheme members.

Cllr Roger Phillips the Chair of the Board said: "“I wholeheartedly welcome the launch of the CTI templates and guidance and would encourage those managers not yet signed up to the LGPS Code of Transparency to now take the opportunity to do so.My thanks go to Mel Duffield, the CTI Board and its working groups in getting us to this important point on the journey. There is still work to be done, especially with regard to the effective use of this data, but for now this fine example of the industry working together deserves to be celebrated”

14th May 2019 - McCloud and valuations

SAB publishes advice on McCloud and valuations Cost Management page, advice on McCloud and valuations2

9th April 2019 - Public sector exit payments

HM Treasury launches consultation on public sector exit payments: New item added to Scheme Developments menu - will be updated as more information us received

26th April 2019 - Cot System tender

Scheme Advisory Board launches "Code of Transparency compliance system" tender exercise. The tender is to design, build, host and support a system to validate / check for completion the templates received from the relevant fund managers for each of the relevant LGPS funds and or Pools. Delta eSourcing is being used to run this exercise, please visit https://www.delta-esourcing.com/tenders/UK-UK-London:-IT-services:-consulting,-software-development,-Internet-and-support./B4J5E4G5GZ or the cost transparency page for more details.

20th February 2019 - Letter from minister on cost management

Minister response letter regarding the pause of the SAB cost management process: Letter from Minister regarding pause of SAB cost management process (pdf 42kb)

14th February 2019 - McCloud Q&A

McCloud case/Cost cap Q&A published. Please go to the Cost Management page to link to the Q&A and consider the question of how best to approach the 2019 valuation in light of the case and the pause of cost cap.

8th February 2019 - Cost management paused

SAB pauses cost management process following last week’s WMS pausing cost cap as a result of McCloud. Please go to the Cost Management page for more information for more information.

8th February 2019- Hymans appointed for governance survey

Hymans Robertson has been appointed by the Scheme Advisory Board to conduct a survey on governance of the LGPS and potential conflicts of interest between the pensions function of administering authorities and their host local authority. A statement setting out details of how the survey will be conducted can be found here.30th January 2019Government announces a pause in the cost cap process for all public service pension schemes due to the uncertainty caused by the ruling of the Court of Appeal in the McCloud case. Please go to the Cost Management page for more information.News Archive

2018

19th December 2018

Lesley Titcomb, Chief Executive at the Pensions Regulator, has replied to the letter sent by Councillor Roger Phillips, Chair of the Scheme Sdvisory Board, about the burdens being imposed by the Regulator on individual administering authorities. (see News item : 26th November 2018). A copy of her reply is here:

Letter received from the the Pensions Regulator, pdf, 2 pages, 44kb

18th December 2018

A joint MHCLG Scheme Advisory Board infrastructure event was held on 15th November 2018. This was well attended by pension fund committee chairs; this note provides a summary of the main points of discussion for those committee chairs unable to attend.

26th November 2018

The Chair of the scheme advisory board, Councillor Roger Phillips has sent a letter to Lesley Titcomb, Chief Executive at the Pensions Regulator, pdf, 3 pages 153kb expressing concerns raised at the last board meeting in October about the burdens being imposed by the Regulator on individual administering authorities. A copy of the letter is here: Letter sent to the Pensions Regulator

13th November 2018

It is with extreme shock and sadness that we learned of the sudden death of Cllr Ian Greenwood, who died in hospital in Bradford on Monday evening 12th November. Following re-election to the City of Bradford Council in May this year, Ian was appointed to the Board and elected Chair of the Local Authority Pension Fund Forum.

Ian was a giant in the LGPS, over many years he served the scheme and its members as chair of LAPFF, chair of the Local Government Pensions Committee, lead on pensions at LGA ( including chair of scheme reform group in 2011-12), chair of the Board’s Investment and Engagement Committee and latterly as a member of the full Board and chair of the Northern Pool.

He always focused and the provision of excellent value to scheme members and employers while ensuring that LGPS funds were not only invested wisely but worked hard to advance better corporate governance.

I was honoured to work alongside him and will miss him both as a colleague and a friend. Cllr Roger Phillips Chair of the Board

7th November 2018

The FCA announces the launch of the Cost Transparency Initiative (CTI). Please see FCA Statement - Launch of Cost Transparency Initiative for more details.

18th October 2018

The Board publishes a summary note of the meeting held on 10th October 2018. Please see the Publications section of the website for details.

17th October 2018

The Ministry of Housing, Communities & Local Government publishes "Local government pension scheme funds for England and Wales: 2017 to 2018" (SF3) statistics. Please see the Local Government Statistics LGPS England and Wales 2017 to 2018 for details.

Highlights include:

  • Total Local Government Pension Scheme expenditure in England and Wales in 2017-18 was £12.7 billion. Removing the effect of mergers and large transfers in 2016-17 and 2017-18 there was a like-for-like increase of £0.8 billion or 7.4% on 2016-17.
  • Total Local Government Pension Scheme income in England and Wales in 2017-18 was £17.4 billion. Removing the effect of mergers and large transfers in 2016-17 and 2017-18, there was a like-for-like increase of £3.0 billion or 21.4% on 2016-17. This is mainly due to an increase in Employers’ contributions in 2017-18.
  • Employers’ Contributions to the Local Government Pension Scheme in 2017-18 in England and Wales amounted to £9.5 billion, up 27.7% on 2016-17, and employees’ contributions to the scheme were £2.1 billion. Employers’ Contributions increased due to some large upfront pension contribution payments (deficit contributions) being made by some employers and higher contribution rates following the triennial valuation.
  • The market value of the Local Government Pension Scheme funds in England and Wales at the end of March 2018 was £270.9 billion, an increase of £12.1 billion or 4.7%.
  • The Local Government Pension Scheme in England and Wales encompassed 5.8 million people at the end of March 2018. Of this number, 2.0 million are employees who are still contributing to the scheme, 1.7 million are pensioners and 2.1 million are former employees who are entitled to a pension at some time in the future.
  • The number of people leaving the Local Government Pension Scheme in 2017-18 due to redundancy reduced by 19.9% from 2016-17 to 10,847. A number of funds reported there were special redundancy exercises or restructuring in 2016-17 and that the large reduction in 2017-18 was a consequence of that.

 

27th September 2018

The report under Section 13 of the Public Service Pension Scheme into the 2016 valuation has now been published at

Local Government Pension Scheme S13 review: 2013 to 2016

24th September 2018

LGPS third tier employers - At the meeting of the Scheme Advisory Board on 27th June 2018, Aon presented members with a summary of the final draft report commissioned by the Board to review current issues faced by the LGPS and associated stakeholders in relation to third tier employers participating in LGPS funds in England and Wales. The Board is anxious to point out that the report makes no attempt to make any recommendations. Instead, it outlines a range of issues raised by stakeholders and how they envisage these concerns being resolved.

Tier_3_employers_in_the_LGPS_FINAL.pdf (102 pages, 2.65MB).

The Board agreed that the report should be published and that a small working group of Board members will be established to review the concerns expressed by third tier employers in the report and the ways in which they could be resolved. The working group will be tasked to report back to the Board later in the year with a set of recommendations for further consideration. Once approved, scheme stakeholders will be given the opportunity to comment on the Board’s recommendations before any formal approach is made to MHCLG Ministers for changes to the scheme’s regulations or guidance. A copy of the report can be found here with details of the third tier employers’ project here.

11th September 2018

In a Written Ministerial Statement on the 6th September 2018, the Chief Secretary to the Treasury, Elizabeth Truss, announced details of the quadrennial valuation of the public service pension schemes, including the Local Government Pension Scheme in England and Wales. A transcript of the announcement can be found here.

For the unfunded schemes, initial results show that their members will get improved pension benefits over the period April 2019 to March 2023. Early indications are also that the amount employers pay into the unfunded schemes will need to increase.

In the case of the funded LGPS, the scheme advisory board operates an additional cost cap process. In accordance with agreed policy, this will be allowed to complete before the HM Treasury cost control mechanism is tested. It is not therefore possible at this stage to give any indication of what the outcome might be.

If the Board’s cost control process results in a recommendation that changes to the scheme should be made, and the government accepts the Board’s recommendations, the Treasury’s cost cap process will be adjusted to take the new scheme design into account. The Chief Secretary also announced in the technical annex (copy here) to a letter to Frances O’Grady at the TUC (copy here), that the scheme valuation under Treasury’s cost cap process should be moved from the current triennial to a quadrennial cycle in line with other public service scheme valuations. Please note that this is not to be confused with local fund valuation. However, discussions with MHCLG and actuarial advisers will take place shortly to consider the implications of this change for local fund valuations.

A copy of Treasury’s draft 2018 Direction can be found here.

3rd September 2018

Scheme Advisory Board launches "Code of Transparency compliance system" tender exercise. The tender is to design, build, host and support a system to validate / check for completion the templates received from the relevant fund managers for each of the relevant LGPS funds and or Pools. Delta eSourcing is being used to run this exercise, please visit www.delta-esourcing.com/respond/R87C47F5VR for more details.

21st August 2018

Scheme Advisory Board opens invitation to bid, "Options for separation of host authority and pension fund". Following a report by KPMG examining the issues and challenges of separating the pension’s functions of LGPS, the next stage is to see how the recommendations that emerged from the report could be made to work. For more information and instructions on how to bid, please see the invitation to bid page.

21st May 2018

New MiFIDII Q &A - A Questions and Answer document has been developed to assist LGPS funds and managers to effectively deal with new relationships post January 2018 when local authorities are default retail clients including conversations at conferences. The document can be found on the MiFIDII home page .

25th April 2018

LGPS third tier employers - At the meeting of the Scheme Advisory Board on 26th February 2018, Aon updated members on progress of their work commissioned by the Board to review current issues faced by the LGPS and associated stakeholders in relation to third tier employers participating in LGPS funds in England and Wales.
Aon outlined their extensive engagement with the main third tier employers’ sectors including higher education, housing associations and charities as well as other key stakeholders, and confirmed that they are now ready to analyse the survey and interview data. The Board was content with the progress made by Aon to date and agreed that they should now proceed to prepare their draft report for consideration at the next Board meeting on the 27th June 2018.
Details of the third tier employers’ project can be found here.

27th March 2018

On the 27th March 2018, the Chairs of LGPS pension committees and local pension boards attended an open session where representatives from the eight asset pools reported on their progress in establishing their organisational structures and governance arrangements. A copy of the presentations used on the day can be found here. Steps will soon be taken to establish the Cross Pool Open Forum approved by the Scheme Advisory Board in February 2018, comprising three representatives from each of the eight pools and three trade union representatives.

27th February 2018

The Scheme Advisory Board agreed at its meeting of 26th February to amend the Code of Transparency (7A.) to include the provision for alternative investment managers signing up on the basis that cost data substantially similar in scope and detail to that covered by existing templates is submitted to LGPS clients. Under this provision, investment managers must adopt and make use of relevant Code templates as they become available. In addition, (11.) has been amended to refer to the outcome of the FCA’s Institutional Disclosure Working Group, IDWG.

9th January 2018

The government has announced that Marcus Jones MP, will be leaving his position as Local Government Minister at DCLG to take up a new role as Local Government Vice Chair at Conservative Campaign HQ. Councillor Phillips, Chair of the Advisory Board said “On behalf of the Board I wish to express our sincere thanks to Marcus for all the help and support he has given to the Board and its members in recent years and for engaging so positively with us. His appearance at Board meetings was a regular occurrence where his honest and straightforward comments were very much appreciated by all Board members. The Board has benefitted greatly from his time at the Department and we wish him all the best in his new role. In the meantime, we will be seeking an early meeting with Marcus’ successor to explain the role of the Board and its work programme.”

Rishi Sunak MP has been appointed as Marcus Jones’ successor with responsibilities for the scheme and its advisory board. Rishi Sunak was appointed Parliamentary Under Secretary of State at the Ministry of Housing, Communities and Local Government on 9th January 2018. Rishi was elected as the MP for Richmond (Yorkshire) in 2015.

Under another part of the government’s changes, DCLG will in future be known as the Ministry of Housing, Communities and Local Government (MHCLG).

2017

27th December 2017

Cllr Kieran Quinn

It was with shock and great sadness that I learned of the death of Cllr Kieran Quinn on the evening of 25th December. My thoughts are with his family and friends at this desperately sad time. Kieran’s energy, drive, enthusiasm and commitment to the pension scheme and its members will be difficult if not impossible to replace and I will personally greatly miss his support, good humour and friendship.

Cllr Roger Phillips
Chair Local Government Pension Scheme Advisory Board

Cllr Quinn

From Steven Pleasant – Chief Executive of Tameside Council and Accountable Officer

It is my sad duty to have to inform you of the death of Councillor Kieran Quinn, the Executive Leader of the Council and the Chair of the Greater Manchester Pension Fund (GMPF).

Kieran died on Monday evening (25 December 2017) following a fall precipitated by a heart attack while out with his wife, Councillor Susan Quinn, delivering Christmas cards to constituents in Droylsden on Saturday (23 December 2017). Our thoughts go out to Susan, and their two boys, who were at Kieran’s side when he died.

In his various roles Kieran made an enormous contribution to the community of Tameside and Greater Manchester. As well as being the Executive Leader of Tameside Council he was the Chair of the Greater Manchester Pension Fund (GMPF) and an architect of devolution for Greater Manchester.

At times of great challenge when clarity of leadership was required Kieran never shied away from the tough decisions. Whether astutely guiding Tameside Council through the most difficult period for local government in living memory, ensuring the GMPF grew into the largest most successful pension fund in the UK against the wider trend of pensions shortfalls or fighting to reduce the north south economic imbalance now widely recognised through the Northern Powerhouse agenda, he always stood up and provided the necessary leadership.

In all his roles Kieran worked tirelessly for everyone in the community, especially those most vulnerable and in greatest need of a helping hand. It is that which will be his legacy.

But beyond the public face and the many offices he held Kieran was at heart a family man, rooted in his local community. And for many of you Kieran will have become a friend as well as a colleague.

I am sure you will all join me in passing on our deepest sympathy to Kieran’s wife, Susan, their two boys and their wider circle of family, friends and colleagues.

The Council will be setting up a book of condolences and any message you would like to leave or make can be made to [email protected] in order to allow the family to come to terms with their shock and loss.

Meanwhile, the Deputy Leader, Councillor John Taylor will lead and address any business matters.

Steven

Steven Pleasant MBE
Chief Executive TMBC
Accountable Officer Tameside & Glossop CCG

23rd March 2017

Board Statement on Pool Governace Following the meeting of the Board on 6th March 2017, the following statement was agreed:

"The Board recognises that it is for scheme managers within each pool to develop appropriate governance to assure all stakeholders of the transparent and effective implementation of strategy. In this respect the Board notes the comments made by the Local Government minister Marcus Jones MP on this matter in the Westminster Hall debate on 24th October 2016.
The board recognises that strategic decisions on asset allocations and responsible investment will remain at the local level and therefore the involvement via local pension boards of those employers beyond the scheme manager along with member representatives in those areas would continue.
However the Board also encourages scheme managers to involve those same employers and member representatives in assisting with the assurance of transparent reporting from pools and ensuring the effective implementation of strategies by pools. Such involvement should include the consideration of provision of direct representation on oversight structures.”

14th March 2017

LGPS Academies At the meeting of the Scheme Advisory Board on 6th March 2017, PwC presented the draft report “Options for Academies in the LGPS”. The report was commissioned by the Board to review current issues faced by the LGPS and associated stakeholders in relation to academies participating in LGPS funds in England. The Board is anxious to point out that the draft report makes no attempt to make any recommendations. Instead, it outlines a number of issues raised by stakeholders and how they envisage these concerns being resolved.
Although, in principle, the Board accepted the draft report’s findings, it was agreed that no statement should be made ahead of discussions with DfE and DCLG about PwC’s findings and next steps. The Board is hopeful that such a meeting will be possible later in March to be followed as soon as possible by a formal statement from the Board regarding publication and next steps.

27th October 2016

SF3 Statistical Release 2015/16

The 2015/16 SF3 statistical release was published by DCLG on 26 October. The statistical release can be found on the DCLG web site.
18th October 2016

Implementation of Markets in Financial Instruments Directive II (MiFID II).

The FCA are consulting on their third set of implementation proposals for MiFID II and are seeking views on the proposed changes to the FCA Handbook.
MiFID II takes effect from 3 January 2018 and the proposed changes will have significant implications for LGPS administering authorities.
The full consultation document can be found on the FCA website.
17th August 2016 Election to fill practitioner seat on the LGP Scheme Advisory Board. Please click here to view the voting process. Note that the since the original email, the closing date and time for the submission of votes has been extended until noon on Friday 16th September 2016.
10th August 2016 The Chair, on behalf of the Board, wrote to the Secretary of State for Communities and Local Government regarding LGPS investment in infrastructure LGPS investment in infrastructure, and the Parliamentary Under Secretary of State Department for Communities and Local Government regarding Investment Reform Criteria and Guidance. The outcome of any discussions will be reported to the next Board meeting.
3rd August 2016 GAD Section 13 dry run report

The Government Actuary's Department (GAD) have completed a “dry run” section 13 analysis based on the 2013 local valuations. This analysis assesses whether the four main aims; compliance, consistency, solvency and long term cost effectiveness; have been achieved:

GAD Section 13 dry run report pdf 51 pages 1.22MB

29th July 2016 New section on the Boards' Code of Transparency for investment fees
25th July 2016 Committee update - Update on committees and list of representatives
17 May 2016 Scheme Annual Report 2015 published
8th April 2016 Message from Cllr Roger Phillips, Chairman of LGPS Advisory Board, for Chairs of Pension Committees

May 2013 to February 2016

19 February 2016 - Local Pension Boards - Counsel's opinion

Local Pension Boards - Counsel's opinion on legal status of pension boards.

18 February 2016 - Appointment of Board Chairman

The Board has been notified that the Secretary of State has appointed Cllr Roger Phillips to the position of Chair. In making this announcement the Board would like to extend their sincere thanks to Joanne Segars for her hard work and dedication in the role of Chair of the Board in both its shadow and interim forms. Joanne's experience and knowledge of both the LGPS and the wider pensions industry coupled with the effective stakeholder engagement she brought to the role have been pivotal in ensuring the successful development of the Board. Cllr Phillips said he was “ delighted and honoured to be appointed however I am very aware of the many and varied challenges faced by the scheme and under no illusions about the hard work and tough decisions necessary to ensure its continued sustainability

January 2016 Project POOL report

Project POOL publishes SUMMARY and FULL REPORT

12 June 2014 - Shadow Scheme Advisory Board Chair delivers keynote address at 2014 LGPC Conference

The shadow Scheme Advisory Board ("the Board") Chair Joanne Segars delivered the keynote address at the LGPC Conference 2014 held in Bournemouth on 19th and 20th June 2014.

In the speech, Ms Segars, who in addition to her position as Chair of the Board is the Chief Executive at the National Association of Pension Funds (NAPF), recognised the scale of the reforms only recently implemented in the LGPS in England & Wales and congratulated the Scheme on its implementation of these reforms.

In addition, Ms Segars set out details of the challenges ahead for the Scheme, not least in implementing new governance arrangements, and said that the Board had a full agenda ahead and needed to continually prove its value to the benefit of the whole Scheme.

The full text of Ms Segars' address can be found here.

14 October 2013 Report on tobacco investment

At the meeting of the board on 14th October it was agreed that the Norfolk committee report below forms a useful position for funds until such time as further clarification on this matter is available

Norfolk committee report 2012 (PDF, 10 pages, 149kb)
Hymans Robertson paper 2012 (PDF, 2 page2, 370kb)

17 October 2013

14 June 2013 - Practitioner selection process

On the 14 June 2013 a letter was issued to all heads of pensions of the LGPS in England and Wales – and copied to Chief Executives in letter form and Pension Managers via email – to commence a selection process following the nominations recently made by funds for the practitioner role on the Main Board and the various roles of the five sub-committees.

Read the selection process letter (PDF, 2 pages, 270KB)

It is necessary to run this selection process as the LGA have received more nominations than places available for the Main board and sub-committees. A selection pack is available to download below. It includes:

•selection process and selection form (PDF, 4 pages, 194KB) – contains information on how the selection system works and how each administering authority should cast their preferences. The selection form should be completed and returned to the LGA. It lists the name and administering authority of each of the nominees for the Board and each of the five sub-committees.

•nominations document (PDF, 35 pages, 318KB) – contains the short statement in support of each nominee which was received by the LGA when the nomination was made.

It's important that administering authorities read this document to help make a decision when casting their preference.

20 May 2013 - Nominations for members of the LGPS Shadow Scheme Advisory Board and sub-Committees

On Monday 20 May a letter was issued to all Chairs of Pension Committees of the LGPS in England and Wales – and copied to Chief Executives, Heads of Pensions in letter form and to Pension Managers via email – to commence the nomination process for the following Shadow Board Members: elected members to serve on the Shadow Board fund practitioner to serve on the Shadow Board fund practitioners to serve on sub-committees. Full details on the nomination process can be read in the letter issued 20 May 2013 (PDF, 3 pages, 161KB)).

The closing date for the nomination process is 7 June 2013. The following information is designed to inform those making nominations. Information includes the terms of reference for the Shadow Board the sub-committees and also a role profile/person specification for the fund practitioner roles on the sub-committees.

 

Any queries regarding the selection process should be directed to: email:[email protected]