Agenda item

This report provides an update on the progress of the Good Governance in the Local Government Pension Scheme (LGPS) Project and the possible actions the Pension Fund might take.

The Head of Pensions and Treasury introduced the item which provided an update on the progress of the Good Governance in the Local Government Pension Scheme (LGPS) project and the possible actions the Pension Fund might take ahead of the formal introduction of Regulations and/or Statutory Guidance from the Department for Levelling Up, Housing and Communities (DLUHC). It was noted that the project aimed to consider the relationship between Pension Funds and their Administering Authorities, in this case Haringey Council.

It was explained that the project had three phases. The first phase considered ideas and outcomes, the second phase looked at the framework and highlighted some recommendations for good practice, and the third phase was now looking at the recommendations in detail and aiming to give them a statutory footing.

The Independent Advisor stated that the project had been ongoing for approximately three years and that the DLUHC had been involved. It was highlighted that there were no surprises in the report but that the Pensions Committee and Board were asked to look at the action plan and consider where it might be possible to implement things ahead of schedule.

In response to a question about why the report asked the Pensions Committee and Board to note the report, rather than accept the recommendations, the Independent Advisor explained that the report was seeking early views and that it would not be possible to implement the recommendations without some initial work from officers on the practicalities. The Head of Pensions and Treasury added that, before any work was undertaken, it was common practice to obtain direction from the Pensions Committee and Board. After this, it would be possible for some detailed options and timelines to be presented.

The Pensions Committee and Board commented that it would be beneficial to deliver most, if not all, of the recommendations in order to improve governance arrangements. It was suggested that it would be useful to consider which of the recommendations were most significant and to deliver these first. Some members suggested that recommendations A2, B1, C1, D1, and D3 were felt to be important as initial priorities.

In relation to recommendation E4, it was commented that the Pensions Committee and Board was already quite involved in budgeting and other matters and that this might not require as much attention as other recommendations. The Independent Advisor noted that the recommendations envisioned deeper involvement from the Pensions Committee and Board and consideration separate from Council budgeting. It was explained that the aim of this recommendation was to ensure that pensions were properly provided for everywhere across the LGPS.

In relation to recommendation A2, that each administering authority must have a single named officer who is responsible for the delivery of all LGPS related activity for that fund, it was clarified that this would still be a Council officer. It was added that this aimed to ensure that sufficient resources were allocated to Pension Fund activity.

The Head of Pensions and Treasury noted that officers could look into each recommendation in detail and provide an update on the options and likely implementation dates. The Pensions Committee and Board noted that this report was likely to be considered a number of times and that it may be useful to present the recommendations in sections, possibly focusing on short term and then long term options.

RESOLVED

1.    To note and consider the Independent Advisor’s Good Governance in the Local Government Pension Scheme (LGPS) Project paper, appended as Appendix 1 to the report, and in particular the potential implications and possible actions for the Haringey Pension Fund.

2.    To request that officers look into each recommendation in the Independent Advisor’s Good Governance in the Local Government Pension Scheme (LGPS) Project paper, appended as Appendix 1, and provide an update on the options and likely implementation dates. The Pensions Committee and Board noted that this report was likely to be considered a number of times and that it may be useful to present the recommendations in sections, possibly focusing on short term and then long term options.