The Department for Levelling Up, Housing and Communities (DLUHC) has accepted the Local Government Pension Scheme Advisory Board’s (SAB’s) Good Governance recommendations in England and Wales.
The SAB’s recommendations, which were submitted in February 2021, aimed to improve the standards of governance and administration in the LGPS to better match the standards expected by the Pensions Regulator.
DLUHC will bring the SAB’s Good Governance recommendations into law using both secondary and statutory guidance. This is likely to come into force in April 2023 following a consultation phase.
Ian Colvin, head of LGPS benefit consulting at Hymans Robertson, said that the suggestions have been accepted “pretty much in full” by DLUHC, however refinements might be made during the consultation.
He added: “One area that was discussed early in the Good Governance process but not taken forward in the final report was a recommendation to clearly define the fiduciary duties that rest with LGPS pension committees exercising delegated powers. DLUHC have decided that this area remains out of scope.”
Colvin highlighted that an area added to the consultation by DLUHC is a requirement for LGPS funds to produce a workforce plan.
“The detail is light at the moment, but the idea is that the plan will help funds to ensure that they have the right people in place to meet the challenges of delivering the LGPS,” Colvin continued.
The Good Governance recommendations are only applicable for England and Wales. The Scottish Scheme Advisory Board will consider whether the suggestions are appropriate to Scotland.
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