Pension Fund Committee
This section contains the following information about the Pension Fund Committee:
- Purpose
- Composition
- Terms of Reference
- Policies (other than Investment, Administration and Funding)
- Investment
- Administration
- Funding
- Procurement
- Training
- Pension Fund Committee – Scheme of Delegation Arrangements
Purpose
a) The role of the Pension Fund Committee is to:
(i) Fulfil the role of Scheme Manager, as set out in regulations, of the Lancashire County Pension Fund ("the Fund" or "LCPF").
(ii) Establish policies in relation to investment management, which shall include meeting with the Investment Panel to consider future Investment policy for the Fund.
(iii) Monitor and review investment activity and the performance of the Fund.
(iv) Present an annual report to the Full Council on the state of the Fund and on the investment activities during the preceding year.
Composition
a) The Committee shall comprise twelve county councillors and seven voting co-opted members representing the following organisations.
(i) One representing the Further and Higher Education sector in Lancashire;
(ii) One from Blackburn with Darwen Borough Council;
(iii) One from Blackpool Council;
(iv) Two representing Trade Unions; and
(v) Two representing the Lancashire Borough and City Councils.
b) The Committee shall meet at least quarterly, or otherwise as necessary, with members of the Investment Panel in attendance.
c) The quorum of the Committee shall be three.
d) Meetings of the Committee shall be open to the public, but the public may be excluded where information of an exempt or confidential nature is being discussed – see Access to Information Rules.
Terms of Reference
a) To exercise Lancashire County Council’s responsibility for the management of the Fund, including the administration of benefits and strategic management of Fund assets and liabilities.
b) To determine which pension related functions and responsibilities should be exercised under a Scheme of Delegation to the Head of the Pension Fund, the Chief Finance Officer and the Monitoring Officer.
c) To review governance arrangements and the efficient and effective use of external advisors to ensure good decision-making.
d) To appoint a minimum of two suitable persons to an Investment Panel through a sub-committee convened for that purpose.
e) To establish sub-committees and panels as necessary to undertake any part of the Committee’s functions.
f) To receive an annual report from the Lancashire Local Pension Board on the nature and effect of its activities.
Policies (other than Investment, Administration and Funding – see below):
g) To approve the following key policy documents:
(i) 3 Year Strategic Plan for the Fund;
(ii) Investment Strategy Statement;
(iii) Governance Compliance Statement;
(iv) Pension Fund Annual Report;
(v) Communication Policy;
(vi) Internal Dispute Resolution Procedure;
(vii) Death Grant Policy;
(viii) Bulk Transfer Payment Policy;
(ix) Commutation Policy (small pensions);
(x) Transfer Policy;
(xi) Abatement Policy; and
(xii) Any other discretionary policies as required under Local Government Pension Scheme regulations.
Investment
h) To determine the Strategic Asset Allocation Policy, giving due recognition to the options made available by Local Pensions Partnership Investments Ltd (LPPI).
i) To monitor the performance of the Fund's investments and ensure that best practice is being adopted and value for money is being delivered.
j) To submit an annual report to the Full Council on the performance and state of the Fund and on the investment activities during the year.
k) To approve and review on a regular basis an overall Investment Strategy and subsidiary Strategies for such asset classes as the Investment Panel consider appropriate.
l) To have overall responsibility for investment policy.
Administration
m) To approve the Annual Administration Report.
n) To approve the Pensions Administration Strategy Statement.
o) To monitor the performance of the pensions administration function.
p) To authorise the payment of any statutory pensions, gratuities, grants, etc, under the provisions of the Superannuation and Pensions Acts and Regulations and any Local Acts.
q) To approve applications for early payment of preserved pension benefits on compassionate grounds.
r) To approve payments under the County of Lancashire Act 1984.
s) To determine the actual injury allowance payable on each individual qualifying case of injury or disease, both retrospective and for the future.
t) To review annually the actual amounts of injury allowances payable under the Local Government Superannuation Regulations, as amended, to employees who have sustained injuries or contracted diseases, resulting from anything they were required to do in carrying out their work. and to make any changes appropriate to reflect changes in the relevant financial circumstances of the payee.
Funding
u) To approve the Funding Strategy Statement which shall include the Fund's policy in respect of:
(i) The Funding Target;
(ii) The collection of employee contributions;
(iii) The collection of employer contributions;
(iv) The collection of additional employer contributions;
(v) Admissions and terminations; and
(vi) Employer risk.
v) To approve Scheme Funding Advice.
w) To review ongoing funding updates for potential cash contribution implications.
Procurement
x) To approve the procurement process, tender award criteria and evaluation methodology in advance of any tender being invited for the appointment of external support, including:
(i) An external corporate governance adviser;
(ii) An external Fund custodian;
(iii) External performance measurement advisers;
(iv) The Fund Actuary; and
(v) The Fund’s Additional Voluntary Contribution (AVC) Provider.
Training
y) To approve the annual training plan for members of the Pension Fund Committee and actively participate in training opportunities.
Pension Fund Committee – Scheme of Delegation Arrangements
Matters Reserved to Full Council
a) Changes to the Articles or any share rights impacting on any pre-approval matter(s).
b) Approval to alter any of the provisions of the LPPL Articles (including the articles of the LPPL subsidiary companies) or alter any of the rights attaching to the Shares (including where any such alterations directly or indirectly impact on a Reserved Matter) unless such amendment is of a purely administrative nature.
c) Approval to reduce or cancel any share capital of LPPL, purchase its own shares, hold any shares in treasury, allot or agree to allot, whether actually or contingently, any of the share capital of LPPL or any security of LPPL convertible into share capital, grant any options or other rights to subscribe for or to convert any security into shares of LPPL or alter the classification of any part of the share capital of LPPL save as the power to do so without prior Shareholder approval is specifically provided for in the Agreement .
d) To approve the formation of any holding company of LPPL.
e) To approve a change of status of LPPL from a limited company to a public limited company or from a company limited by shares to any other form of legal entity.
Matters Reserved to the Employment Committee
f) To approve the remuneration policy of the LPPL directors and staff, other than for LPPL Non-Executive Directors
g) To approve the payment of any fees, remuneration or other sums to or in respect of the services of any director or vary any such fees or remuneration other than in accordance with an agreed remuneration policy approved by both the Council and LPFA. For the avoidance of doubt this will not apply to the payment or reimbursement of reasonable expenses properly incurred by any statutory director in the course of carrying out their duties in relation to LPPL nor to any payment under any indemnity by LPPL to which the statutory director is entitled under the Articles or under any relevant law.
h) To approve any proposed programme of redundancies within LPPL or rationalisation of a group of employees
i) To approve any proposed programme of relocation of a group of employees outside Lancashire who were previously employees of the Council.
j) To approve the appointment or removal of the Chief Executive of LPPL or any subsidiary company.
Matters Reserved to Officers
k) The following functions have been delegated to the Head of Pension Fund, the Monitoring Officer, and the Chief Finance Officer as indicated below:
(i) The Head of Pension Fund, the Monitoring Officer, and the Chief Finance Officer may allocate or re-allocate responsibility for exercising powers (delegated to them by Full Council or the Pension Fund Committee) to other officers on their behalf in the interests of effective corporate management as they think fit.
(ii) Records of all such authorisations must be retained in the online Scheme of Delegation database. The officer(s) to whom a power has been re-allocated cannot further delegate that power to another officer.
(iii) Any decisions taken under the Scheme of Delegation must be recorded in the central decision recording system.
Matters Reserved to the Monitoring Officer
l) To enter or vary any agreement to do any of the things reserved to the Pension Fund Committee and to officers under the Scheme of Delegation arrangements.
m) To give any guarantee, suretyship, or indemnity outside the ordinary course of business to secure the liabilities of any person or assume the obligations of any person.
n) To commence, settle or defend any claim, proceedings or other litigation brought by or against LPPL, except in relation to debt collection (not exceeding £2.2m) in the
ordinary course of the Business.
Matters Reserved to the Chief Finance Officer
o) As the officer designated under section 151 of the Local Government Act 1972 to be responsible for the proper administration of the financial affairs of the County Council, for this purpose including the Lancashire County Pension Fund:
(i) To maintain all necessary accounts and records in relation to the Pension Fund save as otherwise discharged in accordance with arrangements determined by the Pension Fund Committee.
(ii) Save as provided for in the Shareholders Agreement, to approve an increase in the amount of any Shareholder Loans or the variation of the terms of any Shareholder Loans.
(iii) To approve the repurchase, repayment, redemption or cancellation of any Shareholder Loan other than in accordance with the terms of any Loan Agreement, Loan Notes or the terms of the Shareholders Agreement.
(iv) To enter into any agreement with a Shareholder for the provision of additional funds or financial support from that Shareholder which differ from the terms on which the other Shareholder is providing equivalent finance or support.
Matters Reserved to the Head of Pension Fund
p) As the officer responsible for the management of the Lancashire County Pension Fund:
(i) To set the appropriate funding target for the Fund.
(ii) To place any monies not allocated to investments on short term deposit in accordance with arrangements approved by the Pension Fund Committee.
(iii) In consultation with the Investment Panel, to monitor and review the performance of investments made by LPPL and to report to each meeting of the Pension Fund Committee on the exercise of this delegation.
(iv) To arrange and authorise the provision of appropriate and necessary training for members of the Pension Fund Committee including the attendance at conferences and other similar pension fund related events by members of the Pension Fund Committee.
(v) To accept for admission into the Lancashire County Pension Fund employees of authorities and bodies as prescribed in Regulations including transferee and community admissions which are considered as 'exceptional circumstances', subject to an approved Admission Agreement, and subject to any necessary indemnities as appropriate.
(vi) To prepare and submit the following to Pension Fund Committee:
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- A 3 Year Strategic Plan for the Fund;
- An Investment Strategy Statement (to include policy on the management of cash balances);
- A Governance Compliance Statement;
- The Pension Fund Annual Report;
- A Funding Strategy Statement to include the Fund's policy in respect of the Funding Target, the collection of employee contributions, the collection of employer contributions, the collection of additional employer contributions, admissions and terminations; and employer risk;
- The Pensions Administration Strategy Statement;
- The Communication Policy;
- An Internal Dispute Resolution Procedure;
- The Death Grant Policy;
- The Bulk Transfer Payment Policy;
- A Commutation Policy (small pensions);
- The Transfer Policy;
- The Abatement Policy; and
- Any other discretionary policies as required under LGPS regulations.
(vii) To carry out the administrative functions of the administering authority relating to the Local Government Pension Scheme.
(viii) To approve the payment of death grants in accordance with the agreed Death Grant Policy.
(ix) To appoint any required external support (subject to the role of the Pension Fund Committee and the Investment Panel), their terms of office and remit.
(x) To deal with stage 2 appeals under the Internal Dispute Resolution Procedure.
(xi) To authorise the payment of any statutory pensions, gratuities, grants, etc. under the provisions of the Superannuation and Pensions Acts and Regulations and any Local Acts.
(xii) To approve applications for early payment of preserved pension benefits on compassionate grounds.
(xiii) To approve payments under the County of Lancashire Act 1984
(xiv) To determine the actual injury allowance payable on each individual qualifying case of injury or disease, both retrospective and for the future.
(xv) To review annually the actual amounts of injury allowances payable under the Local Government Superannuation Regulations, as amended, to employees who have sustained injuries or contracted diseases, as a result of anything they were required to do in carrying out their work and to make any changes appropriate to reflect changes in the relevant financial circumstances of the payee.
(xvi) To provide support to the Local Pension Board to enable it to fulfil its role and responsibilities as defined by sections 5 (1) and (2) of the Public Service Pensions Act 2013.
(xvii) To approve the following:
(xviii) The appointment or removal of the external auditors of LPPL.
(xix) The alteration of LPPL’s accounting reference date.
(xx) Any significant change to any of LPPL’s accounting or reporting practices.
(xxi) The creation of any Encumbrance over the whole or part of the undertaking or assets of LPPL.
(xxii) Any item or series of items of capital expenditure including finance leases but excluding operating leases of more than £5m.
(xxiii) The entering into or variation of any operating lease either as lessor or lessee, of any plant, property or equipment of a duration exceeding 10 years or involving aggregate premium and annual rental payments in excess of £5m.
(xxiv) The factor or discount any book debts of LPPL.
(xxv) The making of any agreement or reach any settlement with any revenue authorities or any other taxing authority, or make any claim, disclaimer, election or consent of a material nature for tax purposes in relation to LPPL, its business, assets or undertaking.
(xxvi) Any change to the bankers of LPPL.
(xxvii) Any change to the registered office of LPPL.