2. Terms of Reference
2.1 The Committee is responsible for ensuring
that the Fund is properly operated in accordance with all relevant
regulations and best practice as advised by the Pensions Regulator,
the LGPS, SAB, Constitution of the London Borough of Lambeth 135
MHCLG and CiPFA, including both
financial and administration matters. This will include, but is not
limited to:
a. benefits
administration;
b. managing the
Discretions policies;
c. resolving
Internal Disputes;
d. communications
with members;
e. communication
and engagement with employers;
f. monitoring
Risks;
g. record
keeping;
h. publishing of
Scheme information as required;
i. review the draft
annual statement of accounts for the Pensions Fund.
Specifically, to
consider whether appropriate accounting policies have been followed
and whether there are concerns arising from the financial
statements or from the audit that need to be brought to the
attention of the Committee. To consider the external
auditor’s report to those charged with governance on issues
arising from the audit of the accounts, and then to formally
approve the audited Pension Fund Annual Report;
j. approving the
Council's Pension Fund Annual Report and Financial Statements and to consider any reports produced by
the Chief Finance Officer in accordance with the duty to make
arrangements for the proper administration of the financial affairs
of the Council's Pension Fund (“the Fund”), but not in
respect of the formulation of a plan or strategy which is a
function of the Cabinet (and subject to final approval by the
Council) or detailed operational matters which are within the
purview of the Cabinet and for taking whatever action is necessary
to ensure compliance with both the Local Government Pension Scheme
Regulations (“the Regulations”) (as amended from time
to time) and best practice;
k. participating in
the London Collective Investment vehicles in accordance with the
requirements placed on administering authorities in relation to the
pooling of LGPS assets made under the powers conferred on the
Secretary of State by the Local Government Pension Scheme
(Management and Investment of Funds) Regulations 2016, Regulation
7(1);
l. carrying out the
duties set out in the Regulations, in relation to the actuarial
valuations of the Fund and in relation to any other decisions about
the amount the employers need to pay; and,
m. assessing the
covenant of Scheme employers, ensure that employer contributions
are set accordingly and other relevant
regulations are adhered to.
2.2 To assist the Administering Authority in
securing compliance with the Regulations, any other legislation
relating to the governance and administration of the Scheme, and
requirements imposed by the Pensions Regulator in relation to the
Scheme. To assist the Committee in performing this function it will
conduct a wide range of tasks including, but not restricted to:
a. produce regular compliance monitoring reports;
b. review
management, administrative and governance processes and procedures
in order to ensure they remain compliant with the Regulations,
relevant legislation and in particular the Code;
c. develop and continually review Scheme member and
employer communications as required by the Regulations and relevant
legislation;
d. monitor
complaints and performance on the administration and governance of
the Scheme;
e. review the application of the Internal Dispute
Resolution Procedure;
f. review the complete and proper exercise of Pensions
Ombudsman cases;
g. review the
implementation of revised policies and procedures following changes
to the Scheme; Constitution of the London Borough of Lambeth
136
h. review the arrangements for the training of
Committee members and those elected members and officers with
delegated responsibilities for the management and administration of
the Scheme;
i. review the outcome of
audit reports;
j. review the compliance of particular cases, projects
or process on request of the Committee;
k. effective
scrutiny of the Fund’s investments; and,
l. any other area
within the statement of purpose (i.e.
assisting the Administering Authority) the Committee deems
appropriate.
2.3 To ensure the effective and efficient
governance and administration of the Scheme, by so doing the
Committee will assist the Board in meeting its responsibilities.
Within the extent of this core function the Committee shall be
instructed by the Board in determine the areas to be considered
including but not restricted to:
a. review the development of improved customer
services;
b. monitor
performance of administration, governance and investments against
key performance targets and indicators;
c. monitor audit
reports;
d. review the risk
register as it relates to the Scheme Manager function of the
authority;
e. checking Fund
governance;
f. reviewing Fund
risks and internal systems and control;
g. checking Fund
external advisors/service providers and their internal controls;
h. reviewing Fund
member record keeping processes for quality, accuracy and
content;
i. checking Fund contributions;
j. review the development of improved management,
administration and governance structures and policies;
k. review the outcome of actuarial reporting and
valuations;
l. review the development and monitoring of process
improvements on request of the Board; and,
m. any other area
within the statement of purpose (i.e.
ensuring effective and efficient governance of the Scheme) the
Committee deems appropriate.
2.4 In support of its core functions the
Committee may make:
a. a request for
information to the Board or Administering Authority with regard to any aspect of the Administering
Authority’s function. Any such request should be reasonably
complied with in both scope and timing; and,
b. recommendations
to the Board which should be considered
and a response made to the Committee on the outcome within a
reasonable period of time. 2.5 The Committee can delegate its
day to day operational functions to
officers between Committee meetings with clearance from the
Chair.