Terms of Reference
(1) The Committee is responsible for ensuring that the Fund is properly operated in accordance with all relevant legislation and best practice as advised by the Pensions Regulator, 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; and,
i. approving the Council's Pension Fund Annual Report and Financial Statements and to consider any reports produced by the Strategic Director of Enabling 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.
(2) The Committee will carry 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.
(3) The Committee will assess the covenant of scheme employers, ensure that employer contributions are set accordingly and other relevant regulations are adhered to.
(4) The Committee will determine the overall investment strategy in accordance with the Regulations, ensuring that the Fund is invested in suitable types of investments and is sufficiently diversified having regard to its investment objectives. These include:
a. determining the Statement of Investment Principles;
b. ensuring adequate monitoring and compliance with the overall investment strategy and the Statement of Investment Principles;
c. appointing investment managers and any external service providers and advisors felt to be necessary; and,
d. maintaining effective arrangements for reviewing on a regular basis investment manager performance against established benchmarks and being satisfied as to manager expertise and the quality of their internal systems.
(5) The Committee will work closely with the Lambeth Pension Board (the Board) to ensure the scheme is administered efficiently and effectively and will share with the Board reports and documents to enable the Board to achieve meet its remit. The Council will receive reports from each Board meeting and as the Board deems necessary. In turn the Council will consider any reports the Board may produce in the course of their duties and respond accordingly within a reasonable period of time.
(6) In support of this working relationship any member of the Committee may attend Board meetings and Board members may attend Committee meetings.
(7) As part of the good governance of the Scheme, the Committee will work with, receive and consider reports from the Board. The Board is not a decision making body and it will be for the Committee to ensure that the appropriate actions are undertaken as required.
(8) The Committee will ensure that the Fund works with the relevant admitted bodies as required and that a discretions policy is properly maintained and administered.
In accordance with those recommendations made by the CIPFA and the Myners Report, and notwithstanding resignations etc., the Committee will comprise the following voting members: Five elected members as employer representatives (plus two substitutes) serving for a period, to coincide with the administration’s term of office, of a maximum of four years.
Representatives from the following groups will be co-opted onto the Panel (initially on transfer from the Pension Fund Investment Panel to serve out the remainder of their term) as follows:
a. one representative from members of Staff of the London Borough of Lambeth, who are members of the Fund, elected for a term, to coincide with the administration’s term of office, of a maximum of 4 years;
b. one representative of Pensioners of the Fund elected for a term, to coincide with the administration’s term of office, of a maximum of 4 years by a ballot of Pensioners of the Fund; and,
c. one Trades Union Representative (plus one substitute), nominated by the TU and serve for a period, to coincide with the administration’s term of office, of a maximum of 4 years.
The positions of Chair and Vice-Chair of the Committee will be held for a period of two years each. The Chair will rotate between Chair and the Vice-Chair. Both posts will be filled by councillors appointed by London Borough of Lambeth.
A member serving on the Pensions Committee cannot serve on the Pensions Board.
Support officer: Marianna Ritchie, Democratic Services,. 020 7926 8640, Email: firstname.lastname@example.org
London Borough of Lambeth
Phone: 020 7926 8640