Archived decisions

    Agenda Item: 9

    HAMPSHIRE COUNTY COUNCIL

    Decision Report :

    Decision Maker:

    Pension Fund Panel

    Date of Decision:

    21 November 2008

    Decision Title:

    Review of the Fund's Governance Compliance Statement

    Decision Reference:

    444

    Report From:

    County Treasurer

    Contact name:

    Anthony Dodridge

    Tel:

    01962 847407

    Email:

    [email protected]

    EXECUTIVE SUMMARY

    1) Summary of Decision Area:

      1.1. Review of the Hampshire Pension Fund's governance compliance statement.

    2) Issues Covered in Report:

      2.1. The Hampshire Pension Fund's business plan includes a commitment to publish a governance compliance statement in accordance with the Government's best-practice principles for such statements - by 1 March 2008. The Government subsequently deferred the deadline for publication until 1 November 2008.

    3) Recommendations:

      3.1. That, subject to any amendments the Panel may wish to make, the governance compliance statement be approved.

    MAIN REPORT

1) Purpose of the Report:

    1.1. Review of the Hampshire Pension Fund's governance compliance statement.

2) The Governance Compliance Statement

    2.1. In a previous meeting of the Pension Fund Panel held on 16 November 2007, the new requirement to produce a governance compliance statement was outlined. At this meeting, the County Treasurer was authorised to draw up a governance compliance statement in accordance with the final statutory guidance and submit it to the Secretary of State for Communities and Local Government.

    2.2. The rationale for administering authorities, such as the County Council, to produce a governance compliance statement is to measure their governance arrangements against statutory guidance.

    2.3. This statement shows how Hampshire County Council as the administering authority of the Hampshire Pension Fund complies with guidance on the governance of the Local Government Pension Scheme (LGPS) issued by the Secretary of State for Communities and Local Government in accordance with the Local Government Pension Scheme (Amendment) Regulations 2008, including the reasons for any non-compliance with the guidance.

    2.4. Administering authorities were originally required to publish a governance compliance statement by 1 March 2008. However, there was a delay in the publication of the statutory guidance by Communities and Local Government (CLG) and the Government subsequently deferred the deadline for publication until 1 November 2008.

    2.5. A final version of the Hampshire County Council Pension Fund's governance compliance statement, which was submitted to the Secretary of State for Communities and Local Government in July 2008, is attached as Appendix 1.

3) Recommendations:

    3.1. Please see recommendations outlined on the Executive Summary.

                      Integral Appendix A

    CORPORATE OR LEGAL INFORMATION:

    LINKS TO THE CORPORATE STRATEGY

    Yes

    No

    Hampshire safer and more secure for all

    Corporate Business plan link no (if appropriate)

    Maximising well-being

    Corporate Business plan link no (if appropriate)

    Enhancing our quality of place

    Corporate Business plan link no (if appropriate)

    OR

    This proposal does not link to the Corporate Strategy but, nevertheless, requires a decision because:

    OTHER SIGNIFICANT LINKS:

    Links to Previous member decisions:

    Title

    Ref

    Date

         
         
         

    Direct Links to Specific Legislation or Government Directives

    Title

    Date

       
       
       

    Section 100 D - Local Government Act 1972 - background documents

     

      The following documents discuss facts or matters on which this report, or an important part of it, is based and have been relied upon to a material extent in the preparation of this report. (NB: the list excludes published works and any documents which disclose exempt or confidential information as defined in the Act.)

     

      Document

      Location

      None

      n/a

       
       
       

    Integral Appendix B

    COMPREHENSIVE RISK & IMPACT ASSESSMENT:

    Race and Equality Impact assessment

    Race and equality impact assessment has been considered in the development of this report and no adverse impact has been identified.

    Crime prevention issues

    The County Council has a legal obligation under Section 17 of the Crime and Disorder Act 1998 to consider the impact of all the decisions it makes on the prevention of crime. The proposals in this report have no impact on the prevention of crime.

    Appendix 1

    GOVERNANCE COMPLIANCE STATEMENT

    This statement shows how Hampshire County Council as the administering authority of the Hampshire Pension Fund complies with guidance on the governance of the Local Government Pension Scheme (LGPS) issued by the Secretary of State for Communities and Local Government in accordance with the Local Government Pension Scheme (Amendment) Regulations 2008.

    Ref.

    Principles

    Compliance and comments

    A

    Structure

    		  

    a.

    That the management of the administration of benefits and strategic management of fund assets clearly rests with the main committee established by the appointing council.

    Full compliance. Hampshire County Council's constitution sets out the functions of the Pension Fund Panel.

    b.

    That representatives of participating LGPS employers, admitted bodies and scheme members (including pensioner and deferred members) are members of either the main or secondary committee established to underpin the work of the main committee.

    Partial compliance. The Pension Fund Panel includes representatives of the other local authorities in the Fund, and pensioner and contributor members. Admitted bodies, which represent only 2% of contributions in the Fund, are not represented on the Pension Fund Panel.

    c.

    That where a secondary committee or panel has been established, the structure ensures effective communication across both levels.

    No formal secondary committees or panels have been established.

    d.

    That where a secondary committee or panel has been established, at least one seat on the main committee is allocated for a member from the secondary committee or panel.

    No formal secondary committees or panels have been established.

    B

    Representation

    		  

    a.

    That all key stakeholders have the opportunity to be represented within the main or secondary committee structure. These include:

    i) employing authorities (including non-scheme employers, e.g., admitted bodies)

    ii) scheme members (including deferred and pensioner scheme members)

    iii) where appropriate, independent professional observers, and

    iv) expert advisers (on an ad-hoc basis).

    Partial compliance. The Pension Fund Panel includes representatives of the other local authorities in the Fund, and pensioner and contributor members. Admitted bodies, which represent only 2% of contributions in the Fund, are not represented on the Pension Fund Panel. The Fund's independent adviser attends meetings of the Pension Panel. Independent professional observers are not regarded as appropriate.

    b.

    That where lay members sit on a main or secondary committee, they are treated equally in terms of access to papers, meetings, and training and are given full opportunity to contribute to the decision-making process, with or without voting rights.

    Full compliance. Equal access is provided to all members of the Pension Fund Panel.

    C

    Selection and role of lay members

    		  

    a.

    That committee or panel members are made fully aware of the status, role and function they are required to perform on either a main or secondary committee.

    Full compliance.

    b.

    That at the start of any meeting, committee members are invited to declare any financial or pecuniary interest related to specific matters on the agenda.

    Full compliance.

    D

    Voting

    		  

    a.

    That the individual administering authorities on voting rights is clear and transparent, including the justification for not extending voting rights to each body or group represented on main LGPS committees.

    Full compliance. All representatives on the Pension Fund Panel have full voting rights, but the Panel works by consensus without votes being required.

    E

    Training / facility time / expenses

    		  

    a.

    That in relation to the way in which the administering authority takes statutory and related decisions, there is a clear policy on training, facility time and reimbursement of expenses for members involved in the decision-making process.

    Full compliance. Full training and facilities are made available to all members of the Pension Fund Panel.

    b.

    That where such a policy exists, it applies equally to all members of committees, sub-committees, advisory panels or any other form of secondary forum.

    Full compliance.

    c.

    That the administering authority considers adopting annual training plans for committee members and maintains a log of all such training undertaken.

    Partial compliance. Training is reviewed each year in the Fund's business plan and all training opportunities are made available to Pension Fund Panel members. Individual training plans and logs are not maintained.

    F

    Meetings (frequency / quorum)

    		  

    a.

    That an administering authority's main committee or committees meet at least quarterly.

    Partial compliance. The Pension Fund Panel meets at least four times a year to fit its business needs, but not necessarily at quarterly intervals.

    b.

    That an administering authority's secondary committee or panel meets at least twice a year and is synchronised with the dates when the main committee sits.

    No formal secondary committees or panels have been established.

    c.

    That an administering authority that does not include lay members in its formal governance arrangements, must provide a forum outside of those arrangements to represent the interests of key stakeholders.

    Full compliance. The Pension Fund Panel includes lay members. An Annual General Meeting of the Pension Fund is held and road shows arranged for employers.

    G

    Access

    		  

    a.

    That subject to any rules in the Council's constitution, all members of main and secondary committees or panels have equal access to committee papers, documents and advice that are due to be considered at meetings of the main committee.

    Full compliance. Equal access is provided to all members of the Pension Fund Panel.

    H

    Scope

    		  

    a.

    That administering authorities have taken steps to bring wider scheme issues within the scope of their governance arrangements.

    Full compliance. The Pension Fund Panel deals with fund administration issues as well as fund investment.

    I

    Publicity

    		  

    a.

    That administering authorities have published details of their governance arrangements in such a way that stakeholders with an interest in how the scheme is governed can say they want to be part of those arrangements.

    Full compliance. The County Council's Governance Policy Statement is published in the Pension Fund's Annual Report and on its website.