Avon Pension Fund
Administered by Bath and North East Somerset Council
Administered by Bath and North East Somerset Council
Governance Policy Statement March 2006
AVON PENSION FUND
GOVERNANCE POLICY STATEMENT (DRAFT)This Statement has been prepared by Bath and North East Somerset Council (as the administering authority) to set out the governance policy of the Avon Pension Fund (“the Fund”), in accordance with Regulation 73A of the Local Government Pension Scheme Regulations 1997 (as amended).
CONTENTS
1. Executive Responsibility
2. Avon Pension Fund Committee
3. Representations to the Avon Pension Fund Committee
4. Consultative Forum
5. Officer Delegations
6. Review of Governance Policy Statement
Introduction
The Local Government Pension Scheme (Amendment) (No.2) Regulations 2005 provide the statutory framework from which the administering authority is required to prepare a Governance Policy Statement (GPS). Accordingly, the GPS sets out the Fund’s governance arrangements, including representation and delegations. 1. Executive Responsibility
Bath & North East Somerset Council, in its role as administering authority, has executive responsibility for the Fund. The Council delegates its responsibility for administering the Fund to the Avon Pension Fund Committee which is the formal decision making body for the Fund. The Committee is subject to the Council’s standing orders and financial regulations including the Codes of Practice.
2. Avon Pension Fund Committee
The Avon Pension Fund Committee’s terms of reference were agreed at its meeting on 19 September 2003. The terms of reference are as follows:
“To discharge the responsibilities of Bath and North East Somerset Council in its role as lead authority for the administration of the Avon Pension Fund. These include determination of investment policy objectives, making arrangements for management of the Fund’s investments and monitoring investment performance; commissioning actuarial valuations in accordance with the provisions of the Local Government Pension Scheme Regulations; considering requests from organisations wishing to join the Fund as admitted bodies; making representations to Government as appropriate concerning any proposed changes to the Local Government Pension Scheme; and all aspects of benefit administration”.
The Avon Pension Fund Committee meets quarterly, with special meetings and workshops arranged as necessary. Currently the Committee comprises five voting members from Bath & North East Somerset Council and seven non-voting members (or “observers”). Of the latter three represent the unitary councils and the other four are nominated by the trades unions.
Following a review of the Funds constitution and representation arrangements, a new governance model will, subject to Council approval in May 2006, be implemented during 2006. Under this new model the Committee will comprise five voting members from Bath & North East Somerset Council and two independent trustees. The independent trustees will have the same role, responsibilities and powers as the voting members.
In addition to the voting members, there will be a maximum of ten non-voting members on the Committee as follows:
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3. Representations to the Avon Pension Fund Committee
There are arrangements in place for the public, including employing bodies and members of the Avon Pension Fund, to make representations to the Committee by giving written notice (at least two working days in advance) that they wish to ask a question or raise an issue at the Committee meeting.
4. Consultative Forum
The Avon Pension Fund has proposed establishing a Consultative Forum which will provide a mechanism for employing bodies and member representatives to consult with the Committee on matters relating to the Fund. The employing bodies and member representatives will set the Forum’s agenda. The proposal envisages the Forum being held annually with the inaugural Forum in Spring 2007. Membership of the Forum will be open to all employing bodies and scheme member representatives and the Chair will be elected by the Forum. In the event that the need to vote arises, each stakeholder body present at the Forum will have one vote.
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5. Officer Delegations
The Avon Pension Fund has delegation arrangements in place as they relate to Administering Authority discretions contained within the Local Government Pension Scheme. The Avon Pension Fund Committee approved the delegations of decisions to officers at its meeting on 17 June 2005.
In the case of investments all decisions of a strategic nature are taken by the Avon Pension Fund Committee. The day-to-day functions of investment management and custody are outsourced. In these circumstances the only officer delegations required are the facility to amend investment and custody agreements in certain circumstances and to allocate and withdraw monies from portfolios. In those cases where urgent action is required to safeguard the Fund's investments, there are general emergency arrangements empowering the Resources Director to act.
In the case of benefits administration the delegations relate to the way in which the Council exercises discretionary powers within a statutory framework. As a general principle it was agreed that these powers should be exercised by the Resources Director on the Committee's behalf at the Pensions Committee meeting on 18th June 2000 and the Avon Pension Fund Committee meeting on 17th June 2004. For practical reasons some of these powers are further delegated to the Business Financial Services Manager, Pensions Manager and Investments Manager.
6. Review of Governance Policy Statement
In line with the regulations, the GPS will be revised and published by the administering authority following any material change in the governance policy.
Avon Pension Fund
3 March 2006
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GOVERNANCE POLICY STATEMENT (DRAFT)This Statement has been prepared by Bath and North East Somerset Council (as the administering authority) to set out the governance policy of the Avon Pension Fund (“the Fund”), in accordance with Regulation 73A of the Local Government Pension Scheme Regulations 1997 (as amended).
CONTENTS
1. Executive Responsibility
2. Avon Pension Fund Committee
3. Representations to the Avon Pension Fund Committee
4. Consultative Forum
5. Officer Delegations
6. Review of Governance Policy Statement
Introduction
The Local Government Pension Scheme (Amendment) (No.2) Regulations 2005 provide the statutory framework from which the administering authority is required to prepare a Governance Policy Statement (GPS). Accordingly, the GPS sets out the Fund’s governance arrangements, including representation and delegations. 1. Executive Responsibility
Bath & North East Somerset Council, in its role as administering authority, has executive responsibility for the Fund. The Council delegates its responsibility for administering the Fund to the Avon Pension Fund Committee which is the formal decision making body for the Fund. The Committee is subject to the Council’s standing orders and financial regulations including the Codes of Practice.
2. Avon Pension Fund Committee
The Avon Pension Fund Committee’s terms of reference were agreed at its meeting on 19 September 2003. The terms of reference are as follows:
“To discharge the responsibilities of Bath and North East Somerset Council in its role as lead authority for the administration of the Avon Pension Fund. These include determination of investment policy objectives, making arrangements for management of the Fund’s investments and monitoring investment performance; commissioning actuarial valuations in accordance with the provisions of the Local Government Pension Scheme Regulations; considering requests from organisations wishing to join the Fund as admitted bodies; making representations to Government as appropriate concerning any proposed changes to the Local Government Pension Scheme; and all aspects of benefit administration”.
The Avon Pension Fund Committee meets quarterly, with special meetings and workshops arranged as necessary. Currently the Committee comprises five voting members from Bath & North East Somerset Council and seven non-voting members (or “observers”). Of the latter three represent the unitary councils and the other four are nominated by the trades unions.
Following a review of the Funds constitution and representation arrangements, a new governance model will, subject to Council approval in May 2006, be implemented during 2006. Under this new model the Committee will comprise five voting members from Bath & North East Somerset Council and two independent trustees. The independent trustees will have the same role, responsibilities and powers as the voting members.
In addition to the voting members, there will be a maximum of ten non-voting members on the Committee as follows:
- 4 representing each of the unitary authorities (including Bath & North East Somerset Council)
- 4 trades union representatives (currently nominated by the unitary authorities, but in future to be nominated by individual trades unions on the basis of one member per union)
- 1 representing the education bodies
- 1 representing the resolution bodies
- 1 representing the resolution bodies
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3. Representations to the Avon Pension Fund Committee
There are arrangements in place for the public, including employing bodies and members of the Avon Pension Fund, to make representations to the Committee by giving written notice (at least two working days in advance) that they wish to ask a question or raise an issue at the Committee meeting.
4. Consultative Forum
The Avon Pension Fund has proposed establishing a Consultative Forum which will provide a mechanism for employing bodies and member representatives to consult with the Committee on matters relating to the Fund. The employing bodies and member representatives will set the Forum’s agenda. The proposal envisages the Forum being held annually with the inaugural Forum in Spring 2007. Membership of the Forum will be open to all employing bodies and scheme member representatives and the Chair will be elected by the Forum. In the event that the need to vote arises, each stakeholder body present at the Forum will have one vote.
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5. Officer Delegations
The Avon Pension Fund has delegation arrangements in place as they relate to Administering Authority discretions contained within the Local Government Pension Scheme. The Avon Pension Fund Committee approved the delegations of decisions to officers at its meeting on 17 June 2005.
In the case of investments all decisions of a strategic nature are taken by the Avon Pension Fund Committee. The day-to-day functions of investment management and custody are outsourced. In these circumstances the only officer delegations required are the facility to amend investment and custody agreements in certain circumstances and to allocate and withdraw monies from portfolios. In those cases where urgent action is required to safeguard the Fund's investments, there are general emergency arrangements empowering the Resources Director to act.
In the case of benefits administration the delegations relate to the way in which the Council exercises discretionary powers within a statutory framework. As a general principle it was agreed that these powers should be exercised by the Resources Director on the Committee's behalf at the Pensions Committee meeting on 18th June 2000 and the Avon Pension Fund Committee meeting on 17th June 2004. For practical reasons some of these powers are further delegated to the Business Financial Services Manager, Pensions Manager and Investments Manager.
6. Review of Governance Policy Statement
In line with the regulations, the GPS will be revised and published by the administering authority following any material change in the governance policy.
Avon Pension Fund
3 March 2006
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