Pensions Board

Terms of Reference 2.1 Subject to the Administering Authority's Scheme of Delegation to officers, to discharge the Administering Authority's functions in relation to the London Borough of Lambeth’s Local Government Pension Scheme including the management of the Fund investments. 2.2 The first core function of the Board is 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 Board in performing this function it will conduct a wide range of tasks including, but not restricted to:

a.review regular compliance monitoring reports which shall include reports to and decisions made under the Regulations by the Committee;

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.assist with the development of 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;

h.review the arrangements for the training of Board members and those elected members and officers with delegated responsibilities for the management and administration of the Scheme;

i.  review the complete and proper exercise of employer and administering authority discretions;

j.  review the outcome of audit reports;

k.review the compliance of particular cases, projects or process on request of the Committee; and,

l.  any other area within the statement of purpose (i.e. assisting the Administering Authority) the Board deems appropriate.   2.3 The second core function of the Board is to ensure the effective and efficient governance and administration of the Scheme, by so doing the Board will be assisting the Committee in meeting its responsibilities. Within the extent of this core function the Board shall determine the areas it wishes to consider 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.    checking Fund external advisors/service providers and their internal controls;

g.   reviewing Fund member record keeping processes for quality, accuracy and content;

h.   checking Fund contributions;

i.    review the development of improved management, administration and governance structures and policies;

j.    review the outcome of actuarial reporting and valuations;

k.   review the development and monitoring of process improvements on request of the Committee; and,

l.    any other area within the statement of purpose (i.e. ensuring effective and efficient governance of the Scheme) the Board deems appropriate. 2.4 In support of its core functions the Board may make:

a.a request for information to the Committee with regard to any aspect of the Administering Authority’s function. Any such request should be reasonably complied within both scope and timing; and,

b.recommendations to the Committee which should be considered and a response made to the Board on the outcome within a reasonable period of time.

2.5The Board is not a negotiating body and will recognise its shared interests and objectives with the Committee. It is not responsible for making operational or investment decisions concerning the London Borough of Lambeth Pension Fund (‘the Fund’). The Committee will determine the overall investment strategy in accordance with the Regulations. 2.6 The Board can delegate its day-to-day operational functions to officers and advisors between Board meetings with clearance from the Chair. 2.7 Subsequent to its establishment, the Board may establish its own sub-committees. 2.8 The Board will submit a report, detailing any actions taken or recommendations made, to the Pensions Committee as and when needed.

1. Membership 3.1 The Public Service Pension Act 2013, requires that Pension Boards include an equal number of employer and Member representatives. Representatives should be able to demonstrate their capacity to attend and complete the necessary preparation for meetings and participate in training as required. Capacity in this instance means the time to commit to attend meetings, undertake training and effectively represent employers and Members as appropriate. 3.2 The Board will consist of:

a. three employer representatives consisting of:

i. three (or two if other employer reps are appointed) elected councillors appointed by the London Borough of Lambeth; and, ii. one other employer representative appointed by the Chief Finance Officer as an independent member, taking into account the skills and experience of the employer and member representatives, if two councillors are appointed;

b. three Scheme member representatives consisting of: i. one representative from the members of Staff of the London Borough of Lambeth who are members of the Fund; ii. one representative of Pensioners of the Fund; and, iii. one Trades Union Representative who is a member of the Scheme. 3.3 Staff representatives will be elected for a term of four years by a ballot open to all members of staff who are members of the Fund. 3.4 Pensioner representatives will be elected for a term of four years by a ballot open to all Pensioners of the Fund. 3.5 Trades Union representatives will be nominated by the Trades Unions and serve for a period of four years. 3.6 Board members are eligible to be re-appointed to the Board at the end of their term of office using the methods described above. 3.7 Extensions to terms of office may be made by the Administering Authority with the agreement of the Board: a. notwithstanding resignations employer representatives will be appointed, to coincide with the administration’s term of office, a maximum of four years. They will be elected councillors, office holders or senior employees of employers of the Fund, or have experience of representing Scheme employers in a similar capacity. No officer or elected councillor of the Administering Authority who is responsible for the discharge of any function of the Administering Authority under the Regulations may serve as a member of the Board; and, b. employer representatives shall be appointed by the Administering Authority where all employers will have been asked to submit their interest in undertaking the role of employer representative on the Board. 3.8 Board membership may be terminated prior to the end of the term of office due to: a. a member representative appointed on the basis of their membership of the scheme no longer being a scheme member in the Fund or a representative of the body on which their appointment relied; b. an employer representative no longer holding the office or employment or being a member of the body on which their appointment relied; c. a Board member no longer being able to demonstrate to the London Borough of Lambeth their capacity to attend and prepare for meetings or to participate in required training; d. the representative being withdrawn by the nominating body and a replacement identified; e. a Board member having a conflict of interest which cannot be managed in accordance with the Board's conflict policy; f. a Board member who is an elected councillor becoming a member of the Committee; and, g. a Board member who is an officer of the Administering Authority becoming responsible for the discharge of any function of the Administering Authority under the Regulations.