Agenda item

As part of the Pension Reforms introduced following Lord Hutton’s report into Pensions, a Local Pension Board (LPB) was established in February 2015 to assist the Scheme Manager, Lancashire Combined Fire Authority in securing compliance with the legislation regulations affecting the pension scheme as they affect the Firefighters Pension Schemes.  The Authority delegated to the Director of People and Development the responsibility of complying with the relevant regulations and guidance.

It was noted that the administrative process was being undertaken under a contractual arrangement by the Local Pensions Partnership.  The LPB comprised of four members, the Deputy Chief Fire Officer, the Assistant Chief Fire Officer (representing the employees) and two Union officials (the Brigade Secretary and Officers Branch lead FBU) representing the pension members.

When the Board was established it was agreed that the LPB membership would be reviewed once the scope and activities of the LPB became clear.  This was still not the case.  The LPB met twice a year with the Scheme Manager and Jayne Hutchinson (HR Adviser, responsible for pension activities) reporting to the LPB members the current position, issues and actions.  A National Scheme Advisory Board had also been established to provide advice to both the Scheme Manager and LPB.  This body had not as yet provided clarity to the relationship.  Clair Alcock, an LGA employee with responsibility for providing advice and guidance on firefighter pension activities and an adviser/member of the National Scheme Advisory Board, had been invited to attend the LPB to explain the national view of the role and responsibilities of the LPB, to ensure that the LPB was operating effectively. 

Items addressed by the LPB had been:

·        Conflicts of interest

·        Terms of Reference

·        Pension administration including monitoring of IDRP

·        Membership levels

·        Pension Ombudsman/Pension Regulator issues

·        Communications

·        Member knowledge and understanding of the Pension Scheme

Unlike other Pension Boards, the firefighters' scheme had no funding issues to consider.  This effectively limited the LPB relevance and workload.

The Scheme Manager had to ensure the following:

·        Annual benefit information statements were provided to each Scheme Manager

·        Publication of scheme information

·        Maintenance of scheme records

·        Report to the Pension Regulator on any late payments of contributions

·        Establish and maintain internal controls to ensure the scheme was managed in accordance with the rules and legislative requirements.

The delegated Scheme Manager utilised the LPB to report against these requirements and the performance of our sub-contractor and any relevant interaction with both the Pensions Regulator and Ombudsman.  The most valuable interaction was however in respect of communications over Pension issues.

At the most recent meeting the LPB members were consulted over any LPB membership development.  The LPB were of the view that until a more meaningful workload had been determined then no determination should be made in respect of future membership.

RESOLVED:- That the Committee:

(i)    endorsed continuation of the current arrangements; and

(ii)  required the Director of People and Development, as the delegated Scheme Manager to produce proposals for any amendment to the representation on the Local Pension Board once a requirement was determined or request the continuation of the current arrangements beyond March 2019