Public policy statements

Statement of Investment Principles

The Statement of Investment Principles (SIP) - [PDF - 368KB] (link opens in new window) provides an overview of the responsibilities, process and conduct in the management of the LPFA pension fund investments. The SIP was amended in March 2011 to reflect the LGPS (Management and Investment of Funds) Regulations 2009 and includes an assessment against the 6 revised Myners Principles.

Funding Strategy Statement

The purpose of the Funding Strategy Statement (FSS) - [PDF, 148 KB] (link opens in new window) is to establish a clear and transparent fund specific strategy which identifies how employers’ pension liabilities are best met in future years, to keep their contribution rates as nearly constant as possible and to take a prudent longer-term view of funding those liabilities. The current Funding Strategy Statement was approved in December 2010 as part of the 2010 Valuation process.

2010 Valuation Report

The 2010 Valuation Report (PDF 1MB - link opens new window) has now been finalised and approved by Board. This document provides details on the funding position across LPFA’s two sub-funds and notes the assumptions used in coming to these conclusions.

High level results indicate that the Active Sub-fund was 83% funded (up from 82% funded in 2007) and the Pensioner Sub-fund was 77% funded, a similar position as in 2007. Employer contribution rates have therefore remained stable in the main, although allowance has been taken for individual employer circumstances. Please contact our Employer Services Team on 0207 369 6237 for further information.

LPFA Local Code on Corporate Governance

The LPFA Local Code of Corporate Governance [MS Word - 133KB] has been developed in line with the CIPFA (Chartered Institute of Public Finance and Accountancy) and SOLACE (The Society of Local Authority Chief Executives and Senior Managers) guidance contained in “Delivering Good Governance in Local Government”.

Given LPFA’s unique status as a statutory corporation this Code endeavours to reflect the guidance and best local government practice where possible, whilst having regard to the requirements placed on pension funds to demonstrate effective scheme governance.

This document sets out LPFA’s Local Code of Corporate Governance and the process for monitoring and maintaining the Code which will enable LPFA to successfully achieve its objectives.

LGPS Governance Statement

The LGPS Governance Statement [MS Word - 89KB] sets out how the administration of the Fund is governed.

Each administering authority is required to publish a governance statement and also to explain their compliance with a set of best practice principles issued by Communities and Local Government. Compliance statements are intended to ensure transparency, accountability and stakeholder involvement. The LPFA has no power to appoint additional Board members but, as part of a recent governance review, an amendment has been made to LPFA’s Standing Orders which allow the Board, at some future date, to appoint lay members (without voting rights) to the Board and/or its Committees if it so wishes. LPFA has a unique constitution among administering authorities and for many years has supported representation via observers, public meetings and through consultation with Fund Member and employer representatives.

Fraud Control Framework

LPFA’s Fraud Control Framework [PDF 56KB - opens new window] sets out the Authority’s approach and commitment to fraud prevention and detection. LPFA recognises that its reputation for financial probity must be protected, and as part of that operation putting in place measures to tackle fraud and corruption is vital. This document also recognises the responsibilities of staff and contains an annual action plan to raise fraud awareness.

Communications Policy Statement

The communications policy statement [PDF - 470 KB] (link opens in new window) describes information and publicity relating to the Scheme, and the frequency, format and method of distribution, to members, representatives, employers and potential members of the scheme.

Equality Schemes

Environmental Plan

LPFA’s Environmental Plan [MS Word - 79 KB] is in line with the Mayor’s Green Procurement Code and current best practice. An approved supplier policy is maintained and confirms business will be transacted only with suppliers and contractors who have environmental (and Health & Safety and Equality) policies compatible with LPFA’s.

LPFA’s Environmental Policy (MS Word - 118KB) is designed to satisfy the requirements of the ISO 14001:2004 standard, and operate environmental best practice throughout the LPFA.

Health and Safety Policy

LPFA’s General Statement of Policy under the Health and Safety [PDF 86 KB] (link opens in new window) at Work Act 1974.

Internal Disputes Resolution Procedure / Complaints procedure

The LPFA aims to satisfy any complaint that you may have and is interested in suggestions on how our service can be improved.

If you are dissatisfied with any decision made in relation to the Local Government Pension Scheme, you have the right to have your complaint independently reviewed under the Internal Disputes Resolution Procedure [PDF - 132 KB] (link opens in new window) (IDRP) and there are also a number of other regulatory bodies that may be able to assist you.

Risk Management

LPFA’s risk appetite statement is as follows:

As an appointed body responsible for the proper and prudent management of public monies, and the administration of a public sector pension scheme, the LPFA:

is risk averse in terms of ensuring legal compliance, eradicating all forms of unfair discrimination, maintaining financial integrity and achieving effective delivery of operations; and
has a greater appetite, in a controlled environment, for risk when pursuing new business development and attempting to maximise investment returns, having regard to those who meet the cost of pensions.

The Corporate Risk Register (MS Word - 296KB) can be viewed for further information as to how specific risks are managed.

Information Security Policy

LPFA’s Information Secirty Policy (MS Word - 111KB) is subject to continuous, systematic review and improvement and is designed to meet the requirements of ISO27001:2005. This policy will be reviewed to respond to significant changes including any changes in the risk assessment or risk treatment plan.

Pensions Administration Strategy

The aim of the PAS is to ensure that both LPFA and its employers are fully aware of their responsibilities under the Scheme and to identify acceptable levels of performance. All employers have been asked to sign up to the PAS by 1st April 2010 and to comply with standards set by the Service Level Agreement. The ultimate aim of this strategy is to educate employers to provide accurate and timely data to LPFA which will improve the service provided to scheme members. Failure to comply however could result in a variation of the administrative element of the contribution rate an employer pays.

Please see the final version of the PAS documents which set out service standards expected to be met by both employers and LPFA.

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