Public policy statements

Statement of Investment Principles

The Statement of Investment Principles (SIP) - [PDF, 420 KB] provides an overview of the responsibilities, process and conduct in the management of the LPFA pension fund investments. The SIP was last amended in February 2006 to reflect the change in investment strategy and the new management arrangements. During 2007-08 it will be revised to explain the new responsible investing objective.

Funding Strategy Statement

The purpose of the Funding Strategy Statement (FSS) - [PDF, 345 KB] 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. During 2007-08 it will be amended following the 2007 Fund valuation.

LPFA Local Code on Corporate Governance

The LPFA Local Code of Corporate Governance [MS Word - 87.5KB] 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 [PDF - 39KB] 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 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 - 210 KB] 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 [PDF - 16 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.

Health and Safety Policy

LPFA’s General Statement of Policy under the Health and Safety [PDF 34 KB] 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 - 28 KB] (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 - 237KB) can be viewed for further information as to how specific risks are managed.

Site Search