Commenting on the publication of the report, Catherine McFadyen, Head of LGPS Actuarial, Benefits and Governance, Hyman Robertson says: “The SAB is continuing to progress the work to improve governance in the LGPS and the working groups established to achieve this aim to capture the existing best practise across the funds and set that as the standard for everyone to achieve. Good Governance Phase II builds on the project’s earlier proposals to strengthen the governance and administration of the LGPS.”
Highlights of the report:
• Good Governance Phase II calls for statutory guidance to set out the standards that LGPS funds are expected to meet. Under the guidance funds would be required to publish an enhanced governance compliance statement each year, that sets out how the fund complies with its governance responsibilities. It allows each fund the flexibility to work within their local environment to achieve the outcomes needed and improves transparency by enhancing the existing governance compliance statement to make it a far more comprehensive disclosure.
• Oversight will come in the form of a biennial independent governance review for every fund which will provide an expert arms-length assessment of their governance arrangements. This will improve accountability. There are also proposals to introduce the LGA peer review programme to the LGPS to further facilitate sharing of best practise.
• Phase III of the project will see the SAB Secretariat, in conjunction with scheme stakeholders and we will continue to work with them to develop the draft statutory guidance and the governance compliance statement necessary to further strengthen LGPS governance.
• The recommendations have the support of TPR.
Good Governance in the LGPS Phase II
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