The Local Government Pension Scheme Regulations (Northern Ireland) 2014

[F1 PART 3 N.I. Governance

Textual Amendments

F1 Pt. 3 inserted (1.4.2015) by The Local Government Pension Scheme (Governance) (Amendment) Regulations (Northern Ireland) 2015 (S.R. 2015/77), regs. 1(1), 4

Pension board N.I.

115.— (1) A pension board known as “the Board” shall be established no later than 1st April 2015 and is responsible for assisting the Committee—

(a) to secure compliance with—

(i) these Regulations;

(ii) any other legislation relating to the governance and administration of the Scheme; and

(iii) requirements imposed by the Pensions Regulator in relation to the Scheme; and

(b) to ensure the effective and efficient governance and administration of the Scheme.

Establishment of the Pension Board N.I.

116.— (1) The Department may designate the Committee as the Board.

(2) The Board shall include employer representatives and member representatives in equal number.

(3) Where paragraph (1) applies the designation will be subject to such conditions as the Department thinks fit.

(4) The Department may withdraw the designation under paragraph (1) if such conditions are not met or if in the opinion of the Department it is no longer appropriate for the Committee to be the Board.

(5) Where paragraph (1) applies, the Committee may, with the approval of the Department pay an allowance to the Chairperson and members of the Board in respect of their duties and responsibilities as such and where this allowance is paid it shall be defrayed out of the pension fund.

(6) The expenses of the Board, including out-of-pocket expenses incurred by the Chairperson and members of the Board in connection with the discharge of their duties as such, shall be defrayed out of the pension fund.

(7) Where regulation 116(1) does not apply the Committee shall establish the Board.

(8) The Board established under paragraph (7), shall consist of—

(a) a chairperson;

(b) members appointed after consultation with such organisations as may be recognised by the Committee as representative of employing authorities;

(c) members appointed after consultation with such organisations as may be recognised by the Committee as representative of Scheme members; and

(d) a number of other members as appear to the Committee to be appropriate.

(9) The number of members appointed under paragraph (8)(b) shall equal the number of members appointed under paragraph (8)(c).

(10) There shall be no less than 6 and no more than 11 members of the Board established under paragraph (7).

(11) Where paragraph (7) applies, the Committee may determine the procedures applicable to the Board and the payment of allowances and expenses.

(12) The payment of allowances and expenses of the Board established under paragraph (7) shall be defrayed out of the pension fund.

The board: appointments N.I.

117.   Where the Board is established under regulation 116(7), the Committee shall determine—

(a) the manner in which members of the Board may be appointed and removed; and

(b) the terms of appointment of members of the Board.

The board: conflict of interest N.I.

118.— (1) The Committee must be satisfied that any person to be appointed as a member of the Board does not have a conflict of interest.

(2) The Committee must be satisfied from time to time that none of the members of the Board has a conflict of interest.

(3) A person who is to be appointed as a member of the Board must provide the Committee with such information as it reasonably requires for the purposes of paragraph (1).

(4) A person who is a member of the Board must provide the Committee with such information as it reasonably requires for the purposes of paragraph (2).

Advisory board: establishment N.I.

119.— (1) A scheme advisory board known as “the Advisory Board” shall be established.

(2) The Advisory Board shall be responsible for providing advice to the Department at its request on the desirability of making changes to the Scheme.

(3) Subject to these Regulations, the Advisory Board may determine its own procedures.

Advisory board: membership N.I.

120.— (1) The Advisory Board shall consist of the following members appointed by the Minister—

(a) a chairperson;

(b) members from organisations as may be recognised by the Minister as representative of employing authorities; and

(c) members from organisations as may be recognised by the Minister as representative of members.

(2) There shall be no less than 6 and no more than 11 members of the Advisory Board.

(3) A member of the Advisory Board is to hold and vacate office in accordance with the terms of that member’s appointment.

Advisory board: conflict of interest N.I.

121.— (1) Before appointing, or approving the appointment of any person to be a member of the Advisory Board, the Department must be satisfied that the person does not have a conflict of interest.

(2) The Department must be satisfied from time to time that none of the members of the Advisory Board has a conflict of interest.

(3) A person who is to be appointed as a member of the Advisory Board must provide the Department with such information as it reasonably requires for the purposes of paragraph (1).

(4) A person who is a member of the Advisory Board must provide the Department with such information as it reasonably requires for the purposes of paragraph (2).

Advisory board: administration N.I.

122.— (1) The chairperson and members of the Advisory Board may receive allowances and expenses incurred in discharging the functions of the Advisory Board as the Department may determine.

(2) The Department shall make available to the Advisory Board such premises, staff and services as the Advisory Board may reasonably require.

(3) Allowances and expenses paid to members of the Advisory Board under paragraph (1) shall be charged to the pension fund.]

[F2 Scheme actuary N.I.

123.— (1) The Department shall appoint an actuary as Scheme actuary to carry out valuations of the Scheme in accordance with Department of Finance and Personnel directions made under section 11 of the 2014 Act (the DFP directions).

(2) The person appointed as Scheme actuary under paragraph (1) shall, in the opinion of the Department, be appropriately qualified to carry out a valuation of the Scheme.

(3) The Department shall secure that the Scheme actuary carries out actuarial valuations of the assets and liabilities of the Scheme as at 31st March 2013 and on 31st March on every third year afterwards and prepare valuation reports in accordance with the DFP directions, within a timeframe which enables the requirements in those directions to be met.

(4) The Committee shall provide the Scheme actuary with any data that the Scheme actuary reasonably requires, in accordance with the DFP directions, in order to carry out a valuation and prepare a report on the valuation.

Textual Amendments

F2 Reg. 123 - 124 inserted (6.4.2015) by The Local Government Pension Scheme (Amendment No. 2) Regulations (Northern Ireland) 2015 (S.R. 2015/162), regs. 1(1), 23

Employer cost cap N.I.

124.— (1) The employer cost cap for the Scheme is 17% of pensionable earnings of the Scheme.

(2) Where the cost of the Scheme, calculated following a valuation in accordance with DFP directions under section 11 of the 2014 Act, is more than the margins specified in regulations made under section 12(5) of the 2014 Act (“the Cost Cap Regulations”) above or below the employer cost cap, the Department shall follow the procedures specified in paragraph (3) for reaching agreement with the Committee, employers and members (or representatives of employers and members) as to the steps required to achieve the target cost specified in the Cost Cap Regulations.

(3) The procedure specified for the purpose of section 12(6)(a) of the 2014 Act is consultation for such period as the Department considers appropriate with the Advisory Board with a view to reaching agreement endorsed by all members of that Board.

(4) If, following such consultation, agreement is not reached within 3 months of the end of the consultation period, the Department shall take steps to adjust the rate at which benefits accrue under regulation 25(4) or 25(5) (active member’s pension accounts) so that the target cost for the Scheme is achieved.]

Textual Amendments

F2 Reg. 123 - 124 inserted (6.4.2015) by The Local Government Pension Scheme (Amendment No. 2) Regulations (Northern Ireland) 2015 (S.R. 2015/162), regs. 1(1), 23