PART E: Committees and Joint Arrangements
Chapter 26: Pensions Committee
Section 26.1: Introduction
The Pensions Committee undertakes required responsibilities in relation to the Local Government Pensions Scheme.
Section 26.2: Terms of Reference
Summary Description
To consider pension matters and meet the obligations and the duties of the Council under the Superannuation Act 1972 and the various statutory requirements in respect of investment matters.
Membership
7 Councillors, 1 representative of the Admitted Bodies and 1 Trade Union representative. The Admitted Body and Trade Union representatives will be non-voting members of the Committee.
Declaration of Interests:
Members of the Pensions Committee including co-opted members, are required to declare any interests that they have in relation to the Pension Fund or items on the agenda at the commencement of the meeting.
Table of Functions
Functions | Delegation of Functions |
|---|---|
1. To act as Trustees of the Council’s Pension Fund, consider pension matters and meet the obligations and the duties of the Council under the Superannuation Act 1972, the Public Service Pensions Act 2013, and the various pensions’ legislation. | None |
2.To make arrangements for the appointment of and to appoint suitably qualified pension fund administrators, actuaries, advisers, investment managers and global custodians and periodically to review those arrangements. | None |
3. To formulate and publish an Investment Strategy Statement. | None |
4. To set the overall strategic objectives for the Pension Fund, having taken appropriate expert advice, and to develop a medium-term plan to deliver the objectives. | None |
5.To determine the strategic asset allocation policy, the mandates to be given to the investment managers and the performance measures to be set for them. | None |
6.To make arrangements for the triennial actuarial valuation, to monitor liabilities and to undertake any asset/liability and other relevant studies as required. | None |
7.To monitor the performance and effectiveness of the investment managers and their compliance with the Investment Strategy Statement. | None |
8.To set an annual budget for the operation of the Pension Fund and to monitor income and expenditure against budget. | None |
9.To receive and approve an Annual Report and accounts on the activities of the Fund prior to publication. | None |
10.To make arrangements to keep members of the Pension Fund informed of performance and developments relating to the Pension Fund on an annual basis. | None |
11.To keep the terms of reference under review. | None |
12.To determine all matters relating to admission body issues. | None |
13.To review the Pension Fund’s policy and strategy documents on a regular basis and review performance against the Fund’s objectives within the business plan including stakeholder communications. | None |
14.To maintain an overview of pensions training for Members. | None |
15.To ensure compliance with the LGPS Regulations, Codes of Practice or guidance issued by the Pensions Regulator and the National Scheme advisory Board as they apply to pension benefits and the payment of pensions and their day to day administration and to be responsible for any policy decisions relating to the administration of the scheme. | None |
16.Selection, appointment and termination of external Additional Voluntary Contribution (AVC) providers and reviewing performance. | None |
17.Approve policy on environmental, social and governance considerations, responsible investment and on the exercise of share voting rights. | None |
18.To review the risks inherent in the management of the Pension Fund. | None |
19.To consider any recommendations made or views expressed by the London Borough of Tower Hamlets Pensions Board. | None |
20.In relation to pooled asset arrangements under the London Collective Investment Vehicle (LCIV) Shareholder Committee:
| None |
Quorum: 3 Members of the Committee
Meetings:At least four times a year in the ordinary course of business and additional meetings may be arranged as required to facilitate work. Work for the year will be agreed with the Committee to include dedicated training sessions for Committee members.
Section 26.3: Procedure Details
Membership of the Pensions Committee
The Council decides the composition and makes appointments to the Pensions Committee. Currently the membership of the Pensions Committee is a minimum of 7 elected Members from Tower Hamlets Council on a politically proportionate basis and the Pensions Committee will elect a Chair and Vice Chair. All Tower Hamlets Council elected Members have voting rights on the Committee and three voting members of the Committee are required to be able to deem the meeting quorate.
In addition there are two co-opted non-voting members representing employer and Scheme member interests. Although the co-opted representatives do not have voting rights they are treated as equal members of the Committee, they have access to all Committee Advisers, officers, meetings and training as if they were Council Members and have the opportunity to contribute to the decision making process.
Voting rights are restricted to elected Members as they are deemed to be fulfilling the role of Trustees as the Pension Fund with all the legal responsibilities that this entails, it was not felt appropriate to apply the same legal definition to the lay members of the Committee and hence their role as non-voting members.
Agendas for meetings will be agreed with the Chair and will be circulated with supporting papers to all members of the Committee, officers of the Council as appropriate and the Fund's Investment Advisor.
Notice of meetings and provision of agendas and other papers will comply with the Access to Information Procedure Rules.