The deadline for Local Government Pension Scheme (LGPS) administering authorities to publish their first revised governance compliance statement has moved from 1 March 2008 to 1 June 2008.
Even though the CLG guidance has not yet been finalised, CLG wants schemes to follow the draft guidance. The draft guidance sets out best practice principles for measuring and demonstrating compliance as well as guidance on how the compliance statement should be completed. An example compliance statement is included in the guidance.
The governance compliance statement must include the following information:
- Whether the administering authority delegates the whole or part of its function to a committee, a sub-committee or an office of the administering authority. If it so delegates:
- The frequency of any meetings, the terms of reference, structure and operational procedures of the delegation, and
- Whether the committee or sub-committee includes representatives of employing authorities (including non-LGPS employers) or members, and if so, whether those representatives have voting rights.
- Publish details of the extent to which a delegation (or absence of delegation) complies with CLG guidance.
- Where the statement does not comply with the guidance, the reasons for non-compliance.
- To send a copy of the statement (or revised statement) to the CLG.
Independent Professional Observer
The draft CLG guidance comments that an independent professional observer could be invited to participate in the governance arrangement. The guidance suggests:
- An independent professional observer could be "invited to participate in the governance arrangement to enhance the experience, continuity, knowledge, impartiality and performance of committees or panels" and would be ideally placed to carry out an independent assessment of compliance against the Myners' principles.
- A further role of an independent professional observer would be to offer a practical approach to address and control risks, their potential effects and what should be done to mitigate them and whether the costs of doing so are proportionate.
For further details on the best practice principles and guidance see our analysis dated October 2007 of theLGPS governance compliance statements: draft guidance.
It is important that administering authorities take action now if they have not already done so.