The Draft Public Service Pensions Bill, which was presented to Parliament last week, proposes major changes to the governance and oversight of public sector pension schemes. In particular the Pensions Regulator is set to widen its current oversight of private sector pension schemes to cover public sector pensions.
Commenting on the changes, CIPFA Pensions Panel Chair, Bob Summers, said:
“Any measures intended to strengthen governance in public sector pensions should be welcomed. We at CIPFA look forward to exploring with the Pensions Regulator how existing governance arrangements and associated Codes of Practice and guidance, particularly in the sphere of the Local Government Pension Scheme, can be deployed to assist the Regulator in discharging these new responsibilities”.
However Mr Summers expressed some concern at elements of the bill which seek to centralise aspects of the Local Government Pension Scheme under the control of the Treasury,
“The LGPS is unique amongst UK public sector pension schemes in that there is a clear accountability link between local fund administrators and local Council Tax payers. The introduction of a third party that can influence funding strategy and the process by which employer contributions are set weakens that link and restricts the ability of the local fund administrator to manage the fund flexibly to suit local circumstances.”
Contact: Tim Windle
CIPFA Press Office
t 0207 543 5787
Notes to Editors:
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