Principles for Investment Decision Making and Disclosure in the Local Government Pension Scheme in the United Kingdom 2012

A Guide to the Application of the 2008 Investment Governance Group Principles to the Management of LGPS Funds

The Local Government Pension Scheme (LGPS) has a deserved reputation for applying and demonstrating the highest standards of governance. Since 2002 all LGPS funds have been required to report upon their application and compliance with the Myners principles – ten best practice statements relating to pension fund investment decision-making launched by HM Treasury in 2001. In 2008, following an extensive review of the principles conducted by the National Association of Pension Funds, these ten original principles were updated and consolidated into six new principles.

The CIPFA Pension Panel's guidance Principles for Investment Decision Making in the Local Government Pension Scheme in the United Kingdom which was issued in 2009, brought together the revised principles with practical comment on their application to funds in England, Wales, Scotland and Northern Ireland.

Since 2009 there have been significant changes in the LGPS landscape, with new investment regulations, the introduction of the UK Stewardship Code, and the governance challenges posed by the findings and recommendations of the Independent Public Service Pensions Commission led by Lord Hutton.

This revised guidance from CIPFA reflects the recent changes and supersedes the previous guidance. Developed in association with leading LGPS practitioners, the guidance once again comes with the full endorsement of the Department for Communities and Local Government and should enable all funds to continue to demonstrate the application of these best practice principles and maintain the highest possible standards of governance.

This publication is available as a book and a bookmarked PDF.