The Local 
Government Pension Scheme is probably the largest scheme in the Country with about 3 million members and some £100 billion in assets invested all over the world.I am just about to send off comments on a government consultation paper on its governance.
The sheer size and scale of the LGPS makes it imperative that there are good governance practices in place across the country. At the moment there is not. There is some good practice and some very rotten practice. This has got to change. Pensioners and council tax payers deserve better.
I’ve modelled the comments on the UNISON briefing paper. I’ve left it last minute as usual but other LG union reps have until 5pm today to email comments to Robertdothollowayatcommunitiesdotgsidotgovdotuk
My UNISON branch wishes to respond to the DCLG consultation process on this very important issue.
Most UNISON members value the LGPS. It is usually the only effective means of saving for their retirement and to protect their dependents while at work and when retired. We are willing to take action and even strike to protect our scheme and its benefits to retired members and their vulnerable dependants.
We understand that since as a pension scheme we have a statutory legal status, member’s legal rights are guaranteed by European Union regulations to protect our pension and make sure it is properly run.
It is nonsensical to suggest that our members do not bear any financial risk since the LGPS is a statutory scheme. Also, as owners of pension capital we have a duty and responsibility to ensure that our deferred pay is properly invested and the scheme adequately funded and governed.
Not least because if a scheme is underfunded then future benefits may well be slashed. Arguably the recent dispute over the LGPS was caused in part (not totally) by the failure of certain schemes to pay enough into their pension funds and to ensure that these funds were suitably invested.
This is unlike in the private sector where it is often possible due to scheme rules, legislation and real independent pension trustees to challenge employers who wish to cut benefits.
Our branch fully supports the position and objectives put forward by our national union.
We want our scheme to be consistent with all the 89 schemes and raise governance standards.
There should be minimum statutory guidance that sets the following bench mark.
1. That the scheme is run in the sole interests of the beneficiaries
2. That the assets are to be invested in the best interests of members and beneficiaries, and in the event of a conflict of interest the administration authority must ensure that investments are made in the sole interest of members and beneficiaries.
3. Delegation by the administrating authority of all pension fund activities to a main committee
4. A pensions and investment sub committees – for all administration of the fund and investment activity including investment allocation and management
5. Joint working parties on dispute resolution, discretions policy or any other issue
6. All of the above bodies should seek to have additional members, in equal numbers to councillors, made up from member nominated representatives (MNR) and beneficiary nominated representatives (BNM)
7. That MNR’s have the same status and voting rights as councillors in the administration and governance of the funds
8. That all or some may be nominated by their respective trade unions, in proportion to their national membership
9. Any admitted body employers representation should also contain this arrangement
10. Equality proofing should be applied to all current and proposed changes to committee and governance arrangements. A mechanism for carrying out equality impact assessments should be agreed with the TU Side as soon as possible.
11. There should be a model constitution and an AGM for each fund
12. There should be a national body of LGPS stakeholders, which meets to continually review governance arrangements
13. That MNR’s should be afforded facility time, training and other resources necessary for their effective performance
14. MNR’s give greater management stability for the funds as councillors are subject to regular democratic challenge, internal political command removal from office or removal from responsibility across or within the electoral cycle.
15. That all governance statements are published by each authority on their web sites and all of the 89 are published centrally on a CLG web site.
16. Sanctions imposed upon authorities that do not meet the bench mark established by the statutory guidance
17. Finally UNISON believes that trade union nominated MNR’s offer greater potential for compliance with the Myners code on consultation with LGPS contributors and beneficiaries.
14 comments:
Take some time out from further ring fencing your fantastic publicly funded pensions, so extensively paid for by the tax payers many of whom have had their own pensions ruined by Gordon "no boom or bust" Brown, to support amputee troops. These guys got just 60K each from the state? Gordons support for the forces with their appalling housing, pay etc makes it necssary to set up charities to help them? Cheques can be made payable to the Afghanistan Trust and sent to 3 Para, Hyderabad Barracks, Mersea Rd, Colchester CO2 7TB or paid into the account 10548799 with sort code 161926.
Hi Anon
Bearing in mind that the average LGPS pension is only £3,800 per year and that my employer currently pays in less than most private schemes FS schemes, I don’t think your “facts” stack up.
I would agree that our troops do not get enough financial support however, I would point out that current levels are far higher than during the 18 years of Tory rule for the service personal injured in Northern Ireland, the Falklands and the first Gulf war?
I think it is wrong that you are trying to use the suffering of British troops maimed in Battle to make cheap political shots.
Ten years of labour rule - and troops healthcare being supported by charities - that's not a cheap political shot comrade - its a sad fact, and the more people realise this the better.
Sorry comrade, troops needs have always been met in part by charities. My Nain (grandmother) received a much needed pension from a services charity due to my Taid’s (grandfather) military service.
I can remember collecting as a 15 year cadet for “Battle of Britain Day” (RAFBF) and today I am “proud to remember” by buying a poppy which was made by disabled ex-servicemen and the profits of which will go to help other service personnel.
They now have no service Hospitals, have been virtually forced to disband their medical branches, have appalling housing (prompting the forces catholic bishop to go public), insufficent helicopter and ground attack aircraft support in theatre etc etc. This is ten years of Brown at the financial controls, and its fact.
nonsense comrade (apart from the appalling MOD housing)
Has anyone in the cabinet either served in the forces or encouraged one of their own siblings to do so? I don't think so! These amateurs don't simply don't have the experience to know what they are talking about.
I don't have to quote my grandparents as my most recent contact with the forces! - Labour have a under funded - and everyone serving knows it is true.
Hi Anon
“Has anyone in the cabinet either served in the forces or encouraged one of their own....”
I suspect that like the rest of the Westminster Political parties, that nowadays few MP’s have served in the forces? Piara Khabra, the Labour MP of Ealing, Southall who died early this year was the last serving MP to have fought in the 2nd World War.
However, since the Labour Party is still at heart a working class Party. I bet loads of Labour MP’s (and ministers) will have relatives serving in the forces.
Hi Anon
“I don't have to quote my grandparents as my most....”
I was actually referring to ignorant arguments that there were never any service charities before 1997 rather than claiming anything.
Since Anon you hide behind anonymity you are in no position to lecture anyone methinks!
I think anon has missed the point of this article John and I personally wouldnt be humoring them! The issue of pensions governance is an important political one as well as a moral one. It is not always one the average member gets excited about sadly. That said we(our Branch) put in a resposne to the consultation modelled on the proposals from UNISON. As with any other sort of fund I think its important those who contribute should have an ability to influence how the money is spent. After all I can only imagine if we had a situation where UNISON were able to spend politicla fund monies without any democratic accountability or oversight!
Quite right Sean, as if anyone could imagine such a situation with UNISON monies.
..troops needs have always been met in part by charity....Last week the Colonel commanding the Parachute regt in Afghanistan resigned from the Army over the "shoddy treatment" of injured troops...FACT...Gen Sir Richard Dannett complains in a report this week that the troops feel badly let down and is concerned at almost every aspect of service life from manning levels to the food. Labour have badly let down the Forces and considering their warmongering it is an abbsolute disgrace. When are you going to wake up and smell the coffee comrade.
I went into a public-'ouse to get a pint o'beer,
The publican 'e up an' sez, "We serve no red-coats here."
The girls be'ind the bar they laughed an' giggled fit to die,
I outs into the street again an' to myself sez I:
O it's Tommy this, an' Tommy that, an' "Tommy, go away";
But it's ``Thank you, Mister Atkins,'' when the band begins to play,
The band begins to play, my boys, the band begins to play,
O it's ``Thank you, Mr. Atkins,'' when the band begins to play.
I went into a theatre as sober as could be,
They gave a drunk civilian room, but 'adn't none for me;
They sent me to the gallery or round the music-'alls,
But when it comes to fightin', Lord! they'll shove me in the stalls!
For it's Tommy this, an' Tommy that, an' "Tommy, wait outside";
But it's "Special train for Atkins" when the trooper's on the tide,
The troopship's on the tide, my boys, the troopship's on the tide,
O it's "Special train for Atkins" when the trooper's on the tide.
Yes, makin' mock o' uniforms that guard you while you sleep
Is cheaper than them uniforms, an' they're starvation cheap;
An' hustlin' drunken soldiers when they're goin' large a bit
Is five times better business than paradin' in full kit.
Then it's Tommy this, an' Tommy that, an' "Tommy how's yer soul?"
But it's "Thin red line of 'eroes" when the drums begin to roll,
The drums begin to roll, my boys, the drums begin to roll,
O it's "Thin red line of 'eroes" when the drums begin to roll.
We aren't no thin red 'eroes, nor we aren't no blackguards too,
But single men in barricks, most remarkable like you;
An' if sometimes our conduck isn't all your fancy paints:
Why, single men in barricks don't grow into plaster saints;
While it's Tommy this, an' Tommy that, an' "Tommy, fall be'ind,"
But it's "Please to walk in front, sir," when there's trouble in the wind,
There's trouble in the wind, my boys, there's trouble in the wind,
O it's "Please to walk in front, sir," when there's trouble in the wind.
You talk o' better food for us, an' schools, an' fires an' all:
We'll wait for extry rations if you treat us rational.
Don't mess about the cook-room slops, but prove it to our face
The Widow's Uniform is not the soldier-man's disgrace.
For it's Tommy this, an' Tommy that, an' "Chuck him out, the brute!"
But it's "Saviour of 'is country," when the guns begin to shoot;
An' it's Tommy this, an' Tommy that, an' anything you please;
But Tommy ain't a bloomin' fool - you bet that Tommy sees!
Hi Anon
Ring any bells? Or has all the cheap shots you make at our forces expense made you deaf?
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