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Human Resources

Essex Police Pension Authority Board
Date: 3rd February 2015 / Agenda Item 1

Briefing paper for 1)Essex Pension Board & 2) Kent Police Pension Board 2015

Introduction

The Public Service Pensions Act 2013 (the Act), the primary legislation under which the new police pension scheme is being developed, places more statutory emphasis on governance than has previously been the case in public service schemes. The Police Pension Scheme 2015 will come into effect on 01/04/2015 but the governance arrangements will also cover the existing schemes which will remain in effect under transitional arrangements

This paper details the requirements to enable the Chief Constable to perform the function of Scheme Manager in respect of the Police Pension Scheme 2015.

Appendix A provides relevant extracts from the Draft Police Pension Regulations 2015.

Key point

  • Under the Police Pension Regulations 2015 the Chief Constable Police Pension Authority) becomes the Scheme Manager

Scheme manager

13.—(1) The police pension authority for a member of a police force is responsible for managing and administering this scheme and any statutory pension scheme that is connected with it(a) in relation to that member.

Key point

  • Under the Police Pension Regulations the Chief Constable can delegate all functions.

Delegation

14.—(1) The Secretary of State may delegate any functions under these Regulations, including this power to delegate.

(2) The scheme manager may delegate any functions under these Regulations, including this power to delegate

Key point

  • Under the Police Pension Regulations 2015 the Chief Constable must establish a Pensions Board.

Police Pension Boards: establishment

15.—(1) The scheme manager must ensure that a pension board(c) (“a Police Pension Board”) is established to assist the scheme manager—

(a) to secure compliance with—

(i) these Regulations;

(ii) any other legislation relating to the governance and administration of this scheme and any statutory pension scheme that is connected with it; and

(iii) any requirements imposed by the Pensions Regulator in relation to this scheme or any statutory pension scheme that is connected with it; and

(b) in the performance of the scheme manager’s functions under these Regulations.

(2) A Police Pension Board may be established to assist more than one scheme manager.

(3) If the Secretary of State is the scheme manager in relation to a member of a police force, the Secretary of State must identify an established Police Pension Board to assist the scheme manager.

(4) In paragraph (3), “established Police Pension Board” means a Police Pension Board which has been established to assist another scheme manager

Key point

  • Under the Police Pension Regulations 2015 there are set rules for the establishment of the Board

Police Pension Boards: membership

16.—(1) A Police Pension Board is to consist of the following members who are to be entitled to vote in its proceedings (“voting members”)—

(a) a chair and a deputy chair appointed by the scheme manager; and

(b) at least 4, and no more than 12, persons appointed by the chair with scheme manager approval.

(2) The chair and deputy chair must not both be employer representatives or member representatives(d).

(3) If the scheme manager does not appoint an independent chair, the chair and deputy chair must change their roles at intervals agreed by the Board.

(4) Equal numbers of employer representatives and member representatives must be appointed under paragraph (1)(b).

(5) The chair, with scheme manager approval, may appoint to the Police Pension Board up to 4 independent members who are not to be entitled to vote in the Board’s proceedings (“non-voting members”).

(6) A member of a Police Pension Board is to hold and vacate office in accordance with the terms of that member’s appointment.

(7) In this regulation, “independent” means neither an employer representative nor a member representative.

Membership & function proposal for the ESSEX POLICE PENSION BOARD

See Appendix B

Membership & function proposal for the KENT POLICE PENSION BOARD

See Appendix C

Note a major governance issue will be monitoring of SLA and data provided to the pension administrator (payroll) will form an area of major oversight.

Comparison between current Police Pension Schemes and the Police Pension Scheme 2015

See Appendix D

Public Service Pension Governance Boards

The Pension Regulator has issued the draft code of practice for the Governance of Public Sector Service pension schemes (quick guide Appendix E). In order to comply it is evident that a resource will be required to be able to deal with the media / publishing requirements to support the work of the Board. This should therefore be recognised and accepted in order for the Scheme Manager and Pension Board to operate properly.

Recommendation

  1. Board to meet bi-annually

Kevin Kirby

Head of Pension Services

November 2014

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