Annex A

Role and Person Specification

Chair of the Teachers’ Pension Scheme Pension Board (TPSPB)

Role & Responsibilities
  • Acting as figurehead for the TPSPB, providing effective leadership of the Board and oversight of all its activities.
  • Representing the TPSPB in contacts with a range of stakeholders including: employers, members, Ministers, TPS administrator and other contractors, Department for Education (DfE) officials, HM Treasury and the Pensions Regulator.
  • Chairing meetings of the TPSPB (approximately four per annum at quarterly intervals), ensuring that these are conducted in an expeditious manner, including taking steps to ensure:
  • agenda and reports are timely and sufficient;
  • all members contribute to deliberations; and
  • access to appropriate professional advice is utilised.
  • Ensuring that the TPSPB operates as an effective and efficient mechanism for ensuring compliance with the Teachers’ Pension Scheme regulations and other relevant legislation.
  • Promoting agreement between the bodies and individuals represented on the Board by working to create mutual understanding and by facilitating action to resolve differences in the event of disagreement.
  • Ensuring Board members, collectively and individually, understand their roles and responsibilities
  • Appointing and supporting sub-committee chairs, enabling them to maintain the focus of the sub-committee, manage its members and provide feedback to the TPSPB, stakeholders and interested parties.
  • Agreeing requirements and expectations with individual Board members; ensuring support is provided in the form of induction, development and mentoring where necessary; and reviewing the performance of Board members annually.
  • Identifying the Board’s stakeholders and ensuring that there is effective communication with, and feedback from, stakeholders.
  • Liaising with Ministers and DfE officials to report on progress and delivery and make recommendations.

Person Specification - Competencies and Experience
The TPSPB Chair will have a track record in the following competencies:
Leadership:
-Combines strategic vision with a track record in shaping agendas and delivering programme outcomes.
-Takes a proactive stance: able to engage others, spark debate and discussion, ensure appropriate decisions are made and agreed and able to drive through action.
-Balances the need to achieve ‘quick wins’ with longer term gains.
Advocacy and Influence:
-Able to act as a figurehead and advocate, raising the profile and visibility of the Board
-Track record in influencing and gaining commitment from senior players and stakeholders.
-Standing and repute commensurate with chairing a national body with influence over high profile public services.
Partnership skills:
-Able to form and develop strategic partnerships and alliances with a diverse range of stakeholders.
-Acts as an ‘enabler’ for partnership activity – able to bring people together, broker deals, provide constructive challenge and gain agreement.
-Works through others to achieve objectives and able to demonstrate the added value of working together.
-Effectively chair meetings.
Additionally, the TPSPB Chair should demonstrate appreciation of the:
Strategic context
-Empathy with the mission and aspirations of the TPS.
-A strategic and operational understanding of:
  • The Teachers’ Pension Scheme and the education environment.
  • Legislation relating to Pension Schemes.
  • The role of the Regulator
Policy context
-An understanding of policy and public accountability, sound judgement and awareness of political sensitivities
-A commitment to equality, efficiency and innovation.
Terms and Conditions
The initial appointment will be for a period of three years.
Time commitment: Between ten to twenty days per year (the Board meets four times per annum,three times in London and once in Darlington).
Expenses will be paid for Board duties and remuneration of £400 per day up to a maximum of £12,000 per annum.

Annex B

About the Teachers’ Pension Scheme Pension Board (TPSPB)

Background

  1. Lord Hutton recommended the establishment of Pension Boards for all public sector pension schemes to give scheme members, taxpayers and others confidence that the schemes are being efficiently and effectively administered. He also recommended the establishment of Scheme Advisory Boards to provide a forum through which stakeholders can provide advice to the relevant Secretary of State on the desirability of changes to each scheme’s rules. Those recommendations have been implemented in the Public Service Pension Act 2013. Although these Boards provide additional layers of scrutiny and challenge, the Secretary of State retains overall responsibility and accountability for the scheme. The Act says:

“5 (1) Scheme regulations for a scheme under Section 1 must provide for the establishment of a board with responsibility for assisting the scheme manager (or each scheme manager) in relation to the following matters.

(2) those matters are-

(a) securing the compliance with the scheme regulations and other legislation relating to the governance and administration of the scheme and any statutory pension scheme that is connected with it;

(b) securing compliance with requirements imposed in relation to the scheme and any other connected scheme by the Pension Regulator;

(c) such other matters as the scheme regulations may specify.”

  1. To assist the Secretary of State in the administration and the assessment of policy changes to the Teachers’ Pension Scheme both the TPSPB and the SAB were established with the expectation that they add value to existing administration arrangements. In the same way there is an expectation and a requirement that Board appointments are made based on individual knowledge, skills and experiences that can be used to improve the TPS for its members and employers. The combined skill set of those appointed to the Boards should be used to improve the scheme irrespective of affiliations outside of the Board.

TPSPB Role and Responsibilities

  1. The Act provides for the Board to have responsibility for assisting the scheme manager in securing compliance with scheme regulations and other legislation relating to the governance and administration of the scheme, and also securing compliance with requirements imposed by the Pensions Regulator. The scheme administration itself is mainly carried out by Capita under a contract with DfE, which is managed by officials. There is also a contract with OHAssist Ltd. to assess ill health retirement applications and a Service Level Agreement with the Government Actuary’s Department (GAD) to provide actuarial advice.
  1. The core role of the Board will therefore be to assist officials by having oversight of the administration and providing assurance on the effectiveness of the scheme administration and its control framework.
  1. To be effective and have the confidence of the membership, the Board must have authority to influence how the scheme is administered and to take action to address any failings. The Board will therefore have a role in ensuring that the services provided reflect the needs of the membership and employers, and provide Ministers and stakeholders with confidence that the scheme is continuing to develop and meet the changing needs of teachers and their employers.
  1. The Board focuses on three key areas:
  2. Administration:The TPSPB is responsible for monitoring the administration of the scheme and not for administering the scheme, the latter is for Teachers’ Pensions to undertake in line with the contract agreed between it and the Department. However, the Board will ensure effective administration by close scrutiny and challenge of the level and quality of service provided for the membership and employers by the administrator; focussing on scheme performance, continuous improvement, value for money, risk management and compliance with statutory requirements. The Board will also help to set the scope and direction of the administration, ensuring that it remains at the forefront of public sector pension scheme administration and meets the changing needs of members and employers.
  3. Compliance:The TPSPB is responsible for overseeing compliance with requirments for governance and administration policies rather than developing or delivering them, the latter being for Teachers’ Pensions and/or the Department to manage.
  4. Governance:The TPSPB is responsible for scrutinising decisions relating to governance and/or administration rather than taking those decisions– these are for Teachers’ Pensions or the Department to take in line with contractual arrangments in place. The Board will also provide assurance to the DfE Permanent Secretary, members and employers about the effective financial management of the TPS, including contribution collection, financial forecasting and production of scheme accounts.
  5. The Department has sought to give the TPSPB maximum scope to undertake its assurance role and, to support this, has given the Board the power to approve audit and risk management plans as these are central planks to providing assurance on the effectiveness of administration. Further details on the specific tasks that the Board will carry out for each of the three key areas can be found in the terms of reference.
  1. The Board will not be in a position to have detailed oversight of all aspects of scheme administration, due to the size of the TPS. In common with private sector schemes and Pensions Regulator guidance, the Board takes a risk-based approach and focuses attention on areas of the administration where there is evidence of high impact and/or probability of failure; where there are high levels of dissatisfaction; or where the administrator is failing to meet the outcomes specified in their contract. To support the Board in making these judgements, they receive a variety of information including: risk registers; reports and feedback from the DfE contract manager; reports from the administrator on the range and quality of services; financial reports; details of complaints regarding the administration of the scheme; audit reports and feedback from stakeholders.
  1. As the Accounting Officer for the TPS, the Permanent Secretary retains financial responsibility for the TPS, so the contract management and day to day monitoring of the contractors will remain with DfE and outside of the responsibility of the Board, although they will report to the Board. Secretariat support for the Board is provided by DfE officials and reflects the Pensions Regulator’s Code of Practice.
  2. The Administration contract is due for renewal in 2021 and a commercial project team has recently been established by the Department to manage this; a sub-committee of the TPSPB has also been set up. Commercial awareness training has been undertaken by this group and Terms of Reference have been developed. The role of the sub-committee will be to contribute, as a key stakeholder, to discussions, focus on assurance regarding the process, and have a role in the review of bidders; however the final decision will rest with the Department.
  3. For future procurement exercises, the involvement of the Board will be discussed and agreed when the commercial project is established. This will ensure that the role of the Board follows Government policy on procurement, and will reflect the commercial and legal issues involved,at that time.

Structure of the Board

  1. The composition of the Board is currently:
  1. An independent Chair
  2. Five member representatives
  3. Fiveemployer representatives

Member and employer numbers have recently been increased from four to provide wider representation),

  1. An independent pension specialist, and
  2. Two DfEofficials (policy and finance/audit)

There is the ability to review this arrangement and to flex the constitution to reflect changing circumstances.

Annex C

The Seven Principles Underpinning Public Life (“Nolan Principles”)

In 1995, the Committee on Standards in Public Life defined seven principles, which should underpin the actions of all who serve the public in any way. These are:

  1. Selflessness

Holders of Public Office should take decisions solely in terms of the public interest. They should not do so in order to gain financial or other material benefits for themselves, their family, or other friends.

  1. Integrity

Holders of public office should not place themselves under any financial or other obligation to outside individuals or organisations that might influence them in the performance of their official duties.

  1. Objectivity

In carrying out public business, including making public appointments, awarding contracts, or recommending individuals for rewards and benefits, holders of public office should make choices on merit.

  1. Accountability

Holders of public office are accountable for their decisions and actions to the public and must submit themselves to whatever scrutiny is appropriate to their office.

  1. Openness

Holders of public office should be as open as possible about all the decisions and actions that they take. They should give reasons for their decisions and restrict information only when the wider public interest clearly demands.

  1. Honesty

Holders of public office have a duty to declare any private interests relating to their public duties and to take steps to resolve any conflicts arising in a way that protects the public interest.

  1. Leadership

Holders of public office should promote and support these principles by leadership and example.

Public Appointments require the highest standards of propriety, involving impartiality, integrity and objectivity. All candidates who put themselves forward for public appointment must be able to demonstrate their commitment to the principles and values of public service.

Annex D

TEACHERS’ PENSION SCHEME

PENSION BOARD

TERMS OF REFERENCE

(Effective 12 July 2017)

  1. Scope of the Teachers’ Pension Scheme Pension Board (TPSPB)
  2. The TBSPB is responsible for providing assurance on the effectiveness of the arrangements for managing the scheme to the Secretary of State. The TPSPB will contribute towardssetting the scope and direction of the administration, as delivered by its service providers and Department for Education (DfE) officials, ensuring that it remains at the forefront of public service pension scheme administration and meets the changing needs of members and employers.

To achieve this, the TPSPB will:

  • be forward thinking and able to clearly articulate the vision for the administration of the Teachers’ Pension Scheme (TPS);
  • assess the effectiveness and efficiency of the scheme administration;
  • consider opportunities to enhance the range and quality of services offered by the scheme; and
  • assess the arrangements for ensuring scheme performance, continuous improvement, value for money, risk management and compliance with statutory requirements.
  • The TPSPB may also carry out additional duties as the scheme manager sees fit, from time to time.
  1. Roles and Responsibilities
  2. The TPSPB is responsible for monitoring the effectiveness of control mechanisms and will verify the effective administration of the TPS by close scrutiny of the level and quality of service provided for the membership and employers by the administrator and other service providers (e.g. Capita, OH Assist Ltd. and Government Actuary’s Department).
  3. The TPSPB will verify that an effective audit strategy is in place for the scheme; and will contribute to audit plans.
  4. The TPSPB will verify that an effective risk management strategy is in place for the scheme and internal controls are adequate; monitoring risk management delivery plans; and providing advice on scheme strategy where this will aid the scheme administration.
  5. The TPSPB will add to the process whereby assurance is provided to the Accounting Officer (Permanent Secretary), members and employers regarding the effective financial management of the TPS, through commenting on the TPS Governance Statement, which is produced as part of the annual accounting process.

2.5The TPSPB will verify that benchmarking in the TPS is in line with regulatory requirements (e.g. The Pensions Regulator (tPR)).

2.6The TPSPB will verify that the development of processes and systems incorporate any new statutory requirements.

2.7The TPSPB will assess the arrangements for compliance with data management requirements.

2.8The TPSPB will respond to any requests/directions made by the Pensions Regulator.

2.9The TPSPB will verify the approach developed by the administrator for reporting breaches of the law to the regulator, when they have reasonable cause to believe that:

  • A legal duty which is relevant to the administration of the scheme has not been, or is not being, complied with; and
  • The failure to comply is likely to be of material significance to the regulator in the exercise of any of its functions.

3. Composition

3.1The TPSPB will comprise scheme member representatives, employer representatives, an independent chair, an independent pension specialist and DfE.

3.2All non-DfE appointments to the Board will be made by the scheme manager.

3.3The Board will have five scheme member positions, selected from nominations put forward by unions and other TPS member representatives.

3.4The Board will have five employer positions, selected from nominations put forward by organisations representing schools, academies, higher education, further education and independent sectors, plus others on the TPS employer consultation list.

3.5 The TPSPB will have an independent pension specialist.

3.6The TPSPB will have two DfE positions. Officials will be either Deputy Director or Director level; one from the policy area that manages the scheme (Teacher Sufficiency Group (previously Teachers and Teaching Group)) and one from the Finance or Audit function.

3.7Members of the TPSPB will represent the interests of all of the schemes’ beneficiaries, the participating employers and the Accounting Officer and not simply the interests of the constituency that nominated them.

3.8Appendix A gives the terms and conditions that apply to TPSPB members.

3.9Appendix B sets out the Role and Person Specification for TPSPB members.

4. Meetings

4.1 Frequency: The TPSPB will meet quarterly and at such other times as the Chair decides is necessary. Wherever possible at least seven days’ notice will be given of any non-scheduled meeting.