Regulation 4 Reports and strategies

After regulation 76A (funding strategy statement)^f1 insert—

“Pension fund annual report

76B.

(1)

An administering authority must, in relation to each year beginning on 1st April 2007 and each subsequent year, prepare a document (“the pension fund annual report”) which contains—

(a)

a report about the management and financial performance during the year of each of the pension funds maintained by the authority;

(b)

a report explaining the authority’s investment policy for each of those funds and reviewing the performance during the year of the investments of each fund;

(c)

a report of the arrangements made during the year for the administration of each of those funds;

(d)

for each of those funds, a statement, by the actuary who carried out the most recent valuation of the assets and liabilities of the fund in accordance with regulation 77 (actuarial valuations and certificates), of the level of funding disclosed by that valuation;

(e)

the current version of the statement under regulation 73A (governance compliance statement);

(f)

for each of those funds, the fund account and net asset statement with supporting notes and disclosures prepared in accordance with proper practices^f2;

(g)

an annual report dealing with—

(i)

the extent to which the authority and the employing authorities in relation to which they are the administering authority (“relevant employing authorities”) have achieved any levels of performance set out in the pension administration strategy in accordance with regulation 76C(2)(b); and

(ii)

such other matters arising from their pension administration strategy as they consider appropriate;

(h)

the current version of the statement under regulation 76A (funding strategy statement);

(i)

the current version of the statement under regulation 9A of the Local Government Pension Scheme (Management and Investment of Funds) Regulations 1998 (statement of investment principles)^f3;

(j)

the current version of the statement under regulation 106B (statements of policy concerning communications with members and employing authorities (including non-Scheme employers))^f4; and

(k)

any other material which the authority considers appropriate.

(2)

The authority must publish the pension fund annual report on or before the 1st December following the year end.

(3)

In preparing and publishing the pension fund annual report the authority must have regard to guidance given by the Secretary of State.

Pension administration strategy

76C.

(1)

An administering authority may prepare a document (“the pension administration strategy”) which contains such of the matters mentioned in paragraph (2) as they consider appropriate ; and, where they do so, paragraphs (3) to (8) apply.

(2)

The matters are—

(a)

procedures for liaison and communication with their relevant employing authorities;

(b)

the establishment of levels of performance which the administering authority and the relevant employing authorities are expected to achieve in carrying out their functions under these Regulations by—

(i)

the setting of performance targets;

(ii)

the making of agreements about levels of performance and associated matters; or

(iii)

such other means as the administering authority consider appropriate;

(c)

procedures which aim to secure that the administering authority and the relevant employing authorities comply with statutory requirements in respect of those functions and with any agreement about levels of performance;

(d)

procedures for improving the communication by the administering authority and the relevant employing authorities to each other of information relating to those functions;

(e)

the circumstances in which the administering authority may consider giving written notice to a relevant employing authority under regulation 81A(2) on account of that employer’s unsatisfactory performance in carrying out its functions under these Regulations when measured against levels of performance established under sub-paragraph (b);

(f)

such other matters as appear to the administering authority to be suitable for inclusion in that strategy.

(3)

When an administering authority first publish a pension administration strategy they must send a copy of it to each of their relevant employing authorities and to the Secretary of State.

(4)

An administering authority must revise their pension administration strategy following a material change in their policies in relation to any of the matters contained in the strategy.

(5)

In preparing or revising their pension administration strategy an administering authority must consult the relevant employing authorities and such other persons as they consider appropriate.

(6)

Where an administering authority revise their pension administration strategy they must notify in writing to the relevant employing authorities and the Secretary of State—

(a)

the changes, and

(b)

where a copy of the revised strategy may be obtained.

(7)

An administering authority and the relevant employing authorities must have regard to the current version of any pension administration strategy when carrying out their functions under these Regulations.

(8)

In this regulation a reference to the functions of an administering authority includes, where applicable, their functions as an employing authority.”.