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Explanatory note

Original text. Later amendments are not shown.

(This note is not part of the Regulations)

These Regulations amend the Local Government Pension Scheme Regulations 2014 (“the Principal Regulations”) to make provision for the governance arrangements of the Local Government Pension Scheme (“the Scheme”).

Regulation 1 cites the name of these Regulations, commences them on 1st April 2015 and states the meaning of the term “the Principal Regulations”.

Regulation 2 introduces the amendments to the Principal Regulations.

Regulation 3 inserts a new paragraph into regulation 62 (governance policy statement) to ensure that the governance policy statement includes the terms, structure and operational procedures for the pension board established under new regulation 116 (establishment of the pension board).

Regulation 4 inserts a new Part 3 into the Principal Regulations. A brief explanation of each regulation within the new Part 3 is given below.

  • Regulations 115 to 118 make provision for the establishment of a pension board to assist the Committee in complying with its legal obligations relating to the Scheme.

  • Regulation 115 sets out the remit and purpose of the pension board which must be established by 1st April 2015.

  • Regulation 116 includes two options for the establishment of the pension board.

  • Option 1 – In accordance with section 5(2) of the Public Service Pensions Act (NI) 2014 the Northern Ireland Local Government Officers’ Superannuation Committee (“the Committee”) may be designated by the Department as the Pension Board subject to such conditions as it considers appropriate. The designation may be withdrawn if these conditions are not met or in the opinion of the Department it is no longer appropriate for the Committee to be the Pension Board.

  • Option 2 – If the Committee is not the Pension Board, this regulation provides that the Committee may establish a pension board which shall consist of a chairperson, an equal number of employer and member representatives and additional members. In total there will be no less than 6 and no more than 11 members of the Pension Board. The Committee may determine the procedures applicable to the Pension Board and the payment of their expenses. The Pension Board’s expenses will be considered as part of the costs of administration of the fund.

  • Regulation 117 allows the Committee to appoint members of the Pension Board in circumstances set out under regulation 116(7). The Committee may determine the manner, removal and the terms of appointment to the Pension Board.

  • Regulation 118 states that the Committee must be satisfied that any person appointed to the Pension Board does not have a conflict of interest. A board member does not have a conflict of interest if he or she is also a member of the Scheme.

  • Regulations 119 to 123 make provision for the establishment of a scheme advisory board to advise the Department on the desirability of making changes to the Scheme. The Scheme Advisory Board may determine its own procedures.

  • Regulation 120 states that the appointment of members of the Scheme Advisory Board by the Minister and shall consist of a chairperson, an equal number of employer and member representatives and additional members. In total there will be no less than 6 and no more than 11 members of the Scheme Advisory Board and members will hold and vacate office in accordance with the terms of their appointment.

  • Regulation 121 states that the Department must be satisfied that any person appointed to the Scheme Advisory Board does not have a conflict of interest. A board member does not have a conflict of interest if he or she is also a member of the Scheme.

  • Regulation 122 makes provision for the payment of allowances and expenses to the chairperson and members of the Scheme Advisory Board, as the Department may determine. The Department must also make available such premises, staff and services as the Scheme Advisory Board may require in discharging its functions.

Regulation 5 makes minor amendments to the Principal Regulations consequential to the substantive provisions by inserting definitions for the Board, the Advisory Board and the meaning of a conflict of interest in these Regulations.