Section 5 Scheme manager governance reviewsI1

England, Wales and Scotland

(1)

Scheme regulations relating to a scheme for local government workers which has pension funds may make provision for or in connection with—

(a)

the carrying out of periodic or ad hoc governance reviews of individual scheme managers,

(b)

the issuing by the responsible authority of guidance to persons carrying out governance reviews about the carrying out of such reviews, and

(c)

functions of the responsible authority in response to a report of such a review.

(2)

For this purpose, in relation to any scheme manager—

(a)

a governance review is a review of the governance of the scheme so far as administered by the scheme manager, and the performance and effectiveness of the scheme manager, over a period (“the period of review”);

(b)

a periodic governance review is a governance review that is required by a provision of scheme regulations to take place—

(i)

within a prescribed period after the commencement of that provision, or

(ii)

within a prescribed period after the completion of a previous governance review,

in respect of a period of review prescribed by or determined under the regulations;

(c)

an ad hoc governance review is a governance review that is required by scheme regulations to take place—

(i)

where a direction to carry out a governance review has been given to the scheme manager by the responsible authority (if a power to give such a direction has been conferred by the regulations), in respect of a period of review specified in the direction, or

(ii)

in prescribed circumstances (other than the passage of time since the most recent completed governance review), in respect of a period of review prescribed by or determined under the regulations.

(3)

The period of review for the first governance review of a scheme manager may include time before the commencement of the regulations providing for governance reviews to take place.

(4)

Scheme regulations which make provision for the carrying out of governance reviews must make provision—

(a)

requiring governance reviews to be carried out independently of the scheme manager being reviewed and the responsible authority, but under arrangements made by and at the expense of that scheme manager;

(b)

requiring the person carrying out a governance review, as soon as practicable after completing the review, to—

(i)

prepare a report on the review, and

(ii)

send a copy of the report to the responsible authority and the scheme manager being reviewed;

(c)

requiring the scheme manager to publish the report.

Annotations

Commencement

I1: S. 5 in force at Royal Assent for specified purposes, see s. 133(1)