A number of stakeholders have raised question regarding the legal status of local pension boards in particular their legal relationship with the authority acting as scheme manager. Accordingly LGA approached James Goudie QC for a view against the following questions.

1. The legal status of an LGPS Pension Board

2. The legal relationship between the Pension Board and the LGPS Administering Authority (i.e. Scheme Manager)

3. Whether there is a conflict between the requirements of the 1972 Act and the 2013 Act with regard to membership of Section 5(7) Combined Committee Boards?

4. Generally on any other issues relevant to this matter

(Opinion, Legal position of local pension boards, PDF 204kb)

In his opinion, Mr Goudie concluded that:-

1. Local pension boards are constituted entirely under the Public Service Pensions Act 2013 and are not local authority committees. He goes on to point out some of the practical difficulties that arise from this view such as access to council officers and indemnity insurance cover.

2. In his view the relationship is entirely that set out in the PSP Act 2013.

3. There are conflicts between 1972 Act and the 2013 Act but they are not mutually exclusive and it is possible for a combined committee/board to exist however in his view ‘An administering authority should think long and hard before choosing to go down the combined role route’.

4. The advice then goes on to point out the difficulties in this area in particular his view that a pensions committee with investment decision making powers is a finance committee and is therefore restricted in its membership.

The opinion was adopted by the Board at the meeting of 25th January. The Board will review their guidance on pension boards and scheme managers are advised to review their pension board arrangements having regard to this opinion