Laws, Regulation and Guidance
a) Statutory triennial reporting
Source: Public Services Pensions Act (PSPA)
Date issued: 2013
Clause 11 – Valuations
Scheme regulations for a public service pension scheme must provide for actuarial valuations to be made of the scheme. Such a valuation is to be carried out in accordance with Treasury directions. Treasury directions under may in particular specify how and when a valuation is to be carried out; the time in relation to which a valuation is to be carried out; the data, methodology and assumptions to be used in a valuation; the matters to be covered by a valuation; the period within which any changes to the employer contribution rate must take effect following a valuation. Treasury directions and variations and revocations of such directions, may only be made after the Treasury has consulted the Government Actuary.
Clause 13 – Employer contributions in funded schemes
Scheme regulations for defined benefits schemes must provide for the rate of employer contributions to be set at an appropriate level to ensure the solvency of the pension fund, and the long-term cost-efficiency of the scheme, so far as relating to the pension fund. Scheme regulations must require actuarial valuations of the pension fund. Where an actuarial valuation has taken place, a person appointed by the responsible authority is to report on whether the following aims are achieved the valuation is in accordance with the scheme regulation; the valuation has been carried out in a way which is not inconsistent with other valuations; the rate of employer contributions has been set. A report must be published; and a copy must be sent to the scheme manager and (if different) the responsible authority. If a report under states that, in the view of the person making the report, any of the aims in that subsection has not been achieved the report may recommend remedial steps; the scheme manager must take such remedial steps as the scheme manager considers appropriate, and publish details of those steps and the reasons for taking them; The responsible authority may require the scheme manager to report on progress in taking remedial steps; direct the scheme manager to take such remedial steps as the responsible authority considers appropriate.
Clause 15 – Information about schemes
Treasury directions may require the scheme manager or responsible authority of a scheme to publish scheme information, or provide scheme information to the Treasury. The scheme information to which Treasury directions under this section may relate to scheme accounts; information about any scheme funding, assets and liabilities; scheme membership; employer and member contribution; scheme administration and governance. Treasury directions under this section may specify how and when information is to be published or provided.
Source: Local Government Pension Scheme Regulations (LGPS)
Date issued: 2013
Clause 62 – Actuarial valuations of pension funds
An administering authority must obtain an actuarial valuation of the assets and liabilities of each pension fund, and a report:
a) an actuarial valuation of the assets and liabilities of each of its pension funds as at 31st March 2016 and on 31st March in every third year afterwards;
b) a report by an actuary in respect of the valuation; and
c) a rates and adjustments certificate prepared by an actuary.
Each of those documents must be obtained before the first anniversary of the date (“the valuation date”) as at which the valuation is made or such later date as the Secretary of State may agree. The report must contain a statement of the demographic assumptions used in making the valuation; and the statement must show how the assumptions relate to the events which have actually occurred in relation to members of the Scheme since the last valuation. A rates and adjustments certificate is a certificate specifying—
(a) the primary rate of the employer’s contribution; and
(b) the secondary rate of the employer’s contribution, for each year of the period of three years beginning with 1st April in the year following that in which the valuation date falls. The primary rate of an employer’s contribution is the amount in respect of the cost of future accruals which, in the actuary’s opinion, should be paid to a fund by all bodies whose employees contribute to it so as to secure its solvency, expressed as a percentage of the pay of their employees who are active members.
The actuary must have regard to—
(a) the existing and prospective liabilities arising from circumstances common to all those bodies;
(b) the desirability of maintaining as nearly constant a common rate as possible;
(c) the current version of the administering authority’s funding strategy mentioned in regulation 58 (funding strategy statements); and
(d) the requirement to secure the solvency of the pension fund and the long term cost efficiency of the Scheme, so far as relating to the pension fund.
The secondary rate of an employer’s contributions is any percentage or amount by which, in the actuary’s opinion, contributions at the primary rate should, in the case of a Scheme employer, be increased or reduced by reason of any circumstances peculiar to that employer. A rates and adjustments certificate must contain a statement of the assumptions on which the certificate is given as respects—
(a) the number of members who will become entitled to payment of pensions under the provisions of the Scheme; and
(b) the amount of the liabilities arising in respect of such members, during the period covered by the certificate.
The administering authority must provide the actuary preparing a valuation or a rates and adjustments certificate with the consolidated revenue account of the fund and such other information as the actuary requests.
Clause 66 – Supply of copies of valuations, certificates
An administering authority must publish and send copies of any valuation, report, certificate or revised certificate obtained under regulations 62 (actuarial valuations of pension funds), 64 (special circumstances where revised actuarial valuations and certificates must be obtained) or 65 (aggregate Scheme costs: revised certificates) to—
(a) the Secretary of State;
(b) each body with employees who contribute to the fund in question; and
(c) any other body which is, or may become liable to make payments to that fund.
(2) An administering authority must also send to the Secretary of State—
(a) a copy of the consolidated revenue account with which the actuary was provided under regulation 62(9); and
(b) a summary of the assets of the fund at the valuation date (unless such a summary is contained in the report under regulation 62(1)(b)).
Source: Department of Communities and Local Government (DCLG)
Date issued: Periodic
Guidance (ad hoc) or letters issued to LGPS administering authorities on triennial valuations
Source: LGPS Advisory Board
Date issued: 2014
Guide to the LGPS performance reporting framework for the LGPS.
Source: CIPFA Pensions Panel
Date issued: TBC
Guidance on undertaking triennial valuations of LGPS pension funds
Source: Her Majesty Treasury – Government Actuary Department (GAD)
Date issued: Periodic
Guidance on the triennial valuation of public sector pension schemes.
Source: Department of Work and Pensions – The Pensions Regulator (TPR)
Date issued: TBC
Guidance on best practice in triennial valuations of pension schemes
Source: Office of National Statistics (ONS)
Date issued: TBC
Guidance on pension scheme statistical reporting on triennial valuations
Source: Association of Consulting Actuaries (ACA)
Date issued: 2013
Individual LGPS actuaries guidance to LGPS administering authorities
b) Statutory annual reporting
Source: Public Service Pensions Act (PSPA)
Date issued: 2013
Clause 6 – Pension Board – Information
The scheme manager for any statutory pension scheme must publish information about the pension board for the scheme (and keep that information up-to-date). That information must include information about who the members of the board are, representation on the board of members of the scheme or schemes, and the matters falling within the board’s responsibility.
Clause 15 – Information about schemes
Treasury directions may require the scheme manager or responsible authority of a scheme to publish scheme information, or provide scheme information to the Treasury. Scheme information” means information about the scheme and any statutory pension scheme that is connected with it. The information to which Treasury directions under this section may relate includes in particular scheme accounts; scheme funding, assets and liabilities; scheme membership; employer and member contributions; scheme administration and governance.
Treasury directions under this section may specify how and when information is to be published or provided. Treasury directions under this section may not require publication or provision of anything that the scheme manager or responsible authority could not otherwise lawfully publish or provide. Schedule 4 section 90A – Codes of practice: public service pension schemes
The Regulator must issue one or more such codes of practice relating to the following matters the discharge of the duties to report breaches of the law and late payment of employer contributions; disclosure of information to members; pension board information, and other duties relating to the publication of information about governance and administration; and information about benefits.
Source: Local Government Pension Scheme Regulations (LGPS)
Date issued: 2013
Clause 57 – Annual Report
An administering authority must in relation to each year beginning on 1st April 2014 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 62 (actuarial valuations of pension funds), of the level of funding disclosed by that valuation;
(e) the current version of the statement under regulation 55 (governance compliance statement);
(f) for each of the funds, the fund account and net asset statement with supporting notes and disclosures prepared in accordance with proper practices;
(g) an annual report dealing with—
(i) the extent to which the authority and the Scheme employers in relation to which it is the administering authority have achieved any levels of performance set out in a pension administration strategy in accordance with regulation 59 (pension administration strategy), and
(ii) such other matters arising from a pension administration strategy as it considers appropriate;
(h) the current version of the statement referred to in regulation 58 (funding strategy statement);
(i) the current version of the statement under regulation 12 of the Local Government Pension Scheme (Management and Investment of Funds) Regulations 2009 (statement of investment principles);
(j) the current version of the statement under regulation 61 (statements of policy concerning communications with members and Scheme employers); and
(k) any other material which the authority considers appropriate.
The authority must publish the pension fund annual report on or before 1st December following the Scheme year end. In preparing and publishing the pension fund annual report, the authority must have regard to guidance given by the Secretary of State.
Source: Department of Communities and Local Government (DCLG)
Date issued: 2013
Clause 57 (3) above refers to SoS guidance but this has not been issued. DCLG issue annual guidance with data definitions to help LGPS funds complete and return their SF3 proforma to DCLG
Source: LGPS Advisory Board
Date issued: 2014
Guide to the LGPS performance reporting framework for the LGPS.
Source: CIPFA Pensions Panel
Preparing the Annual Report : Guidance for LGPS pension funds (issued 2014)
Code of Practice on Local Authority Accounting in the United Kingdom (issued annualy)
LGPS Accounts 2014/15 – Example Accounts and Disclosure Checklist (issued 2014)
Accounting for LGPS Management Costs (issued 2014)
CIPFA also have an LGPS administration costs benchmarking club that produces an annual report for its members (issued annualy)
Source: Her Majesty Treasury (HMT) – Government Actuary Department (GAD)
Guidance on the completion of spreadsheets and other proforma for the return of annual data returns from each LGPS fund to inform the ‘model’ national LGPS fund.
Source: Department of Work and Pensions – The Pensions Regulator (TPR)
Date issued: TBC
Guidance on the production of pension scheme annual reports and summary annual reports.
The TPR are currently considering how LGPS funds should to report on their use/compliance with TPR guides
Source: Office of National Statistics (ONS)
Date issued: TBC
Guidance and data collection proforma on pension scheme annual statistical reporting
Source: Association of Consulting Actuaries (ACA)
Date issued: 2013 + adhoc
Individual LGPS actuaries guidance to LGPS administering authorities
Some LGPS fund actuaries collect inter-valuation data and provide quarterly and annual reports to administering authorities
Source: LGPS Custodians
Date issued: Quarterly/Annual
The LGPS custodians (eg Northern Trust and State Street) and hold detailed LGPS data of fund assets and investment performance.
State Street’s WM company produce quarterly/annual reports comparing LGPS pension funds investment performance.
Source: Asset Managers
Date issued: Quarterly/Annual
The external managers who investment and manage LGPS assets for LGPS fund produce quarterly and annual reports
Source: Other Bodies
Date issued: Annual
a) DG publishing produce an annual LGPS Performance Report full of fund statistics gleaned from LGPS published annual reports and accounts.
b) Unison and GMB also collate and publish LGPS stats.
c) CEM Benchmarking analyse some LGPS funds investment performance. Annual
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