Good Governance in the LGPS report
31 Jul 2019
Earlier this year, we were appointed by the Scheme Advisory Board (SAB) to facilitate a review of governance structures for the LGPS. The SAB commissioned this report to examine the effectiveness of current LGPS governance models and to consider alternatives or enhancements to existing models which can strengthen LGPS governance.
We are grateful to everyone, from all stakeholder groups, who contributed their time and expertise to the review either via the online survey, one-to-one interviews, or through attendance at seminars and webinars.
The project team delivered the report to the SAB on 8 July. The report sets out the results of the survey, recognising strengths and weaknesses in all governance models and proposes that an outcomes-based approach would be the most effective method of improving governance, rather than mandating a single governance structure for all. This allows funds to continue doing what currently works well while still ensuring the highest governance standards across the scheme.
The report recommends introducing key benchmarks which will be used to assess each fund, these include: evidencing robust conflict management, providing sufficient administration capabilities and resource, having a clear and inclusive policy on employer and scheme member engagement and holding regular, independent governance reviews.
The SAB agreed to take forward our findings and conclusions to improve governance in the LGPS, and released the report for publication. You can now download the full report here, or from the SAB website.
We hope you find this report and its findings useful, if you would like to discuss anything in more detail, please don’t hesitate to get in touch.