Agenda item

The Committee have been advised that previously the values outlined in the Training Strategy had been outlined in the Business Plan. It had been felt that now was the right time to agree a separate Training Strategy for the Havering Pension Fund. The Strategy would assist the Pensions Committee and Local Pension Board achieve their training objectives and introduce a means of measuring progress and achievements.

The Local Government Pension Scheme (LPGS) (Management and Investment of Funds) Regulations 2009 regulations, paragraph 12(3) stated that administrating authorities must prepare and publish a statement which stated the extent to which an administrating authority complied or did not comply with guidance issued by the Secretary of State. Where it did not comply it must state reasons for non-compliance. (This was known as the Myner’s principles).

The first of these principles, Effective decision making, required that Administrating authorities should ensure that:

·         Decisions were taken by persons or organisations with the skills, knowledge, advice and resources necessary to make them effectively and monitor their implementation; and

·         those persons or organisations had sufficient expertise to be able to evaluate and challenge the advice they receive, and manage conflicts of interest

Guidance as issued from the Secretary of State would be the guidance as published by the Chartered Institute of Public Finance and Accountancy (CIPFA) in January 2010 called ‘Pensions Finance Knowledge and Skills Framework’ and then later formalised into a Code of Practice in October 2011, effective from 1 April 2012. This Code of Practice was updated in July 2013 to reflect the Public Service Pensions Bill and effective for financial years beginning on or after 1 April 2014.

The Administering Authority must also disclose in their Annual Report a statement to demonstrate compliance with the code of practice, such as a report on member training undertaken during the year (if not reported elsewhere).

In line with The Public Service Pensions Act 2013 the Pensions Regulator had issued a code of practice “Governance and Administration of Public Service Pension Schemes” which required pension board members by law:

·         to be conversant with the rules of the scheme and any document recording policy about the administration of the scheme, and

·         have knowledge and understanding of the law relating to pensions, and any other matters which are prescribed in regulations.

·         The degree of knowledge and understanding required was that appropriate for the purposes of enabling the individual to properly exercise the functions of a member of the Pension Board.

·         it was the responsibility of individual pension board members to ensure that they have the appropriate degree of knowledge and understanding to enable them to properly exercise their functions as a member of the Pension Board.

Guidance had also been issued by the then Shadow Scheme Advisory Board in February 2015 and included guidance that stated that LPB members:

·         should establish and maintain a policy and framework to address the knowledge and understanding requirements that apply to its members. Where the Pensions Committee had an existing knowledge and understanding policy already in place, it may be sensible to see if this could be incorporated to cover both the Pensions Committee and the Local Pension Board to avoid unnecessary duplication,

·         would be required to undertake a personal training needs analysis and regularly review their skills, competencies and knowledge to identify gaps or weaknesses, and

·         were required to be able to demonstrate their knowledge and understanding and to refresh and keep knowledge up to date and required to maintain a written record of training and development.

The Committee had been informed that CIPFA’s Knowledge and Skills Framework covered six relevant areas of knowledge for members of decision making bodies, namely:

·           Pensions Legislative and Governance Context;

·           Pensions Accounting and Auditing Standards;

·           Financial Services Procurement and Relationship Management;

·           Investment Performance and Risk Management;

·           Financial Markets and Products Knowledge; and

·           Actuarial Methods, Standards and Practices.

To assist in achieving the training strategy objectives the fund should aim for full compliance with the CIPFA Knowledge and Skills Framework as shown in the six areas above and they would form the core skill sets against which progress and achievement would be measured. The Fund would also aim to comply with the knowledge and skills element of The Pensions Regulator Code of Practice and any other appropriate LGPS guidance relating to knowledge and skills.

CIPFA Knowledge and Skills framework includes a self-assessment of training needs. This would be issued to the Local Pension Board members and reissued to members of the Pensions Committee. This would be used to identify the knowledge and skills gap so that training could be targeted to specific areas.

The CIPFA’s Knowledge and Skills Framework self-assessment form would also become a personalised training plan for each member and would be used to document areas of learning and continued development. These would be monitored annually and progress and achievements would be reported in the pension fund annual report.

The Committee have:

1.    Approved the Havering Pension Fund Training Strategy;

2.    Approved the basis for measuring progress and achievement; and

3.    Noted that it was the responsibility of each committee member, board member and officer to adhere to the training strategy and maintain the required level of knowledge and skills.