Live from the PLSA local authority conference 2016
Everything changes and nothing stands still. This could not be more true than for the Local Government Pension Scheme.
It has seen myriad developments in recent years, including the launch of the new scheme in 2014, the introduction of local pension boards in 2015, not to mention this year’s valuation and the proposals for pooling currently under discussion.
Many employers are simply unaware of the extent of the legal and financial obligations associated with participating in the LGPS
At the Pensions and Lifetime Savings Association’s Local Authority Conference this week, the focus is firmly on tackling these challenges and others associated with shaping the modern LGPS.
Participating employers
One often overlooked group under the spotlight at this year’s conference is that of employers participating in the LGPS, such as universities, charities and housing associations.
Many employers are simply unaware of the extent of the legal and financial obligations associated with participating in the scheme and some entrants are struggling to meet their new responsibilities.
The number of employers participating in the LGPS has grown over recent years to more than 10,000, and this upwards trajectory is likely to continue, which means an increasing number of employers will find themselves facing the same problems.
That is why the PLSA is launching a brand new series of guides to help employers and local authority funds gain a better understanding of their duties as part of the LGPS and what they can do to help manage the issues.
Local pension boards
Local pension boards are another group with relatively new needs and concerns. Their job is to ensure governance and administration in the LGPS is effective and efficient by helping scheme managers and securing compliance with LGPS regulations.
But with these duties come questions – such as how can we hold funds to account, what does good governance look like, what should our focus be for 2016 – and these will all be addressed at the conference.
Of course, these are only two of the new considerations for the LGPS, and we are only at the tip of the iceberg when it comes to tackling issues such as the enduring difficult economic backdrop – just one of the challenges under investigation by the DB taskforce launched earlier this year.
But by striving towards greater efficiency, transparency and collaboration – the theme of this week’s conference – we are a step closer to shaping a modern LGPS that is fit for the future.
Graham Vidler is director of external affairs at the Pensions and Lifetime Savings Association