Senior figures within the Local Government Pension Scheme (LGPS) have announced the launch of LGPS First, designed to provide independent governance advice to funds.
It comes at a time of significant change in the LGPS sector, with growing expectations around governance, investment oversight, pooling, administration, regulatory compliance, member outcomes and accountability.
The recent Fit for the Future reforms introduced requirements for funds in England and Wales to appoint an ‘independent person’ as an adviser to their pension committees, to give informed guidance and challenge to the committee members. The government has sought to align LGPS governance with that of private sector schemes.
LGPS First brings together a network of highly experienced independent practitioners who have led LGPS funds and pools, as well as other organisations. The new company has been established as a collective resource to meet the need for pension funds to have independent support that combines robust governance expertise with a genuine understanding of the sector.
Those involved in the collective also bring experience from the wider pensions sector – including public sector pension schemes, corporate defined benefit and defined contribution arrangements, and master trusts.
However, in a statement, LGPS First said it was not positioning itself as a traditional company or as a professional trustee firm. Members remain “wholly independent” but can easily collaborate and share insights.
LGPS First stated: “Strong governance is no longer simply about compliance with today’s requirements. It requires an understanding of emerging regulatory expectations, changing governance standards and the lessons being learned across the wider pensions industry.
“Our members can draw on that broader perspective while retaining a deep appreciation of the statutory, democratic and fiduciary framework that makes the LGPS unique.”
The organisation will “operate on a cost recovery basis, rather than making profits from the LGPS community”, LGPS First said.
“Our members understand not only how good governance should operate in theory, but how successful governance is delivered in practice within one of the largest and most complex public service pension arrangements in the world,” it added.
Initial members of the group include:
- Robert Branagh, independent adviser and former chief executive of the London Pensions Fund Authority.
- George Graham, former director of the Lancashire County Pension Fund and South Yorkshire Pension Fund; independent chair of the Lincolnshire Pension Board; independent person for Surrey Pension Fund.
- Fiona Miller, former deputy chief executive and executive director at Border to Coast Pension Partnership; non-executive director at Wales Pension Partnership.
- Dafydd Edwards, current board chair and shadow independent person at Merseyside Pension Fund; non-executive director at Wales Pension Partnership.
- Jill Davys, former managing director and head of LGPS at Redington, now Gallagher.
- Kevin McDonald, former head of the ACCESS Support Unit; independent person for Kent Pension Fund.
- Dawn Turner, former head of the Environment Agency Pension Fund and former chief executive of the Brunel Pensions Partnership.
