New code of practice makes life ‘harder’ for LGPS funds

Speaking at the Pensions and Lifetime Savings Association’s Local Authority Conference, Jo Quarterman, project and development manager at Norfolk County Council, said the language in the new code was a cause for concern.

Citing as an example the introduction of the term ‘governing body’ into the new draft code, she said: “I suspect I’m not the only one thinking the introduction of a new, fairly general governance term isn’t really what we’re hoping for in the complicated LGPS right now.

“The bottom line is that we need things that make our lives easier, not harder. We need codes of practice and guidance that help introduce clarity and consistency, rather than risking ambiguity, confusion and perceived scope creep,” she continued.

“We need a framework that properly understands the LGPS [...] that tries to understand our language and perhaps tries harder to accommodate us with our 6m members, 16,600 employers and £3bn of assets.”

Contending that the governance responsibilities of LGPS funds “do not sit comfortably alongside the draft combined code”, Quarterman added: “If we’ve argued for a separate code [of practice] for the LGPS, it isn’t because we think we’re special, it’s because we recognise that our governance and regulatory framework is different and ignoring this isn’t helpful to any of us.”

Nick Gannon, policy delivery lead at TPR, suggested that the previous codes of practice were a “little out of date” and needed to be simplified. 

Pensions Expert has reported previously on the new code, which is designed to combine 10 of the 15 existing codes of practice into one web-based document, but experts have warned this would be an issue.

Consultancy LCP stated: “The new guide would go beyond a simple ‘cut-and-paste job’, introducing a raft of new duties and requirements around climate change, cyber security, investment, administration and remuneration policies.”