Governance & Strategy

Maintaining appropriate governance policies is an important part of ensuring our stakeholders have access to information they need about their pension.

Strategic Policy Statement and Medium Term Financial Plan

The Strategic Policy Statement covers a three year period and is prepared in accordance with section 402 of the Greater London Authority Act 1999.  The Act requires LPFA to prepare the statement along with a Medium Term Financial Plan containing a draft budget, including any levy requirement for each financial year, and a statement of strategic plans and objectives for the next three financial years. Both statements must be submitted to the Mayor by 31st December preceding the start of each financial year. 

The Medium Term Financial Plan (“MTFP”) provides a three year forecast for the use of London Pension Fund Authority (“LPFA”) resources from 1 April 2020. The MTFP is based on the LFPA Strategic Policy Statement, providing a forecast outturn for the current financial year.

LPFA Local Code of Corporate Governance

The LPFA Local Code of Corporate Governance has been developed in line with the CIPFA (Chartered Institute of Public Finance and Accountancy) and SOLACE (The Society of Local Authority Chief Executives and Senior Managers) guidance contained in “Delivering Good Governance in Local Government”.

Given LPFA’s unique status as a statutory corporation this Code endeavours to reflect the guidance and best local government practice where possible, whilst having regard to the requirements placed on pension funds to demonstrate effective scheme governance.This document sets out LPFA’s Local Code of Corporate Governance and the process for monitoring and maintaining the Code which will enable LPFA to successfully achieve its objectives.

CIPFA Code of Practice on Public Sector Pensions Finance Knowledge and Skills Framework

CIPFA Code of Practice on Public Sector Pensions Finance Knowledge and Skills Framework. LPFA recognises the importance of ensuring that it has the necessary resources to discharge its pension administration responsibilities and that all staff and members charged with financial administration, governance and decision making with regard to the pension scheme are fully equipped with the knowledge and skills to discharge the duties and responsibilities allocated to them.

It therefore seeks to utilise individuals who are both capable and experienced and it will provide and/or arrange training for staff and members of the pensions decision making and governance bodies to enable them to acquire and maintain an appropriate level of expertise, knowledge and skills.

LPFA has fully adopted the principles of the CIPFA Knowledge and Skills framework. For staff this means that all pensions administration staff receive an in-house training course in the initial stages of their career which covers in detail the workings of the LGPS from an administration point of view. LPFA’s in-house pensions training is endorsed by EDI and covers both Level 2 and Level 3 in LGPS administration. This is supplemented by investment in LGPS specific systems which carry out day to day pensions administration. There are also externally provided training routes for support staff throughout the LPFA. All of the decision making members of the Finance or Investment Team are accredited by the respective professional and chartered bodies.

LPFA’s Board Members are asked to complete The Pension Regulator’s trustee toolkit as part of their induction process. As this is not specifically designed for the LGPS, a formal training plan is in place for each Board Member to emphasise the distinct nature of the LGPS. It contains a mixture of individual and collective training. 

LGPS Governance Statement

The LGPS Governance Statement sets out how the administration of the Fund is governed. Each administering authority is required to publish a governance statement and explain their compliance with a set of best practice principles issued by The Department of Communities and Local Government. LGPS Governance Compliance Statement 2020

Equality and Diversity Policy

The London Pensions Fund Authority is committed to providing equality of opportunity and access in both our employment and service arrangements. The Equity and Diversity Policy describes our Equal Opportunities, Diversity & Dignity at Work Policy, including our guiding principles, roles and responsibilities.

Communications Policy Statement

The Communications Policy Statement describes information and publicity relating to the Scheme, and the frequency, format and method of distribution, to members, representatives, employers and potential members of the scheme.

Complaints & IDRP

The LPFA aims to satisfy any complaint that you may have and is interested in suggestions on how our service can be improved. 

If you are dissatisfied with any decision made in relation to the Local Government Pension Scheme, you have the right to have your complaint independently reviewed under the Internal Disputes Resolution Procedure (IDRP) and there are also a number of other regulatory bodies that may be able to assist you.

LPFA Pay Policies

This policy describes LPFA’s pay framework and its approach to determining pay. It also sets out the current structure and arrangements in place for dealing with the remuneration of its CEO. 

Constitutional Document

 The Constitutional Document (December 2020) defines the existence of the LPFA and regulates its structure and control.

Responsible Investment Policy

The Responsible Investment Policy defines the LPFA’s approach to how the Fund aims to follow in integrating environmental, social and governance issues into all of its investments.

Climate Change Policy

LPFA’s climate change policy outlines the approach LPFA will take on managing climate impact with respect to the Fund.

Whistleblowing Policy

The LPFA is committed to the highest possible standards of openness, probity and accountability. The whistleblowing policy and procedure is designed to ensure that workers are confident that they can raise any concerns they may have internally in the knowledge that LPFA will take them seriously, treat them as confidential and take reasonable steps.