PURPOSE OF REPORT

To present to Members:

(i) the annual report of the Local Pension Board which details the work of the board during the last financial year; and

(ii) the reviewed terms of reference of the Board.

EXECUTIVE SUMMARY

To present to members the annual report of the Local Pension Board which details the work of the board during 2019-20. The revised terms of reference for the Board are also presented.

RECOMMENDATION

That Members:

(i) approve the local pension board annual report 2019-20 (appendix 1) for publication on the Authority's website; and

(ii) note the terms of reference attached at appendix 2.

OBSERVATIONS FROM THE LOCAL PENSION BOARD

The Annual Report was considered by the Local Pension Board on 27 May 2020 and no issues of note were highlighted.

INFORMATION

The governance requirements around pensions were introduced as a result of the Public Service Pensions Act 2013. The Act provides for clearer governance arrangements with specific defined roles, the publication of more information on a consistent basis, and administration practices in line with those in the private sector.

The Firefighters’ Pension Scheme (Amendment) (Governance) Regulations 2015 relating to the creation and ongoing operation of local pensions came into force on 1 April 2015. These regulations required the Fire and Rescue Authority (NWFRA) to agree the establishment of a Local Pension Board in respect of the Firefighter’s Pension Scheme by 1 April 2015.

The role and remit of the Local Pension Board is to assist North Wales Fire and Rescue Authority in its capacity as scheme manager by making sure it is administering the Firefighters’ Pension Scheme effectively and efficiently and, in doing so, is complying with relevant laws and regulations. In order to improve transparency, NWFRA is required to publish the annual report of its Local Pension Board.

As set in the terms of reference for the Local Pension Board, the annual report should include:

• a summary of the work of the Local Pension Board and a work plan for the coming year
• details of areas of concern reported to or raised by the Board and recommendations made
• details of any conflicts of interest that have arisen in respect of individual Local Pension Board members and how these have been managed
• any areas of risk or concern the Board wish to raise with the Scheme Manager
• details of training received and identified training needs
• details of any expenses and costs incurred by the Local Pension Board and any anticipated expenses for the forthcoming year.

IMPLICATIONS

Wellbeing Objectives - Considered not relevant
Budget - Cost of the Local Pension Board is funded from existing Members’ Services budget
Legal - The new governance requirements around pensions were introduced as a result of the Public Service Pensions Act 2013.
Staffing - Considered not relevant
Equalities/Human Rights/Welsh Language - It is not considered that there are any issues that need addressing as the recommendations apply equally to all Members regardless of protected characteristics under the Single Equality Act.
Risks - All FRAs need to comply with the guidance provided by the Pensions Regulator around the governance arrangements for Local Pension Boards.