Appendix A - Areas of knowledge and understanding

Examples of areas


1. Background and understanding of the legislative framework of the LGPS

  • Differences between public service pension schemes like the LGPS and private sector trust-based schemes
  • Role of the IPSPC and its recommendations
  • Key provisions of the 2013 Act
  • The structure of the LGPS and the main bodies involved including the:
    • Responsible Authority
    • Administering Authority
    • Scheme Advisory Board
    • Local Pension Board
    • LGPS employers
  • An overview of local authority law and how administering authorities are constituted and operate
  • LGPS rules overview (including the regulations, the transitional regulations and the investment regulations)

2. General pensions legislation applicable to the LGPS

An overview of wider legislation relevant to the LGPS including:

  • Automatic Enrolment (Pensions Act 2008)
  • Contracting out (Pension Schemes Act 1993)
  • Data protection (Data Protection Act 1998)
  • Employment legislation including anti-discrimination, equal treatment, family related leave and redundancy rights
  • Freedom of Information (Freedom of Information Act 2000)
  • Pensions sharing on divorce (Welfare Reform and Pensions Act 1999)
  • Tax (Finance Act 2004)
  • IORP Directive

3. Role and responsibilities of the Local Pension Board

  • Role of the Local Pension Board
  • Conduct and conflicts
  • Reporting of breaches
  • Knowledge and understanding
  • Data protection

4. Role and responsibilities of the administering authority

  • Membership and eligibility
  • Benefits and the payment of benefits
  • Decisions and discretions
  • Disclosure of information
  • Record keeping
  • Internal controls
  • Internal dispute resolution
  • Reporting of breaches
  • Statements, reports and accounts

5. Funding and investment

  • Requirement for triennial and other valuations
  • Rates and adjustments certificate
  • Funding strategy statement
  • Bulk transfers
  • Permitted investments
  • Restrictions on investments
  • Statement of investment principles
  • CIPFA guidance
  • Appointment of investment managers
  • Role of the custodian

6. Role and responsibilities of scheme employers

  • Explanation of different types of employers
  • Additional requirements for admission bodies
  • Automatic enrolment
  • Deduction and payment of contributions
  • Special contributions
  • Employer decisions and discretions
  • Redundancies and restructuring (including the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2006)
  • TUPE and outsourcing (including Fair Deal and the Best Value Authorities Staff Transfers (Pensions) Direction 2007)

7. Tax and contracting out

  • Finance Act 2004
  • Role of HMRC
  • Registration
  • Role of ‘scheme administrator’
  • Tax relief on contributions
  • Taxation of benefits
  • Annual and lifetime allowances
  • Member protections
  • National Insurance
  • Contracting out (Pensions Scheme Act 1993)
  • Impact of abolition of contracting out in 2016
  • VAT and investments

8. Role of advisors and key persons

  • Officers of the administering authority
  • Fund actuary
  • Auditor
  • Lawyers
  • Investment managers
  • Custodians
  • Administrators – in house v third party
  • Procurement of services
  • Contracts with third parties

9. Key bodies connected to the LGPS

An understanding of the roles and powers of:

  • Courts
  • Financial Services Authority
  • HMRC
  • Information Commissioner
  • Pensions Advisory Service
  • Pensions Ombudsman
  • The Pensions Regulator (including powers in relation to local pension boards)
Print this document