iv. And, if there are such representatives, whether they have voting rights.

Policy statements should include information on all of the Administering Authority's governance arrangements. Specific information on the representation of employers should cover any arrangements for Admitted Body Employers ("Non-Scheme Employers").

In the regulations the statement is called a "governance policy statement". This is because it reflects the scope of the regulations, which include wider issues. The Government's policy intention is that the statement should fully describe and explain the Administering Authority's arrangements for the delegation of their functions, the frequency of Committee meetings, terms of reference and operational procedures of such delegations and the extent of Scheme Member representation on Committees.

The statement must be published and reviewed so that a transparent assessment of its policies by all Scheme and other interests is possible. It should be a freestanding statement.

The regulations on governance policy statements serve two purposes. Firstly, under regulation 73A (1), Administering Authorities are required to publish a written statement setting out their existing policy regarding the matters set out in sub-paragraphs (a) and (b). This is to be regarded as an initial or first step and will enable the ODPM and others to assess the current position on governance issues within the LGPS. This statement must be published by 1 April 2006.

Secondly as Authorities develop and review their governance policies, regulation 73A (3) requires Administering Authorities to revise the initial policy statement as and when changes occur. This offers UNISON branches the opportunity to campaign and lobby for trade union representation with full voting rights.

Reporting
In April 2002, the Pensions Panel issued guidance on "Principles for Investment Decision Making in the LGPS" in response to the Myners Review of Institutional Investment. This guidance stated: "Each Administering Authority should have a designated group of elected members appointed to a Committee to whom responsibility for the management and administration of the Pension Fund has been assigned."

For the employers, under the Cabinet structure in Local Government, management of the Pension Fund is a Non-Executive function. The Committee to whom a Council may have delegated this function could either report directly to the Council, or to the Council via a Non-Executive Committee. There are examples of Non-Executive Pension Fund management structures being linked into the Executive by having a Chairman of the Committee who is a Cabinet Member.

Decision making powers can be delegated to a Non-Executive Body. Section 2 and Schedule 1H of the Local Authorities (Functions and Responsibilities) (England) Regulations SI 2000 No. 2853, state that functions relating to Local Government Pensions are not to be the responsibility of an Executive of the Local Authority. Section 101 of the Local Government Act 1972 provides a Local Authority with the power to delegate certain of its functions to a Committee or Sub-Committee, which is how a Pension Committee derives its powers.

At present, there are examples of Authorities that delegate all investment powers to a sole officer, known as a Section 151 Officer. These Authorities are being asked to review this arrangement to see if this is still appropriate given the scale and weight of decisions made on investment matters. The ODPM will be reviewing existing governance arrangements during 2006.

Representation
When considering representation on Pension Committees, the inclusion of representatives from the following bodies need to be taken into account:

The number of Pension Committee members representing the Administering Authority and the political composition of the Committee is a matter for the Administering Authority. A survey in 2004 indicated that in English Counties the number of Administering Authority members ranged from 3 to 16, with an average of 7.

Section 7 of the Superannuation Act 1972 does not permit the Secretary of State to make regulations, which impact on the constitution and membership of Local Authority Committees. The ODPM has advised that there are no plans at present to amend Local Government law in this area. This must be a matter for each Administering Authority to consider, reflecting local circumstance and choice. In exercising choice, the ODPM have advised that it is important that Administering Authorities recognise the desirability of achieving an effective and comprehensive level of stakeholder representation within the LGPS nationally.

Funding Strategy Statements should encourage a greater emphasis on consultation. If Local Authority Contributory Employers do not have representation on the Pensions Committee, be it voting or non- voting, Administering Authorities need to demonstrate that these employers are engaged in other ways. For example by the holding of:

Voting rights
All elected members of the Administering Authority have voting rights as a matter of course. If there is a Sub-Committee of a Committee established under the Superannuation Act 1972 (ie the Pension Committee) the Local Government (Committee and Political Groups) Regulations 1990 SI No 1553 5 (1) (d) state that voting rights are given to any person appointed to this Sub-Committee who is a member of the Authority which appointed the Committee.

For elected members of Authorities other than the Administering Authority and Non-Elected Members the following two references are relevant,

The general view is that the Regulations allow discretion for Administering Authorities to confer voting rights on Non-Elected Members but this is an area that has not been tested in the Courts. The ODPM is aware that some Administering Authorities do confer voting rights on lay members.

Administering Authorities need to consider whether District Councils, other major Scheduled Bodies and indeed other representatives should have voting rights without joint and several responsibilities. Formal statutory responsibility for the LGPS and fund investment remains with the Administering Authority, which is accountable for the effective and prudent management of the Scheme. The Pensions Panel issued guidance in April 2002 on Principles for Investment Decision Making in the LGPS.

Trustee training
The Myners Review of Institutional Investment in 2001 emphasised the need to undertake trustee training. This recommendation is applicable to the LGPS.

The Pensions Panel guidance in April 2002 suggested that the Pension Committee should appoint a suitably qualified Officer to oversee the day to day running of the Pension Fund. This Officer should ensure that Committee Members receive regular training. This is to enable them to make effective decisions and ensure they are fully aware of their statutory and fiduciary responsibilities, and their stewardship role.

Training can either be achieved through courses and seminars provided by the Employers Organisation, External Fund Managers, other arrangements or a combination of all three.

The Pensions Act 2004 has specific requirements in relation to corporate sector trustees. Although this does not apply to the LGPS, the principles behind this are equally applicable. The ODPM fully endorse the importance and need for trustee training to be undertaken by all Administering Authorities.