THE LOCAL GOVERNMENT PENSION SCHEME (MANAGEMENT AND INVESTMENT OF FUNDS) (AMENDMENT) REGULATIONS 2002 SI 2002 NO. 1852
I enclose a copy of regulations mentioned at paragraph 3 of my letter dated 4 March 2002, which the Secretary of State has made under powers contained in section 7 of the Superannuation Act 1972. The regulations amend the Local Government Pension Scheme (Management and Investment of Funds) Regulations 1998. They come into force on 9 August 2002.
Regulation 2 inserts a new regulation 9A(3A) which requires administering authorities to prepare a revised Statement of Investment Principles (SIP) setting out the extent to which they comply with the ten investment principles contained in the CIPFA document "Principles for Investment Decision Making in the Local Government Pension Scheme in the UK) published in April 2002. As well as setting out the ten principles, the document also provides practical guidance to local authorities about the preparation of compliance statements and the special circumstances of the LGPS which need to be taken into account. Copies of the document were sent to administering authorities in England and Wales by CIPFA in April. If you have not received a copy, it is suggested that you contact CIPFA directly.
In formulating these revised statements, new Regulation 9A(3A)(b) also require administering authorities to give their reasons in those cases where they do not comply.
Regulation 3 includes transitional provisions which require administering authorities to publish the revised statements by 30 September 2002. As when the SIP provisions were first introduced, the word "publish" where it appears in Regulation 2 is taken to mean, to make available to those who request a copy. It is suggested therefore that authorities publicise availability of their revised SIP by means of pension scheme literature, scheme member bulletins/magazines and on web sites, etc.
Any enquiries about the application of the provisions should be made to Margaret Dunleavy, Local Government Pension Division, ODPM, Zone 2/E6, Ashdown House, 123 Victoria Street, London, SW1E 6DE. Telephone enquiries can be made on 020 7944 6012.
Local Government Pension Division
The Chief Executive of:
County Councils (England)
District Councils (England)
County and County Borough Councils in Wales
London Borough Councils
South Yorkshire Pensions Authority
Tameside Metropolitan Borough Council
Wirral Metropolitan Borough Council
Bradford Metropolitan City Council
South Tyneside Metropolitan Borough Council
Wolverhampton Metropolitan Borough Council
London Pensions Fund Authority
Town Clerk, City of London Corporation
Clerk, South Yorkshire PTA
Clerk, West Midlands PTA
The Secretaries of:-
Local Government Association
New Towns Pension Fund
Trades Union Congress
The Secretaries of:
Investment Management Association (IMA)
London Investment Banking Association (LIBA)
Chartered Institute of Public Finance and Accountancy (CIPFA)
National Association of Pension Funds (NAPF)
Financial Services Authority (FSA)
Association of British Insurers (ABI)
Other Government Departments:-