NORTHERN IRELAND LOCAL GOVERNMENT OFFICERS’ SUPERANNUATION COMMITTEE

 

DRAFT MANAGEMENT STATEMENT

 

1.         ORGANISATION PROFILE

 

1.1       Purpose of Management Statement

 

1.1.1       This Management Statement sets out the relationship between the Department of the Environment for Northern Ireland (“the Department”) and the Northern Ireland Local Government Officers’ Superannuation Committee (“the Committee”). 

 

1.2       Status of the Committee

 

1.2.1       The Committee was established by Section 1 of the Local Government (Superannuation) Act (Northern Ireland) 1950 (1950 C.10 (N.I.)).  It is a body corporate with perpetual succession and a common seal with the capacity to acquire and hold land.

 

1.2.2       It is regulated by the Department in exercise (inter alia) of the powers conferred by Articles 9 and 14 of, and schedule 3 to, the Superannuation (Northern Ireland) Order 1972 (S.I. 1972/1073 (NI 10) as amended.  The Department is designated for the purpose of article 164(3) of the Pensions (Northern Ireland) Order 1995 as the body responsible for the scheme.

 

1.2.3       The current regulations are the Local Government Pension Scheme Regulations (Northern Ireland) 2000 (SR 2000/177) (the “Regulations”) which came into operation on 1 August 2000.

 

1.3       Purpose of the Committee

 

1.3.1   The Committee exists:-

 

-     to administer the Local Government Superannuation Scheme in accordance with the Regulations;

 

-     to manage and maintain a superannuation fund, in accordance with the Regulations, out of which benefits of the scheme and administration costs are met. 

 

1.4       Committee Functions

 

1.4.1   In carrying out its function to administer the scheme the Committee will:-

 

-     maintain accurate and up to date records of all members contributing to the scheme;

 

-     calculate and pay benefits promptly in accordance with the Regulations; 

 

-     liaise with and assist the Department in the making of amendments to the Regulations in accordance with the policy to maintain parity with the Local Government Pension Scheme in England and Wales.

 

1.4.2   In carrying out its function to manage and maintain the fund the Committee is required to credit to the fund:-

 

-     the amounts including any additional amounts contributed by pensionable employees entitled to participate in the benefits of the fund;

 

-     the amounts payable by the employing authorities as determined by the fund’s actuary; 

 

-         all dividends and interest arising out of the fund’s investments and any capital moneys resulting from the realisation of investments or from the repayment of moneys used temporarily for other authorised purposes.

 

1.4.3.     The Committee is required to invest any moneys not being required to meet payments to be made out of the fund and may vary the manner in which the fund moneys are from time to time invested.

 

1.4.4       The Committee must formulate an investment policy with a view:

 

-         to the advisability of investing fund money in a wide variety of investments,

      and

-         to the suitability of particular investments and types of investments.

 

1.4.5       The Committee must obtain proper advice at reasonable intervals about its investments and must consider such advice in taking any steps about its investments.

 

1.4.6       The Committee must, after consultation with such persons as it considers appropriate, prepare, maintain and publish a written statement of the principles governing its decisions about investments.

 

1.4.7       The Statement must cover its policy on:

 

-         the types of investments to be held

-         the balance between different types of investments

-         risk

-         the expected return on investments

-         the realisation of investments

-         the extent, if at all, to which social, environmental or ethical considerations are taken into account in the selection, retention and realisation of investments, and the exercise of the rights, including voting rights, attaching to investments, if it has such on policy.

 

1.4.8       The Statement of Investment Principles is reviewed by the Committee in accordance with any material change in its policy.

     

1.4.9       The Committee may appoint one or more investment managers to manage and invest fund moneys on its behalf.

 

1.4.10  Where the Committee appoints an investment manager it is required, at least every three months, to review the investments made by the investment manager and from time to time consider the desirability of continuing or terminating the appointment.

 

1.4.11  In the discharge of its functions the Committee is required to have regard:-

 

-     to the need for diversification of investments of fund moneys;

 

-     to the suitability of investments which the investment managers propose to make or have made; 

 

-     to obtain proper advice at reasonable intervals.

 

1.5       Constitution of the Committee

 

1.5.1   The constitution of the Committee is laid down in  Schedule L1 of the Regulations. 

 

1.5.2   The Committee consists of a Chairperson appointed by the Head of the Department and the following other members:-

 

-         five members appointed by the Head of the Department after consultation with such organisations as may be recognised by the Department as representative of employing authorities contributing to the fund;

 

-     five members appointed by the Head of the Department after consultation with such organisations as may be recognised by the Department as representative of the classes of pensionable employees of employing authorities contributing to the fund.

 

1.5.3   A member of the Committee is appointed for a term of office of four years.

 

1.5.4   A member may resign from the Committee by giving written notice to the Head of the Department. 

 

1.5.5   A casual vacancy shall be filed by the Head of the Department after consultation with the Committee and a person so appointed shall hold office for the residue of the term of the member in whose place s/he is so appointed.

 

1.5.6   The Office of Committee member shall be declared vacant if a member:- 

 

-         is convicted or an indictable offence or

 

-     becomes bankrupt or

 

-     is absent from meetings for more than six months consecutively except for a reason approved by the Head of the Department.

 

1.5.7   A member on vacating his/her office at the expiration of the term is eligible for re-appointment. 

 

1.6       Management Structure

 

1.6.1   The Committee in accordance with the Regulations may appoint:- 

 

-         a Deputy Chairman;

 

-         a Sub Committee or an officer employed by the Committee to discharge, with or without restrictions or conditions as the Committee thinks fit, any functions assigned to the Committee to manage and maintain the fund;

 

-     an Audit Committee.

 

1.6.2   Any arrangements made by the Committee for the discharge of its functions by a Sub Committee or officer shall not prevent the Committee from exercising these functions. 

 

1.6.3   The Committee may with the approval of the Department appoint persons to hold any of the following offices:- 

 

-         Secretary to the Committee;

 

-         Deputy Secretary to the Committee;

 

-         such other officers under the Committee as the Department may designate in writing.

 

In addition the Committee may appoint such other offices as may be required for the performance of the functions of the Committee. 

 

1.6.4   The Secretary to the Committee, who is also the Accounting Officer, is responsible for the executive management of the scheme in accordance with the Regulations. 

 

1.7       Location

 

1.7.1   The Committee is located at:-

 

            Templeton House

                        411 Holywood Road

                        Belfast    

                        BT4 2LP

                        Telephone:     028 9076 8025

                        Fax:                 028 9076 8790

                        E-mail:                        info@nilgosc.org.uk

                        Website:         www.nilgosc.org.uk

 

 

2.         AIMS AND OBJECTIVES

 

2.1       The Committee’s objectives are:-

 

-         to provide a high standard of service to members of the scheme and to employing authorities;

 

-         to ensure the effective management and security of the fund.

 

2.2       The Committee aims to:-

 

-         ensure that administration is as efficient and cost effective as possible;

 

-         provide a quality service to contributors, pensioners, deferred pensioners, and employing authorities;

 

-         optimise the return on the fund investment having due regard to the fund’s exposure to risk.

 

 

3.         PERFORMANCE MEASURES

 

3.1             The Committee has agreed investment objectives with the investment managers and property adviser as follows:

 

         Investment Managers

 

-        a rate of return in excess of the tailored benchmark over rolling three years, as measured by Combined Actuarial Performance Services Limited (CAPS), for the “core” and “passive” managers and plus 1% for the “added value” manager. 

 

      Property

 

-        an overall rate of return of at least 4% per annum in excess of the rate of increase in the Retail Prices Index                        and

 

-      a total return of 1% above the average index on long term funds £50 – £250m over rolling three years, as measured by the Investment Property Databank (IPD).

 

3.2             The Secretary shall produce annually a Corporate Plan which will set out the Committee’s strategy for the next three years.  It will normally be submitted to the Committee, for approval, in March each year.

 

3.3             The Plan shall also include the annual budget for approval for the next financial year.

 

3.4             The Committee shall also set service level standards.  Performance against standards will be regularly measured and monitored, and revised as necessary.

 

 

4.         OPERATING ARRANGEMENTS

 

4.1       The Committee shall keep accounts of all financial transactions of the fund.

 

4.2             The Secretary of the Committee shall prepare the financial statements for the Committee to the end of each financial year and shall forward three copies of the financial statements duly signed and dated by him to the Department not later than 30 June after the expiry of the financial year to which the financial statements relate.

 

4.3             The financial statements of the Committee shall be prepared in accordance with the accounts direction laid down in the Local Government Pension Scheme (Amendment No. 3) Regulations (Northern Ireland) 2001 and shall be audited annually by the Local Government Auditor. 

 

4.4             A copy of the Auditor’s report together with two audited copies of the financial statements, duly signed by the Auditor, shall be sent to the Department within 14 days after the completion of the audit.

 

4.5             The Department on receipt of the Auditor’s report and the audited copies of the financial statements shall send copies to the Secretary of the Committee who shall:-

 

-         present such copy of the report and financial statements before the next meeting of the Committee;

 

-         forward a copy of the report and financial statements to each employing authority.

 

4.6             The Committee shall annually, at such times as the Department may direct, make to it a report of their proceedings during the year.

 

4.7             The Committee shall annually, produce a Members’Report detailing the main items of interest from the Annual Report and Financial Statements for issue to all members, pensioners and deferred pensioners.

 

 

5.         FUNDING ARRANGMENTS

 

5.1             The viability of the fund is not dependent solely on the current value of the fund which will fluctuate with market conditions, but depends on whether the assets are sufficient in the long term to meet liabilities.  The fund’s actuary is required to review the position every three years and certify that the employing authorities’ contribution rates required to maintain the solvency of the fund.

 

5.2             The Committee shall obtain an actuarial valuation of the assets and liabilities of the fund and a report by the actuary at 31 March every third year with effect from 2001.

 

5.3             Unless the Department allows an extended period, the valuation and report are to be obtained within 12 months from the date of the valuation.

 

5.4             To enable the actuary to carry out the valuation, the Committee shall furnish him with the information as he may require within six months after the valuation date, or such extended period as the Department may allow.

 

5.5             Upon receiving the valuation and the report, the Committee shall:-

 

-         send copies to the Department and copies to each of the employing authorities, together with a copy of any revenue accounts and summary of assets of the fund at the valuation date.

 

5.6             In addition to the triennial valuation and report, the Committee may at any other time obtain a valuation and report on the assets and liabilities of the fund.  If such a report and valuation are obtained by the Committee, the procedure in 5.5 will be followed.

 

5.7             As soon as practicable after obtaining a valuation, the Committee shall obtain from the actuary a Certificate specifying:-

 

-         the rate which in the actuary’s opinion all employing authorities are required to pay to maintain the solvency of the fund;

 

-         in respect of any employing authority the amount which in the actuary’s opinion the contribution rate requires to be reduced or increased to take account of any existing or prospective assets or liabilities peculiar to that employing authority.

 

5.8             Upon receiving the Certificate from the actuary specifying the common contribution rate and any individual adjusted rates the Committee shall send a copy to the Department and to each of the employing authorities.

 

 

6.         STAFFING MATTERS

 

6.1             Staff

 

6.1.1   The conditions of service for staff employed by the Committee are those laid down in the National Joint Council for Local Government Services.

 

6.1.2       The Committee staff structure was initially agreed following an organisational review exercise in 1995 carried out by Capita Management Consultants to determine an appropriate structure to meet the Committee’s objectives and responsibilities and confirmed by the Committee as still meeting the Committee’s needs in March 2002.  

 

6.2       Equal Opportunities

 

6.2.1   The Committee is an equal opportunities employer and it is the policy of the Committee that all eligible persons will have equal opportunity for employment and advancement in the Committee’s employment on the basis of merit.

 

6.2.2       NILOGSC is fully committed to equality of opportunity and complies with the statutory obligations set out in Section 75 and Schedule 9 of the Northern Ireland Act 1998.  The NILGOSC Equality Scheme was approved in April 2001 and sets out the means by which the Committee fulfills its duties to promote both equality of opportunity and good relations.

 

6.2.3   The Committee monitors compliance with the Scheme on an annual basis.

 

6.3       Staff Appraisal and Career Development

 

6.3.1   The Committee recognises that its human resources are one of its most valuable assets and seeks to encourage its staff to acquire the skills and knowledge necessary to achieve their optimum performance in their current posts, to develop their careers within the Committee, and to equip them to adapt to the changing needs of the organisation.

 

6.3.2   The Committee will support officers in improving their level of skills and knowledge through acquiring additional qualifications which are relevant to the needs of the organisation and appropriate to the existing level of qualification held by the individual to the extent that (s)he is likely to be able to complete the course successfully.

 

6.3.3   The Committee has in place a formal system of staff appraisal.  The purpose of the appraisal system is to:-

 

-         assist in improving individual’s overall performance;

 

-         help develop people in their jobs;

 

-         provide additional information for employees’ managers;

 

-         provide information for the Committee on individual career aspirations, training requirements and potential. 

 

 

7.         REVIEW, PUBLICATION AND EFFECTIVE DATE

 

7.1       Review

 

7.1.1   The Management Statement was approved by the Committee at the meeting on (date to be inserted) 2002.  It will be reviewed initially after three years and thereafter as necessary.

 

7.2       Publication

 

7.2.1   Copies of this Management Statement and any subsequent amendments will be held by the Secretary and will be available for inspection on request to the Secretary.

 

7.3       Effective Date

 

7.3.1   This Management Statement is effective from (date to be inserted) 2002. 

 

 

Northern Ireland Local Government Officers’ Superannuation Committee

Templeton House

411 Holywood Road

Belfast

BT4 2LP