The Strategic Director of Resources is responsible for the overall decision-making, risk management and governance aspects of the Fund, covering both the investment activity (including climate and wider ESG risks and opportunities and stewardship activities) and the administration function of the Fund.
The Director is supported by the PAP, who make ongoing recommendations and provide guidance to the Director based on work being undertaken internally by the Fund officers and other external advisors and stakeholders.
The LPB provides additional oversight and scrutiny of the Fund administration function and operational aspects including compliance with applicable regulations and best practice on governance-focused considerations.
A summary of the Fund’s Governance structure and responsibilities of various internal and external stakeholders is captured below:
The Director is responsible for all decisions in relation to the Fund and ensures that the Fund’s affairs are administered in a proper manner, in compliance with all relevant professional codes of practice and all statutory obligations.
The Director is responsible for the following key functions and decisions in relation to the Fund:
- investments objectives & investment return targets
- asset allocation, performance monitoring and compliance
- pensions administration and services functions
- ongoing engagement with Fund membership
- monitoring costs and overall budgets
When making decisions on pension fund matters, the Director takes into consideration the recommendations of the PAP and the Fund’s external investment advisors. However, authority for all decision-making sits with the Director.
The Pensions Advisory Panel (‘PAP’) provides recommendations and guidance to the Director enabling them to make informed decisions in relation to overall Fund operations.
The PAP is constituted as follows:
- three elected members, including the chair (voting)
- Strategic Director of Resources (non-voting)
- two fund officers (voting)
- two independent advisors (non-voting)
- two representatives appointed by the constituent trade unions (non-voting)
- one retired member representative appointed by trade unions (non-voting)
Outcomes of the PAP are treated as recommendations to the Director.
Current elected membership of the PAP:
- Councillor Stephanie Cryan (Chair)
- Councillor Emily Hickson
- Councillor Rachel Bentley
The latest version of Southwark Constitution with a detailed description of roles, responsibility and functioning of the PAP is available here.
The LPB is set up as an independent and separate body from the PAP to facilitate good governance for the Fund. The LPB does not have a decision-making role but aims to enable greater scrutiny and effective stewardship for the Fund’s members.
The responsibility of the LPB is to ensure effective and efficient governance and administration of the Fund, including compliance with all applicable LGPS regulations and other applicable matters.
The LPB consists of seven members and is constituted as follows:
- one independent chair (non-voting)
- three employer representatives (voting)
- three scheme member representatives (voting)
Current membership of the LPB:
- Mike Ellsmore (Independent Chair)
- Dominic Cain (Vice Chair) – Employer representative
- Sarah Feasey – Employer Representative
- Mike Antoniou – Schools Employer Representative
- Tony O’Brien – Retired Employee Representative
- Helen Laker – Employee Representative
- Stuart Mumford - Employee Representative
The LPB's core functions are set out in the Terms of Reference.
The Investments team provides support to the Strategic Director of Resources and PAP to ensure effective implementation of the investment strategy and related policies in place and the day-to day management of the Fund. The Chief Investment Officer leads the Investments team, which includes investment and accounting specialists.
The Investments team reports at least quarterly on Fund performance and ensures that the Director is well placed to act quickly within the prevailing economic and investment environment at that time.
The Operations team provides support to the Strategic Director of Resources and PAP whilst safeguarding valuable LGPS benefits by ensuring an effective administration and pensioner payroll service is carried out on behalf of members of the Fund. To ensure that happens effectively, the Operations team works closely with other key stakeholders such as HR/Payroll functions, the Council and other external employers.
The Head of Pensions Operations leads the Operations team and has responsibility for a number of specialist teams; including UK/overseas pensioner payroll, pension fund administration, IT/data and systems management, contact centre, training and development, and communication and employer engagement.