Governance
I1I2I4I35Pension board
1
Scheme regulations for a scheme under section 1 must provide for the establishment of a board with responsibility for assisting the scheme manager (or each scheme manager) in relation to the following matters.
2
Those matters are—
a
securing compliance with the scheme regulations and other legislation relating to the governance and administration of the scheme and any statutory pension scheme that is connected with it;
b
securing compliance with requirements imposed in relation to the scheme and any connected scheme by the Pensions Regulator;
c
such other matters as the scheme regulations may specify.
F12A
Subsection (1) does not apply to a scheme under section 1 if—
a
the scheme is connected with another scheme under section 1, and
b
a pension board is provided for under subsection (1) in scheme regulations for that other scheme.
3
In making the regulations the responsible authority must have regard to the desirability of securing the effective and efficient governance and administration of the scheme and any connected scheme.
4
The regulations must include provision—
a
requiring the scheme manager—
i
to be satisfied that a person to be appointed as a member of the board does not have a conflict of interest, and
ii
to be satisfied from time to time that none of the members of the board has a conflict of interest;
b
requiring a member of the board, or a person proposed to be appointed as a member of the board, to provide the scheme manager with such information as the scheme manager reasonably requires for the purposes of provision under paragraph (a);
c
requiring the board to include employer representatives and member representatives in equal numbers.
5
In subsection (4)(a) “conflict of interest”, in relation to a person, means a financial or other interest which is likely to prejudice the person's exercise of functions as a member of the board (but does not include a financial or other interest arising merely by virtue of membership of the scheme or any connected scheme).
6
In subsection (4)(c)—
a
“employer representatives” means persons appointed to the board for the purpose of representing employers for the scheme and any connected scheme;
b
“member representatives” means persons appointed to the board for the purpose of representing members of the scheme and any connected scheme.
7
Where the scheme manager of a scheme under section 1 is a committee of a local authority, the scheme regulations may provide for that committee also to be the board for the purposes of this section.
8
In this Act, a board established under this section is called a “pension board”.
9
This section does not apply to a scheme under section 1 which is an injury or compensation scheme.