The governance requirements for pension schemes, both in the Public and Private Sectors are changing with the Pensions Regulator (tPR) planning to move to a Single Modular Code and with recommendations from the Good Governance Project in the Local Government Pension Scheme (LGPS) having been released in the first quarter of 2021. Since 2019, there is a regulatory requirement for ‘trustees to have an effective system of governance proportionate to the size, nature and complexity of the scheme and to carry out and document an own risk assessment’. Alongside that, one of the recommendations from the Good Governance Project for the LGPS was to require a biennial independent governance review - an approach completely consistent with the private sector.
Mercer launched Forensic Integrated Risk Management (FIRM) Assessmentto meet the needs of schemes in the private sector, and we have now built on that work to adapt this for the LGPS to focus on 10 key areas.
Watch the video to hear from Nigel Thomas, Head of LGPS at Mercer speak about this work and how it can help LGPS Funds define future plans.
Nigel presented this to the PLSA Local Authority Conference in May 2021, where 95% of respondents believed that FIRM should be used to actively shape future strategies, with decision making, data quality and employer risks being the areas where greatest improvement could be made.
Please contact your usual Mercer consultant, or complete the form below, if you would like to find out more about how FIRM could help you.
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