The role is an integral part of the governance of the Police Pension Scheme. Therefore it is expected that to be a member of the Pension Board you will require a working knowledge of the Police Pension rules and any documentation recording administration policy of the scheme. You will also be required to have knowledge and understanding of the law relating to pensions and any other matter which is prescribed in regulations.
If you would like further understanding of what this role will involve please feel free to visit the Pension Regulator's website (http://www.thepensionsregulator.gov.uk/public-service-schemes.aspx) which provides information on what is expected of you and also an interactive toolkit that will test your underlying knowledge. The site also gives an idea of the areas you will cover if successful in becoming a member of the Joint Police Pension Board.
How this can be achieved is open to debate but our initial proposals are that we should ask for volunteers from across all the forces who have agreed to participate, for both employer and scheme member representatives. It also means that the number of volunteers would be manageable should we have to undertake some form of selection process.
Conflicts of Interest
Members of the Pension Board are not allowed to have a conflict of interest. If a conflict of interest does exist then you would not be allowed to be a member of the board.
A conflict of interest is a financial or other interest which is likely to prejudice a person's exercise of functions as a member of the pension board. It does not include a financial or other interest arising merely by virtue of that person being a member of the scheme or any connected scheme for which the board is established.
Below are some examples of potential or actual conflicts of interest which could arise, or be perceived to arise, in relation to public service pension schemes. The examples provided are for illustrative purposes only and are not exhaustive.
a. Investing to improve scheme administration versus saving money
An employer representative, who may be a finance officer, is aware that system X would help to improve standards of record-keeping in the scheme, but it would be costly to implement. The scheme manager would need to meet the costs of the new system at a time when there is internal and external pressure to keep costs down. In order to meet the costs of the new system, the scheme manager would need to find money, perhaps by using a budget that was intended for another purpose. This decision could prove unpopular with taxpayers. A conflict of interest could arise where the employer representative was likely to be prejudiced in the exercise of their functions by virtue of their dual interests.
b. Representing the breadth of employers or membership versus representing narrow interests
An employer representative who happens to be employed by the administering authority and is appointed to the pension board to represent employers generally could be conflicted if they only serve to act in the interests of the administering authority, rather than those of all participating employers. Equally, a member representative, who is also a trade union representative, appointed to the pension board to represent the entire scheme membership could be conflicted if they only act in the interests of their union and union membership, rather than all scheme members.
c. Assisting the scheme manager versus furthering personal interests
d. Sharing information with the pension board versus a duty of confidentiality to an employer
An employer representative has access to information by virtue of their employment, which could influence or inform the considerations or decisions of the pension board. They have to consider whether to share this information with the pension board in light of their duty of confidentiality to their employer. Their knowledge of this information will put them in a position of conflict if it is likely to prejudice their ability to carry out their functions as a member of the pension board.
The Term of Office for each board member is three year following which there will be a request for any additional nominees for the role. The incumbent can be re-appointed at the end of the nomination process.
When a position is available on the Board, whether through the term of Office coming to an end or a member leaving, nominations will be sought from the relevant tranche (i.e. either members, employers, or both).
Where there is more than one nominee for a particular role, the Board will decide on the best approach to select the best person.