Episode summary
Episode 367: A Brave New World for LGPS Governance: Claire Alcock, Head of Pensions LGA
The Fiftyfaces Podcast
· · 18 min · Guests: Claire Alcock
Summary
Claire Alcock says the latest LGPS governance reforms are the delayed result of the scheme advisory board’s 2021 good governance work, especially the new senior officer and independent person requirements. She argues that the changes are meant to improve transparency, but they are landing unevenly because the 86 LGPS funds differ so much in size, resources, and existing structures.
She sees the senior officer role as straightforward for some larger or already well-resourced funds, but much harder for smaller funds, including some London funds. The independent person role is even less settled: Alcock says the guidance is still evolving, the timetable is tight, and the role may need broad expertise across governance, administration, and investments. She suggests the senior officer needs to be in place first because that role will help define how the independent person fits.
Alcock also expects pool relationships to become a major governance issue, especially because funds are both clients and shareholders. She says conflicts of interest will have to be actively managed, and she expects training, knowledge-sharing, and peer support to become central to making the reforms workable. In five years, she thinks the key test will be whether the LGPS has become more transparent about how decisions are made.
Key takeaways
- Claire Alcock says the senior officer and independent person changes are the delayed outcome of the scheme advisory board’s 2021 good governance work.
- She says the senior officer role is manageable for some funds but a bigger struggle for smaller funds with less resource.
- Alcock says the independent person is still a moving target and may need broad expertise across governance, administration and investments.
- She says LGPS funds will have to manage a real tension because they are both clients and shareholders of their pools.
- Alcock expects the reforms to be judged mainly on transparency and on how clearly funds explain the basis for decisions.
Notable quotes
“some of the changes that we're seeing now have come as a result of the scheme advisory board's good governance work that was done in 2021”
“the independent person, I think, is something that's occupying lots of people's time in talking around what that can look like”
“the fund is both a client and a shareholder”
“the thing we're really looking for, and the thing that LGPS is already very good at anyway, is transparency”
How the episode opens
The next podcast is another podcast brought to you as part of our special bonus series produced in connection with always a pensions angle by DG publishing. This last podcast of the series is with Claire Alcock of the scheme advisory board. We chat with her about the tremendous challenges that the recent consultation brought and how she sees the future unfolding.
Hello ladies and gentlemen and welcome to the third, that's right, the third of a series we're doing here on always a pensions angle in collaboration with the 50 faces podcast called the LGPS interviews. I am Thomas Parker and I am joined by Nick Reeve. Nick Reeve, how are we doing?
Yes, good thank you. It's lovely and sunny here. — It's lovely and sunny here. — Excellent. — Very exciting. Let's let's hope it let's hope it keeps up throughout March and into April and the summer months. Indeed. It won't but there you go.
Are you looking forward to this week's interview?
I am indeed, yeah. So this this person has a big job, I think it's fair to say with some pretty notable predecessors in the role as well who have had a big impacts and they are in the probably stealing your thunder here by saying this but they're overseeing a period in the LGPS where everything seems to be changing and there's so much going on but I'm I'm stealing your thunder Tom so why don't you tell us who it actually is?
It is, of course, if you are listening to sort of podcast, you already know the name because it says the name on the title of the podcast. It's Claire Olcott. She mentions and the LGA and the secretariat of the LGPS advisory board, aka the scheme advisory board.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- lgps governance
- independent person role
- senior officer role
- pensions training
- pooled entities direction
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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The Fiftyfaces Podcast, this episode and its artwork belong to Aoifinn Devitt. Octagon is not affiliated with the show; this page is an independent summary.
