This Training Policy for elected members of the Pensions and Trusts Committee has been drawn up to meet their needs in relation to training. Committee members acting as quasi ‘trustees’ are appointed by the administering authority, the City of Edinburgh Council. They are remunerated through local government members’ responsibility allowances scheme.
On 24 September 2002 the Lothian Pension Fund adopted the CIPFA guidelines on the Principles for Investment Decision making in the Local Government Pension Scheme by agreeing to implement the ten Myners Principles. The Myners Principles stress the importance of trustee training and it is anticipated that the government will shortly bring out legislation making it a regulatory requirement that where trustees are taking a decision, they should be able to take it with the skill and care of someone familiar with the issues concerned.
The Myners' Investment Principle that relates to training states:
Decisions should be taken only by persons or organisations with the skills, information and resources necessary to take them effectively. Where trustees elect to take investment decisions, they must have sufficient expertise and appropriate training to be able to evaluate critically any advice they take.
Trustees should ensure that they have sufficient in-house staff to support them in their investment responsibilities. Trustees should also be paid, unless there are specific reasons to the contrary.
It is good practice for trustee boards to have an investment subcommittee to provide appropriate focus.
Trustees should assess whether they have the right set of skills, both individually and collectively, and the right structures and processes to carry out their role effectively. They should draw up a forward-looking business plan.
On joining the Committee, a new Member will receive copy of An Introduction to Investment comprising the investment and regulatory background of the Fund's investments. They will also be provided with a copy of the Guide to the LGPS detailing the Scheme specifics.
A new Member must, within the first 12 months, attend a formal training seminar aimed at providing the new member with sufficient detail to make rational decisions on complex issues. The seminar will be provided by the Local Government Pensions Committee. It is suggested that all new Committee members who do not have a pensions background must attend this training.
New members are also encouraged to attend training courses on specialist topics that are offered by the Fund's investment managers and other providers.
It is expected that each Committee Member receive at least three days of training each year. All Members are encouraged to select the courses that suit their needs from the continuous training section totalling three days per annum. The Fund’s officers are available to answer any queries from Members or arrange specific training if required.
Training would normally consist of a selection of the following events:
It is suggested each Member must at least attend either the employer seminar or the internally organised training session.
Each Member of the Committee should be nominated to attend one external seminar or conference each year. Attendance can be rotated. The Pensions and Trusts Committee will be asked to give authority for members to attend conferences or seminars.
Panel members are strongly encouraged to attend training events. Panel members will be invited to internally organised training sessions. In addition induction training will be offered to new Panel members.
The Pension and Trusts Committee will review this Policy and the content and delivery of the training programme annually.