The Local Government Pension Scheme (England and Wales) (Amendment) Regulations 2004 provide the statutory framework from which the Administering Authority is required to prepare an FSS. The key requirements for preparing the FSS can be summarised as follows:
After consultation with all relevant interested parties involved with the Fund the Administering Authority will prepare and publish their funding strategy. In preparing the FSS, the Administering Authority must have regard to:
- the guidance issued by CIPFA for this purpose; and
- the Statement of Investment Principles (SIP) for the Fund published under Regulation 9A of the Local Government Pension Scheme (Management and Investment of Funds) Regulations 1998 (as amended)
The FSS must be revised and published whenever there is a material change in either the policy on the matters set out in the FSS or the Statement of Investment Principles. Benefits payable under the Scheme are guaranteed by statute and thereby the pensions promise is secure.
The FSS addresses the issue of managing the need to fund those benefits over the long term, whilst at the same time facilitating scrutiny and accountability through improved transparency and disclosure.