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Invensys Pension Scheme
Governance

 

Governance

Policy

The Trustee is committed to ensuring the Scheme’s objectives are met by managing risk effectively using effective decision making processes and by adopting pension industry “best practice” where this is appropriate for the Scheme.

The Trustee has a Governance & Audit Committee with Terms of Reference that state that the responsibilities and duties of the Committee are:

A. Governance

  1. To review the governance of the Scheme, monitor and report on practice;
  2. To document and review Scheme decision making processes and practices;
  3. To obtain advice and to make recommendations to the Trustee in relation to Scheme governance;
  4. To review the framework and effectiveness of the Scheme’s systems of internal control;
  5. To ensure the Trustee’s insurance cover is in place on an annual basis.

B. Training and development

  1. To ensure the Trustee Board is kept informed of changes in pensions industry best practice in relation to Scheme governance and make recommendations as whether such changes should be adopted in relation to the Scheme;
  2. To review the EO’s Quarterly Trustee training programme listing the training opportunities available to each director over the next twelve months;
  3. To review the EO’s Board training for the year;

C. Appraisal and assessment

  1. To review the performance of the Trustee and the committees of the Trustee, in meeting the Scheme’s governance standards, processes and practices;
  2. To initiate periodic assessment of the Board to confirm that it works together as an effective unit;
  3. To review the Scheme’s committee structure, membership, terms of reference, role specifications and appointment processes;
  4. To ascertain that the EO, accompanied by the Chairman of Trustee or the Chairman of the GAC, performs the annual performance review of the key strategic advisors to the Trustee.

D. Risk management and Control

  1. To ensure risks are adequately controlled and monitored to best practice levels and review how the Scheme manages these risks;
  2. To ensure a risk register is maintained and reviewed annually;
  3. To allocate responsibility for risk control and to follow up actions to ensure effectiveness.
  4. Evaluate new processes and methods of risk control, and make recommendations for change as necessary

E. Audit

  1. To approve the Terms of Engagement and fees for the external audit of the Scheme’s accounts.
  2. To review the audit planning document and final report of the auditors in advance of recommending the Trustee’s Annual Report & Financial Statements for approval or otherwise by the Board of Directors.
  3. To arrange an audit of compliance with the Scheme’s policies and procedures. To appoint an external body to carry out this work. To consider its report and recommendations and to make proposals to the Board, as appropriate;
  4. To evaluate the effectiveness of all audits and make recommendations for change, as necessary

F. Finance

  1. To oversee the quarterly and annual financial reporting by the Executive Office.
  2. To review at least annually the Scheme’s system of financial authorities and authorised signatories;
  3. To oversee the Schemes annual and strategic budgetary processes and make recommendations, as necessary.

G. Corporate Sponsor Covenant

  1. To ensure that the review of Corporate Sponsor’s covenant is performed at the minimum on an annual basis by the EO;
  2. To request from the EO a triennial quality review of the covenant review and its advisor.

H. Administration

  1. To oversee the EO’s review and monitoring of the AO’s performance in respect of the Defined Benefit and Defined Contribution sections of the Scheme; this will include:
    1. To receive the administrator’s quarterly report;
    2. To monitor the administration against the agreed Service Level Agreement;
    3. To seek to ensure that the scheme is administered in accordance with the law and the rules of the Scheme and recommend any changes to procedures;
    4. To seek to ensure that accurate membership records are maintained with the aim of meeting the requirements of the Pensions Regulator’s guidance on Record-keeping;
    5. To ensure the good and timely provision of data to the scheme actuary;
    6. To consider best practice in administration;
  2. To commission an internal/external audit of the administrator; this will include:
    1. To follow through any actions arising from the audit;
  3. To deal with the second stage of member complaints under the Scheme’s Internal Dispute Resolution Policies, the administrator dealing the with first stage of member complaints

I. Communication

  1. To review the Executive Office’s annual communication strategy.

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Scheme registration number: 10143856