Agenda and minutes

To approve the minutes of the meeting held on 27 July 2023 as an accurate record.

The minutes of the meeting held on Thursday, 27 July 2023  were agreed as an accurate record.

Members are invited to declare any disclosable pecuniary interests (DPIs) and interests they may have in relation to any item(s) of business on today’s agenda.

There were none.

To receive notice of any business not on the agenda which in the opinion of the Chair, by reason of special circumstances, be considered as a matter of urgency.

There were no items of urgent business.

The following motion is to be moved and seconded where it is proposed to exclude the press and public from the remainder of a meeting:

“That, under Section 100A(4) of the Local Government Act, 1972, the press and public be excluded from the meeting for the following items of business on the grounds that it involves the likely disclosure of exempt information falling within those paragraphs indicated in Part 1 of Schedule 12A of the Local Government Act 1972, as amended.”

RESOLVED that members of the Press and Public be excluded from the remainder of the meeting under Section 100A(4) of the Local Government Act 1972 on the grounds that: (i) it involved the likely disclosure of exempt information as defined in Paragraph 3 (Information relating to the financial or business affairs of any particular person (including the authority holding that information)) of Part 1 of Schedule 12A of the Act: and (ii) that the public interest in maintaining the exemption outweighed the public interest in disclosing the information.

RESOLVED that members of the Press and Public be excluded from the remainder of the meeting under Section 100A(4) of the Local Government Act 1972 on the grounds that: (i) it involved the likely disclosure of exempt information as defined in Paragraph 3 (Information relating to the financial or business affairs of any particular person (including the authority holding that information)) of Part 1 of Schedule 12A of the Act: and (ii) that the public interest in maintaining the exemption outweighed the public interest in disclosing the information.

The Acting Head of Pensions and Treasury introduced the report and explained that the Conflict of Interest Policy, Representation Policy, Responsible Investment Policy and the Investment Strategy Statement were agreed at the last Pensions Committee meeting.

The constitution changes had gone through the constitution working group who then recommended to the General Purposes Committee to take the constitution changes to Full Council to be agreed.

In response to a question from a member, officers informed the Board that:

• The agreed Conflict of Interest Policy was largely the same as the previous report that had been presented.

RESOLVED:

• To note the verbal update.

This report asks the Board to note the draft Pension Board Annual Report 2022/23 (Appendix A) and comment as they see fit.

The Chair introduced the report and explained that he was grateful for the effort put forward by the Pensions Board and he felt as though the continuity of membership played an important part in the effectiveness of the Board.

In response to a question from a member, officers informed the Board that:

• The report will be published onto the on the Councils website.

RESOLVED:

• To note the draft Pension Board Annual Report 2022/23.

This report advises the Board of the various policies and strategies required for the proper administration of the Fund.

The Acting Head of Pensions and Treasury introduced the report and explained that this item was a summary of the reasons behind the strategies and policies that the Fund needed to adhere to.

In response to a question from a member, officers informed the Board that:

• The Pensions Committee had expressed concerns regarding the number of policies and strategies that they had been presented with. The aim of the report was to provide Members with reassurance as to why there were so many strategies, policies and training sessions required.

RESOLVED:

• To note the contents of the report.

This report sets out Key Performance Indicators for the administration of the Local Government Pension Scheme for the three-month period up to the end of August 2023.

The Pensions Manager introduced the report and explained that the main focus of the team was the annual updates following end of year processes, this included updating care pay contributions, applying revaluation and producing the annual benefit statements for all active and deferred members.

The Pensions Manager informed the Board that the Pensions Administration Team had also spent time on implementing bulk processes for leavers and the team were able to run the first bulk calculations in August with about 500 processed.

The Pensions Manager explained that the Pensions Administration Team had also worked with the Council’s Fraud team to implement monthly mortality screening, through which they had been able to pick up some cases which there weren't aware of.

The Pensions Manager concluded by stating that the Pensions Administration Team had just completed the annual allowances.

In response to a question from members, officers informed the Board that:

• The members self-service portal would need upgrading to photo identification, this would need sign off from procurement before it could be implemented.
• The annual benefits statement would be published onto the member self-service portal and officers advertise with all the employers that they're available and they were required to tell their staff. Deferred members were advised when they leave through the deferred notification letter that the annual benefits statement would be available online and when it would be available.

RESOLVED:

• To note the Key Performance Indicators and the performance against the indicators set out in Appendix A of the report.

This report advises the Board of the extent to which the Fund is complying with the pooling requirements of Guidance issued by the, then, Department for Communities & Local Government (DCLG) in 2015, the savings made through pooling in 2022/23 and the governance structure of the London Collective Investment Vehicle (LCIV).

The Acting Head of Pensions and Treasury introduced the report and explained that roughly 50% of the fund’s assets had been transferred to the CIV. The majority of these assets were with Legal and General Investment Management and following the investment strategy review they would try and get other listed assets moved into the CIV.

The Acting Head of Pensions and Treasury stated that there would be a training on multi-asset credit ahead of the next Pensions Committee meeting and members of the Pensions Board were invited to attend.

The Acting Head of Pensions and Treasury explained that the reported savings made by the CIV was £564,000 a year on investment fees. Following the previous Pensions Committee meeting officers had instructed mercers to look at the fees being paid by the Fund, to seek comfort regarding value for money.

RESOLVED:

• To note the contents of the report.

It is consistent with The Pension Regulator’s Code of Practice that the Pension Fund maintains a breaches log detailing incidences where breaches have occurred.  In line with the recommendations of the Aon Hewitt Governance Review, on 15 September 2020 the Committee agreed the revised Reporting Breaches of the Law Policy.  This included a requirement for the Board to monitor breaches on a regular basis.  This report presents the current log (Appendix A) for the Board’s consideration and comment.  

The Acting Head of Pensions and Treasury introduced the report and explained that the annual benefits statement, the employers mandatory discretions policy for the Council had been added to the breaches log. The council needed a policy in its own right for employers mandatory discretions which officers were in the process of developing.

The Acting Head of Pensions and Treasury informed the Board that the Council had reproduced the 2019/20 accounts, the audit was still being finalised but he believed that the accounts would be signed off by November. The timetable for the 2020/21 and 2021/22 accounts would see these accounts signed off in June 2024.

RESOLVED:

• To note the contents of the Pension Fund Breaches Log.

This report advises the Board of training undertaken by the Pension Board members in Year 2023/24 to 30 September 2023 and asks them to note the contents of the Logs attached to this report as Appendix A and Appendix B.  

The Acting Head of Pensions and Treasury introduced the report and explained that the training was presented as it had been recorded and he wanted members of the Board to inform officers whether the information was up to date and accurate.

The Chair informed the Board that the governance conference in York would be taking place on the 18^th and 19^th January 2024. The Chair stated that there were two places available for members who wished to attend. The Pensions Board meeting in January had been moved to accommodate the members who would be attending.

RESOLVED:

• To note the contents of the Pension Board Training Log.

This report advises the Board of the matters currently being considered by the Local Government Pension Scheme Advisory Board and The Pensions Regulator which are relevant to the Fund. Any implications for the Fund have been noted and are being addressed in consultation with Fund advisers.

The Acting Head of Pensions and Treasury introduced the report and explained that the SAB’s response to the consultation had been included in the report.

In response to questions from members, officers informed the Board that:

• AON was working with officers at Croydon on bringing equality, diversity, and inclusion (EDI) training to Members of the Board and the Committee.

RESOLVED:

• To note the contents of the report.