Agenda, decisions and minutes

To receive disclosures of personal interest from Members in accordance with the Code of Conduct

Note:

1.     Members are requested to identify the item number and subject matter that their interest relates to and signify the nature of the personal interest: and

2.   Where Members withdraw from a meeting as a consequence of the disclosure of a prejudicial interest they must notify the Chairman when they leave.

In accordance with the Council’s Code of Conduct, there were no declarations made pertaining to the agenda.

The Chairman welcomed Officers from Blackrock to the meeting.

To receive the minutes of the previous meeting of the Pensions Fund Committee held on 18^th July 2023

It was RESOLVED to approve the minutes of the 18^th July 2023 as an accurate reflection of the meeting.

“That the press and public be excluded from the meeting under Section 100A(4) of the Local Government Act (as amended) for the following agenda item of business - Items 4 and 5 on the grounds that it involves the likely disclosure of the exempt information as defined in paragraph 14 of Part 4 of the Schedule 12A of the Act”.

It was RESOLVED that the press and public be excluded from the meeting under Section 100A(4) of the Local Government Act 1972 (as amended) for the following 2 items of business (minute **) on the grounds that they involve the likely disclosure of exempt information as defined in Paragraph 14 of Part 4 of Schedule 12A of the Act.

Responsible Investing and Infrastructure

Officers within Blackrock provided Members with a PowerPoint presentation in respect of responsible Investing and Infrastructure within the organisation.

Following discussions on the presentation, Members RESOLVED to note the contents of the presentation.

Recommended Evaluation Criteria for WPP Operator Procurement Update.

The Service Director, Finance and Improvement Services provided Members with an overview of the exempt report which provided the Committee with the recommended evaluation criteria for the Wales Pension Partnership (WPP) operator procurement.

Following Members consideration it was RESOLVED:

       i.          To note the update contained within the report

      ii.          To endorse the recommended evaluation criteria for the WPP operator procurement, as attached in Appendix 1 to the report.

The Service Director Pensions, Procurement & Transactional Services provided Members with details of the Delegated Functions report, which set out the key issues being addressed as delegated functions, as specified in the Pension Fund Governance Policy Statement, by the Deputy Chief Executive and Group Director – Finance, Digital and Frontline Services.

Members were provided with details of the Investment Performance, and were advised that during the quarter ending the 30th June 2023, the overall value of the Fund increased from £4,256 million to £4,263 million. The Service Director referenced the rolling 3-year performance of the Fund, which was 2.9% positive as compared to a benchmark of 4.5%. He explained that although this was not in line with the benchmark performance it was still a positive return and continued to explain how the performance data highlighted the benefits of diversity within the portfolio.

The Service Director referred Members referred Members to the commitment to a local impact opportunity, which was agreed in the form of a wind farm investment, commenting on the positives with such commitment and the benefits of cleaner sources of energy.

The Service Director continued his presentation of the report with an administration update.  Members were advised that the Fund’s key administrative activity during the period included the successful publication of Annual Benefit Statements to all ‘Active’ and ‘Deferred’ Pension Scheme Members prior to the statutory deadline, followed by a further statutory

requirement in respect of the production of the 2023 ‘Annual Allowance’ pension saving statements, which is currently underway.

In addition, it was advised that the Pensions Regulator (TPR) is expected to now publish their new General Code of Practice by the end of the year. The new consolidated code would set out proposed new governance standards for pension schemes.  The Service Director informed Committee Members that as soon as the code became available, Officers and the Pension Board would review the requirements against existing practices within the Rhondda Cynon Taf Fund.

Further updates were provided in relation to the work of the Fund’s McCloud Working Group, which continues to progress the necessary work on Employer data collection and sign-off and the successful recruitment process undertaken.

Before concluding his update, the Service Director updated the Committee on the work of the Pension Board, advising that there was no feedback to the Committee from the Board.

The Chair thanked the Service Director for the report and commented on the scheme advisory group meetings and the attendance of the Pension Board Members, illustrating the positive working relationship with the Pension Board.

Following discussions it was RESOLVED

       i.          To note the issues addressed within the report.

The Service Director, Pensions, Procurement & Transactional Services provided Committee with details of the arrangements in place to manage risk within the Pension Fund.

The Service Director advised Members that the Fund maintains a Risk Register which is reviewed and updated on a quarterly basis and referred Members to the Risk Register attached at Appendix 1 for their consideration. Members were informed that the latest review process had not identified any updates required to the Risk Register to that reported to the July 2023 Pension Fund Committee.

The Service Director confirmed that the Fund’s Pension Board continue to monitor and support the Fund’s compliance around current and emerging risks.

It was RESOLVED:

         i.          To note the arrangements in place for the management of risk within the Fund

The Service Director, Finance and Improvement Services referred Members to the report which provided an update on the work and progress with regard to the Wales Pension Partnership (WPP) and Joint Governance Committee (JGC).

Members were advised that the latest meeting of the JGC took place on the 20th September 2023 and details of the agenda and discussions were provided.

The next steps and priorities for the JGC were also provided, which detailed development of the Private Markets Sub-Funds, Operator contract procurement process, Task Force on Climate-Related Financial Disclosures (TCFD) reporting, Responding to the LGPS Investments Consultation, with the Service Director concluding his update with reference to the submission of the 2022/23 Stewardship Code Report by 31st October 2023.

The Chairman commented upon the meeting of the JGC and the discussions in respect of data gathering, to improve knowledge base for future investments.

It was RESOLVED:

       i.          To note the update.