Agenda, decisions and minutes

Venue: Virtual

Contact: Emma Wilkins - Council Business Unit  07385406118

Items
No. Item

59.

WELCOME

Minutes:

The Chair welcomed Mr D Griffiths the newly appointed Pension Board Member to the meeting.

60.

APOLOGIES

Minutes:

Apologies for absence were received from County Borough Councillors G Jones and K Johnson.

61.

Declaration of Interest

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.

Minutes:

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

 

62.

Minutes pdf icon PDF 142 KB

To receive the minutes of the previous meeting of the Pensions Fund Committee held on 12th December 2023.

Minutes:

It was RESOLVED to approve the minutes of the 12th December as an accurate reflection of the meeting.

 

63.

Learning and Development

To receive a presentation on The Pensions Regulator new ‘General Code of Practice’

Minutes:

Through the use of a Powerpoint Presentation the Service Director – Pensions, Procurement & Transactional Services provided Members with an update on the Pension Regulator ‘General Code of Practice’, previously referred to as the ‘Single code’, which becomes effective from the 27th March 2024.

 

Members were advised that the new general code sets out in detail what the Pensions Regulator expects of a scheme that is required to maintain an effective system of governance and aims to provide one set of clear, consistent expectations on scheme governance, to be able to demonstrate that through a risk assessment.  The Service Director assured Members that the Pension Fund complied with the code although significant work was still needed throughout the financial year, which would be supported through the work of the Pension Board.

 

The Officer advised Members of the training and awareness sessions that would be put in place in respect of the new requirements and further reporting to the Committee through the Municipal Year.

 

The Chair thanked the Service Director for the presentation and referenced the good governance arrangements already in place with the Pension Fund, although noted the substantial amount of work that was needed to be taken forward to ensure complete compliance.

 

The Committee RESOLVED to note the presentation.

64.

Annual Review of Fund Governance and Strategy Documents pdf icon PDF 127 KB

Additional documents:

Minutes:

The Service Director – Pensions, Procurement & Transactional Services provided Members with details of the Fund Governance and Strategy documents which fell within the remit of the Committee as detailed in the terms of reference.

 

Members were referred to paragraph 4.3 within the report which provided an overview of the documents reviewed on an annual basis and the proposed reporting arrangements to the Pension Fund Committee.

 

The Chair referenced the ‘backwards’ looking approach needed in respect of the documents for review and queried whether the ESG investment would meet the required standard following recent data received.  The Service Director advised that through the escalation policy there could be the possibility that the fund did not reinvest in some certain stock.

 

One Member queried the asset allocation policy, commenting on the private equity investment and the ambition by Government for 10% investment.  The Member queried the consequences of not investing in this area.  Officers confirmed that this would be included in the future, advising that the documents before Members were reflective documents at a point in time, although reassured Members that this would be considered for the next financial year.

 

Following due consideration of the Fund Governance and Strategy Documents Members RESOLVED

 

1.     To approve the documents

65.

Delegated Functions Report pdf icon PDF 155 KB

Additional documents:

Minutes:

The Service Director, Finance & Improvement Services presented the report to Members which set out the key issues being addressed as delegated functions, as specified in the Pension Fund Governance Policy Statement. The Service Director referred Members to the performance of the Fund detailed within 4.2 of the report, explaining that during the quarter ending 31st December 2023, the overall value of the Fund increased from £4,235 million to £4,492 million.  Members were also provided with a summary of the Funds’ performance relative to the Fund specific benchmark. It was explained that the rolling 3-year performance of the Fund was 0.7% positive as compared to a benchmark of 4.1%.  In respect of quarter 4, Baillie Gifford Traditional Equity, Global Active Sustainable Equity, UK Credit and BlackRock Passive Global Equity (low carbon) outperformed their benchmarks; Global Growth high alpha equity portfolio, Global Opportunities high alpha equity portfolio and CBRE Property under-performed their benchmarks; BlackRock Passive UK Gilts and BlackRock Global Infrastructure Solutions performed in line with their benchmark. 

 

Further detail was provided in the update in respect of asset allocation and infrastructure.

 

The Chair commented on the allocation table within 4.6 of the report and requested that further detail be provided in respect of what was contained inside and outside of the Pool.  Officers agreed to provide this information for future reference whilst also advising that currently 83% funds asset were administered by the Pool.

 

Members were encouraged to see the overall good management of the funds and one member queried whether any significant market changes had assisted in this progress.  The Service Director commented on the work of seven big companies within the market with positive performance and returns.  The Service Director commented on a better understanding of the market and investments areas for new opportunities.  The Service Director also advised that UK Credit and company bonds contributed to positive returns.

 

 The Service Director - Pensions, Procurement & Transactional Services

continued and provided Members with an administrative update including details on the new general code as previously updated to Members, and details surrounding the Pension Fund increase for April 2024 and Career Average Revalued Earnings (CARE) revaluation, which has been formally confirmed by HM Treasury as 6.7% and will be effective from 8th April 2024.

 

It was confirmed that work was progressing in respect of compiling the 2024 Annual Benefits Statements; the annual life certification exercise for overseas pensioners; and transfer of provider for overseas pension benefit payments.

 

The Service Director before concluding the report provided a brief summary on the work of the Pension Board.

 

The Chair thanked the Officers for the report and spoke of the good engagement work taken forward by LAPFF following reference to the quarterly engagement report.

 

Following discussion on the content of the report, the Committee RESOLVED

to:

1.     Note the information contained within the report

66.

Pension Fund Risk Register - Risk Register Overview pdf icon PDF 132 KB

Additional documents:

Minutes:

The Service Director Finance and Improvement Services presented the report and referred Members to the Risk Register attached at Appendix 1 for the Committee’s consideration. The Service Director advised Members that the Pension Fund Risk Register provided an overview of the arrangements in place to manage the risk to the Fund and was presented to the quarterly meetings of the Investment and Administration Advisory Panel for review, challenge, and agreement. Following agreement of the updated Risk Register, Members were informed that it is then published on the Fund Website and the Service Director indicated that the Risk Register is also reviewed by the Pension Board, as part of its role in supporting the Fund’s overall governance arrangements.

 

Members were advised of two changes in risk rating within the Risk register and the reasons for such changes.

 

The Committee RESOLVED:

 

1.     To note the arrangements in place for the management of risk within the Fund; and

2.     To note the Risk Register as outlined within (Appendix 1) of the report.

67.

Wales Pension Partnership - Update (including WPP Business Plan 2024-27) pdf icon PDF 121 KB

Additional documents:

Minutes:

The Principal Accountant, Pensions and Treasury Management provided an

update and progress for Members with regard to the Wales Pension Partnership (WPP) and Joint Governance Committee (JGC).

 

Members were provided with details of the latest meeting of the JGC which took place on the 13th March 2024 and details of the annual policies and papers that were reviewed was provided.

 

The Officer also took the opportunity to provide Members with details of the next Steps / Priorities and other Key areas which included:

·       the renewal application for the signatory to the 2023 Stewardship Code

·       Continuation of Virtual training sessions.

·       Updating of Website continues with approved policies, press releases and details of sub-fund launches.

 

Members of the Committee RESOLVED:

1.     To note the contents of the report

68.

Exemption of the Press and Public

“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 – Item 9 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”.

 

Minutes:

It was RESOLVED that the press and public be excluded from the meeting under Section 100A(4) of the Local Government Act (as amended) for the following items of business 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.

69.

Wales Pension Partnership

Recommended operator appointment for the WPP Operator Procurement

 

Minutes:

Through the report, which contained exempt information, the Principal Accountant - Treasury Management and Pension Fund provided the Committee with details of the recommended operator appointment for the Wales Pension Partnership (WPP) operator procurement.

 

It was RESOLVED:

 

1.     To note the update.

2.      To endorse the recommended appointment of Bidder 3 for the WPP operator procurement (as outlined in Appendix 1 of the report).