Agenda, decisions and draft 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.

To receive the minutes of the previous meeting of the Pension Fund Committee held on the 20^th March 2024.

It was RESOLVED to approve the minutes of the 20^th March 2024 as an accurate reflection of the meeting.

The Deputy Chief Executive And Group Director – Finance, Digital And Frontline Services presented the report to Members which provided details of the Committee’s Terms of Reference, their strategic role and proposed work programme for the 2024/25 Municipal Year. Members were informed of the items scheduled for the year and were reminded that the Work Programme remains flexible to adapt to changing priorities and business requirements, which will be by the agreement of the Chair.

Members RESOLVED to:

       i.          To note the Terms of Reference.

      ii.          To note and agree the work programme.

    iii.          To note and maintain appropriate ‘skills & knowledge’ as set out at paragraph 5 of the report.

The Deputy Chief Executive and Group Director – Finance, Digital and Frontline 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 Group Director referred Members to the performance of the Fund detailed

within 4.2 of the report, explaining that during the quarter ended 31st March 2024, the overall value of the Fund increased from £4,492 million to £4,712 million. Members were also provided with a summary of the Fund’s performance relative to the Fund specific benchmark, where it was confirmed that the Fund was placed positively compared to others, with 1.7% positive as compared to a benchmark of 5.6%.

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

infrastructure.

The Chair commented on the data, referencing the funds investment in technology, which may have impacted on the funds.

The Service Director, Finance and Improvement continued the update by providing Members with an administrative update which included details of the newly published General Code of Practice, the Pensions National Dashboards Programme and Member Self-Serve (MSS).  Further updates were provided in relation to Merthyr Tydfil Leisure Trust and Members were advised of the low number of ‘Internal Dispute Resolution Procedure’ Appeals.

Members of the Committee commented on the Member Self Service and commented that although it was positive to see an increase in the number of registrations, Members queried how this could be promoted further to encourage service users to access the system.  Officers responded by advising of the work done to date to promote registration, including face to face engagement sessions and attendance at employers communication forums advising of the benefits of early engagement and actively managing pensions ahead of retirement.

Following discussions it was RESOLVED:

       i.          To note the issues being addressed; and

      ii.          To consider whether they wish to receive further detail on any issues.

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 risks 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. The Service Director indicated that the RCT Pension Board also reviews and recommends updates to the Risk Register as part of its role in supporting the Fund’s overall governance arrangements.

The Chair commented on the role of the Committee in respect of the investment strategy as referenced within the risk register.  Officers confirmed that this was based on completion of the 2022 valuation review and that the 2025 valuation would be incorporated into the risk register as a new risk.

The Committee RESOLVED:

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

Fund; and

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

The Principal Accountant, Treasury Management and Pension Fund 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 forthcoming meeting of the JGC,

and details of the annual policies and papers that were to be reviewed at this meeting were highlighted to Members.

Details were provided in respect of a number of policies that have been subject to an annual review, including the Responsible investment policy, climate policy and stewardship policy. 

The Principal Accountant continued to update Members on the various procurement processes which are either underway or completed, with Members being advised that  the JGC will approve the successful bidders in the real estate tender at the forthcoming meeting.

The officer concluded her update by providing details in respect of the next steps and priorities for the WPP and JGC which included the launch of the real estate investment programme, voting and engagement service provider procurement process and reporting.

The Chair thanked the officer for the update and it was RESOLVED

       i.          To note the update