Agenda and minutes

The members had before them:

A.    The Agenda papers (previously circulated); and

B.    The Minutes of the meeting held on 8 December 2021 (previously circulated).

Apologies were received from Cllr Luke Mallett, Cllr Scott Richardson Brown and Cllr Roger Phillips (Chairman of the Pension Board).

None.

Members of the public wishing to take part should notify the Assistant Director for Legal and Governance in writing or by e-mail indicating the nature and content of their proposed participation no later than 9.00am on the working day before the meeting (in this case 1 December 2022). Further details are available on the Council’s website. Enquiries can be made through the telephone number/e-mail address listed in this agenda and on the website.

None.

To confirm the Minutes of the meeting held on 8 December 2021 (previously circulated)

RESOLVED that the Minutes of the meeting held on 8 December 2021 be confirmed as a correct record and signed by the Chairman.

The Committee will be asked to exclude the press and public from the meeting for the following item as it is likely that exempt information relating to the financial or business affairs of any particular person (including the authority holding the information) will be disclosed and the public interest in maintaining the exemption outweighs the public interest

in disclosure

RESOLVED that pursuant to Section 100A of the Local Government Act 1972, the press and public shall be excluded from the meeting during item 15 on the grounds that there would be disclosure to them of information in respect of which a claim to legal professional privilege could be maintained in legal proceedings.

Summary of the proceedings of the meeting during which the press and public were excluded. (This is a fair summary of the proceedings and there are no exempt minutes.)

The Committee considered the Local Government Pension Scheme Central (LGPSC) Budget and Strategic Business Plan 2022/23.

In the ensuing debate, the following points were raised:

·         In response to a query, Rob Wilson Finance Manager – Pensions and Treasury Management, Finance undertook to provide an update on the existing risk register maintained by LGPSC and whether it considered long term investment performance and what the risk rating was within the Business Plan update

·         There was no reference in the budget and business plan to wider risks. Rob Wilson responded that the budget and business plan were in draft form at this stage and this wider information would be included in the final report for consideration at the LGPSC Stakeholders meeting

·         A member of the Committee requested that, following the decision by Herefordshire Council to set a zero-carbon emissions target by 2020, the Fund's Shareholder representative might wish to encourage LGPSC to adopt a similar target. The Fund’s Shareholder representative responded that whatever approach that LGPSC took in relation to carbon emissions targets had no bearing on its budget

·         The impact of the base budget on the projected profit/loss accounts should be recognised. The fact that a small profit was being projected and that retained costs were being reduced was welcomed. Partner funds needed to be aware of how any such profits were utilised. It was also queried whether partner funds provided sufficient challenge to the LGPSC budgetary process. Partner funds needed to establish whether the pool was over-budgeting for its needs and how generous the proposed levels of executive and non-executive staff pay rises would be

·         Rob Wilson commented that partner funds had and would continue to challenge the level of projected profits generated by the pool. The pool had been encouraged to minimise profits, build in efficiencies and get the budgetary process onto a steadier footing. The outcome of salary negotiations were awaited but partner funds were using benchmark information to assess the levels of pay rises for staff at all levels. In particular, partner funds had challenged the role of non-executive directors within the pool 

·         In response to a query about the reference in the budget and business plan to LGPSC operating on a ‘business as usual’ footing, Philip Hebson, the independent advisor to the Fund commented that there were different ways of interpreting what the term meant but it was difficult to back up such a claim until the pool had reached the break-even point

·         Philip Hebson raised the issue of staff recruitment and retention at LGPSC. He considered that the quality of staff employed by the pool had improved since the original set-up. However, the challenge for the pool (and other pools in the country) would be the retention of these members of staff and the ability to recruit additional quality staff members. This aspect and the ability to drive forward operational efficiencies were key performance targets for the pool moving forward.

RESOLVED:that

a)    the LGPSC Budget and Strategic Business Plan for 2022/23 update be noted;  ...  view the full minutes text for item 357.