Agendas, Meetings and Minutes - Agenda and minutes

Agenda and minutes

Venue: County Hall, Worcester

Contact: Simon Lewis, Committee Officer 

No. Item

Available papers

The Members had before them:


A.    The Agenda papers (previously circulated); and


B.    The Agenda papers and Minutes of the Pensions Committee on 19 March 2018 (previously circulated); and


C.   The Minutes of the meeting held on 31 January 2018 (previously circulated).


Apologies (Agenda item 1)




Declarations of Interest (Agenda item 2)


Mr K Bray declared general interests in his role as the Forum Officer of the Local Authority Pension Fund Forum (LAPFF) - the Worcestershire Fund is a long-standing Forum member and in relation to work he undertook with a firm of US lawyers who were involved with Shareholder Litigation and had the County Council as one of its clients.



Confirmation of Minutes - 31 January 2018 (Agenda item 3)

To confirm the Minutes of the meeting held on 31 January 2018. (previously circulated)


RESOLVED that the Minutes of the meeting on 31 January 2018 be confirmed as a correct record and signed by the Chairman.


It was noted that should the Board wish to advise the Pensions Committee on a particular matter, a formal resolution would need to be approved.


Update on financial management arrangements (Agenda item 4)

To receive a verbal update on the financial management arrangements.


Members were informed that since the last meeting of the Board, Michael Hudson had commenced his role as Chief Financial Officer with the County Council. The Board welcomed Michael to the Council.


Pensions Committee - 19 March 2018 (Agenda item 5)

Administering Authority – Administration Update – for review by Board

Pension Investment Update - for review by Board

Alternatives Investment - for review by Board

Equity Protection Strategy - for review by Board

LGPS Central Update - for review by Board


The Agenda papers and Minutes have previously been sent to you. Please bring your copy with you to the meeting.


The Board received the Agenda papers and Minutes of the Pensions Committee meeting held on 19 March 2018. Members received a brief summary and commentary on the various items considered by the Pensions Committee.


Administering Authority – Administration Update

·         Bridget Clark commented in relation to the year end preparation, that since the report to the Pensions Committee in March, 3 of the 6 interfaces/reports from Worcestershire County Council's Managed Service Provider, Liberata UK, had been signed off

·         From a Fund Member perspective, there had been a query raised and concerns about staffing resources within Liberata and there was a degree of concern as to whether these issues would be addressed before the year end. Bridget Clark responded that she was aware of these issues and addressing them with Liberata

·         Did the Council monitor the number of members who had left the scheme following auto-enrolment? There had been an instance where a Member had not received important information about the payment of arrears after auto-enrolment and as a result decided to leave the scheme. Bridget Clark explained that the primary legislation and The Pension Regulator had given clear advice on the rules associated with auto-enrolment in respect of employees who were in the transitional period. The transitional period ceased at 30 September 2017 and employees who met the criteria were automatically enrolled.  Staff who had subsequently met the criteria eg salary threshold, were required to be automatically enrolled and their membership and contributions backdated to 1 October 2017. In light of this particular case, a different approach had been implemented whereby employees would be informed in advance of the back-dating arrangements and salary deductions

·         The Chairman commented that this was an unacceptable position to put people in and the situation would only get worse over time. He queried whether the Government was being lobbied to resolve the issue. Bridget Clark responded that representations had been made to the LGE. She emphasised that this issue affected only a small number of employees.

·         The main concern was that an employee might receive a sudden request for payment of arrears in such circumstances. It would seem sensible to allow the payments to be spread over a 12 month period. Bridget Clark responded that all approaches to minimise impact would be considered as she acknowledged that the back-dating payment arrangements would only get worse over time for those employees affected

·         Were other employers within the scheme aware of this issue? Bridget Clark advised that very few cases had been found by other employers within the scheme however employers would be alerted in such circumstances

·         In response to a query, Bridget Clark commented that there remained a lot of work remaining to complete the GMP reconciliation. In due course, the Committee would be asked to make a decision as to the margin for the underpayment/overpayment of pensions following the completion of the reconciliation exercise


Pension Investment Update

·         With the volatility in the present market place, had consideration been given to the potential for investment in the  ...  view the full minutes text for item 101.


Pension Board Work Plan (Agenda item 6) pdf icon PDF 27 KB

Fore review/action by the Board.


The Board considered its work plan.


In the ensuing debate, the Chairman explained that one of his main objectives when he took over his role was to add value and as the Board was not a decision-making body, this was challenging to achieve and he hoped that the Board would be able to add value in the future.


The Board noted its work plan.


Insurance for Pension Board Members (Agenda item 7)


The Board considered the indemnity insurance for Board members.


In the ensuing debate, concern was expressed whether the Council's indemnity insurance provided adequate cover for Members of the Pensions Board. Rob Wilson advised that this issue had been raised at a previous Board meeting and advice had been sought from the Council's Insurance Officer and circulated to members. The Insurance Officer's advice was that as the Board was defined as a Committee of the Council, public liability insurance would be applicable to members of the Board. The Insurance Officer's advice would be circulated to members of the Board. 


Any Other Business (Agenda item 8)