Agendas, Meetings and Minutes - Agenda item

Agenda item

Pensions Committee - 19 March 2019 (Agenda item 4)

·         Initial Strategic Asset Allocation Review

·         LGPS Central Update

·         Pension Administration Strategy

·         Administering Authority Update

·         Worcestershire County Council Pension Fund Administration Budget 2019/20

·         Pension Fund Training Programme for Pensions Committee Members and Pension Board

·         Risk Register

·         Business Plan

·         Governance Arrangements and Governance Policy Review

·         Pension Fund Unaudited Annual Report and Accounts 2018/19 Proposed Draft Format

·         Forward Plan

·         Pensions Investment Update

 

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

Minutes:

The Board received the Agenda papers and Minutes of the Pensions Committee meeting held on 19 March 2019. Members received a brief summary and commentary on various items considered by the Committee.

 

Initial Strategic Asset Allocation Review

·         At the Pensions Committee meeting, it was emphasised that the key findings of the Initial Strategic Asset Allocation Review could be used a reference point for the detailed Strategic Allocation Review. This was a view that the Board would wish to support

·         In response to a query about the timescales for the transfer of assets to LGPS Central, it was pointed out that the statutory guidance stated that “Pool members should transition existing assets into the pool as quickly and cost effectively as possible. Transition of listed assets should take place over a relatively short period.”

 

LGPS Central Update

·         The key issue raised at the Committee meeting was that representatives of LGPS Central should understand that the Pool had been created to work on behalf of the Fund and not the other way around. The Pool needed to ask appropriate questions and listen to the views of the fund members

·         Had the Pool focused on establishing funding options at the earliest opportunity rather than exploring common themes and developing an investment strategy in accordance with the wishes of fund members? Bridget Clark commented that the resignation of the Chief Executive had not helped matters and there had been a lack of consultation with member funds over the appointment of the fund managers. The representatives of LGPS Central had not provided a commitment to a change of approach at the meeting although the new Chief Executive had only just been appointed and at the meeting he had expressed his willingness to listen to the views of member funds

·         In relation to a query, Bridget Clark advised that the transition of assets would take place in accordance with the Pool’s investment programme. None of this Fund’s assets had been transferred to date as per the planned programme, although the first transfer was imminent. The key issue for this fund was that the cost-sharing arrangements needed to be reviewed.

 

Pensions Administration Strategy

·         Bridget Clark indicated that the Pensions Administration Strategy was a working document which had an educational purpose but also enabled the Fund and employers to be held to account for their actions.

 

Administering Authority Update

·         Bridget Clark reported that the outcome of the Fund’s GMP rectification exercise would be reported to the Pensions Committee in June 2019. At that meeting, decisions would need to be made in relation to over and under payments. Any decisions would be made utilising the expert advice provided by ITM, who had undertaken the exercise on the Fund’s behalf

·         The Pension Regulator had expressed concern about the performance of Administering Authorities in issuing Annual Benefits Statements on time. Was this an issue for Worcestershire? Bridget Clark responded that Worcestershire Pension Fund had met the new deadline since it changed two years ago, although the 100% target had not quite been met, the failing was sufficiently small enough not to cause a material breach as far as the Pension Regulator was concerned

·         Had the Administering Authority given consideration to an on-line approach to issuing Annual Benefit Statements to members to save money? Bridget Clark indicated that the Authority was undertaking a procurement exercise to establish a member self-service system. The project was a significant piece of work as assurances were needed about the secure access to individual member data in the future.

 

Pension Fund Training Programme for Pensions Committee Members and Pension Board

·         Bridget Clark advised that the training session originally planned for 16 April 2019 had now moved to 8 July 2019 at 9.30am.

 

Risk Register

·         Bridget Clark indicated that a clearer picture of the direction of travel and how risks were being mitigated would be provided to the Pensions Committee meeting in June 2019.

 

Business Plan

·         Bridget Clark advised that the Business Plan would be updated on a regular basis and would be linked to the Risk Register.

 

Pension Fund Unaudited Annual Report and Accounts 2018/19 Proposed Draft Format

·         The revised and streamlined version of the Annual Report was welcomed

·         The Board requested that the reference to Environmental, Social and Governance (ESG) considerations in the Annual Report be reviewed to ensure that it was sufficiently in light of current climate issues and Legal and General publishing its list of organisations it would not invest in, robust. ESG should also be added to the proposed training programme.

 

The Committee Reports and Minutes were noted.