Venue: Microsoft Teams.
Contact: Miss C Tuohy (0116 305 5483). Email: cat.tuohy@leics.gov.uk
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Minutes of the meeting held on 8 February 2021. PDF 135 KB Minutes: The minutes of the meeting held on 8 February 2021 were taken as read, confirmed and signed. |
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Question Time. Minutes: The Chief Executive reported that no questions had been received under Standing Order 35. |
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To advise of any other items which the Chairman has decided to take as urgent elsewhere on the agenda. Minutes: There were no items for consideration. |
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Declarations of interest in respect of items on the agenda. Minutes: The Chairman invited members who wished to do so to declare
any interest in respect of items on the agenda for the meeting. Mr Shepherd declared a personal interest in respect of
Agenda Item 6 Pension Fund Administration Report January to March 2021 to East
Midlands Shared Services referred to within the report as a Member of its Joint
Committee. |
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Additional Voluntary Contributions. PDF 322 KB Additional documents:
Minutes: The Board received a report from the Director of Corporate
Resources regarding performance of the Fund’s Additional Voluntary
Contributions provider the Prudential. A copy of the report marked ‘Agenda Item
5’ is filed with these minutes. The Pensions
Manager informed the Board that Prudential were no longer able to attend and
had provided their response in respect of some concerns that the Board may
have, which is filed with these minutes. The Board noted that
the Pensions Manager had self-reported the disruption to the Pensions Regulator
as delays with Prudential had affected timeliness in payments out to retiree’s
which breached pension regulations. Members understood that such a breach was
out of the Fund’s control however that ultimately the Fund was accountable for
the delay. It was noted that the Fund had until 30 June 2021 to respond to the
Pensions Regulator if timescales were improved, otherwise the regulator would
need to consider further steps. Mr. Saroya, spoke
of his own experience having been affected by the Prudential’s delay, having
contacted them numerous times and receiving no response using their internal
portal signposted to deal with complaints. Furthermore, phone lines had left
him waiting with no response after numerous hours. It was recognised that
organisations the size of Prudential could be susceptible to issues with
migration of systems, however mitigations and communications plans would also
be expected to be in place to honour previously promised timescales for
resolution. Mr. Saroya thanked the
Pensions Team for the work in escalation of his issue and placed no fault with
the Fund. Arising from the
discussion Members raised the following points which they asked to be further raised
within a letter to the Pru:-
The Board
recognised the long partnership the Leicestershire Pension Fund held with the
Prudential and emphasised the strong desire to resolve the issue positively for
the benefit of the Fund’s scheme members. However
Members ultimately remained extremely concerned with the current situation. RESOLVED: That the Pensions
Manager respond to the Prudential expressing the concern and questions
discussed at the meeting and organise a separate meeting between Prudential and
Board Members. |
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Pension Fund Administration Report January to March 2021 - Quarter Four. PDF 405 KB Additional documents:
Minutes: The Board received a report from the Director of Corporate
Resources regarding administration of the Fund January to March 2021. A copy of
the report marked ‘Agenda Item 6’ is filed with these minutes. Arising
from the discussion the following points arse:- i.
The workload of the Pensions Section remained high but cases were being progressed positively, with deaths
returning to pre-covid levels having worked through
the previous peaks. ii.
The County Council had moved to a new Fusion
Oracle system but there had only been minor issues which had been expected
given the large system. Members were pleased to note the move had not impacted
on the Fund’s monthly posting process. iii.
The Fund’s Actuary Hymans Robertson had been
successful with a recent tender and would remain Fund actuary for at least five
years. Members
thanked the Pensions Section for all of the work
undertaken in the quarter and had no matters of concern that it wished to refer
to the Local Pension Committee. RESOLVED: That the Board notes the report. |
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Employer Risks and Exits PDF 321 KB Additional documents:
Minutes: The Board considered a report by the
Director of Corporate Resources regarding the outcome of the consultation on
changes to the Funding Strategy Statement following regulation changes to employer
risks and exits as well as the Fund’s Policy on Employer Risk. A copy of the
report, marked ‘Agenda Item 7’, is filed with these minutes. Members noted that the Fund was not minded to allow
reviews of employer contributions outside of the usual Fund valuation process.
In exceptional cases where a Fund employer experienced genuine financial
difficulty, the Fund would look to review the contribution rate if it were to
increase the chance of repayment. The risk would first be considered alongside risk
to other Fund employers and would be assessed to consider putting additional
security in place. The Fund would seek actuarial advice on all cases. RESOLVED: That the Board support the proposed
changes to the Fund’s Funding Strategy Statement. |
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Good Governance Phase 3 - Progress Report. PDF 353 KB Additional documents:
Minutes: The Board considered a report from the Director of
Corporate Resources updating Members on progress towards the Good Governance
Phase 3 Report. A copy of the report marked ‘Agenda Item 8’ is filed
with the minutes. The Board noted that the Fund
expected and awaited statutory guidance to be published by the Ministry of
Housing, Communities and Local Government on the recommendations set out by the
Scheme Advisory Board. It was expected that standards would increase from current standard practice and that there would
be areas, currently fully compliant where further strengthening would be
required. The Board would be kept updated on the matters as they progressed. RESOLVED: That the report is noted. |
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Pensions and Cyber Risk. PDF 322 KB Additional documents:
Minutes: The Board considered a report of the
Director of Corporate Resources regarding Cyber Risk and Security. A copy of
the report marked ‘Agenda Item 9’ is filed with these minutes. Members noted that 92% of all employee information was
received through IConnect. Officers from the Pensions
Section had met with Leicestershire County Council’s Technical Security and the
systems supplier Aquila Haywood (Aquila) and conducted an information security
risk assessment review. Aquila also conducted accredited annual penetration
testing, with Leicestershire County Councils IT team having provided
assistance on reports and the technical side of results to the Fund. RESOLVED: That the report be noted. |
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Continued Improvements and Systems. PDF 361 KB Additional documents:
Minutes: The Board considered a reported of the
Director of Corporate Recourses providing an update on progress in respect of
areas identified improvement within the Pensions Section. A
copy of the report, marked ‘Agenda Item 10’, is filed with these
minutes. RESOLVED: That the report be noted. |
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Additional documents:
Minutes: The Director of Corporate Resources presented a report,
the purpose of which was to detail any concerns relating to the risk management
and internal controls of the Fund, including internal audit work completed and
the Internal Audit Plan 2021-2022 and the Pension Fund Risk Register. A copy of the report is filed
with these minutes, marked ‘Agenda Item 11’. The Board welcomed the outcome of the 2020-21 audit report
which had resulted in a positive assurance grading with no high importance
recommendations. Internal Audit assured the Board that they held detailed
conversations with the County Councils IT Team who provided evidence of the
penetration testing on a corporate level in relation to cyber security. RESOLVED: That the report be noted. |
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Pension Fund Conflict of Interest Policy. PDF 260 KB Additional documents: Minutes: The Board considered a report of the Director of Corporate
Resources regarding the Pension Fund’s draft Conflict of Interest Policy. A
copy of the report marked ‘12’ is filed with these minutes. Members supported
the Policy which would enhance the governance and controls that were already in
place as part of Fund policies. RESOVLED: That the draft
Conflict of Interest Policy be supported. |
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Date of Next Meeting. 23 August 2021 Minutes: RESOLVED: That the date of the next meeting is scheduled for 23 August
2021 at 10am. |