Agenda and minutes

The minutes of the meeting held on 24 May 2021 were taken as read, confirmed and signed.

The Chief Executive reported that no questions had been received under Standing Order 35.

There were no items for consideration.

The Chairman invited members who wished to do so to declare any interest in respect of items on the agenda for the meeting.

No declarations were made.

The Board received a report from the Director of Corporate Resources setting out the Pension Fund’s estimated funding position as at 31 March 2021. A copy of the report is marked ‘Agenda Item 5’.

The Board were joined by Tom Hoare and Richard Warden from the Fund’s Actuary Hymans Robertson.

 Arising from the discussion the following points were noted:-

i.              The 2019 valuation had taken a prudent approach to deal with the uncertainty of the McCloud case, this prudence was maintained in the mid-valuation exercise.

ii.            The 2021 mid-valuation set out that investment returns of 3.8% were required for the Fund to be 100% funded, an improvement on the 4.5% predicted in the 2019 valuation.

iii.           Employee contributions were set out within pension regulations and were banded, depending on the members salary. It was employer contributions that fluctuated to take account of differences in valuations

iv.           In response to a query regarding the cost cap, it was noted that it had been an ongoing issue since the 2016 valuation, where the cost cap was breached. The Fund had taken account of it and used prudence in its assumptions, however, awaited a final report from the Government regarding if improvements had to be made. Hymans Robertson were also aware of a judicial review that unions had raised regarding the cost cap process. Any impact once known would be built into future valuations.

 RESOLVED:

That the report be noted

The Board received a report from the Director of Corporate Resources regarding administration of the Fund April to June 2021. A copy of the report marked ‘Agenda Item 6’ is filed with these minutes.

The Board noted that workload in the Pension Section was high, as a result of year-end pressure. The Pension Manager felt confident that work would return back to normal once year-end, and the production of members annual benefit statements has completed.

The Board asked that their thanks be passed on to the to the Pensions Section for their work, noting the significant pressures faced.

RESOLVED:

That the report be noted.

The Board considered a report by the Director of Corporate Resources, the purpose of which was to detail any concerns relating to the risk management and internal controls of the Fund. A copy of the report is filed with these minutes, marked ‘Agenda Item 7’.

Members were pleased to note two risks had reduced which related to missing data being received from employers for the McCloud exercise, and that the Prudential were actively working with the Fund to implement improvements to their service.

RESOLVED:

That the report be noted.

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 8’, is filed with these minutes.

RESOLVED:

That the report be noted.

The Board considered a report of the Director of Corporate Resources providing an update in regards to the performance of the Fund’s Additional Voluntary Contributions provider, The Prudential. A copy of the report, marked ‘Agenda Item 9’ is filed with these minutes.

Members were pleased to note that following their meeting and letter to Prudential affected member cases had progressed. The Pensions Manager assured the Board that the situation would continue to be monitored and the Board would receive further updates as needed.

The Board noted that the issues were administrative and did not impact on members benefits.

RESOLVED:

That the report be noted.

RESOLVED:

That future meetings of the Board are scheduled to take place on:-

Monday 8 November 2021 10am

Wednesday 16 Feb 2022 10am

Wednesday 4 May 2022 10am

Wednesday 17 August 2022 10am

Wednesday 26 October 2022 10am

RESOLVED:

That under Section 100(A) of the Local Government Act 1972 the public be excluded from the meeting for the remaining items of business on the grounds that they involve the likely disclosure of exempt information as defined in Part 1 of Schedule 12(A) of the Act.

The Committee considered a supplementary paper containing further information on the service delivery improvements with the Pension Fund’s inhouse Additional Voluntary Contribution provider, a copy of which marked '13' is filed with these minutes. The report was not for publication by virtue of paragraphs 3 and 10 of Part 1 of Schedule 12(A) of the Local Government Act 1972.

RESOLVED:

That the Board note the report.