Agenda and minutes

The minutes of the meeting held on 14 December 2020 were taken as read, confirmed and signed.

Cllr. Ratilal Govind

The Chairman reported with great sadness the death of Local Pension Committee member, Cllr. Ratilal Govind. Cllr Govind had been elected to Leicester City Council in 2015, representing Evington Ward.  

Members joined the Chairman in silent tribute to Cllr. Ratilal Govind.

The Chief Executive reported that no questions had been received under Standing Order 34.

The Chief Executive reported that no questions had been received under Standing Order 7(3) and 7(5).

There were no urgent 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.

This item will include a presentation by the Director of Corporate Resources and representatives from LGPS Central.

The Director of Corporate Resources gave a presentation on the Annual Report and Accounts of the Pension Fund 2020/21. A presentation was also given by LGPS Central. A copy of the report and presentations is filed with these minutes.

The Chairman welcomed Patrick O’Hara, Director of Responsible Investment and John Burns Executive Director, Deputy Chief Executive Officer from LGPS Central.

Arising from the discussion the following points arose:-

i.               In response to a question relating to the effect of part time or flexible retirement on death in service qualifications for beneficiaries of scheme members, the Pension Manager informed scheme members that each individuals benefits would be different depending and if they wanted to discuss their situation to contact the Pensions Team at Pensions@leics.gov.uk

ii.              Work was ongoing nationally to create a single interface to enable individuals to see their lifetime pension savings in one place, which would provide better access to information so that individuals could make better decisions about their retirement plans. The Pensions Manager was aware that there were still decisions to be made nationally regarding the dashboard, including whether it would include a view of Additional Voluntary Contributions.

iii.             The Fund had a strategy of engagement to improve environmental, social and governance factors within companies through stewardship. The Fund considered this the most compatible with its fiduciary duty, and more supportive of its responsible investment interests.

iv.            In response to a question regarding if investments were fair and transparent, and also diverse in relation to links with different cultures, Members were informed that the Fund did take a view in relation to local laws, local safety and human rights to an extent. Where companies operated within territories that facilitated economic activity that was considered controversial, LGPS Central looked to engage with the companies and question its stance on human rights and the stewardship processes they had in place.

v.              In response to a question on when Members could expect tangible reductions to LGPS Central and the Fund’s investment in carbon, Officers from LGPS Central informed Members that their approach was to consider companies individually as they had different risks depending on the asset. The Fund and LGPS Central expected Fund Managers to have built in risks and to take a long term view, which included the potential risk from a carbon tax, as it was believed that was the best option for the best influence of the Fund. It was recognised not all companies would transition, and that they would not remain within the Fund. It was important to note any transition would need to be managed responsibly and that it would not be a quick transition. 

vi.            LGPS Central used the Transition Pathway Initiative to challenge companies reports and accounts to ensure they reflected stated climate ambitions. It was evident there needed to be collaborative engagement, as work produced by the University of Dublin reflected that data was not as accurate as it should be, partly due to weakness of data available. 

vii.           While it was likely some companies would need to rely on carbon offsets in future, it would need to be carefully validated. Companies could not just rely on offsets however, and must look at reducing their real world emissions.

RESOLVED:

That the contents of the Annual Report for 2020/21 and presentation be noted.

A report was presented on behalf of the Local Pension Board. A copy of the report is filed with these minutes.

RESOLVED:

That the report be noted.

One nomination was received for the Local Pension Committee, no ballot is therefore required. Mr. G. Lawrence will therefore be appointed to the Local Pension Committee for a period of three years. 

The Chairman reported that one nomination for the position of employee representative on the Local Pension Committee had been received. The nomination was for Mr. G. Lawrence. No ballot was therefore required.

It was noted that current employee representatives elected to the Committee were

Mr. N. Booth (to remain a scheme member representative for a period of two years

Mr. A. Wilson (to remain a scheme member representative for a period of one year)

RESOLVED:

That Mr. G. Lawrence Booth be appointed Scheme Member Representative for a period of three years expiring at the Annual Meeting in 2024.

One nomination was received for the Local Pension Board, no ballot is therefore required. Mr. M. Saroya will therefore be appointed to the Local Pension Board for a period of three years. 

There is therefore a vacancy for the reserve Scheme Member representative. Please use the contact details above if you would be interested in the role.

The Chairman reported that one nomination had been received for the position of employee representative on the Local Pension Board from Mr M. Saroya.

No ballot was therefore required. It was noted that current scheme representatives elected to the Board were:

Ms C. Fairchild (to remain a scheme member representative for a period of two years)

Ms R. Gilbert (to remain a scheme member representative for a period of one year)

RESOLVED:

That Mr. M .Saroya be appointed employee representative for a period of three years expiring at the Annual Meeting in 2024.

That the reserve scheme member representative remained vacant.