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The decisions as the council's minutes record them. A plain-language summary follows once it has been written.
RESOLVED that in accordance with Section 106 [8] Local Government Pension Scheme [LGPS] Regulations 2013 the Board goes into the confidential agenda with the public and press being excluded as some of the information may relate to financial or business affairs of a particular person or organisation.
There were no apologies for absence.
There were no declarations of interest.
The minutes of the last meeting held on 18th July 2025 were agreed as a correct record.
The Chair stated that agenda items would cover matters arising. · It was noted that the previous meeting had been deferred twice and subsequently amended to the 9th of December 2025 and welcomed the opportunity to reconvene. · Concerns were raised in July about the McCloud Remedy inclusion in the Annual Benefit Statements, and it was confirmed that the position had improved, with benefit statements issued by August with appropriate notes of guidance. · Mentioned that future Board meeting dates had been amended from October to December. · Highlighted that since June, three formal Pensions Committee meetings and several informal sessions had taken place, covering topics such as WPP developments and governance. · Stated that operational and legislative matters, including MHCLG consultations and Scheme Advisory Board advice, would be addressed under later agenda items. · Confirmed that updates on WPP, risk register and the Administration Team’s performance matters would also be covered in subsequent items. · At a previous meeting the Professional Lead for Legal asked whether there would be a separate legal adviser for the new Wales Pension Partnership investment management company. The Chair of the Pensions Board confirmed that he had raised this question. No conflict of interest had been identified to date and that, if one arose, Burges Salmon would continue advising the administering authorities, while the WPP IMCO would appoint alternative legal advisers as necessary.
The Chair of the Pensions Board: · Noted that the minutes under consideration were from the meeting held on 3 September 2025. · Highlighted that the compliments and complaints policy had been approved, with minor updates following Pension Board recommendations. · Confirmed that the annual report, which was in draft form at that time, had since been finalised and published. · Reported that the Committee had held a detailed discussion on the investment strategy review, including risk appetite, currency hedging, and equity protection. · Stated that subsequent discussions with Aon had led to updates at the most recent meeting, noting that the Fund was likely to be more than 100% funded for the first time, potentially allowing for an alternative approach to risk.
The Chair of the Pensions Board: · Confirmed attendance at several Pensions Committee meetings (September, November, and December) and highlighted extensive work by officers on WPP legal matters and Project Snowdon. · Stated that Board Chairs had met WPP representatives in Cardiff and virtually on multiple occasions and welcomed WPP’s inclusive approach. · Mentioned speaking at the Scheme Advisory Board Chairs Assembly in London, promoting the Welsh perspective. · Reported progress on the triennial valuation, including successful challenge of actuarial assumptions. · Noted that the Fund was expected to be over 100% funded, potentially enabling a gradual move away from equity protection and a slightly less risk-averse investment strategy. · Confirmed collaboration with officers on the draft cyber security policy and MHCLG consultations, acknowledging tight deadlines over the Christmas period. · Informed the Board of his new role as Chair of Merseyside Pension Fund, which provided useful insights into their equivalent Fund policies, and allowed helpful comparisons of WPP and the Northern Pool’s developments.
The Pension Fund Manager provided an update on governance and administration matters affecting the LGPS and the Powys Pension Fund. Key points included: 2.2 Described the progress of the Pension Schemes Bill through Parliament. 2.3 McCloud Remedy implementation: The National Pension Officer Group has agreed a standardised form of sharing this data. A dedicated Projects Officer had been appointed to lead on McCloud project work. It is intended that progress reports will be presented at future Board meetings to keep Board updated on MCCloud work. 2.5 Publication of LGPS statistics showing continued growth and an increase in retirements, a trend reflected locally. 2.6 Three live consultations on access, pooling, and governance, with responses being prepared ahead of January deadlines. 2.8 For information, expected CPI-based pensions increase of 3.8% from April 2026. 2.9 The Fund’s Annual Report had been published ahead of the statutory deadline. 3. Updates from the Scheme Advisory Board on governance guidance and conflicts of interest were included for the information of the Board. 3.2 The Reform Party had issued a statement criticising the management of the LGPS. The Scheme Advisory Board and other industry bodies had published responses and factual summaries refuting these claims and provided a link to the SAB response for members’ reference. 3.4 Various lobby groups had recently raised concerns about investments in areas of conflict, particularly Israel and the Occupied Palestinian Territories. The Fund had received several information requests, including Freedom of Information submissions. The Palestine Solidarity Campaign had issued a legal position paper calling for divestment from certain companies deemed unethical. The Scheme Advisory Board had written to the Minister for the LGPS seeking guidance, as many issues extended beyond pension regulation into international law. A response is still outstanding and discussions continue on investment and regulatory matters in this area. 3.5 The Scheme Advisory Board had published legal advice on pooling governance, focusing on conflicts of interest. The Board was reminded that a draft Conflicts of Interest Policy was reviewed in July 2025 but had not yet been taken to Committee for approval. Due to new guidance, increased expectations in the Regulator’s Code of Practice, and draft regulations, the policy would need to be revisited before approval. A revised version would be presented for consideration at the first Pension Board meeting in the new year. 5.1 Provided an update on resourcing within the Pensions Team. Recruitment was nearing completion, with a Projects Officer already in post and a Systems Manager due to start on 5 January 2026. Two further internal appointments had been made to governance and communications, and training and employer roles. These appointments would significantly strengthen governance and support the administration team and overall Fund management. 5.2 A draft of the Funding Strategy Statement (FSS) had been taken to Committee in September, consulted on with employers in October, and approved on 5 December. Two key changes were reported from the draft: an increased surplus buffer for greater prudence and a reduction in the default recovery period, reflecting the Fund’s expected stronger funding position. The final version would be published shortly. 5.4. The Board were assured that the annual return to The Pensions Regulator had been submitted ahead of the 3 December deadline. Questions and concerns raised Officer Response The Board queried whether the report included the average annual pension amount, noting that public perceptions of “gold-plated” pensions were misleading. The Pension Fund Manager agreed and offered to provide this information later if necessary. The Board noted the report.
The Pension Fund Manager: • Explained the dashboard’s purpose: a single online portal for members to view all pension entitlements. • Confirmed Powys Pension Fund connected to the dashboard ecosystem by the 31 October 2025 deadline. • Reported successful data quality checks and implementation of matching criteria for identity verification. • Stated the ongoing impact on team resources was unknown; usage levels would become clearer as more schemes connected. Questions and concerns raised Officer Response Pensions Board asked whether, although the Fund had connected to the dashboard, individual members would be able to access and view all their pension pots immediately, or whether this would only be possible once all schemes had joined the ecosystem. And asked about the expected timescale for full functionality. The Pension Fund Manager confirmed that although the Fund had successfully connected to the dashboard by the 31 October 2025 deadline, full functionality for members would not be available until all pension schemes were connected, which was expected by October 2026. He noted that early checks might only return partial data if other providers had not yet joined the system.
• The WPP IM Co had appointed its first Chief Executive Officer, Rob Lamb, in September 2025. • It is expected that the IM Co headquarters would be based in Cardiff and that recruitment for key roles was underway to meet FCA regulatory requirements. • The FCA authorisation application had been submitted and was progressing. • The IMCO was working to meet the UK Government’s deadline for transferring all Welsh LGPS assets by 31 March 2026. • The WPP had won the LAPF Investment Innovation Award in October 2025 for its innovative private credit structure supporting affordable, low-carbon housing. It is understood that this was the third industry award won by WPP in the past 12 months, with further recognition at the LGC Awards in November 2025. The Chair of the Board • Provided context on the legislative changes requiring LGPS pools to become FCA-regulated investment management companies. • Explained that four pools were already FCA-approved, but challenged by on-boarding orphan funds, while Wales and Northern pools were required to establish new companies. • Confirmed WPP’s commitment to meeting the statutory deadline of 31 March 2026. • Praised WPP’s agility and collaborative approach among Welsh funds. Acknowledged the significant workload for officers and thanked them for their efforts in progressing pooling arrangements alongside their core duties. Questions and concerns raised Officer Response The Board asked for additional context on the progress of the Wales Pension Partnership Investment Management Company and its compliance with government deadlines, particularly in comparison to other LGPS pools. The WPP Investment Management Company had been incorporated and appointed its Chief Executive, Rob Lamb, in September 2025. The company was progressing towards FCA authorisation and working to meet the government’s deadline of 31 March 2026 for transferring all Welsh LGPS assets. Recruitment for key roles was underway to satisfy regulatory requirements and the IM Co had engaged extensively with funds to ensure its structure met their needs.
The Board noted the following in respect of standing items: a) Breaches Register No updates required. 3.1 Risk register • The Board usually reviewed one pillar of the Risk Register at each meeting. It was noted that a Governance Officer was now in post and would undertake a full review of the entire Risk Register, bringing recommendations to a future meeting. A comprehensive review may replace the current pillar-by-pillar approach. • The only change since the last review related to Risk GOV0001. The mitigation was updated to reflect strengthened resource for reconciling employer contributions, following the appointment of an Employer Officer within the Fund. 4.1 TPR Code of Practice Compliance • The Governance Officer would review the Code of Practice compliance tool and provide an updated version at a future meeting. • A deep dive into the Code would be undertaken to strengthen compliance, as the Pensions Regulator expected evidence-based reporting. • A new compliance tool was in place, allowing evidence to be attached or hyperlinked to relevant policies, ensuring transparency and ease of verification.
The Board noted future meetings.
Decision as recorded
RESOLVED that in accordance with Section 106 [8] Local Government Pension Scheme [LGPS] Regulations 2013 the Board goes into the confidential agenda with the public and press being excluded as some of the information may relate to financial or business affairs of a particular person or organisation.
RESOLVED that in accordance with Section 106 [8] Local Government Pension Scheme [LGPS] Regulations 2013 the Board goes into the confidential agenda with the public and press being excluded as some of the information may relate to financial or business affairs of a particular person or organisation.
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