Loading
The minutes are published. No summary has been written yet.
1.1 Apologies were received from Rhian Hayden.
2.1 Board Members confirmed the following declarations of personal interest: Board Member In Receipt of Pension Contributor Bob Campbell Self Steve Harford Self Sister Ian Reese Self Clive Rogers Self Meirion Rushworth Self Jane Waters Brother Self Anthea Wellington Self and husband Daughter John Wright Self and wife Daughter 2.2 The CLO left the meeting.
3.1 Following a question from the Board, the HoP confirmed that investment exposure and legacy assets regarding Russian markets were currently being analysed and he expected an update to form part of the agenda at the next meeting of the Pensions Committee in September 2022. 3.2 It was agreed that the minutes were an accurate record of the meeting.
4.1 The HoP provided the following updates from the action sheet: · He confirmed that members of other pension boards typically served 2-4 years terms of office and re-appointments were permitted, which was in line with the Fund’s terms of reference. · Expenses were claimed by members of other pension boards around time, travel and training. · He was pleased to confirm that Jane Waters had agreed to extend her tenure as a member of the Pension Board to April 2023, bringing her service in line with other members. · Beyond 2023 scheme member and employer representatives would be required to be re-nominated by the appropriate bodies, and officers hoped that as many members would continue as possible, in order to retain their knowledge and for continuity. Officers would explore the terms of reference and communicate the arrangements with members of the Pension Board during the forthcoming months, including the necessary deadlines for re-nomination. · Email invitations to Wales Pension Partnership (WPP) training sessions had been delayed due to the recent changes to the Joint Governance Committee (JGC) membership, following the local government elections in May 2022. 4.2 The Pension Board noted the Action Sheet.
5.1 The Pension Board considered the draft minutes of the Pensions Committee held on 13 June 2022. 5.2 The Pension Board agreed to note the draft minutes.
6.1 The HoP highlighted the following key headlines from the report: • The Audit Plan was similar to previous years and would largely be carried out remotely; however COVID-19 would have less impact this year than in previous years. • There were no surprises within the financial audit risks; however the private market investments risk required more work from officers in order to satisfy auditors regarding the methodology used. This risk was likely to remain on future audits. • Audit Wales audited the Fund and the WPP, which helped provide crossover and assurance. • The estimated audit fee had increased from £42,000 to £43,439 and the timetable was available in Exhibit 4 of the report. 6.2 Following questions from the Board, the HoP made the following points: • The timetable was slightly delayed compared to previous audits due to resourcing issues within Audit Wales, as health boards and local authorities were prioritised. A benefit of the delay was that all eight Welsh pension funds were now audited at similar times and could report more consistently regarding WPP matters. • The internal audit fee was part of a broader recharge; however the HoP would circulate the cost with members of the Pension Board. 6.3 The Pension Board agreed to note the content of the report.
7.1 The HoP highlighted the following key headlines from the report: • The WPP Business Plan 2022-2025 (in Appendix 3 of the report) had been agreed by the JGC in March 2022 and had recently been approved by all eight Welsh pension funds. • Paragraph 7.4 of the report outlined the development of two new investment sub-funds, namely the UK Opportunities decarb implementation and Sustainable Equity funds. The Sustainable Equity fund had been approved by the JGC in July 2022. • The Operator Update (in Appendix 2 of the report) provided snapshots of various investment mandates and also a snapshot that compared all eight Welsh funds. • With regards to Dye & Durham’s forthcoming acquisition of 100% of the shares in Link Group, as per page 62 of the agenda, the HoP explained that the WPP’s contractual arrangements with Link Fund Solutions, a subsidiary of Link Group, was due to expire in December 2023 and a sub-group of officers and advisors had already been established to support the future procurement arrangements required to appoint a new provider with effect from January 2023. 7.2 Following questions from the Board, the HoP made the following points: • The WPP’s risk register was a public document, and officers could share it with members of the Pension Board in future. The HoP would circulate details regarding risks G.1 to G.6, which had been reviewed during the previous quarter. • Tackling issues related to responsible investments created opportunities for funds to make positive impactful decisions. • He agreed that scheme member representation on the JGC was a pleasing step forward. • With regards to the two new investment sub-funds, the UK Opportunities decarb implementation fund provided an interim step, and the Sustainable Equity fund would be key in the long-term. • Officers appreciated that members of the Pension Board were not able to see all exempt items of the JGC agenda, for commercial reasons; however it was hoped that redacted versions could be published going forward. He added that there was a commitment across the WPP to increase levels of transparency. 7.3 Members of the Pension Board commented that it would be beneficial if a table including the value of Fund investments was included in future reports to the Pension Board. 7.4 The Chair suggested that the Responsible Investor Working Group (RIWG) could be the most efficient forum in which to explore performance specifically related to investments made in the responsible investment areas of the Fund. 7.5 The Pension Board agreed to note the content of the report.
8.1 The PM highlighted the following key headlines from the report: • A staffing update was provided in paragraph 4 of the report, and she confirmed that office-based training had been going well. • With regards to workload, the Fund had received more work and completed more new cases during the quarter, compared to the same period the previous year. • Members would be encouraged to sign up to My Pension Online (MPO) when they received their upcoming Annual Benefit Statement. • 46 employers were now submitting their data to the Fund through i-Connect. This included one local authority, Torfaen County Borough Council, and this was a great achievement for the Fund. It was hoped that two more local authorities would follow suit in the coming months and work was continuing regarding the remaining local authorities. • It was a good achievement that 55 out of 57 employers met the Year End deadline, which equated to 98.73% of the Fund’s active membership. • The regulations around Additional Voluntary Contributions (AVCs), outlined in paragraph 14 of the report would place more demands on the Fund. 8.2 Following questions from the Board, officers made the following points: • The PM confirmed that there were no issues regarding the number of applicants for job vacancies within the Fund; however there were fewer applicants than in previous years. • The PM confirmed that officers explained the benefits of remaining in the Fund, or switching to the 50/50 scheme, when opt-out forms were requested by members of the Fund. • The HoP confirmed that training and development sessions for employers around pensions issues would be beneficial, and officers were keen to get these back up-and-running. • Officers agreed to include information around the 50/50 scheme in the quarterly newsletters to employers. • Officers agreed to review the Fund’s website in order to make sure information around the 50/50 scheme, tax allowance, maternity, State Pension Calculator, etc was in an accessible and easy to understand format. An update would be provided at the next meeting of the Pension Board in October 2022. • The PM confirmed that most delays regarding transfers out were due to delays from the schemes the members were transferring to, or delays around members signing the relevant forms. • With regards to the 5 Year Refund issues within the Breaches Log, the PM confirmed that this was due to members not replying to the Fund. It was hoped that MPO would help in this area going forward and there was also a possibility that the regulations would be amended to stop these issues being classed as a breach. • The PM agreed to circulate the value of the 5 Year Refunds within the Breaches Log with members of the Pension Board. 8.3 The Pension Board agreed to note the contents of the report.
9.1 The PM highlighted the following key headlines from the report: • The Valuation took place every three years, and the purpose of the Valuation was outlined in paragraph 4.2 of the report. • The 2022 Valuation process and timetable were available in paragraphs 5.1 and 6.1 of the report respectively. The submission of data had taken place on 7 July 2022, which was within the indicative timescales. • It was hoped that an employers’ forum would be held in November 2022. 9.2 In addition to the above, the HoP provided the following comments: · It was pleasing that funding levels had improved; however the message from the Actuary and the industry was that the cost of providing the scheme had increased, which had been impacted by inflation and future salaries. · Although the Consumer Price Index (CPI) was higher in the short term, it was anticipated to roll back in the medium and long term and the Actuarial assessment of this was reasonably reflected in the modelling. · Gilt yields had fallen dramatically since the last actuarial review, increasing the demands placed on the Fund’s investment returns to bridge the gap towards full funding, with any long-term shortfall possibly needing to be met by contribution income. The HoP praised employers for the difficult decisions they had made in this area during previous years. 9.3 Following questions from the Board, the HoP made the following points: • Conversations with employers regarding possible future contribution increases were difficult; however initial conversations with local authorities had been positive. Draft contribution results for all scheme employers would be made available during the Autumn and appropriate engagement between the Fund / Actuary and scheme employers would follow. It was the Fund’s task to maximise investment returns on all of its assets to the benefit of all scheme employers and members. 9.4 The Pension Board agreed to note the contents of the report.
10.1 The HoP highlighted the following key headlines from the report: • Risks FI12 and FI21 had been reviewed and revised accordingly following feedback made by members of the Pension Board during the prior review. • Officers recommended that risks A10 and FG12 be removed at the next meeting of the Pensions Committee in September 2022; however elements of these risks would still appear within other sections of the risk register. • Risk FI11 had been increased in light of the fact that gilt yields had significantly fallen, resulting in employers needing to increase their contributions to the Fund; however officers were hopeful that this risk would reduce over time. • Some risks had not been updated for a while; however they were related to the Valuation exercise and would be updated during the forthcoming year. 10.2 Following questions from the Board, the HoP made the following points: • He agreed that the reference to Brexit within risk FI17 could possibly be removed and he was happy to consider the wording. • It was possible that risk FI5 could be reduced in light of the new Responsible Investment Policy, and this could be considered at the next meeting of the RIWG. 10.3 Steve Harford suggested that risk FG1 should be updated in light of wider issues around Pensions Committee and Pension Board membership, and he also queried whether risk FG6 should be reduced. 10.4 The Pension Board agreed to note the updated risk register.
11.1 The HoP introduced the report and confirmed that it included the updates that had been agreed at the previous meeting of the Pension Board in April 2022. 11.2 The Pension Board agreed to note the content of the report.
12.1 The HoP highlighted the following key headlines from the report: • Despite the Council preparing its own governance statement on an annual basis, it was incumbent on the Fund to prepare an additional standalone document that specified where additional governance arrangements existed alongside those of the Administering Authority. • The Chartered Institute of Public Finance and Accountancy (CIPFA) stipulated within its annual report guidance that Local Government Pension Scheme (LGPS) funds must prepare and disclose an annual governance statement, based on compliance with the CIPFA framework, outcomes from any internal audit work carried out during the reporting period and an update on prior governance matters that had arisen. • The Annual Governance Statement (AGS) had been reviewed by the Head of Pensions, Assistant Chief Executive Resources, Monitoring Officer and Head of Internal Audit & Procurement, and it would be inserted within the Fund’s Annual Report for consideration and approval by the Pensions Committee. 12.2 Members of the Pension Board suggested that the AGS should include specific mention of the regulations that the Fund had to adhere to, reference to the roles of the WPP and Audit Wales, and reference to the UK Stewardship Code. The HoP agreed to consider the above suggestions and circulate an amended version of the AGS with members of the Pension Board prior to the final version being presented to Pensions Committee in September 2022. 12.3 The Pension Board agreed to note the contents of the update.
13.1 The PM presented the report and confirmed that Hymans had announced the launch of the 2022 National Knowledge Assessment for Pensions Committees and Pension Boards. The assessment would go live in September 2022, and she encouraged all members of the Pension Board to sign up. The PM confirmed that Hymans would provide individual results and share the correct answers once the assessment had concluded. 13.2 Following a question from the Board, the PM confirmed that participation across the Pension Board had been good in 2020; however nationally it was a mixed picture. Hymans would be encouraging funds to particate; however she was not aware of any national campaign to improve participation levels. 13.3 The Chair reminded everyone of the upcoming LGPS conference to held in Cardiff in January 2022; and the PM encouraged all members of the Pension Board to attend. 13.4 The Pension Board agreed to note the training update provided in the report.
14.1 The date of the next meeting was noted. 14.2 The meeting ended at 12.10pm.
Councillors must say when they have a personal link to something being discussed, such as a job, a property or a family member. A prejudicial interest is one strong enough that the councillor usually leaves the room and takes no part.
Declarations are read from the minutes once they are published.
The council hasn't recorded attendance for this meeting.
Lists the council's current councillors only. Co-opted members, officers and former councillors aren't shown.