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2.1 Members confirmed the following declarations of personal interest: Councillor In Receipt of Pension Contributor Alfie Best NONE NONE Jon Horlor NONE Self Stuart Keyte NONE NONE Chris Tew Self NONE David Williams Self and wife Self and wife Nathan Yeowell Father and two other family members (aunts) Self 2.2 The PS left the meeting.
3.1 The minutes of the meeting held on were confirmed as an accurate record.
4.1 The Committee noted the minutes.
5.1 The Pensions Manager outlined the report and provided an update on the administration services provided by the Greater Gwent (Torfaen) Pension Fund and highlighted the following areas of activity: · The new My Pensions Online system was launched on 6 August 2025, offering enhanced security, a refreshed interface, and additional features including a retirement planner and video benefit statements. · As of 22 September 2025, 42% of members were registered for My Pensions Online which equates to 28,479 members. Out of the 28,479 members, 36.8% of these had registered on the new system Officers confirmed that figures would be reviewed to clarify any potential double-counting. · The triennial valuation commenced on 31 March 2025, with data submitted to the actuary by 11 July 2025. Despite technical issues requiring a software patch, the deadline was met. · Following the departure of the Chief Information Security Officer, the annual cybersecurity tabletop exercise was brought forward to July. Full assurance was received, with no issues identified. · An internal audit of the fund’s administration was undertaken in May and June 2025, resulting in full assurance. · The McCloud Remedy implementation was progressing. Officers confirmed the use of discretion for specific member groups in relation to Annual Benefit Statements, with support from the Pension Board. The Committee was assured that a plan was in place to meet the 2026 deadline. · The Pension Dashboard onboarding process was underway, with registration codes received and AVC provider integration progressing. Officers confirmed that matching criteria and data cleansing would be addressed in future reports. · Pension Awareness Week was held between 15–19 September 2025. The fund delivered presentations and one-to-one sessions, with 261 members from Torfaen County Borough Council participating. 5.2 Following questions from the Committee, the Pension Manager made the following points: · The deadline for McCloud compliance was 31 August 2026. · Discretions applied affected only a small number of members. · Officers would review registration figures to ensure no duplication and report back at the next meeting. 5.3 The Pensions Committee noted the content of this report.
6.1 The Chair outlined the progress on developing a Wales Pension Partnership (WPP) exclusions framework. 6.2 The framework would be conduct-based, evidence-driven, and auditable, covering climate change, human rights, and breaches of international law. It would not permit country-specific exclusions or blanket bans on defence investments. 6.3 The Committee discussed motions received from Monmouthshire and Newport Councils, which requested divestment from companies linked to breaches of international law. Officers confirmed that the Greater Gwent Fund’s exposure to Israeli-domiciled companies was approximately £3.8m, representing 0.08% of total assets. These figures were significantly lower than those quoted by campaign groups. 6.4 The Committee agreed to respond to both Councils within 48 hours, outlining the current position and confirming that a review of investments would be undertaken, with findings expected by December 2025 or January 2026. The Committee noted the update and endorsed the proposed next steps. 6.5 Following questions from the Committee, the following points were made: • The framework would align with fiduciary responsibilities and Responsible Investment principles. • Engagement would remain the first course of action before any divestment decisions. • Responses to councils would clarify the timeline for exposure review and next steps. 6.6 Pension Committee: 1. Noted the update in relation to an exclusionary framework and comment on the scope of review 2. Discussed the Council motions and agree its next steps.
7.1 The Head of Pensions outlined the report and provided an update on current Audit progress and presented the draft annual report. 7.2 The draft accounts for the year ending 31 March 2025 had been prepared and submitted to Audit Wales. The audit was ongoing, with final approval expected in November and publication by 1 December. The Committee reviewed the audit plan and responses to Audit Wales inquiries. 7.3 The draft annual report was shared, and members were invited to provide comments before early November. 7.4 Following questions from the Committee, the officer confirmed the following points: - Audit Wales had not identified any material issues to date. - The timetable remained challenging but achievable. 7.5 The Pensions Committee agreed: (i) Noted the Draft Audit Plan produced by Audit Wales II. (ii) Approved the responses provided to Audit Wales’s Enquiries of Management (iii) Noted the draft Annual Report and Accounts for 2024/25 and raise any questions on the contents as appropriate
8.1 The Investment Officer outlined the report and provided an update on Pension Fund investment performance for the period 1st April 2025 through to 30th June 2025 (Q2 2025). 8.2 The Fund delivered a return of 4.19%, marginally below the benchmark of 4.20%, increasing assets by £179 million to £4.617 billion. Performance was driven primarily by equities, supported by positive returns from fixed income, multi-asset, and property holdings. Private market investments remained at an early stage. 8.3 Long-term returns continued to exceed both benchmark and actuarial discount rate. The Fund remained overweight in equities (71.7% versus a strategic target of 57%), with rebalancing ongoing. Private market commitments totalled £1.078 billion, of which 48% had been deployed. 8.4 The Independent Investment Advisor made the following commentary: - Global equity markets were buoyed by AI-driven growth, though risks of overvaluation persisted. - Private markets faced slower deployment due to crowded conditions, suggesting an extended overweight to equities. - The UK macroeconomic outlook remained weak, while geopolitical risks were easing in the Middle East. 8.5 Following questions from the Committee, the Head of Pensions and Investment Officer made the following points: - Currency fluctuations had impacted returns; FX hedging options were under review. - The actuarial discount rate was expected to rise to 6%, reinforcing the need for higher returns. 8.6 The Pensions Committee agreed that members note the investment performance that has taken place during quarter two of 2025.
9.1 The Head of Pensions outlined the report and provided an update on the work undertaken by the Wales Pension Partnership (WPP) on behalf of the eight LGPS funds in Wales as well as an update on Project Snowdon. 9.2 The WPP Investment Management Company had been incorporated, and a Chief Executive appointed. Officers from Torfaen, including Alex Bull and David McFadzean, had been seconded to support mobilisation. 9.3 The FCA authorisation process was underway, and recruitment for senior roles would commence shortly. Governance arrangements were being reviewed, and a new shareholder agreement would be drafted. Members would be invited to participate in workshops to shape future governance arrangements. 9.4 Following questions from the Committee, the Head of Pensions made the following points: - Interim secondments would not compromise delivery of core Fund responsibilities. - A governance workshop would be scheduled before December. 9.5 The Pensions Committee noted the content of this report as well as the respective appendices.
10.1 The Finance and Investment Manager outlined the report and provided an update on how the Pension Fund approaches its management of risk. 10.2 The theme for this quarter was investment risk. The likelihood score for Strategic Risk SR-7 was reduced from 3 to 2, reflecting the Fund’s strong funding position. The Fund ranked second among 61 LGPS funds for absolute performance in PIRC analysis. 10.3 Following questions from the Committee, the Finance and Investments Manager made the following points: · Reports from investment officers were used to validate risk scoring and provide external assurance.
11.1 The Finance and Investment Manager outlined the report and provided an overview on the updated risk management approach. 11.2 The proposed changes included a revised scoring matrix, reframed risk categories, the introduction of Key Risk Indicators, and improved presentation of the register. 11.3 Following questions from the Committee, the Finance and Investments Manager made the following points: · Key Risk Indicators would be measurable and practical to implement. · The revised framework would align with the Pensions Regulator’s General Code. 11.4 The Committee supported the direction of travel and agreed to consider a joint workshop with the Pension Board prior to formal approval in December.
12.1 The Pension Manager presented the annual training programme and confirmed that bookings for the LGA Governance Conference (Cardiff, January 2026) and LAPFF Conference (December 2025) had been made. 12.2 The Pension Committee noted the annual training programme included in appendix 2 and considered whether any specific training areas or topics should be included.
13.1 The Head of Pensions presented a high-level overview of the 2025 valuation. The Local Government Pension Scheme (LGPS) is required to undertake a valuation every three years to assess the Fund’s ability to meet its long-term liabilities. The Fund’s funding level had improved to 134%, compared to 97% in 2022, representing a surplus of approximately £1.1 billion. This improvement was attributed to strong investment returns and higher future return expectations. 13.2 Whilst the overall position of the Fund was strong, individual employer results varied. Some employers may remain below 100% funding due to their specific circumstances, such as recent entry into the scheme or closed admission agreements. Alternatively, others may be significantly overfunded. Employer-level results are expected in November, and engagement sessions will be held to discuss contribution rates and funding strategies. 13.3 Following questions from the Committee, the Head of Pensions confirmed the following points: - Employer contribution rates would be reviewed individually to reflect their funding position. - Consultation on the Funding Strategy Statement would commence before year-end. 13.5. Prior to the meeting re-opening for the recommendations, an exempt session was called in order for the Actuary to make a presentation to Members. 13.6 The Pension Committee noted the progress reported during the 2025 triennial valuation to date.
14.1 The date of the next meeting was explained to be the 15th December 2025.
14.1 The Committee agreed to the exclusion of the press and public from the meeting as presentations and meeting papers were not for publication because in accordance with paragraphs 12 and 14 of part 4 of Schedule 12a of the Local Government Act 1972 (as amended by the Access to Information Variation Order Wales 2007), it contained information about a particular individual and information relating to the financial and business affairs of particular persons including the Council and in all the circumstances of the case the public interest in maintaining the exemptions outweighs the public interest in disclosing the information. 14.2 The Chair invited the members of the Pension Board to continue observing the meeting.
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