Agenda and minutes

To confirm as a true record the Minutes of the meeting held on 15 June 2022.

RESOLVED:

THAT the minutes of the meeting held on 15 June 2022 be approved.

To invite Members to declare any interest they might have in the matters on the agenda.

No declarations were received at this stage.

To receive a progress update from the Pension Fund Manager, and a presentation from Barnett Waddingham.

Consideration was given to the report which summarised the process for the appointment of Barnett Waddingham to undertake the review of the fund’s operational structure in light of current and future work requirements. The lead consultant from Barnett Waddingham was in attendance to provide an overview of the project. Questions were raised and discussion took place regarding fund comparators, information gathering, shared strategic governance and administration resources, local investments, performance, and risk. It was confirmed that options would be brought forward in a paper to be presented to the Council’s Corporate Management Team in early 2023.

RESOLVED:

THAT the report and presentation from Barnett Waddingham be noted.

Consideration was given to the draft minutes of the meeting of the Pension Fund Committee held on 27 July 2022, and the decisions taken therein. No comments or questions were raised.

RESOLVED:

THAT the draft minutes of the meeting of the Pension Fund Committee held on 27 July 2022 be noted.

The Pension Fund Manager presented the report which confirmed the process by which scheme member representatives could attend ACCESS Joint Committee meetings as observers. It was confirmed that Isle of Wight Council Pension Fund had been invited to send two representatives to the ACCESS Joint Committee meeting in London on 5 December 2022, and it was confirmed that this would be one scheme member representative (Barbara Milton) and the independent chairman (Martin Doyle).

RESOLVED:

i)               THAT the approach to scheme member representation at ACCESS Joint Committee meetings be noted.

ii)              THAT Barbara Milton and Martin Doyle attend the ACCESS Joint Committee meeting on 5 December 2022 in London.

To receive the draft annual Governance Compliance Statement and to approve its presentation to the Pension Fund Committee for inclusion in the annual report and accounts for the year ended 31 March 2022; and to agree the proposed action plan to address areas of non-compliance.

The Board received the draft annual Governance Compliance Statement for consideration and approval for presentation to the Pension Fund Committee for inclusion in the annual report and accounts for the year ended 31 March 2022. Consideration was given to the proposed action plan which had been developed to address areas of non-compliance. With regards to policy development, it was suggested that copies of existing policies (on knowledge and skills and conflict of interests) could be requested from the South East UNISON Forum. Questions were raised regarding internal controls processes, reporting oversight, complaints, the administration strategy, and compliance with cyber security and fraud requirements.

Cllr Michael Lilley declared an interest as the vice-chairman of the Audit Committee.

RESOLVED:

i)               THAT the draft governance compliance statement be recommended to the Pension Fund Committee for adoption and publication in the fund’s annual report and accounts.

ii)              THAT the action plan for rectification of areas of non-compliance be agreed, and progress reports be presented to all future Board meetings.

To receive and review the updated risk register for onward presentation to the Pension Fund Committee. 

The Board received and reviewed the updated risk register for its onward presentation to the Pension Fund Committee. Attention was drawn to the closure of ten risks, the creation of three new risks, and the reduction in risk score of four risks. Comments were made in relation to inflation and funding risks (in light of current market volatility) and the potential impact on the valuation. Clarification was provided around the long-term investment strategy, cashflow projections, and risk mitigation.

RESOLVED:

THAT the updated risk register (including the closure of ten risks, the creation of three new risks, the reduction in risk score of four risks, and the unchanged score of the remaining 34 risks) be agreed; and be recommended to the Pension Fund Committee for adoption.

To consider the fund’s response to the Local Government Pension Scheme (England and Wales): Governance and reporting of climate change risks consultation issued on 1 September 2022.

Consideration was given to the fund’s draft response to the Local Government Pension Scheme (England and Wales): Governance and reporting of Climate Change Risks consultation issued on 1 September 2022. Comments were made around the role of investment managers in providing information and metrics, and the role of the fund’s  ESG/RI working group. It was suggested that any further considerations which may be useful to include in the response be sent to the Pension Fund Manager by 7 November 2022, to be finalised for presentation to the Pension Fund Committee on 24 November 2022.

RESOLVED:

THAT the consultation document and the proposed response be accepted, and any further considerations to include in the response to be sent to the Pension Fund Manager by 7 November 2022.

Following discussion, the Board adjourned for a five-minute comfort break.

To consider the initial outcome of the AON Cyber assessment questionnaire, and the requirements of the Pension Regulator single code of practice in respect of cyber risk awareness.

The Pension Fund Manager presented the initial outcome of the AON Cyber assessment questionnaire and the requirements of the Pension Regulator’s single code of practice in respect of cyber risk awareness. Discussion took place regarding the steps required to improve the fund’s cyber controls (including the development of a cyber risk policy) and questions were raised whether there was a fund-specific disaster recovery plan. It was advised that a progress report would be presented to the next meeting.

RESOLVED:

THAT the report be noted.

To consider a report on administration statistics and employer compliance with end of month reporting and payment deadlines for the year 2022-23 to date, and to be advised on any complaints recorded and potential breaches of the law identified since the last meeting.

The Pensions Manager presented the report on administration statistics, employer compliance with end of month reporting and payment deadlines for the year 2021-22 to date, complaints recorded, and breaches of the law identified. Attention was drawn to key updates relating to i-Connect, McCloud, tracing procurement, and employer compliance. Questions were raised regarding school academisation and employer non-compliance. It was agreed the full breaches log would be presented to the Board at future meetings.

RESOLVED:

THAT the report be noted.

To note the progress with the triennial valuation against the agreed timetable.

The Pension Fund Manager presented the triennial valuation progress update against the agreed timetable. It was advised that everything was on track and progressing well. No comments or questions were raised, and the update was noted.  

RESOLVED:

THAT the progress update be noted.

To review the proposed revisions to the fund’s Communications Policy, including the requirements of the Pension Regulator’s code of practice, and to recommend the updated Communications Policy to the Pension Fund Committee of adoption.

The Board received and reviewed the proposed revisions to the fund’s Communications Policy (including its sufficiency against the requirements of the Pension Regulator’s code of practice) for recommendation to the Pension Fund Committee. Discussion took place regarding the protocols for member media communications; it was advised that these are developed and enforced by the Council.

RESOLVED:

THAT the revised Communications Policy be recommended to the Pension Fund Committee for adoption.

To receive the record of Board members’ training and an update on any training events.

The Pension Fund Manager presented the report on levels of knowledge and understanding and advised on the training programme created to support both members of the Committee and the Board. Board members were asked to complete the recommended training, including the Hymans Robertson National Knowledge Assessment. No comments or questions were raised, and the update was noted.

RESOLVED:

THAT the summary of attendance and training be noted.

To note and agree the proposed workplan for future pension board and committee meetings, including development sessions and fund manager presentations.

Consideration was given to the work programme for forthcoming meetings of the Committee and Board. It was noted that alternative dates for the next meeting, currently scheduled for 21 December 2022, would be circulated. No comments or questions were raised, and the update was noted. 

RESOLVED:

THAT the workplan be noted.

To note the items circulated to board members for information since the papers were published for the last meeting (7 June 2022):

a)         Sent 20-Jun-22: Invite: APPG Levelling Up and LA Pension Funds 13-Jul)

b)         Sent 20-Jun-22: Invite: Joint Paris Alignment Forum and Place-Based Impact Investing Forum online afternoon tea with SilverStreet Capital (18-Jul)

c)          Sent 20-Jun-22: Scheme Advisory Board annual report 2021

d)         Sent 20-Jun-22: PLSA Local Authority Conference 2022. Highlights

e)         Sent 21-Jun-22: Hymans Robertson: Your June issue of The Edit

f)           Sent 21-Jun-22: Development session invite: investment strategy (14-Sep)

g)         Sent 23-Jun-22: Economic and interest rate forecast – June 2022

h)         Sent 05-Jul-22: Knowledge and understanding update request for action

i)           Sent 07-Jul-22: LGPS Bulletin 226

j)           Sent 07-Jul-22: Hymans Robertson: Your July issue of The Edit

k)          Sent 20-Jul-22: Economic update – inflation data

l)           Sent 22-Jul-22: Development invite: pensions dashboard project (9-Nov)

m)        Sent 05-Aug-22: Hymans Robertson: Your August issue of The Edit

n)         Sent 05-Aug-22: CCLA workshop on responsible investment (13-Sep)

o)         Sent 15-Aug-22: Economic and interest rate forecast August 2022

p)         Sent 16-Aug-22: Barnett Waddingham LGPS Governance Guide 

q)         Sent 18-Aug-22: Pensions dashboard project information

r)           Sent 23-Aug-22: PLSA report: Today’s Challenges, Tomorrow’s Opportunities

s)          Sent 31-Aug-22: Aon LGPS newsletter August 2022

t)           Sent 01-Sep-22: LGC article ‘LGPS Pooling Progress needs to go further and faster’

u)         Sent 01-Sep-22: LGPC Bulletin 228

v)          Sent 01-Sep-22: Launch of DLUHC consultation – LGPS (E&W) Governance and reporting of climate change risks

w)        Sent 05-Sep-22: Hymans Robertson: TCFD consultation for LGPS

x)          Sent 06-Sep-22: Investment Performance Report Q/E June 2022

y)          Sent 08-Sep-22: Hymans Robertson: Your September issue of The Edit

z)          Sent 08-Sep-22: Room 151 LGPS Briefing

aa)      Sent 09-Sep-22: Example employer communication

bb)      Sent 20-Sep-22: invitation to Hymans Robertson webinar: 2022 valuation employer results and high inflation

cc)       Sent 29-Sep-22: Interest Rate and Market Update – Bank of England intervenes in Gilt Markets

dd)      Sent 29-Sep-22: LGPC Bulletin 229

ee)      Sent 30-Sep-22: Hymans Robertson National Knowledge Assessment 2022 live and accessible

ff)         Sent 03-Oct-22: ACCESS Joint Committee agenda pack 6-Oct-22

gg)      Sent 07-Oct-22: Hymans Robertson: Your October issue of The Edit

hh)      Sent 07-Oct-22: National Knowledge Assessment 2022, progress report

ii)          Sent 10-Oct-22: LGPS governance conference 2023 and Fundamentals training programme

jj)          Sent 14-Oct-22: LAPFF Q3 2022 Quarterly engagement report

kk)       Sent 17-Oct-22: National Knowledge Assessment 2022, second progress report and reminder

The committee noted the items circulated for information since the last meeting. No comments or questions were raised at this stage.

RESOLVED:

THAT the items circulated for attention be noted.

Members to raise any other matters.

No other matters were raised.