Agenda and minutes

To confirm as a true record the Minutes of the meeting held on 5 April 2023, and to note the report from the informal meeting held on 24 July 2023.

RESOLVED:

THAT the minutes of the meeting held on 5 April 2023 be approved.

RESOLVED:

THAT the notes of the informal meeting held on 24 July 2023 be noted.

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

No declarations were received.

To receive a verbal report from the meeting of the Pension Fund Committee held on 6 September 2023.

The Pension Fund Manager provided a verbal update following the meeting of the Committee on 6 September 2023.

RESOLVED:

THAT the verbal update be received and noted.

To receive a verbal update on the progress towards the completion and publication of the annual report and accounts for the year ended 31 March 2022 on the fund’s website.

To receive and note the draft financial results for the year ended 31 March 2023, and to note the timetable for the completion of the pension fund’s annual report and accounts for the year ended 31 March 2023 and the external audit programme.

The Pension Fund Manager provided a verbal update on the progress towards the completion of the 2021-22 annual report and accounts. It was confirmed that the draft had been published (subject to the conclusion of the external audit) and the final report would be published once the Council’s accounts for 2021-22 had been signed off.

The Pension Fund Manager presented an extract of the draft financial results for the year ended 31 March 2023 and the committee were asked to note the timetable for the completion of the annual report and accounts and the external audit programme. It was confirmed the draft financial results had been published as part of the Isle of Wight Council's draft accounts, however the commencement date of the external audit for 2022-23 was unknown at this stage.

The Board asked what impact the delay cause, the Pension Fund Manager advised that the impact was on workloads, however the team had prepared the work in advance, following the regular year end timetable.

Concern was raised regarding recent submissions by other Local Authorities of a s114 notice and how such a notice locally might affect the Pension Fund. Board members were advised that the Pension Fund was independent of council budgets and therefore should not be significantly impacted.

The Board requested a breakdown of recharges to the pension fund to ensure that correct payments were being processed through the fund. Officers advised that they had previously challenged some recharge payments. It was agreed that a breakdown of internal recharge to the fund would be provided, so the board could consider further investigation.

RESOLVED:

THAT the verbal update be received and noted.

THAT a breakdown of recharges be provided to the board.

To consider the government consultation on investments, including pooling and levelling up, and the fund’s proposed response.

Consideration was given to the report which summarised the key themes of the government consultation on investments (including pooling and levelling up), and the key issues which should be considered in framing the fund’s response.

The Pension Fund Manager presented the proposed process for the completion of the response and sought contributions from the board on matters to be included.

Discussion took place regarding the pool savings and the benefit of the Pool to the Pension Fund, The Pension Fund Manager advised that cost benefits had been identified in the difference between current fees paid within the pool and those achievable in the general market at the current time. However, due to changing fee structures, the fund had incurred additional costs in comparison to the original un-pooled mandates.

RESOLVED:

THAT board members advise the Pension Fund Manager of any comments on the consultation response during the week commencing 25 September 2023.

THAT the verbal update be received and noted.

To receive a report from Hymans Robertson on the fund governance outlook, including work priorities, risks, dependencies, and actions.

The board received the report and noted the presentation from Hymans Robertson, delivered at the Pension Fund Committee meeting, on the fund’s governance outlook (including work priorities, risks, dependencies, and actions).

The Board questioned if a job specification had been drafted for the vacant governance support officer post, and asked the requirements for the post, The Pension Fund Manager advised that a national advert had been made previously however there had been very little interest.

The Section 151 Officer (Director of Finance) had been supplied with the options report from Barnett Waddingham and advised that this would be considered after the council’s organisational review was completed. The Board asked if a meeting could be arranged with the Chairman and 151 Officer to discuss this matter further. It was also noted that a letter should be to the Chairman of the Pension Fund Committee.

RESOLVED:

THAT the report be noted

THAT a meeting be arranged with the Section 151 officer and Chairman of the Isle of Wight Pension Fund Committee.

To receive and consider the fund’s new Academy Participation Policy, and to recommend its adoption by the Pension Fund Committee.

The Pension Fund Manager presented the proposed new policy, explaining the reasoning behind the statement of principle concerning the consolidation of Multi Academy Trusts, and confirming that the fund’s current processes in respect of the outsourcing of contracts from academies was in line with the new government requirements.

RESOLVED:

i)               THAT the draft Academy Participation Policy on academy funding be agreed.

ii)              THAT the statement of principle that the Isle of Wight Pension Fund will not accept transferring academies as a result of Multi-Academy Trust consolidation be agreed.

iii)            THAT the formalisation of the fund’s current practices in respect of academy outsourcing contracts be agreed.

iv)            THAT the process for the finalisation of the policy, including consultation with the fund’s existing academy employers, and those schools for whom conversion is planned, be noted.

THAT the policy be recommended to the Pension Fund Committee for adoption at its meeting in November 2023.

To consider a report on administration statistics and employer compliance with end of month reporting and payment deadlines for the year 2023-24 to date, and to be advised of 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 2022-23 to date, complaints recorded, and breaches of the law identified since the last meeting.

Attention was drawn to key updates relating to:

• The increase in membership numbers were due to the inclusion of dependents pensions, previously omitted from the reports in error.
• Data quality scores for common data and scheme specific data had been calculated; both are in excess of 96% demonstrating continued improvement.
• A meeting with Heywood Pension Technologies (HPT) regarding the McCloud remedy had been held to agree the next steps.
• HPT had confirmed that the fund was in a very good place to progress the implementation of the McCloud remedy, with over 85% of its data being submitted for processing.

The Pension Board thanked the pension administration team for all the work that had been done.

RESOLVED:

THAT the report from the Pensions Administration Team be received and noted.

Members to raise any other matters.

The Pension Fund Manager advised that Hymans had launched a new version of the LGPS Online Learning Academy and board members should have received communication, the board was required to complete this learning by 31 March 2024.

Two board members were invited to attend the next ACCESS Joint meeting on 4 December 2023, The Pension Fund Manager advised that the Chairman had indicated an intention to attend and requested that the board advise who else would be attending.

The two council-nominated employer representative vacancies were under consideration; the elected member nomination would be considered at Full Council on 20 September 2023 and the Chief Executive had requested that a request be published in the Council’s staff newsletter to seek expressions of interest in the second vacancy, nominated by the Council’s Corporate Management Team. The intention was to have the vacancies filled by the next meeting in December 2023.

The Board asked if there was any information regarding cyber security that needed to be looked at, they were advised that the issue was on the risk register and a meeting with Hymans had been arranged to discuss what needed to be done to develop a plan to secure information.