Agenda, decisions and minutes

RESOLVED:

The Committee noted the appointment of Cllr Kam Adams as the Chair and Cllr Robert Chapman as the Vice- Chair of the Pensions Committee for the municipal year 2023/24.

RESOLVED:

The Committee noted the appointment of Cllr Kam Adams as the Chair and Cllr Robert Chapman as the Vice- Chair of the Pensions Committee for the municipal year 2023/24.

3.1 Apologies for absence were received from Cllrs Ozsen, Gordon, Hayhurst

and Rathbone, and Henry Colthurst.

3.2 Apologies for lateness have been received from Cllr Gordon.

3.3 It was noted that Cllrs Gordon (joined at 7.30pm), Cllr Hayhurst and Jonathan

Malins-Smith had joined the meeting remotely. Councillors accessing the

meeting remotely, were reminded that they were not counted as being

‘present’ for the purposes of the Local Government Act 1972 and may not

vote on any item under consideration. At the discretion of the Chair, the

Councillors may however participate in non-decision making capacity.

4.1  Cllr Chapman declared that he was a LGPS pensioner.

4.2  Councillor Adams declared that his partner was a member of the LGPS.

4.3  Karen McWilliam declared an interest at item 11 - High Level Monitoring Report and left the meeting prior to the consideration of this item. 

RESOLVED:

That the minutes of the previous meetings held on 30 March 2023 and 27 April 2023 be agreed as a true and accurate record of proceedings.

The Chair considered item 7 on the agenda before item 6.

The decision relating to this report is exempt.

The report and decision  relating to this item are exempt.

Proposed resolution:

THAT the press and public be excluded from the proceedings of the Pensions Committee meeting during consideration of Exempt Report/Appendices at items 7, 9 and 14 on the agenda on the grounds that it is likely, in the view of the nature of the business to be transacted, that were members of the public to be present, there would be disclosure of exempt information as defined in paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972.

RESOLVED:

That the press and public be excluded from the proceedings of the Pensions Committee meeting during consideration of Exempt Report/Appendices at items 6, 8, 10 and 14 on the agenda on the grounds that it is likely, in the view of the nature of the business to be transacted, that were members of the public to be present, there would be disclosure of exempt information as defined in paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972

The decision relating to this report is exempt.

The discussion and decision relating to this item are exempt.

RESOLVED:

To note the contents of the report.

9.1 Rachel Cowburn Head of Pension Fund Investment and Actuarial, introduced the Draft Statement of Accounts for the London Borough of Hackney Pension Fund for the year ended 31st March 2023. The audit of the accounts had not yet commenced and a timetable for the audit was not yet available. It was emphasised that the Fund’s 2020/21 and 2021/22 Annual Reports remained in draft status due to the ongoing backlogs across local government audit largely due to a national issue in relation to infrastructure assets.

RESOLVED:

To note the contents of the report.

RESOLVED:

1.  To note the report.

2.  Approve extensions to the Fund's Actuarial Services Contract and Benefits and Governance Services Contracts until 31 December 2023.

10.1 The Committee noted the Supplementary paper circulated prior to the

meeting.

10.2 Rachel Cowburn, Head of Pension Fund Investment and Actuarial introduced the Fund’s quarterly report providing an update on performance across the following key areas since the last meeting: Governance, Funding and any changes in participating employers, Investment, including an update on the London CIV and implementation of the Fund's Responsible Investment policy, and Pension administration and communications.

10.3 Catherine Pearce, AON highlighted the following areas:

? Cyber update

? Funding and Investments Update

? Administration and Communications Update - McCloud Programme

There was a significant risk of the Fund not being able to administer benefits

in line with the McCloud remedy due to the delay in the Compendia software

development until the regulations were finalised which would create some

uncertainty in relation to administering benefits. Equiniti had proposed an

alternative plan for administering the benefits from 1 October 2023 which

involved a period where benefits would be calculated and subsequently

revisited. This risk would be reflected in the risk register.

10.4 Following the introduction, Members of the Committee asked question which were responded to as follows:

? In response to a question relating to the consultation, it was stated that

consultation was being undertaken on LGPS regulations, which was

impacting on the Compendia software development

? In response to the query regarding a further consultation, it was explained that there was currently a consultation on the LGPS regulation. However, some

consultations were for the entire public sector and some were specific to the

LGPS. There had been some delays nationally as a result of the liaison between different public sector schemes to ensure the broad policy was being

followed.

? In response to the workstream issue, the Benefit Rectification workstream

was progressing as expected and Equiniti would revisit the project plan and

remediation specification document in line with the consultation response published on 6 April 2023 to determine if any updates were needed.

? Equinti was expecting to deliver the solution from 1 October 2023.

? In response to a query about the number of scheme members that would be

affected, it was stated that it would affect some members but the impact would

be less and it was noted that good communication with scheme members

was needed.

? In response to a concern regarding meeting the deadline for the Annual

Benefits Statement due to be issued on 31 August 20223, they were mindful

of the pressures on Equinti but anticipated this would meet this deadline.

? In response to a question relating to the valuation, the funding level was

estimated to be at 126% with a valuation value of £390m. The increase in the

funding level had been the result of movement in yields.

RESOLVED:

1. To note the report.

2. Approve extensions to the Fund's Actuarial Services Contract and

Benefits and Governance Services Contracts until 31 December 2023.

RESOLVED to:

1.  Note the progress against the Business Plan tasks and actions, and agreed Budget.

2.  Note the current measures on the Strategic Objectives Scorecard

3.  Note the Risk Register and the risks identified.

4.  Note the Breaches Register.

11.1 The Committee noted the Supplementary paper circulated prior to the meeting.

11.2 Rachel Cowburn, Head of Pension Fund Investment and Actuarial, introduced the high level update on key strategic Pension Fund matters, including progress against the Business Plan, Strategic Objectives Scorecard and Risk Register. It also included breaches of the law and the latest information on the position of the Fund since the previous meeting.

11.3 Karen McWilliam highlighted the progress within the business plan in relation to the key actions/tasks, expected delivery timescales and the current status, funding and investment

11.4 Following the update, Members of the Committee asked questions which were responded to as follows:

? In response to a concern regarding the delivery of pensions by the third party

administrators Equiniti, this was discussed in EXEMPT session.

? Officers indicated that they would be mindful of meeting clashes before setting the workshop date in October 2023

RESOLVED to:

1.  Note the progress against the Business Plan tasks and actions, and agreed Budget.

2.  Note the current measures on the Strategic Objectives Scorecard

3.  Note the Risk Register and the risks identified.

4.  Note the Breaches Register.

RESOLVED:

To note the contents of the report.

12.1 Rachel Cowburn, Head of Pension Fund Investment and Actuarial, presented a proposed timeline for work on the Fund’s Stewardship Code submission, to ensure the Fund meets the deadline to submit in May 2024

12.2 Following the introduction, Members of the Committee asked question which were responded to as follows:

? In response to a question relating to the Fund, Jill Davys confirmed that the

Fund was in a good position and an application would be submitted.

? In response to a query relating to a panel for engagement, it was confirmed that the Working Group had met on 8 March regarding the target.

RESOLVED:

To note the contents of the report.

13.1 The Chair on behalf of the Committee recorded their thanks for Ian Williams hard work and dedication over the years.

RESOLVED:

That the exempt minutes of the previous meetings held on 30 March 2023 and 27 April 2023 be agreed as a true and accurate record of proceedings.