Agenda item
SUBMISSIONS / REFERRALS FROM PENSION BOARD
To receive any submissions/referrals from the Pensions Board
Minutes:
Report from Pensions Board Chair John Jones was presented by Kevin Bartle and is set out below:
The Committee noted that:
- The Pensions Board meeting was held on Monday 17th June, 2019. All Board Members had been present including Councillor Asma Islam who had recently been nominated to the Board and was attending her first meeting;
- The Board received an informative presentation from Hymans Robertson providing an update on the 2019 Actuarial Valuation process highlighting (i) the importance of understanding risks and having a clear Funding Strategy statement in place; (ii) how the stabilising employer contribution rate assists budgeting and scheme affordability;
- Tower Hamlets response to the Pension Regulators compliance checklist was discussed along with the importance of this from a governance perspective. On the basis of the report presented, the Board noted that the Fund is 75% compliant with the Pension Regulator’s assessment criteria although it was noted that there remains a significant number where further action is required to meet the criteria in particular maintaining accurate member data and providing information. The Pensions Regulator is taking an increased interest in the LGPS in promoting effective governance and decision making. It was noted that the Board’s view is that an action plan is needed together with allocated responsibilities in order to achieve full compliance with the requirements of the checklist;
- The Board reviewed the Risk Management and Internal Controls Policy and the updated risk register. The Board suggested improvements around linking the register more closely to the high risk areas included in the covering report and clearer allocation of responsibilities between lead officers. The register had identified that there was no formal policy or documented procedure for checks on the accuracy of member data. It was agreed that a new policy would be drafted and introduced to provide a framework in future. Accordingly, the risk register would be reviewed again at the Board’s meeting in November;
- Because of the timing of meetings and the availability of papers, it had not been possible to have a full discussion on the Pensions Committee agenda. The Board received an update on the Fund’s investment arrangements. It was agreed to have another update in due course;
- Consideration of the performance of the Pensions Administration Team had also deferred to the meeting in September. The Pensions Regulator it was noted had identified data quality and record keeping as a key area of performance as it impacts directly on member benefits. The Board noted that it had previously recommended that the report should be updated to provide more robust and complete monitoring information for the Board and Committee.
- Finally, the importance of training and development for new members of the Committee and Board was discussed. It was noted that the LGPS and pension fund investment has now become increasingly complex and higher profile. The stability of membership and an understanding of the technical issues have become even more important to the effective management of the LGPS in Tower Hamlets. With this in mind it was noted that the Board has placed on record its view that all new Members should take advantage of the training and development opportunities that are available, and that the case should be made for continuing membership on the Committee going forward.
RESOLVED to note the report.