Agenda and minutes
Venue: Online 'Virtual' Meeting - https://towerhamlets.public-i.tv/core/portal/home. View directions
Contact: Democratic Services Email: committee.services@towerhamlets.gov.uk
Media
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INTRODUCTION Additional documents: Minutes: Good morning and welcome to the Pensions Board meeting. My name is Cllr John Jones and I will be Chairing this meeting.
Thank you all for participating in this meeting under these difficult circumstances. To ensure the Council is able to function effectively it is vital that the Board meetings continue to operate as the Council must continue to be able to undertake its duties and to offer a good service to its residents and businesses.
Please not that this meeting is being webcast live and will be available to view via the Council’s website. If during the meeting a technical error occurs with the transmission which cannot be resolved within a reasonable period of time, then the meeting will be closed, and the remaining business will be deferred to the next meeting of the Pensions Board.
Please could everybody ensure that mobile phones are switched off or on ‘silent mode’.
Members and Officers will be speaking at various points during the meeting and those speaking may switch their cameras on at that point, but I would ask that with the exception of myself as Chair, at all other times you keep your cameras and microphones switched off as this will help to minimise any background noise and interference and to ensure the connection remains as stable as possible. If any Members or officers wish to raise a point or question, they should use the ‘Meeting Chat’ facility accessed via the teams toolbar signified by the conversation icon, and simply type “Speak?” or click on the ‘raise your hand sign’ and I will come to you in the order I receive requests. Please do not use your microphone until I invite you to do so.
Can I please ask the Members to introduce themselves and state any declarations of interest they may have. We will now go through the agenda.
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ORDER OF BUSINESS Additional documents: Minutes: The Chair indicated that he thought it appropriate that the Order of Business be varied:
Accordingly, the Chair Moved the following motion for the consideration of Members, and it was: -
Resolved
To vary the order of business and consider Knowledge Assessment Results and Training Plan for Pensions Committee and Pension Board item 5.6 first.
To aid clarity, the minutes are presented in the order that the items originally appeared on the agenda.
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DECLARATIONS OF INTERESTS PDF 214 KB Additional documents: Minutes: There were no declarations of pecuniary interests made by Board Members at the meeting.
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UNRESTRICTED MINUTES PDF 234 KB To confirm as a correct record of the proceedings the unrestricted minutes of the meeting of the Pensions Board held on 16th March, 2020. Additional documents: Minutes: The minutes of the last meeting were confirmed as a correct record and the Chair was authorised to sign them accordingly.
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REPORTS FOR CONSIDERATION Special circumstances justifying urgent consideration The following reports 4.1;4.2;4.3;4.4;4.5;4.6; and 5.1 were not available for publication by the statutory publication deadlines because additional information was required. They are presented for consideration at this meeting as it is not possible to defer until the next meeting. It should also be noted that the report titles were made available as part of the original meeting agenda.
Additional documents:
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Additional documents: Minutes: The Board received and noted the update the update report on the current position with the Pensions Administration service. The main points of the discussion may be summarised as follows:
The Board:
· Welcomed the commendable reduction in the work outstanding at the end of June. Which shows a considerable improvement compared with the position at the end of March. · Were encouraged that the initiative to implement the I connect system as this will enable data to be uploaded more easily and improve overall efficiency. · Noted that the majority of employers including the council continue to rely on pension fund staff to upload their monthly payroll data on the portal. A drive to get employers signed up and using the portal for data submission will commence in September · Noted that the Government want people to belong to workplace pension schemes, so employers have to automatically enrol you back into the LGPS approximately every three years. · Noted that concerns have been expressed about the fall in stock markets and the potential resultant impact on defined contribution pensions. However, the LGPS as a defined benefit pensions are not linked to stock market performance and are set out in statute. Therefore, although short term investment values may vary, the LGPS as a long-term investor is securely managed to address any longer-term impacts. Therefore, LGPS Scheme members can be assured that both their contributions and their pension, whether in payment or built up to date, will be unaffected. · Acknowledged that COVID-19 has led to an extraordinary period of lockdown and social distancing measures which has put many employers with LGPS liabilities under considerable financial pressure as their sources of revenue has reduced. Accordingly, the Pensions Team are closely monitoring if to see if any employer with LGPS liabilities is under pressure. · Was informed that it is anticipated that the pressure on employers will continue over the short to medium term as Government measures to curb the spread of the infection are gradually lifted and public confidence improves. · Recommend that in future the Service should work with Trade Union representatives to encourage staff to join and continue membership of the LGPS; · Noted that, where employers have opted to furlough staff, pay continues to be pensionable (i.e. if a member receives 80% of their pay under furlough, employee and employer contributions are due on this level of pay). However, the Government furlough scheme only compensates employers by 3% of pay towards employer pension contributions (the minimum employer contribution under autoenrollment rules). Therefore, the balance of employer pension contributions must be found by the employer through other sources which may deplete any cash reserves held by employers, putting their businesses at risk. · Stated that it wished to place on record their thanks and appreciation to Pensions and Investment Manager and her team on the commendable reduction in the back logs. · Noted the progress in responding to the McCloud ruling with reference to engagement with employers to ensure receipt of member data when required; identifying those ... view the full minutes text for item 5.1 |
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2019/20 Pension Fund Accounts Audit Plan PDF 234 KB Additional documents:
Minutes: The Board received and noted that the Audit Plan for 2019/20 The main points of the discussion may be summarised as follows: The Board:
Accordingly, the Chair Moved and it was:
RESOLVED to:
Note the Audit Planning report from Deloitte that relates to the Tower Hamlets Pension Fund accounts.
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Review of Risk Register PDF 254 KB Additional documents: Minutes: The Board received and noted a report that outlined changes to the Fund’s Risk Register. The main points of the discussion may be summarised as follows:
The Board:
· Noted the changes arising from the Covid 19 epidemic and the Council’s response. · Discussed the risks associated with fraud and Members transferring their pensions to private schemes e.g. the Council are working to ensure that Scheme Members can make informed decisions about their pensions to help protect them from scams. · Noted the recent statement from the Minister of State regarding the progress in responding to the McCloud ruling as a possible risk. · Noted that to facilitate successful delivery, the Fund will need to commence preliminary work to ensure successful processing implementation of McCloud ruling with regard to the identification of affected members, processing of arrears and interest as well as adjusting of records of affected members once final legislation is received. · Noted it was noted felt that the scheme might be exposed to likelihood of Cyber Scams and Data Protection risks as staff migrated to remote working. However, as a part of the commitment to keep the wired and wireless network safe, the Council are applying the latest security measures to ensure the safe operation of these wired and wireless networks. Accordingly, the Chair Moved and it was:
RESOLVED to:
1. Note and comment on the Pension Fund Risk Register; 2. Note the additional risks introduced during the quarter; and 3. Note amendments to existing risks.
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Pension Fund Cash Flow Forecast 2020/21 PDF 316 KB Additional documents: Minutes: The Board received and noted is report is an update on the Pension Fund’s projected cash flow forecast for 2020/21 to 2022/23 from operational activities. The main points of the discussion may be summarised as follows: The Board:
Accordingly, the Chair Moved and it was:
RESOLVED to:
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Pensions Board Work Plan 2020/21 PDF 265 KB Additional documents:
Minutes: The Board received and noted a report that outlined considered the draft work programme for 2020/21. The main points of the discussion may be summarised as follows: The Board:
Accordingly, the Chair Moved and it was: RESOLVED to
a) note the contents of this report; b) note the pension board terms of reference attached as Appendix 1; and c) agree the 2020/21 work plan attached as Appendix 2 to this report.
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Additional documents:
Minutes: The Board received and noted proposals from Hymans Robertson for training and development. The findings of the report being intended to assist the Fund in quantitative knowledge level of members of the Board and Committee and aid in the development of targeted and tailored training plans for members of the Pension Board and Committee. The main points of the discussion may be summarised as follows: The Board:
· Was advised that the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Pensions Regulator continue to emphasise the importance of knowledge and skills in the effective governance of the Pension Fund; · Noted that in recent years there has been a marked increase in the scrutiny of public service pension schemes including the Local Government Pension Scheme (LGPS). Therefore, the training and development for Committee and Board Members is an important requirement, · Was reminded that the introduction of Markets in Financial Instruments Directive II (MIFID II) in January 2018 REQUIRED Committee members to evidence their knowledge in order to be treated as professional investors. Also, in 2019 a review of governance arrangements for LGPS funds was commenced. This project termed ‘Good Governance’ addressed stakeholder knowledge and skills; · Noted that a clear recommendation of the Good Governance project was that the knowledge levels already statutorily required by Board Members should also be required of Committee Members. The recent events having reaffirm that LGPS funds should evidence the training provided; current knowledge and understanding levels retained within both the Committee and Board; · Was informed that all Members of the Board and Committee were invited to complete an online knowledge assessment. 2 respondents from the Pensions Committee and 5 from the Board participated. Each respondent was given 47 questions on the 8 following areas: (i) Committee role and pensions legislation; (ii) Pensions governance; (iii) Pensions administration; (iv) Pensions accounting and audit standards; (v) Procurement and relationship management; (vi) Investment performance and risk management; (vii) Financial markets and product knowledge; and (viii) Actuarial methods, standard and practices. · Noted that the Tower Hamlets Fund ranked 6th out of 18 Funds. The Board average score was 68.51% while the Committee average score was 59.57%. The Committee performed better in investment performance and financial matters. Both the Board and Committee demonstrated a good spread of knowledge. · Were however, concerned that only two of the Committee Members had completed the Hymans assessment. · Was advised that it is likely that most aspects of training will be delivered on a group basis, either at Committee and Board or through separate events to which all members will have the opportunity to attend. For this type of training, the training programme and assessment of needs will be based on a consideration of; new developments and legislation, topical/live issues, as well as member feedback and specific requests for training. Therefore, based on the results the suggestion is that here should be consideration to the establishment of a structured training plan for the next 18 months covering the main areas covered in the report as ... view the full minutes text for item 5.6 |
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EXCLUSION OF THE PRESS AND PUBLIC In view of the contents of the remaining items on the agenda the Board is recommended to adopt the following motion:
“That, under the provisions of Section 100A of the Local Government Act 1972, as amended by the Local Government (Access to Information) Act 1985, the press and public be excluded from the remainder of the meeting for the consideration of the Section Two business on the grounds that it contains information defined as Exempt in Part 1 of Schedule 12A to the Local Government Act, 1972.”
EXEMPT/CONFIDENTIAL SECTION (Pink Papers)
The exempt committee papers in the agenda will contain information, which is commercially, legally or personally sensitive and should not be divulged to third parties. If you do not wish to retain these papers after the meeting, please return these to the Committee Officer.
Additional documents: Minutes: In view of the contents of the remaining items on the agenda the Board agreed to adopt the following motion:
That, under the provisions of Section 100A of the Local Government Act 1972, as amended by the Local Government (Access to Information) Act 1985, the press and public be excluded from the remainder of the meeting for the consideration of the Section Two business on the grounds that it contains information defined as Exempt in Part 1 of Schedule 12A to the Local Government Act, 1972.
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Pension Fund Remediation Plan Minutes: The Board had a full and wide ranging discussion on the Pensions Administration Remediation Plan agreed by the Pensions Committee at its last meeting. The report and proposals for a new staffing structure and work plan were welcomed and agreed, with the proviso that a post implementation review should be carried out after 12 -18 months to check that the new arrangements are working effectively and meet the needs of the service.
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Restricted Minutes To confirm as a correct record of the proceedings the restricted minutes of the meeting of the Pensions Board held on 16th March, 2020. Minutes: The minutes for this item are restricted. |