Agenda and minutes
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Contact: Democratic Services Email: farhana.zia@towerhamlets.gov.uk
Media
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APOLOGIES Additional documents: Minutes: Apologies for absence were received from Councillor Abdal Ullah (Councillor representative - Pensions Fund Employers) and Nneka Oroge(Trade Union Representative)
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DECLARATIONS OF INTERESTS PDF 214 KB Additional documents: Minutes: There were no declaration of pecuniary interests made by members of the Board.
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UNRESTRICTED MINUTES PDF 293 KB To confirm as a correct record of the proceedings the unrestricted minutes of the meeting of the Pensions Board held on 13th October 2020.
Additional documents: Minutes: The Board agreed the minutes from the 13th October 2020 meeting to be a correct and accurate record of the meeting.
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SUBMISSIONS FROM FUND MEMBERS To consider any written submissions from Fund Members/Stakeholders.
(Submissions must be received by the Clerk to the meeting no later than 5.00p.m. on the day before the meeting.) Additional documents: Minutes: There were no submissions made by fund members.
In response to questions from the Board the following was noted:
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SUBMISSIONS / RESPONSES FROM PENSION COMMITTEE Additional documents: Minutes: The Chair stated he had attended the Pensions Committee meeting of 19th November 2020 and had submitted a written report conveying the views of the Board Members, in relation to the voting and engagement report.
Mr Jones said he would be attending the next meeting of the Committee, 25th March 2021 to report on the Board’s discussion arising from this meeting.
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REPORTS FOR CONSIDERATION Additional documents: |
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Investment Strategy Training Additional documents: Minutes: The Pensions Board received a training presentation from Joe Peach and Josh Tipper from Aon, a professional services firm providing a broad range of risk, retirement and health solutions. They provided an oversight relating to the investment strategy, in terms of what the strategy should include, the setting of objectives and the timeline for achieving this. The presentation also highlighted the importance of producing an Investment Strategy Statement and the Pension Board’s relationship with the Pensions Committee and the London CIV.
The main points arising from the presentation were:
In response to questions from members the following was noted:
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Investment Strategy Statement (ISS) 2021 report PDF 239 KB Additional documents:
Minutes: Ms Miriam Adams, Interim Head of Pensions and Treasury stated most of the points had been covered by the presentation however wanted to highlight that when the Investment Strategy Statement was being prepared, the actuarial valuation carried out in 2019 made an assumption the Fund would maintain an equity portfolio of 50% and that the investment return would be approximately 3.9% per annum. She said despite the pandemic the market was bouncing back, and the equities market was recovering. Ms Adams said the year to date figures showed that as a local authority it was performing above other London Boroughs with a -0.4% average compared to -0.48% average for other London Boroughs. Ms Adams said the three-year average was at 3.8% and the blip experienced with the pandemic had been made up.
Ms Adams stated the Pensions Committee members would be receiving training on the 22nd April in relation to the Responsible Investment and said this would be the basis of reviewing and re-drafting the Responsible Investment policy.
In response of questions from members the following was noted:
The Pensions Board RESOLVED to:
The Pensions Committee is recommended to:
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Fund liquidity 2020/21 to 2022/23 report PDF 474 KB Additional documents: Minutes: Ms Miriam Adams, Interim Head of Pensions and Treasury stated the report provided an update on the Pension Fund’s projected cash flow forecast for 2020/21 to 2022/23. She said the Fund was projecting a £20.335m cash balance including the £20m drawn down from the proceeds of equity protection which the Pensions Committee agreed in July 2020 for operational use and projected shortfalls identified in 2021/22 and 2022/23. Ms Adams said no further shortfalls were forecast for the next two financial years.
In response to questions from Members the following was noted:
The Pensions Board RESOLVED to:
The Pensions Committee is recommended to:
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Employer Internal Dispute Resolution Procedure PDF 232 KB Additional documents: Minutes: Ms Miriam Adams, Interim Head of Pensions and Treasury stated the report provided the Board with the Policy for Scheme Employers to follow should disputes arise. Ms Adams said a similar policy was available for scheme members in respect to pensions related disputes with their employers and the Fund.
In response to questions from Members the following was noted:
The Pensions Board RESOVLED to:
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Risk Register Quarterly Update December 2020 PDF 248 KB Additional documents: Minutes: Ms Miriam Adams, Interim Head of Pensions and Treasury presented the report and asked the Board to note the changes to the Fund’s risk register appended at Appendix 1. She said the risk register set out the risks and how these would be mitigated against. She said two new risks AG10 and AG11 had been introduced to include the recommendations identified by the 2019/20 Internal audit. Mr Adams referred members to paragraphs four of the report, which provided detail on the revisions made to the risk register.
In response to questions from the members the following was noted:
The Pensions Board RESOLVED to:
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Review of Fund manager and Custodian Internal Control 2019/20 PDF 277 KB Additional documents: Minutes: Ms Miriam Adams, Interim Head of Pensions and Treasury said the report presented the findings of the review of the adequacy of internal control measures in place by the fund managers that hold the Fund’s assets in management. She said officers had reviewed the available AAF 01/06 and SSAE3402(which signifies that a service organisation has had its control objectives and control activities examined by an independent accounting and auditing firm). She said the review of the reports and bridging letters had identified no significant changes in the internal control environment for the period 1st April 2019 to 31st March 2020.
Ms Adams said the Fund Mangers’ internal control reports had been audited and approved by external auditors and from the reports issued they were satisfied that adequate controls were in place for the managing and reporting of the Fund’s assets.
In response to questions from Member the following was noted:
The Pensions Board RESOLVED to:
1. Note the report contents; and 2. Note the current position for London CIV
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EXCLUSION OF THE PRESS AND PUBLIC - RESTRICTED SESSION In view of the contents of the remaining items on the agenda the Committee 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 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 post them to the Democratic Service Office, 1st Floor, Mulberry Place London E14 3BG or hold onto the papers until such time you can return to the Town Hall and dispose of the papers in the confidential bins.
Additional documents: Minutes: The Chair MOVED and it was:
RESOLVED:
“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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Investment Strategy Statement (ISS) 2021 report Additional documents: Minutes: The minute for this item is restricted.
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Voting and engagement update report Additional documents:
Minutes: The minute for this item is restricted.
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Pensions Admin Internal Audit report Additional documents:
Minutes: The minute for this item is restricted.
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Administration and LGPS Quarterly Update Additional documents:
Minutes: The minute for this item is restricted.
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PENSIONS COMMITTEE AGENDA FOR THE FORTHCOMING MEETING PDF 354 KB Additional documents: Minutes: The Board noted the agenda for the forthcoming Pensions Committee of 25th March 2021 and the draft workplan for the Committee for municipal year 2021/22.
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ANY OTHER BUSINESS CONSIDERED URGENT BY THE CHAIR Additional documents: Minutes: The Chair asked Board Members to note the provisional dates of meeting for the Board for municipal year 2021/22.
· Monday, 7th June 2021 · Monday 6th September 2021 · Monday, 8th November 2021 and · Monday 7th March 2022.
There was no other urgent business discussed.
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