Agenda and minutes
Venue: Room C1, 1st Floor, Town Hall, Mulberry Place, 5 Clove Crescent, London, E14 2BG
Contact: Democratic Services Email: farhana.zia@towerhamlets.gov.uk
Media
No. | Item |
---|---|
APOLOGIES Additional documents: Minutes: Apologies for absence were received from Nneka Oroge (Active Fund Member’s Representative).
|
|
DECLARATIONS OF INTERESTS PDF 214 KB Additional documents: Minutes: There were no declarations of pecuniary interests made by members of the Board.
|
|
PRESENTATION FROM LEGAL & GENERAL Additional documents: Minutes: Mr James Sparshott and Mr Iancu Daramus from Legal and General gave a presentation on the ESG (Economic, Social & Governance) investments relating to the Tower Hamlets Pension Fund. Mr Sparshott stated Legal and General had been working with the Pension Fund since 2010 and had experience in managing funds for over 25 years. He said approximately £460m of assets were looked after by them. He said Legal and General were the largest pension fund manager in the UK managing over £1.3tn. he said they took their responsibility of investment stewardship seriously and said it was key in ensuring responsible investment and better outcome for their clients. Mr Iancu Daramus, Senior Sustainability Analyst, then provided Board members with the ESG update. He said LGIM were working on several fronts to address ESG issues, such as net zero emission by 2050, getting companies to sign up to the Climate Impact Pledge to ensuring responsible investment and investment stewardship. He said key risks and opportunities were assessed when engaging with clients and working through these such as demography, technology, energy and markets. Statistical data was shared showing a board range of topics they covered. From climate change, healthcare, gender pay gap and ethnic diversity. Mr Daramus explained the initiatives LGIM has and said they would vote against a company if they did not comply with their expectations. In response to questions from Members of the Board the following was noted:
|
|
UNRESTRICTED MINUTES PDF 260 KB To confirm as a correct record of the proceedings the unrestricted minutes of the meeting of the Pensions Board held on 7th June 2021 and to note the draft minutes of the last Pensions Committee meeting held on 15th July 2021.
Additional documents: Minutes: The Board agreed the unrestricted minutes from the 7th June 2021 meetings as an accurate record of the meeting, save for one typo on page 13 of the agenda where the minute referred to Mr Stephen-Thompson. Mr Thompson pointed out his surname was not hyphenated and should refer to him as Mr Thompson. The Board also noted the draft Pension Committee minutes of 5th July and had no comments to make regarding the minutes.
|
|
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.
|
|
SUBMISSIONS / RESPONSES FROM PENSION COMMITTEE Additional documents: Minutes: There were no submissions and/or reports from the Pensions Committee.
Ms Miriam Adams provided a summary of the submission made on behalf of the Chair at the 5th July 2021 Pension Committee meeting. She said the Boards report had been well received by the Committee with the Chair of the Pensions Committee, Councillor Kyrsten Perry expressing her thanks to the Board for hosting and questioning the London CIV as well as building the relationship with the CIV.
Mr John Gray suggested that in the event the Board Chair cannot attend a Pensions Committee meeting, the vice-chair Mr Thompson ought to attend.
o ACTION: In the event the Board Chair Mr John Jones is unable to attend a Pensions Committee meeting, the vice-chair Mr Thompson will be asked to attend.
|
|
REPORTS FOR CONSIDERATION Additional documents: |
|
Pensions Administration and LGPS Quarterly Update – June 2021 PDF 577 KB Additional documents: Minutes: Ms Miriam Adams, Interim Head of Pensions and Treasury stated the report provided members with information relating to the administration and performance of the Fund over the last quarter as well as updates on key LGPS issues and initiatives which impact the Fund. Ms Adams said the Pensions Committee also received the report on a quarterly basis together with comments of the Board. She asked Board members to note the admissions to the Tower Hamlets Pension Fund listed in the recommendations to the Committee and said the Cyril Jackson Academy was being represented by the University School Trust (a Multi Academy Trust - MAT). Ms Adams explained the Clara Grant Primary School was moving to the Boleyn Trust (MAT) Newham and the Stepney Green Mathematics and Computing College to Mulberry Academy Trust (MAT) Tower Hamlets. She said although the management of Clara Grant Primary School was moving to the Boleyn Trust Newham, the MAT had requested to remain part of the Tower Hamlets Pension Fund. Ms Adams said the actuary had been consulted who agreed to the arrange as the school wasn’t moving physical from its location. Ms Adams referred Board Members to page 28 of the agenda and said there had been a small increase in membership numbers, from 7,263 at the last quarter to 7,283 for this quarter. Ms Adams referred to the table and the percentage changes for active, deferred, pensioner categories. In reference to table 3.2 Ms Adams said this showed the number of tasks completed and outstanding as of 30th June 2021. Ms Adams said this excluded the queries received via the Pensions Administration inbox and calls received from Fund members. She said there had been an increase in the number of calls received with an average of 40 to 50 calls a day. She stated that Covid-19 appeared to have increased awareness with Fund members wanting to find out about their pensions. Ms Adams said they had made progress with workflows with thirty workflows having been set up on the system and this had helped with consistency. A further six workflows needed to be added with the help of the Pensions software provider. She referred members to the table at paragraph 3.7 and said this set out the performance against CIPFA suggested timelines. Ms Adams explained that some of the missed targets were due to information being awaited from members. For example, deferred members who are close to retirement would be written to with an estimate of their pension. However further action cannot be taken until the estimate is acknowledged and the form is returned. Therefore, there is a time lag in achieving the target. Ms Adams said there were ten cases which required action before June. Referring to the Annual Benefit Statement, Ms Adams said they missed the deadline of 31st August to dispatch the statements however statements had been sent out by 3rd September 2021. She said several active members would not receive their statements due to ongoing payroll ... view the full minutes text for item 6.1 |
|
Quarterly Review of Risk Register PDF 247 KB Additional documents:
Minutes: Ms Miriam Adams, Interim Head of Pensions and Treasury introduced the report saying three new risks had been added during the quarter to the register in line with the recently issued Cyber Score Card by the Scheme Advisory Board and draft code of Practice by the Pensions Regulator. She referred Board members to paragraph 3.2 of the report which listed the new risks and said these risks had been part of boarder risks previously. They had been separated due to their recent importance plus the Scheme Advisory Board’s raised profile on risk management and cyber risks. She said the LGA have been working with AON which had provided a checklist for schemes to use. Ms Adams said whilst this was not mandatory, it was part of good practice for the scheme and fund to take it upon itself to complete the checklist. Ms Adams provided a detailed update of the risks identified in Appendix 1. In response to questions from Members the following was noted:
The Pensions Board RESOLVED to:
|
|
Communication Strategy and Policy Statement PDF 232 KB Additional documents: Minutes: Ms Miriam Adams, Interim Head of Pensions and Treasury said the terms of reference for the Pensions Board included consideration of having an effective communication strategy as part of the Pensions Board’s functions. She said the communication plan appended at appendix A outlined the Fund’s planned communication activities and how the communication referred to within the Communication Policy Statement would be delivered in practice. In response to questions from members the following was noted:
The Pensions Board RESOVLED to:
|
|
Pensions and Cyber Risk PDF 237 KB Additional documents: Minutes: Ms Miriam Adams, Interim Head of Pensions and Treasury said the report reported on the impact of cyber risk on the Pension Administration Service. She said Pension Schemes hold a large amount of personal data and assets which can be targeted by criminals. Therefore, The Pensions Regulator (TPR) considers cyber risk to be an area of high priority for the scheme trustees and has recommended that this is included on the risk register and is reviewed regularly as part of best practice. Members of the Board did not have any questions for Ms Adams. The Pensions Board RESOLVED to:
|
|
The Pensions Regulator (TPR) Single Code Consultation Update PDF 241 KB Additional documents: Minutes: Ms Miriam Adams, Interim Head of Pensions and Treasury stated The Pensions Regulator (TPR) had drafted a single code of practice (COP) for all UK pensions scheme. Ms Adams explained the purpose of the single code was to merge the ten existing COPs into one single document, so that it would be easier to navigate, understand and keep up to date. In response to questions from members the following was noted.
The Pensions Board RESOVLED to:
|
|
Review Draft Account, Fund Annual Report and Audit Plan - verbal update Additional documents: Minutes: Ms Miriam Adams, Interim Head of Pensions and Treasury said the draft Pension fund accounts for 2020/21 are available however as the main accounts for 2018/19, 2019/20 and 2020/21 still required sign off, efforts to resolve queries relating to these sets of accounts had been focussed on. Ms Adams said auditors query regarding membership numbers for 2018/19 had been resolved and as such there were no outstanding queries relating to the Pensions Fund for the years mentioned above. Ms Adams said she hoped to bring the audit plan for 2021/22 to the Board however she was still awaiting this from the external auditors.
Members of the Board had no questions for Ms Adams.
The Pension Board RESOVLED to:
1. Note the verbal update provided.
|
|
Member Training - verbal update Additional documents: Minutes: Ms Miriam Adams, Interim Head of Pensions and Treasury informed Board Members the registration forms for the online learning academy had been set out to all members of the Board and she encouraged members to join and complete the sessions. Ms Adams said a monthly report would be sent to her by the providers showing the progress made by members. Ms Adams said the online academy was in addition to regular training provided to the Board and Committee. In response to questions from Members the following was noted:
|
|
PENSIONS COMMITTEE AGENDA FOR THE FORTHCOMING MEETING Additional documents: Minutes: The Chair, Mr John Jones noted that the Pension Committee agenda had not been published for the meeting scheduled for the 23rd September 2021. However, several reports discussed by the Board will also be presented to the committee at its next meeting.
|
|
PENSIONS BOARD WORK PLAN PDF 337 KB Additional documents: Minutes: Members of the Board were asked to note the Pension Board’s work plan for 2021/22. Members of the Board had no questions for Ms Adams. The Pensions Board RESOVLED to: 1. Note the workplan for 2021/22.
|
|
EXCLUSION OF THE PRESS AND PUBLIC - RESTRICTED 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 of the Local Government Act,1972.”
|
|
EXEMPT / RESTRICTED MINUTES To note the draft exempt / restricted minutes of the Pensions Committee meeting held on 5 July 2021.
Additional documents: Minutes: The members noted the restricted minutes of the Pensions Committee meeting of 5th July and had no comment to make in relation to the exempt items.
|
|
EXEMPT / RESTRICTED REPORTS FOR CONSIDERATION Additional documents: |
|
ESG, Voting and Engagement Quarterly Update - June 21 Additional documents:
Minutes: The minute for this item is restricted.
|
|
ANY OTHER BUSINESS Additional documents: Minutes: No other business was discussed by the Board Members, save for Mr Thompson raising the London CIV and its policy on climate change – Item 6.1. He asked that dates and targets be provided in relation to its implementation.
|