Agenda item
Knowledge Assessment Results and Training Plan for Pensions Committee and Pension Board Members
- Meeting of Online 'Virtual' Meeting, Pension Board, Tuesday, 21st July, 2020 10.30 a.m. (Item 5.6)
- View the background to item 5.6
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 set out below:
Date |
Event and Core Knowledge & Skills Areas Covered |
Potential Attendees |
Sep – Dec 20 |
· The impact of COVID-19 on the Fund · Pensions administration |
All |
Jan – Mar 21 |
• Pensions Governance • ESG |
All |
Apr – Jun 21 |
· Pension governance and good governance · Investment performance & risk management · Actuarial methods |
All |
July – Sept 21 |
· Procurement · Relationship management |
All |
Oct – Dec 21 |
· Valuation training – purpose, roles, outcomes |
|
· Welcomed and agreed the proposals designed by Hymans Robertson for a bespoke training plan.
· Agreed that it would encourage Pension Committee Members to engage in this training programme and complete the Hymans knowledge assessment.
Accordingly, the Chair Moved and it was:
RESOLVED to:
1. Note the report);
2. Note the results including the overall ranking of the Board and Pensions Committee against other participating LGPS funds;
3. Note the suggested training plan picking out the key areas for development based on participant assessment results and the training requests; and
4. Recommend the structured training plan.
Supporting documents:
- National Knowledge Assessment Result and TrainingPlan, item 5.6 PDF 267 KB
- Appendix 1 – Hymans Robertson National Knowledge Assessment Report, item 5.6 PDF 830 KB
- Restricted enclosure View the reasons why document 5.6/3 is restricted