Agenda item
SUBMISSIONS / REFERRALS FROM PENSION BOARD
Minutes:
Mr John Jones, Chair of Pensions Board presented his report stating the Pensions Board had met on the 13th October 2020 and were due to meeting again on the 16th November 2020. However, the 16th November meeting had been cancelled. He said he hoped to ensure future meetings of the Board would follow the previous timetable, by meeting a few days before the Committee.
Mr Jones said the Board at its October meeting had considered some of the same reports that had been presented to the Pensions Committee. Mr Jones said it had been updated on the current position with the Pensions Administration service and the progress being made to implement the new staffing structure. He said concern had been expressed that the new staffing structure was not being implemented as quickly as intended. He said the Board were advised the Council’s internal procedures accounted for some of the delays in recruitment. He said the Board fully supported the new structure and action being taken but were concerned over the problems being encountered. Mr Jones requested the Committee to review and monitor progress in implementing the new staffing structure, and to support officers in ensuring that the new structure was implemented as quickly as possible.
Mr Jones stated the other areas of discussion had been the draft Pension Accounts for 2019/20 and questions around the management expense of the Fund. He said this had to be disclosed and this was a welcomed improvement to understanding the costs of investment managers and should be reviewed on a regular basis, in the future.
Mr Jones continued stating Board Members were concerned with the Voting and Engagement arrangements of the Fund’s investment. He said this related to the practice of managers and London CIV voting in accordance with Tower Hamlets policy, as recommended by the LAPFF. Mr Jones said this was an issue the Pension Board would look at more closely in the future, to understand fully why the recommendations are not always followed through and if reasons are clearly stated when there is a divergence from the Tower Hamlets policy.
In response to questions from Members the following was noted:
· Mr Jones said when they discussed the Voting and Engagement paper, it was not clear from the columns and recommendations why the managers had departed from Tower Hamlets policy. Mr Jones said it was a case of understanding why this was, especially as London CIV would be playing a bigger role in the future of the Fund’s investments. He said clearer policies and feedback was required.
· Ms Miriam Adams, Interim Pensions and Investments Manager added she had struggled to get information from the London CIV. She said they were the fund managers however behind them were investment managers which the Council no longer had direct access to. Ms Adams said previously they could ask for individual reports and as such this had been raised with the London CIV. Ms Adams said she was a member of the group looking at Responsible Investments and the issue of voter engagement as well as climate change was on the agenda. She said because the fund is a pooled fund, inevitably individual councils lose the ability to determine how votes are cast. She said the London CIV was hoping to develop critical mass in the future, on how council views are reflected in voting
o ACTION: The Vice-Chair requested a report to be presented to the Pensions Board and Committee on this issue, with examples and reasons as to why and how issues are voted on.
The Vice-Chair thanked Mr Jones for his update.