Agenda and minutes

To receive any apologies for absence.

An apology for absence was received from Ms K Thomson.

To note the terms of reference of the Board.

The Terms of Reference were noted.  Members were informed that Ms K Powell had been appointed Chair and Ms D Burnet as Vice Chair for the ensuing two years.  Ms D Burnet was thanked for her service as Chair.

Board members welcomed Ms S Hill, a newly appointed substitute member to the meeting as well as Ms R Blundell, Director of Member Operations, Local Pension Partnership. 

Members are invited to disclose any disclosable pecuniary interest they have in any item on the agenda which comprises

1          Details of any employment, office, trade, profession or vocation carried on for       profit or gain.

2          Details of any payment or provision of any other financial benefit (other than from the authority) made or provided within the relevant period in respect of any expenses incurred by you in carrying out duties as a member, or towards your election expenses.  (This includes any payment or financial benefit from a trade union within the meaning of the Trade Union and Labour Relations (Consolidation) Act 1992.

3          Details of any contract which is made between you (or a body in which you have a beneficial interest) and the authority

(a)       Under which goods or services are to be provided or works are to be           executed; and

            (b)       Which has not been fully discharged.

4          Details of any beneficial interest in land which is within the area of the authority. 

5          Details of any licence (alone or jointly with others) to occupy land in the area of the authority for a month or longer. 

6          Details of any tenancy where (to your knowledge)

            (a)       The landlord is the authority; and

            (b)       The tenant is a body in which you have a beneficial                                                   interest.

7          Details of any beneficial interest in securities of a body where

(a)       That body (to your knowledge) has a place of business or land in the         area of the authority; and

(b)       Either –

(i)      The total nominal value of the securities exceeds £25,000 or one       hundredth of the total issued share capital of that body; or

(ii)     If that share capital of that body is of more than one class, the total nominal value of the shares of any one class in which the relevant person has a beneficial interest exceeds one hundredth of the total issued share capital of that class.

In addition, you must also disclose other non-pecuniary interests set out in the Code of Conduct where these have not already been registered.

Note

A “disclosable pecuniary interest” is an interest of a councillor or their partner (which means spouse or civil partner, a person with whom they are living as husband or wife, or a person with whom they are living as if they are civil partners).

There were no declarations of interest made at this meeting.

To consider whether there are any items on the agenda for which the press and public should be excluded.

RESOLVED that,    the press and public be excluded from the meeting during consideration of Agenda Item No 10 - Review of Pension Administration Matters during the period to June 2019, Agenda Item No 11 – Your Pension Presentation and Agenda Item No 12 - Verbal Update on Emerging Issues on the grounds that they contained exempt information as defined under paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972 (as amended) relating to the financial or business affairs of particular individuals.

To confirm as a correct record the minutes of the Cumbria Local Pension Board meeting held on 4 July 2019 (copy enclosed).

RESOLVED,that the minutes of the meeting of the Board held on 4 July 2019 were agreed as a correct record and signed by the Chair.

To note the dates of future meetings:-

17 January 2020

15 April 2020

2 July 2020

The Schedule of future meetings of the Board was noted.  The meetings would take place as follows:-

17 January 2020 – 1.00 pm Cumbria House, Carlisle

15 April 2020 – 1.00 pm Cumbria House, Carlisle

2 July 2020 – 1.00 pm County Offices, Kendal

To consider a report from the Director of Finance (Section 151 Officer) summarising the work conducted and decisions made by the Pension Committee at its meeting on 24 September 2019 (copy enclosed).

A report was considered from the Director of Finance (Section 151 Officer) regarding a review of the Pensions Committee’s decisions and other matters for consideration during the period.  The report summarised the work of the Pensions Committee at its meeting on 24 September 2019 in order that the Board members could review them as part of their responsibility to scheme members of the Cumbria LGPS.  Appendix 1 of the report detailed the recommendations agreed by Pensions Committee. 

Members were informed that, in addition to the quarterly monitoring reports, the Pensions Committee had considered a number of other reports including an update from this Board, minutes of the Border to Coast Joint Committee meeting and AGM, updates on Border to Coast Pensions Partnership, the draft Annual Report and Accounts, the 2019 Actuarial Valuation and the Investment Sub Group activity report.

The Senior Manager – Pensions and Financial Services informed members that all recommendations had been agreed by Committee with one exception, that the Scheme Member and Employer Representation at the Committee be limited to 30 minutes, consistent with Council procedure, rather than 10 minutes as recommended in the Quarterly Monitoring Report to Committee.  Representation would be limited to members of the Cumbria LGPS and from current scheme employers within the Fund.  The proposed scheme would not permit the submission of petitions to the Pensions Committee.  This scheme would not be applicable to the Local Pension Board, only to the Pensions Committee.

The Senior Manager – Pensions and Financial Services said the proposed changes would be presented to the Constitution Review Group for further consideration before being submitted to full Council for approval.

Members noted that there had been no legal breaches during the preceding quarter.

With reference to the Risk Register, the Vice Chair mentioned recent  government regulation changes which could have an impact on the Fund and gave the example of independent schools teachers being allowed to opt out of the Teachers’ Pension Scheme.  She questioned whether the same could apply to Academies in future.  After discussion it was agreed that the Group Finance Manager would expand Risk No 2.2 - regulatory changes - in the register to capture issues such as this and assured members that Cumbria County Council carried out horizon scanning on a regular basis.

One of the members asked about the risks in the register with a RAG ratings below their target and questioned whether any actions were needed to bring these back on track.  The Group Finance Manager reassured the Board that officers reviewed these targets regularly and would bring specific actions to the Board for consideration, if required.

Following a discussion on information security arrangements (risk 1.1), the only risk on the register with a red RAG rating, members welcomed the suggestion to hold a “deep dive” session on this at the next meeting of the Board.  Officers informed the board that work was ongoing at a Fund and corporate level on this issue, and the score was consistent with the corporate risk register.  ...  view the full minutes text for item 7.

To consider a report from the Director of Finance (Section 151 Officer) on the findings of the data quality review and the ongoing implementation of the data quality improvement plan (copy enclosed).

Members received a report from the Director of Finance (Section 151 Officer) that provided an update to the Board on the actions being taken to improve data quality within the Fund. The report concluded that good progress was being made against the actions detailed in the data improvement plan. 

The Group Finance Manager – Pensions, Investments and Insurance updated members on pending leavers and the member tracing exercise.  The officer drew attention to four anonymised member tracing case studies which were appended to the report.  Members agreed to recommend to the Pensions Committee that the Fund should attempt to verify the address of scheme members aged 53 or over where the fund had not included them in the tracing exercise within the past 24 months.  Members also noted that this should be capped at a minimum level of pension benefits.  Officers were asked to consider an appropriate level of pension benefits for this purpose.

Members gave feedback on the Data Quality Improvement Plan.  Officers agreed to amendments suggested by the Board members to better reflect figures highlighting cases cleared and new case additions.

RESOLVED, that the ongoing implementation of the data quality improvement plan be supported.

To consider a report by the Director of Finance (Section 151 Officer) (copy enclosed).

Members received a report from the Director of Finance (Section 151 Officer) that provided details of the areas for improvement identified as part of the Fund’s meetings with the Pensions Regulator and how these had been progressed to date.  The review of the Cumbria Fund had highlighted no areas of specific concern, but did suggest a number of areas for improvement. 

An action plan was developed to address the areas for improvement and an update on the progress against this plan presented in the report.

Members welcomed the action plan and the discussion centred around member communication and cyber security.

In September, the Pensions Regulator formally issued its feedback from the cohort review of the LGPS.  Members noted that whilst the Regulator had made a number of recommendations in its report, these were already being addressed by the Fund.

RESOLVED,that

(1)  the action plan addressing suggested areas of improvement from the Pensions Regulator be noted; and

(2)  the Pension Regulator’s formal review of the LGPS be reviewed and any further areas for development for the Cumbria Pension Fund be identified.

To consider a report from the Director of Finance (Section 151 Officer) on Pension Administration matters and request further information and/or feedback to the Pension Committee as appropriate (copy enclosed for members only).

Not for publication by virtue of paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972 as this report contains information relating to the financial or business affairs of any particular person (including the Authority holding that information).

Members received a report from the Director of Finance (Section 151 Officer) which detailed the Pension Committee decisions and Pension Administration matters.

A discussion took place on how to ensure that performance measures were more relevant going forward.  The intention was that the detail of this would be included in the Quarter 3 report.

The Chair asked for an additional column to be added to future reports to indicate direction of travel.  This was agreed.

RESOLVED, that the report be noted.

Rachel Blundell, Director of Member Operations, Local Pension Partnership has been invited to make a presentation to the Board.

Not for publication by virtue of paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972 as this report contains information relating to the financial or business affairs of any particular person (including the Authority holding that information).

Members received a verbal update from Ms R Blundell (Director of Member Operations, Local Pension Partnership).  The updated included information on reorganisation in the service, performance, upgrading IT systems and staffing.

To receive a general verbal update from the Director of Finance (Section 151 Officer).

Not for publication by virtue of paragraph 1 of Part 1 of Schedule 12A of the Local Government Act 1972 as this report contains information relating to any individual.

Members received a verbal update on matters arising from the Senior Manager, Pensions and Financial Services.