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 and membership of the Board.

The Terms of Reference was noted.  There were no changes to membership to note.

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 Administration Matters, Agenda Item No 11 – Your Pension Service 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 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 8 October 2019 (copy enclosed).

RESOLVED,that the minutes of the meetings of the Board held on 8 October 2019 were agreed as a correct record and signed by the Chair.

To note the Schedule of future meetings:-

15 April 2020 – Cumbria House, Carlisle at 1pm

2 July 2020 – County Offices, Kendal at 1pm

6 October 2020 – Cumbria House, Carlisle at 1pm

13 January 2021 – Cumbria House, Carlisle at 1 pm

30 March 2021 – Cumbria House, Carlisle at 1pm

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

15 April 2020 – Cumbria House, Carlisle at 1pm

2 July 2020 – County Offices, Kendal at 1pm

6 October 2020 – Cumbria House, Carlisle at 1pm

13 January 2021 – Cumbria House, Carlisle at 1pm

30 March 2021 – Cumbria House, Carlisle at 1pm

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 13 December 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 13 December 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 the Pensions Committee.

The Board was briefed that there had been no legal breaches during the preceding quarter.  They reviewed the risk register noting there one risk had been added due to the McCloud Judgement and one had been removed, Timeliness of Breach Reporting.  The impact of the McCloud Judgement was discussed at the meeting.

A formal report from the Board had been presented to the Pension Committee by Mrs D Burnet, with no issues being raised.

It was noted that Mrs D Burnet and Ms K Wilson had attended all three Local Government Association (LGA) LGPS Fundamentals training sessions, which they had found very worthwhile.  Mrs Burnet had also attended the Local Authority Pension Fund Forum (LAPFF) Annual Conference in early December, which had focussed on Responsible Investment and Climate Change. 

A detailed discussion took place on Climate Change and Responsible Investment.  It was agreed that a training session on this subject, be arranged for members of the Board.

Members noted Border to Coast had undertaken an annual review of its Responsible Investment Policy and Corporate Voting Guidelines.  The revised documents, showing the changes, were appended to the report. 

During discussion of Good Governance in the LGPS, it was noted that the Scheme Advisory Board (SAB) had released its Good Governance – Phase II report setting out its response to the original report and containing a number of recommendations.  The SAB had recommended that the Ministry of Housing, Communities and Local Government (MHCLG) accept the recommendations and move to Phase III of the project.  Officers would continue to monitor progress and brief both the Pensions Committee and this Board on progress and ensure that the Fund was compliant with any recommendations arising.

The Senior Manager, Pensions and Financial Services advised members on regulatory changes and the latest position with regards to the transfer of Equitable Life’s business to Utmost Life and Pension Ltd.

RESOLVED,that

(1)  the decisions approved and the other matters considered by the Pension Committee at the meeting held on 13 December 2019 be noted;

(2)  a training session for the Board be arranged on Climate Change and Responsible Investment.

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).

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

Board members were updated on progress to reduce the number of pending leavers within the Fund.  The Fund had continued to encourage scheme employers to process leaver returns in a timely way giving particular attention to those employers with the greater number of outstanding forms.  This had contributed to the number of pending leavers reducing from 2,196 to 1,757 during the quarter.  The Board would be kept informed of further developments.

In discussion of the National Fraud Initiative (NFI), members were informed that 20 new cases of overpayment had been identified.  The Fund had now processed all of these which had amounted to £8,434.  It was noted that as well as completing the mandatory NFI exercise every two years, Cumbria Pension Committee undertakes a similar exercise every six months.

Members were updated on the Member Tracing exercise.  The exercise was still ongoing but the Fund had, at present, ensured that it had the correct address for 82% of its deferred membership.

An update on Frozen Refunds was given.  As at March 2019, the Fund had 2,323 scheme members who were defined as having “frozen refunds”.  Options were available for these members including having their contributions refunded to them as a cash lump sum or transferred to an alternative pension fund within three months of being contacted regarding their frozen refund.  Officers were working with YPS on how this would be appropriately addressed.

RESOLVED,that the progress with improving data quality across the Fund be noted.

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 concerns, 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 was presented in the report. 

During discussion on the action plan, members noted that action had been taken to address the areas for improvement but sought more clarity on some of the final outcomes.  It was agreed that officers would update the plan and bring it to the next Board meeting for approval, before reporting back to the Pension Committee.

RESOLVED,that

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

(2)  the action plan be brought back to the next meeting of the Board for approval before reporting back to the Pension Committee that all recommended areas for improvement identified by the Pensions Regulator have been completed.

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.

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

RESOLVED,that the Pension Administration matters detailed in the report be noted.

Rachel Blundell, Deputy Director – Member Operations, Local Pensions Partnership has been invited to make a presentation to the Board.

Members received a verbal update from Ms R Blundell (Director of Member Operations, Local Pension Partnership).  The update included information on performance,  IT and surveys for members’ feedback.

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

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

To note that the next meeting will be held on 15 April 2020 at 1pm at Cumbria House, Carlisle.

It was noted that the next meeting would be held on 15 April 2020 at 1pm in Cumbria House, Carlisle.