Agenda and minutes

To undertake the roll call and receive any apologies for absence.

There were no apologies for absence.

To note the Terms of Reference and membership of the Board.

The Terms of Reference were 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 disclosures of interest made on this occasion.

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 by virtue of paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972 as the reports contain information relating to the financial or business affairs of any particular person (including the Authority holding that information).

To confirm as a correct record the minutes of the Cumbria Local Pension Board meeting held on  17 January 2020  (copy enclosed).

RESOLVED,     that the minutes of the previous meeting held on 17 January 2020 be agreed as a true and accurate record.

To note the Schedule of future meeting:-

13 January 2021 at 1pm – venue to be confirmed

30 March 2021 at 1pm - venue to be confirmed

Members noted that the next scheduled meetings of the Cumbria LGPS Local Pension Board would take place as follows:-

·      13 January 2021 at 1pm – venue to be confirmed

·      30 March 2021 at 1pm – venue to be confirmed

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

Members considered a report from the Director of Finance (Section 151 Officer) which updated them on all aspects of the governance and administration of the Local Government Pension Scheme (LGPS).

Section 4 of the report summarised the work conducted and decisions made by the Committee at its meetings held on 13 March, 23 June and 15 September 2020, in order that Board Members could review these as part of their legal responsibility to members of the Fund. 

This report also advised members of other matters arising, including regulatory changes, since last reported to the Board. 

The Cumbria Pensions Committee was the delegated decision-making body for the Fund, and as such its decisions were of particular relevance to the Cumbria Local Pension Board (LPB or ‘the Board’.).  It was the role of the Board to assist the Administering Authority of the Cumbria Local Government Pension Scheme to secure compliance with the regulations covering administration of a local government pension scheme; other legislation relating to the governance and administration of the LGPS; and the requirements imposed by the Pensions Regulator in relation to the LGPS.

The Technical Finance Officer took members through the report in detail, and highlighted the following:-

·      Legal breaches – there had been no legal breaches during the period to June 2020.

·      Risk – two Amber risks had been added to the risk register as COVID-19 spread across the world and started to impact on scheme members, scheme employers and the value of the Fund’s investments. The Technical Finance Officer confirmed the two risks had been managed well during the quarter and that both continued to be closely monitored.  One risk, associated with information security arrangements, was currently assessed as “red”. Additionally, there were 2 pre-existing “amber” risks (making 4 amber risks in total) and 12 “green” rated risks.

In addition to the new risks the Technical Finance Officer informed members that the comments associated with some risks had been amended to reflect progress over the past quarter, including the release of the consultation on the proposed resolution to the McCloud judgement.

·      Data Quality:- it was noted that, whilst the pressures associated with COVID-19 had led to a pause in some data improvement work, the Fund has seen the benefits of work undertaken before the pandemic.  Furthermore, the National Fraud Initiative exercise continues to be carried out by the Fund at six monthly intervals.

·      Investment Strategy:- in light of the significant movements and ongoing uncertainties in the global market environment arising as a result of the COVID-19 pandemic, the ISG, officers and Advisors considered it sensible to take stock of the situation before progressing further with asset changes.  To this end, at its meeting in May the ISG agreed to support the proposal that the Director of Finance (Section 151 Officer) task the investment consultant (Isio Group Ltd) to undertake a Strategy ‘Sense-Check’. In summary, the outcomes of the Strategy Sense-Check were:-

ØGiven the continuing uncertainties facing the markets (e.g. the ongoing impact of COVID-19, the US elections,  ...  view the full minutes text for item 32.

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

The Group Finance Manager presented a report which provided an update on the action plan relating to the Pensions Regulator’s Cohort Review.  In June 2019, the Pensions Committee had requested that the Board monitor progress against the action plan as part of its work plan.  This report provided details of the areas for improvement identified and how these had been progressed to date.

Of the areas identified requiring improvement, all areas had either been fully addressed or plans were in place to address.

As such, the Group Finance Manager said the actions were materially complete, and it was therefore recommended that the Board report to the Committee that all areas for improvement identified in the Pensions Regulator’s review of the Cumbria Pension Fund had been appropriately actioned.

One of the Board members accepted that the action on Cyber Security had fulfilled the Regulator’s requirement but wondered whether there would be any be feedback from the ICT team on what had been considered and what, if any, actions had been taken in relation to the testing of the system.

The Group Finance Manager responded to say that the risk register would be updated to account for any mitigations proposed if required.

RESOLVED,     that the Board agrees to report to the Pensions Committee that all recommended areas for improvement identified by the Pension Regulator’s review of the Cumbria Pension Fund have been appropriately actioned and, with the exception of one (which is planned to be completed as part of the annual Fund Policy document review in March 2021), all have been completed.

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

The Board considered a report from the Director of Finance (Section 151 Officer) which updated on the areas that had been identified as requiring additional training for Board Members, and was informed by the responses received to the Board’s annual training needs assessment questionnaire.

Board Members were also encouraged to undertake their own personal training for example through the Pensions Regulator’s Public Sector Pension Scheme Trustee Toolkit.

The Finance Manager – Pensions, Investment and Governance confirmed to the Board that the Training Policy, appended to the report at Appendix 1 complied with the Regulator’s Code of Practice, and had been drafted to reflect training needs of the Board.

In December 2019 a training needs assessment questionnaire was sent to all members and substitute members of the Board and all Member and substitute Members of the Pensions Committee.  The completed responses were collated and assessed, and the training plan had been updated to reflect training needs identified by the evaluation questionnaires and with reference to the aims and objectives of the 2020/21 Cumbria LGPS Business Plan.

During the period from March to September 2020, at the height of the reaction and response to the COVID-19 pandemic the meetings of Cumbria LGPS Local Pension Board were ‘stood down’. Officers had continued to advise Board Members of on-line training opportunities to ensure appropriate opportunities continued to be available for Board Members to maintain their skills and knowledge.

Additionally, Board Members may attend conferences to increase their awareness on specific areas of the LGPS. There were an increasing number of on-line training events being scheduled, which were considered a good use of resources as they negated the need to travel and reduced the time away from other matters.

One of the members asked whether all Board members completed the County Council's mandatory cyber security training. 

The Finance Manager – Pensions, Investment and Governance agreed to investigate and report back to members on this.

Board members congratulated Cumbria County Council for the training provided, which was always comprehensive.

RESOLVED,     that the Board agrees to note the revised training policy and approve the detailed training plan specific to the Board, shown in sections 4.10 to 4.14 of the report.

To note that the next meeting will be held on 13 January 2021

The next meeting will be held on 13 January 2021.

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

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 considered a report from the Director of Finance (Section 151 Officer), which detailed the more specific items of note within the Local Pension Board arena and specific to Cumbria LGPS relating to Pensions’ Administration matters.

RESOLVED,     that the Board note the Pension Administration matters detailed in the report and request further information and/or feedback to the Pensions Committee as appropriate.

Rachel Blundell, Deputy Director – Member Operations, Local Pensions 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, Operations Director - Local Pension Partnership (LPP).  The update included information on:-

·         Response of the LPP to COVID - 19, and COVID - 19 related issues

·         Performance Update - Quarter 2

·         Staff Surveys

·         Sickness and turnover rates

·         Strategic Issues

·         Review of Systems and Contracts

The Chair thanked the Operations Director for her comprehensive update.

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

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).

The Senior Manager - Pensions and Financial Services updated the Board on current emerging issues, including:-

·      Appointments to the Pensions Team

·      Consultations and responses