Agenda and draft minutes

Cumbria LGPS Local Pension Board
Thursday, 4th July, 2019 1.00 pm

Venue: Conference Room A and B, Cumbria House, Botchergate, Carlisle CA1 1RD

Contact: Lorraine Davis  Email: lorraine.davis@cumbria.gov.uk

Items
No. Item

49.

Apologies for Absence

To receive any apologies for absence.

 

Minutes:

There were no apologies received for this meeting.

50.

Terms of Reference and Membership pdf icon PDF 184 KB

To note the Terms of Reference and membership of the Board (copy enclosed).

 

Minutes:

The Terms of Reference were noted. The next meeting of the Board would see the appointment of a new Chair. The current Chair, Deirdre Burnet, was given thanks for her service over the last two years.

 

51.

Disclosures of Interest

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).

 

Minutes:

There were no disclosures of interest made at this meeting.

 

The Chair welcomed John Crowhurst and Mark Waterworth from the Local Pensions Partnership (which operates in Cumbria as Your Pension Service (YPS)), and formally invited them to stay for the full meeting, including Part 2 items.

 

52.

Exclusion of Press and Public

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

 

Minutes:

RESOLVED that,    the press and public be excluded from the meeting during consideration of Agenda item No 13 - Review of Pension Administration Matters, Agenda item No 14 – Your Pension Service and Agenda item No 15 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.

 

53.

Minutes pdf icon PDF 249 KB

To confirm as a correct record the minutes of the Cumbria Local Pension Board meeting held on 8 April 2019 (copy enclosed).

 

Minutes:

RESOLVED that,                 the minutes of the previous meeting held on 8 April 2019 be confirmed as an accurate and complete record.

54.

Schedule of Future Meetings

To note the dates of future meetings:-

 

8 October 2019

17 January 2020

15 April 2020

2 July 2020

 

Minutes:

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

 

8 October 2019

17 January 2020

15 April 2020

2 July 2020

 

All meetings due to take place at Cumbria House, Botchergate, Carlisle, at 1pm.

 

55.

Review of Pension Committee Decisions and Other Matters pdf icon PDF 401 KB

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 11 June 2019 (copy enclosed).

 

Additional documents:

Minutes:

A report was considered from the Director of Finance (Section 151 Officer) regarding a review of the Pension Committee’s decisions and other matters for consideration during the period.  The report summarised the work of the Pensions Committee at its meeting on 11 June 2019 in order that the Board members could review them as part of their responsibility to members of the Cumbria LGPS as per the Board’s Terms of Reference.

 

Members were informed that the Pension Committee had also received presentations by Border to Coast on their approach to Responsible Investment, the final design of the externally managed Global Equity Alpha sub-fund and the performance of the internally managed UK Listed Equity sub-fund.

The Board was briefed that there had been no legal breaches during the preceding quarter and they reviewed the risk register noting there were no proposed amendments to the scores associated with the impact and likelihood of the risks arising.

Board Members welcomed that the Committee had allocated work specifically to the Local Pension Board associated with monitoring future progress against the data quality improvement plan and monitoring progress against the action plan addressing areas for improvement suggested by the Pensions Regulator.

The draft Annual Report of the Cumbria Local Pension Board 2018/19 was presented for approval by the Board. The Board requested that a consideration of Climate Change be added to the Work Plan of the Board for 2019/20.

The Chair of the Board had held a meeting with the Chair of the Pension Committee in order to discuss the links between the Board and the Committee going forward, and it had been agreed that the two Chairs would continue to meet on a regular basis.

Members were provided with a summary of recent and proposed future changes to legislation that will impact on the Local Government Pension Scheme. These included consultations on Good Governance in the LGPS; Restricting exit payments in the public sector and Changes to the Local Valuation Cycle and Management of Employer Risk.

RESOLVED that,

1)    Members note the decisions approved and the other matters considered by the Pension Committee at the meeting held on 11th June 2019.

 

2)    Members note the allocation of work to the Local Pension Board from the Pension Committee associated with monitoring future progress against the data quality improvement plan and monitoring progress against the action plan addressing areas for improvement suggested by the Pensions Regulator.

 

3)    The Board approve the draft Annual Report of the Cumbria LGPS Local Pension Board for 2018/19.

 

 

 

 

56.

Training Policy and Plan pdf icon PDF 342 KB

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

 

Additional documents:

Minutes:

A report was considered from the Director of Finance (Section 151 Officer) which set out the training policy of the Cumbria Local Government Pension Scheme (LGPS), incorporating the Cumbria Local Pension Board, the Cumbria Pension Committee and the Fund Officers.

 

In December 2018 a training needs assessment questionnaire was sent to all members of the Board and all Member and substitute Members of the Pensions Committee. The completed responses have been collated and assessed and the training plan has been updated to reflect training needs identified by the evaluation questionnaires. In line with good practice this is carried out on an annual basis.

 

The Board discussed the main areas of focus which had been identified for additional training and the timings and anticipated methods of delivery. This is designed to be a dynamic document and aligned to the work programme and national policy changes.  It was noted that topics may be subject to change, depending on the need to focus on significant emerging issues or to accommodate key agenda items. 

 

It was then discussed that in addition to training arranged by the Pensions Team there were a number of additional ways that members could use to increase their awareness of specific areas, e.g. attendance at conferences or completion of the Pension Regulator’s Public Sector Pension Scheme Trustee Toolkit.

 

It was RESOLVED that,

 

1)    The Board approves the current Training Policy of the Cumbria LGPS, incorporating the Cumbria Local Pension Board, the Cumbria Pension Committee and Fund Officers.

 

2)    The Board approves the training plan for the Board.

 

57.

Cumbria LGPS Data Review and Data Improvement Plan pdf icon PDF 331 KB

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).

 

Minutes:

A report was considered from the Director of Finance (Section 151 Officer) which provided an update to the Board on the actions taken to improve data quality within the Fund. 

 

The Group Finance Manager - Pensions Investments & Insurance informed members that good progress was being made with the actions detailed in the data improvement plan.

 

Officers initially set an ambitious target of reducing the number of pending leavers by 70% by 31 March 2019, and were able to report that there had been a reduction of 48% from the position in September 2018. Members praised officers for their work.

 

Members were updated on progress to verify the address of all deferred members and of active members and pensioners who are known to have an inaccurate address. The Fund has engaged a data tracing agency to undertake this work and, whilst the exercise is still ongoing, the Fund has currently ensured it has the correct address for over 80% of its deferred membership and work is continuing with the remainder of the cohort.

 

The Local Pension Board (LPB) had previously requested a review of all standard correspondence sent to scheme members. Feedback has been received and is being considered, with a further cohort expected to be reviewed in Q2 of 2019/20.

 

The Pension Committee requested at their June meeting, that the Board be tasked with monitoring future progress against the data quality improvement plan and actions taken to improve data quality across the fund.  After discussion it was agreed that the format of the plan would be restructured in order to facilitate its use as a monitoring tool.

 

Members asked the representative of YPS whether the quality of data could be improved by use of IT interfaces with employers. Members heard that design and implementation of a portal for employees had begun and were assured that the use of software would mean more accurate data was captured.

 

It was RESOLVED that,     

 

1)    Members note the findings of the data quality review and to support theongoing implementation of the data quality improvement plan, providing feedback to the Pension Committee and/or requesting further information where appropriate.

 

2)    That Members accept the recommendation by the Pension Committee which requests that the Cumbria LPB monitors future progress against the data quality improvement plan and actions taken to improve data quality across the Fund.

 

58.

Feedback from the Pensions Regulator Cohort Review of the LGPS pdf icon PDF 261 KB

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

 

Additional documents:

Minutes:

A report was considered from the Director of Finance (Section 151 Officer) which provided Members with feedback from the Pensions Regulator’s review of the Cumbria Local Government Pension Scheme (LGPS) as part of the wider cohort review of LGPS.

 

The review highlighted no areas of specific concern associated with the Cumbria Fund however it did suggest a number of areas for improvement

 

The Group Finance Manager - Pensions Investments & Insurance talked members through the suggested areas of improvement and drew their attention to the Action Plan which had been formulated to address the suggestions.

 

The Board are asked on behalf of the Pension’s Committee to review progress against the action plan and also assess the final report from the Pensions Regulator to determine any further areas where the Fund may look to improve existing arrangements for governance and administration.

 

It was RESOLVED that,

           

1)    The Board note the action plan addressing suggested areas of improvement from the Pensions Regulator.

 

2)    The Board accept the recommendation by the Pension Committee which requests that Cumbria LPB monitor progress against the action plan as part of its work plan.

 

59.

THE CIPFA GUIDE FOR LOCAL PENSION BOARDS - APPENDIX V, '21 QUICK QUESTIONS' AND CUMBRIA'S SELF ASSESSMENT pdf icon PDF 257 KB

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

 

Additional documents:

Minutes:

A report was considered from the Director of Finance (Section 151 Officer) regarding the self-assessment carried out by the Fund to the ’21 Quick Questions’ from Appendix V to the ‘CIPFA Guide for Local Pension Boards May 2018.’

 

Members discussed the Fund’s approach to the structure and governance of the Board and were in agreement that work incorporated the majority of aspects of good practice covered in the guide. Officers further assured Members that work will be on going to ensure that practices and policies of the Cumbria Pension Fund are in line with guidance and enhanced where appropriate.

 

It was RESOLVED that,                 Members note the report and the self-assessment.

 

60.

Date of Next Meeting

To note that the next meeting will be held on 8 October 2019 at 1.00 pm in Cumbria House, Botchergate, Carlisle

 

Minutes:

The next meeting will be held on 8 October 2019 at 13:00 in Conference Room A/B, Cumbria House.

61.

Review of Administration Matters

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 reports contains information relating to the financial or business affairs of any particular person (including the Authority holding that information).

 

 

Additional documents:

Minutes:

Members had before them a report from the Director of Finance (Section 151 Officer) which detailed the following key areas:-

 

·         Pension Committee Decisions

·         Pension Administration Matters

 

It was RESOLVED that,     the Board note the Pension Administration matters detailed in this report, and request further information and feedback to the Pension Committee as appropriate.

62.

Your Pension Service Presentation

John Crowhurst, Deputy Pensions Director, 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 reports contains information relating to the financial or business affairs of any particular person (including the Authority holding that information).

 

 

Minutes:

The Board received a verbal update from John Crowhurst (Deputy Pensions Director) and Mark Waterworth (Operations Manager).  This included information on personnel, reorganisation in the service, roles and responsibilities of staff, performance, issues arising and the future for YPS. 

 

 

63.

Verbal Update on Emerging Issues

To receive a general verbal update from 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 reports contains information relating to any individual.

 

Minutes:

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