Agenda and minutes

To receive any apologies for absence.

Apologies for absence were received from Mrs K Powell and Mr D Southward.  Mrs D Burnet was Chair for this meeting.

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

The Terms of Reference were noted.  In accordance with the Board’s Terms of Reference Councillor Giles Archibald was appointed as an Employer Scheme representative for the District Councils and Councillor Virginia Taylor was appointed to the role of Substitute Member as an Employer Scheme representative for the District Councils. 

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).

Mr G Archibald declared a non-pecuniary interest.  He was a previous employee of Mercer Ltd and holds shares in MMC, the parent company of Jelf Insurance.

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 11 – Review of Administration Matters;

Agenda Item No 12 – LPPA Presentation; and

Agenda Item No 13 – 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 30 March 2021 (copy enclosed).

RESOLVED,     that the minutes of the previous meeting held on 30 March 2021 be agreed as a true and accurate record.

To note the Schedule of future meetings (copy enclosed).

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

·      14 October 2021 at 1pm – Conference Room A, Cumbria House

·      21 January 2021 at 1pm – Conference Room A, Cumbria House

·      13 April 2022 at 1pm – Conference Room A, Cumbria House

·      15 July 2022 at 1pm – Conference Room A, Cumbria House

·      4 October 2022 at 1pm – Conference Room A, Cumbria House

·      17 January 2023 at 1pm – Conference Room A, Cumbria House

·      31 March 2023 at 1pm – Conference Room A, Cumbria House

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 this report summarised the work conducted, and decisions made by the Committee at its meeting held on 8 June 2021, 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 Technical Finance Officer took members through the report, and highlighted the following:-

·      Annual Report of the CLPB – the draft Annual report for the year to 31 March 2021 was presented to the Board for approval and inclusion in the Annual Report for the Cumbria LGPS 2020/21.

·      Legal breaches – there had been no legal breaches reported to the Pensions Regulator during the period to March 2021.

·      Risk – there were no additions or amendments to the risk register.

·      Regulatory Changes – McCloud Resolution - On 11 May 2021, the government’s legislative programme was laid out within the Queen’s speech. This included a Public Service Pensions and Judicial Offices Bill that will deal with the amendments necessary to incorporate the McCloud judgment into public service schemes including the LGPS.  On 13 May 2021, the Government released a statement that noted a full response to the McCloud remedy consultation for the LGPS would be published later this year.  It was anticipated that regulations that gave effect to those changes would come into force on 1 April 2023. Pensions Committee and the Local Pension Board would be advised when further information was available.

·         Consultations

Increasing Pension Age - On 11 February, HM Treasury launched a consultation in which the government reconfirmed its intention to legislate to increase the normal minimum pension age from 55 to 57 on 6 April 2028.  Cumbria County Council responded on 21 April representing views from the LGPS, Firefighters’ Pension Schemes and Teachers Pension Scheme.

The Pensions Regulator (tPR) Consolidated Code of Practice – On 11 February, tPR launched a consultation on a consolidated Code of Practice which combined 10 of the 15 Codes into one overarching Code for defined benefit, defined contribution and public service pension schemes.   The Fund responded to this consultation on 26 May after seeking the views of the Pensions Committee and Local Pension Board members.

·         Good Governance in LGPS – there was a separate paper at Item 8 which provided an update of the Good Governance Review.

A member asked if the Briefing Notes which had been distributed to the Pensions Committee were available and when the data security training was to have been completed.  The Senior Manager - Pensions and Financial Services noted that the Briefing Notes would be circulated and that the data security training was an annual process, and this year’s training was now available so details would be sent out to Members in due course. 

A  ...  view the full minutes text for item 69.

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 the final Phase III Report on Good Governance in the LGPS, which was published by the Scheme Advisory Board (SAB) in February 2021.  The SAB Report made a number of recommendations to improve governance within Funds and across the LGPS.

SAB had sent the Report to MHCLG with the recommendation that the findings be implemented within the LGPS either through revised Regulations or by producing statutory guidance.

This report to the Local Pension Board summarised the recommendations within the Good Governance Review and sets out the how the Fund proposed (subject to approval by Pensions Committee) to implement some of the recommendations ahead of the production of revised Regulations or statutory guidance in order to further enhance governance within the Fund.

A member commented about the KPIs.  In particular they remarked about when the KPIs would be available, frequency and if attendance at LGPS Board would be a KPI.  They queried if a report on KPIs and their frequency would be produced.  The Senior Manager – Pensions & Financial Services noted that the KPIs the Fund reports on were being reviewed in light of the Good Governance Review.  The outcome of this work would be reported to both the Committee and the Board.

RESOLVED, that the Board

(1)      noted the actions to be taken to address the findings of the Good Governance review prior to the implementation of statutory guidance by MHCLG;

(2)      Proposed to the Cumbria Pensions Committee that

a) the Board monitored the Fund’s response to the Good Governance Review to help ensure the Fund complied with any amendments to the regulatory requirements for the LGPS arising from the Good Governance Review; and

b) the Board reported back on this to the Cumbria Pensions Committee.

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 provided a summary of the training policy of the Fund - together with details of the Training Plan for the Board.

It is a legal requirement (The Pensions Act 2004) that every individual who was a member of a Local Pension Board (Board) must meet specific knowledge and understanding obligations, therefore appropriate training would be provided to Board members to assist them in undertaking their role.  The training obligations and requirements of Board members (along with those of the Committee and Officers) are reflected in the Cumbria LGPS training policy.  In line with good practice the policy had been subject to an annual review and updated. As in previous years, the policy was designed to be dynamic and aligned to the work programme and changes to national policy.

The Training Plan each year is informed by responses to the annual training needs assessment, along with the aims and objectives of the 2021/22 Cumbria LGPS Business Plan together with emerging issues relating to LGPS regulations and guidance.

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 Chair noted that she had attended the CIPFA annual training event on 23 June 2021.

A member queried if the Good Governance Review had any implications on the knowledge and skills requirements of individual Board Members.  The Senior Manager – Pensions & Financial Services remarked that the recommendations within the Good Governance Review did not propose any amendments to the training requirements for Board members.

A member noted the excellence of the training policy and plan.

RESOLVED, that the Board

(1)      noted the current Training Policy of the Cumbria LGPS, incorporating the Cumbria Local Pension Board, the Cumbria Pensions Committee and Fund Officers;

(2)      approved the detailed training plan specific to the Board.

To note that the next meeting will be held on 14 October 2021 at 1pm.

The next meeting will be held on 14 October 2021 at 1pm.

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 detailed the more specific items of note within the Local Pension Board arena relating to Pensions’ Administration matters.

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

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

Members received a verbal update from Ms R Blundell, Operations Director - Local Pension Partnership Administration (LPPA).  The update included :-

·         Performance over last Quarter

·         Current Working Practices

·         Staff Opinion Surveys

·         Performance Data

·         Helpdesk Performance

·         Satisfaction Rates

·         Retirement Information

·         McCloud Update

·         Customer Service Training

The Chair thanked the Operations Director for her comprehensive update.

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

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

·      Consultations on Cost Control Mechanism & Discount Rate Methodology

·      Staffing Update

·      Rotation of Chair & Vice Chair

The Board formally recorded their thanks to Kerry Powell for Chairing the Board so well over the last two years.  This would have been her last meeting as Chair before the Chair and Vice-Chair roles rotate in line with the Terms of reference.  Unfortunately she was not able to attend this meeting.