Agenda and minutes

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

Apologies for absence were received from Mrs K Powell.  It was noted that this would have been her last meeting before leaving her role with the Lake District National Park Authority.  The Chair passed on thanks for all her hard work as Chair and Vice Chair of the Board.  The Director of Finance also expressed her thanks for Mrs K Powell’s hard work during her time on the Board.

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

The Terms of Reference were noted.  There was a minor change to the wording at section 2.1 which better reflected the wording of the regulations.  This had been discussed at the last meeting of the Board.

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).

Ms K Thomson made a disclosure of interest on this occasion.  She was an employee of Armstrong Watson who provide payroll functions for some Cumbrian schools.

Mr G Archibald made a disclosure of interest that he had previously been employed by Mercer Ltd and holds shares in MMC, their parent company.

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 – Local Government Reorganisation Update;

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  21 January 2022 (copy enclosed).

RESOLVED,     that the minutes of the previous meeting held on 21 January 2022 be agreed as a true and accurate record.

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

Members noted the schedule of meetings of the Cumbria LGPS Local Pension Board.  It was agreed that the next virtual meeting would be held on 17 January 2023.

To receive an update 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 18 March 2022, 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:

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

·      Risk – there was one risk added to the risk register associated with Local Government Reorganisation.  An emerging risk was added to the risk register associated with Russia’s invasion of Ukraine.  The risk associated with the impact that COVID-19 may have on pensions administration has been removed as it is being managed as day business and no longer represents a material risk to service delivery.

·      Investment Management – the performance of the Fund to 31 December was positive, outperforming the 1, 5 & 10 year benchmarks.

·      Fund Policies – changes to the Investment Strategy Statement replaced the previous references to the 2012 Stewardship Code (including the Fund’s 2012 statement of compliance) and instead included of details regarding the Fund’s 2020-21 Stewardship report which had been assessed as meeting the requirements of the FRC’s UK Stewardship Code 2020.  This was particularly pleasing given that only 12 LGPS Funds in the UK have been approved as signatories to date.  The Administration Strategy & Communications Policy and Training Policy and Plan had also been updated

·      A Draft Local Pension Board Work Plan – had been produced to inform the agenda for future meetings and also highlight some Board specific project work in on current and emerging issues. It was agreed the Plan would become a standing item at each meeting to allow for updates to ensure it remains fit for purpose.

·      Regulatory Changes – McCloud Resolution – there had been little progress on McCloud within the LGPS and the Board would be advised as further information becomes available.

A member queried the budgeted costs for the administration of the Fund compared with other LGPS funds of similar size.

The Senior Manager - Pensions and Financial Services commented that the Fund was part of CIPFA Benchmarking, however details were not yet available, but that they would be shared with the Board once available.

A member queried how inflation would affect Pensions and what, if any, implications there were for investments. 

The Senior Manager – Pensions and Financial Services commented that inflation was a major concern.  Cumbria LGPS had built this into the Investment Strategy reflecting its role as a long term investor. It was also noted that this would be re-assessed through the triennial valuation process and a review of the Investment strategy  ...  view the full minutes text for item 106.

To receive an update from the Director of Finance (Section 151 Officer) (copy enclosed).

Members considered a report from the Director of Finance (Section 151 Officer) which provided details of the annual review of Policies which specifically relate to the Board’s role of assisting the Administering Authority to comply with relevant legislative requirements and to ensure the effective governance of the scheme. These policies are the Cumbria Local Pension Board Members’ Code of Conduct (Conflict of Interest) Policy; and the Cumbria LGPS Training Policy and Plan.

In taking Members through the report the Finance Manager - Pensions Investments and Governance highlighted that, in line with accepted best practice across the LGPS, these policies are reviewed on a regular basis to ensure they are current, relevant and fit for purpose.   It was noted that no revisions were required to the Cumbria Local Pensions Board Members Code of Conduct (Conflict of Interest) Policy.

The Finance Manager - Pensions Investments and Governance noted that the report also provided a summary of the training policy of the Fund - together with details of the Training Plan for the Board.   The Training Plan had been drafted to reflect the training needs of the Board and was informed by responses to the annual training needs assessment together with emerging issues relating to LGPS regulations and guidance. 

Members were reminded that ongoing training is required to enable each Board Member to continue to meet the legislative individual knowledge and skills requirement placed upon them. Board Members are encouraged to attend training sessions scheduled where appropriate to take place after quarterly Pensions Committee meetings; and are notified of other relevant training events (internal and external) as and when they arise.

RESOLVED, that the Board

(1)      noted that there were no revisions required to the Cumbria Local Pension Board Members’ Code of Conduct (Conflict of Interest) Policy.

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

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

To note that the next meeting will be held on 15 July 2022.

The next meeting will be held on 15 July 2022 at 1pm

To receive a presentation from Director of Finance (Section 151 Officer) (copy enclosed).

The Director of Finance (Section 151 Officer) gave a presentation on Local Government Reorganisation which covered the following areas:-

·      Democratic Governance to May 2022

·      Democratic Governance to April 2023

·      Programme Governance

·      Context for Cumbria LGPS

·      Actions to Date

·      Next Steps

·      Legal Position

·      Administering Authority

·      Transition Arrangements

To receive an update from the Director of Finance (Section 151 Officer) (copy enclosed).

Members considered a report from the Director of Finance (Section 151 Officer), which provided an update on the following key areas of Pensions’ Administration.

·     The service provided and monitoring of LPPA with a further update to be provided by LPPA in their presentation at the next agenda item.

·     Employer Issues and measures taken to mitigate them.

·     Fund Discretions – thirteen were exercised in the quarter. 

·     Pension Ombudsman Opinions - none issued during the period.

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.

Jo Darbyshire, Managing Director, Local Pensions Partnership has been invited to make a presentation to the Board.

Members received a verbal update from Ms J Darbyshire, Managing Director- Local Pension Partnership Administration (LPPA).  The update included:

·         SLA Performance

·         Helpdesk volume of calls linked to project PACE

·         Project PACE Update

·         Dashboard

·         Staff Recruitment & Retention

The Chair thanked the Managing Director – Local Pension Partnership Administration for her 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:-

·      The impact of the Russian invasion of Ukraine on the Cumbria Pension Fund.

·      Public Service Pensions and Judicial Offices Act 2022

·      My Pension Online

The Chair thanked the Senior Manager - Pensions and Financial Services for her update.