Agenda and minutes

Cumbria LGPS Local Pension Board - Tuesday, 17th January, 2023 1.00 pm

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

Contact: Anthony Farrar  Email: anthony.farrar@cumbria.gov.uk

Items
No. Item

29.

Apologies for Absence

To receive any apologies for absence.

 

Minutes:

Apologies for absence were received from Mr G Capstick.

 

30.

Terms of Reference and Membership pdf icon PDF 122 KB

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

 

Minutes:

The Terms of Reference were noted. 

 

31.

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.

 

32.

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 10 – Review of Administration Matters;

Agenda Item No 11 – LPPA 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).

 

33.

Minutes pdf icon PDF 175 KB

To confirm as a correct record the minutes of the Cumbria Local Pension Board meeting held on 4 October 2022 (copy enclosed).

 

Minutes:

RESOLVED,     that the minutes of the previous meeting held on 4 October 2022 be agreed as a true and accurate record.

 

34.

Schedule of Future Meetings

The future meeting dates of the Cumbria LGPS Pension Board will be confirmed as Local Government Reorganisation in Cumbria progresses.

 

Minutes:

The future meetings of the Cumbria LGPS Pension Board would be confirmed as Local Government Reorganisation progresses.

35.

Work Plan pdf icon PDF 111 KB

To consider the Current Work Plan (copy enclosed).

 

Minutes:

Members noted the work plan of the Cumbria LGPS Local Pension Board.

 

36.

Oversight of Pension Committee Decisions and other matters pdf icon PDF 286 KB

To receive an update from the Senior Manager - Pensions and Financial Services (Deputy Section 151 Officer) (copy enclosed).

 

Additional documents:

Minutes:

Members considered a report from the Senior Manager – Pensions and Financial Services (Deputy 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 13 December 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 2022. 

·      Risk – One new risk had been added to the register associated with the impact that climate change may have on investments, it was previously an emerging risk on the register. A new emerging risk associated with biodiversity loss had also been added. In addition, the scoring of the risk associated with the loss of key personnel had been increased to reflect the expected high turnover of the Pensions Committee in April 2023.  All risks had been thoroughly reviewed this quarter and no other scores had been changed.  There were 19 risks (1 red, 4 amber and 14 green).

·      Data Quality – The data continues to be of a good quality. 

·      Investment Management – The value of the Fund had decreased in the quarter from £3.144 billion to £3.118 billion as a result of the market volatility following Russia’s invasion of Ukraine.  However, performance exceeded the Fund specific benchmark over 3, 5 and 10 years.

 

·      Website – In November the Fund launched its own website which provided specific information to scheme employers, scheme members and other interested parties.

 

·      Triennial Valuation 2022 All employers had received their statements detailing employer contributions for the next three years. The Fund had continued to increase its overall Funding Level from 91% in 2016 to 99% in 2019 and then to 110% at this year’s valuation. The annual employers Forum was held in November. The valuation is progressing in accordance with the agreed timetable.

 

·      Regulatory Changes – There was no further update on the McCloud resolution and the Exit Payment Cap.  Officers submitted a comprehensive response to the consultation on the Task Force on Climate Related Financial Disclosures in November. 

 

A member asked how much of the fund’s investments were in currencies other than sterling and requested whether the information could be included as a benchmark figure in future.

 

The Director of Resources (s151 Officer), Westmorland & Furness Council noted that this would be reviewed and considered for inclusion future reports.

 

A member commented on the 23 September mini-budget and referenced a news article outlining that the turbulence caused by the mini-budget had now settled.

 

The Director of Resources (s151 Officer), Westmorland & Furness remarked that formal accounting was on an annual basis and it was monitored on  ...  view the full minutes text for item 36.

37.

Date of Next Meeting

The next meeting date of the Cumbria LGPS Pension Board will be confirmed as Local Government Reorganisation in Cumbria progresses.

 

Minutes:

The next meeting would be confirmed as Local Government Reorganisation in Cumbria progresses.

 

38.

Review of Administration Matters

To receive an update from the Senior Manager - Pensions and Financial Services (Deputy Section 151 Officer) (copy enclosed).

 

 

Minutes:

Members considered a report from the Senior Manager – Pensions and Financial Services (Deputy 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.

·     Members recorded their best wishes to Rachel Blundell (Operations Manager, LPPA), who had recently left the organisation.

·     Members acknowledged Pensions Committee’s request that they provide an additional measure of scrutiny over LPPA’s performance over the next six months following the recent transition to the new administration system.

 

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.

 

39.

LPPA Presentation: Performance Update

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

 

Minutes:

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

 

·         Quarterly Reporting

·         Performance against SLA’s

·         Project PACE

·         Helpdesk

·         Executive Leadership Team

 

The Chair thanked the Managing Director – LPPA for her update.

 

40.

Verbal Update on Emerging Issues

To receive a general verbal update from the Senior Manager – Pensions and Financial Services (Deputy Section 151 Officer).

 

Minutes:

The Senior Manager - Pensions and Financial Services and Director of Finance (s151 officer), Westmorland & Furness updated the Board on current emerging issues, including:-

 

·      Consultations

·      Stewardship Report

·      Local Government Reorganisation