Agenda and minutes

Cumbria Pensions Committee - Tuesday, 23rd June, 2020 9.30 am

Contact: Nicola Harrison  Email:

No. Item



Roll Call of members and to receive any apologies for absence.


The Chair started the meeting by noting the sad news of the passing of Councillor Lawrence Fisher. The Committee showed their respects be holding a minute’s silence in his honour.


A roll call of Members and Officers was taken.    



Terms of Reference and Membership

To note the Terms of Reference of the Committee and any changes to membership.


The Terms of Reference of the Committee was noted.


Mrs Carrick attended as a substitute Member of the Committee for this meeting only.


The Chair advised that this was Clare Scott’s first meeting as Independent Advisor to the Committee.



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.




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).


No disclosures of interest were made at the meeting.



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 the following reports as they contain exempt information relating to the financial or business affairs of any particular person (including the authority holding that information) by virtue of Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972;


9. Pension Fund – Investment in Multi Asset Credit


10. Closing Comments


MINUTES pdf icon PDF 111 KB

To confirm as a correct record the minutes of the Cumbria Pensions Committee held on 13 March 2020.


RESOLVED that, the Minutes of the meeting held on 13 March 2020 be approved as a correct record.



This is a standing item.  To receive concerns, queries and comments from the Cumbria Pensions Board, scheme employees, including the public.


There were no representations made at this meeting of Cumbria Pensions Committee.



To receive for information a schedule of future meetings of the Cumbria Pensions Committee.


The schedule of future meetings that had been published with the Agenda was noted.



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

Additional documents:


A report was considered from the Director of Finance (S151 Officer) which gave a Pension Fund Update for items which could be discussed in the public domain. The report provided Members with information which supported the report’s recommendations which was to ensure compliance with amendments to LGPS regulations regarding exit credits for employers within the LGPS and to approve the draft unaudited accounts of the Cumbria LGPS for 2019/20.


The Senior Manager – Pensions and Financial Services reported on Exit Credits. She reported that in February 2020, the LGPS Regulations were amended to rectify an anomaly related to admission bodies leaving the Pension Fund.


In May 2018, LGPS Regulations were amended to require Funds to pay an ‘exit credit’ where an exiting employer’s net Funding Position within the Fund exceeded 100%. However, this took no account of any risk-sharing arrangements that some employers had with their letting authorities. This led to the scenario where an employer may have been protected through a risk sharing arrangement during their term in the LGPS but also benefitted from receipt of an exit credit at termination.


Members were informed that MHCLG had recognised this issue and in February 2020, issued amendments to the Regulations. The changes gave Administering Authorities the discretion to determine what, if any, exit credit was payable. Officers had worked with the Actuary to reflect the changes to regulations in the Fund’s Admission and Termination Policy. Members noted that as well as the policy being updated, there were a few minor adjustments associated with the 2019 valuation. The changes to the policy were subject to the outcome of a consultation with the Fund’s employers.


In relation to the draft unaudited accounts of the Fund to 31 March 2020, Members were informed that the Government had changed the deadlines for the production of the annual accounts in recognition of the additional burdens on Councils arising as a result of the COVID-19 pandemic.  This applied to the 2019/20 accounts only. Publication dates were highlighted for Members. The intention had been to publish the unaudited accounts on the Council website on 26 June 2020, however the draft accounts were scheduled to be discussed at the Audit and Assurance Committee on 29 July 2020 and therefore they would be published after that meeting. This was ahead of the Government’s revised deadline of 31 August 2020.


The draft version of the accounts before Members was subject to ongoing review and, whilst not expected, if a material amendment was required, then the accounts would be updated accordingly. The change of date meant that there was a longer period than usual between issue of the draft accounts and final sign-off by 30 November 2020. As a consequence of the extended deadline, additional work may need to be detailed or incorporated into the accounts and this potential work was detailed for Members.


Key Fund performance figures were reported after Members were reminded of the investment context in which the Fund was operating in 2019/20. The first nine months had  ...  view the full minutes text for item 97.


Pension Fund - Investment in Multi-Asset Credit

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


A report was considered from the Director of Finance (S151 Officer) the report asked Members to consider the recommendation from the Investment Sub Group (ISG) that the Committee agree to delegate the decision regarding investing in the sub-fund to the Section 151 Officer in consultation with the ISG.  It was anticipated that the decision would be taken at a special meeting of the ISG in July 2020.


The Investment Advisor and Senior Manager – Pensions and Financial Services commented on the due diligence work currently being undertaken in investments.


Following careful consideration of the report and the detail provided by the Senior Manager – Pensions and Financial Services, it was


RESOLVED that, following its approval in principle in March 2020 to transfer the Fund’s 5% allocation to Multi-Asset Credit (MAC) to the Border to Coast MAC sub-fund, the Pensions Committee:


1             Delegates to the Director of Finance (Section 151 Officer), in consultation with the Investment Sub Group, the final decisions as to whether and when to invest the Fund’s 5% allocation to MAC in the Border to Coast MAC sub-fund, subject to the satisfactory completion of due diligence, and


2             Agrees that the Director of Finance (Section 151 Officer) be authorised to implement the investment in the Border to Coast MAC sub-fund, including the transfer to the sub-fund of the MAC investment currently with PIMCO,   upon satisfactory completion of the due diligence work.


Closing Comments

To receive closing comments from the Chair.


The Chair thanked Members and Officers for taking part in the remote meeting which was a new way of working for the Committee.