Agenda and draft minutes

Please note this meeting may be filmed or recorded by the Council for live or subsequent broadcast via the Council’s internet site or by anyone attending the meeting using any communication method.  Members of the public participating in the meeting (e.g. making deputations, asking questions, making oral protests) should be aware that they are likely to be filmed, recorded or reported on.  By entering the ‘meeting room’, you are consenting to being filmed and to the possible use of those images and sound recordings.

The Chair of the meeting has the discretion to terminate or suspend filming or recording, if in his or her opinion continuation of the filming, recording or reporting would disrupt or prejudice the proceedings, infringe the rights of any individual, or may lead to the breach of a legal obligation by the Council.

The Chair referred Members present to agenda Item 1 as shown on the agenda in respect of filming at this meeting, and Members noted the information contained therein.

To receive any apologies for absence.

Apologies for absence were received from Cllr Da Costa, Randy Plowright and Craig Pattinson.

The Chair will consider the admission of any late items of Urgent Business.  (Late items of Urgent Business will be considered under the agenda item where they appear. New items of Urgent Business will be dealt with under item X below).

There were no items of urgent business.

A member with a disclosable pecuniary interest or a prejudicial interest in a matter who attends a meeting of the authority at which the matter is considered:

(i) must disclose the interest at the start of the meeting or when the interest becomes apparent, and

(ii) may not participate in any discussion or vote on the matter and must withdraw from the meeting room.

A member who discloses at a meeting a disclosable pecuniary interest which is not registered in the Register of Members’ Interests or the subject of a pending notification must notify the Monitoring Officer of the interest within 28 days of the disclosure.

Disclosable pecuniary interests, personal interests and prejudicial interests are defined at Paragraphs 5-7 and Appendix A of the Members’ Code of Conduct

The Public Service Pensions Act 2013 defines a conflict of interest as a financial or other interest which is likely to prejudice a person’s exercise of functions. Therefore, a conflict of interest may arise when an individual:

i)             Has a responsibility or duty in relation to the management of, or provision of advice to, the LBHPF, and

ii)            At the same time, has:

-       a separate personal interest (financial or otherwise) or

-       another responsibility in relation to that matter,

giving rise to a possible conflict with their first responsibility. An interest could also arise due to a family member or close colleague having a specific responsibility or interest in a matter.

At the commencement of the meeting, the Chair will ask all Members of the Committee and Board to declare any new potential conflicts and these will be recorded in the minutes of the meeting and the Fund’s Register of Conflicts of Interest. Any individual who considers that they or another individual has a potential or actual conflict of interest which relates to an item of business at a meeting must advise the Chair prior to the meeting, where possible, or state this clearly at the meeting at the earliest possible opportunity.

There were none.

If there are no reportable or non reportable breaches in the relevant period, this could be reported orally when this Agenda Item is considered. Where there has been a reportable or non reportable breach identified then a written report should be provided to the PCB.

There were none.

To consider any requests received in accordance with Part 4, Section B, paragraph 29 of the Council’s constitution.

There were none.

Note from the Head of Legal and Governance (Monitoring Officer)

When considering the items below, the Committee will be operating in its capacity as ‘Administering Authority’. When the Committee is operating in its capacity as an Administering Authority, Members must have due regard to their duty as quasi-trustees to act in the best interest of the Pension Fund above all other considerations.

Cllr Lawton was in the process of completing all training courses.

To confirm and sign the minutes of the Pensions Committee and Board meeting held on 1/12/25 as a correct record.

RESOLVED

The minutes of the meeting held on 1st December were approved as a correct record.

The Fund has finalised the draft Responsible Investment Policy to ensure that it remains aligned with best practice, regulatory requirements, and the long?term interests of members and stakeholders.  

Responsible investment has become an increasingly important aspect of pension fund governance, reflecting the need to integrate environmental, social, and governance (ESG) considerations into investment decision?making. 

Jamie Abbott introduced the report for this item. The Fund had finalised the draft Responsible Investment Policy to ensure that it remained aligned with best practice, regulatory requirements, and the long-term interests of members and stakeholders. Responsible investment had become an increasingly important aspect of pension fund governance, reflecting the need to integrate environmental, social, and governance (ESG) considerations into investment decision-making.

The following was noted in response to questions from the committee:

· John Raisin noted the background of extensive activity that had taken place and stated that this was a positive reflection on the Members of the Committee and Board, as well as the officers of the Fund.

· Cllr White stated that they were happy to see the policy brought forward and were pleased with the section on conflict zones. They asked for more clarity on how this would work in practice. Jamie explained that if an area was identified as a conflict zone that the Pension Committee Board (PCB) felt strongly about investigating, or where there was exposure to that area, a report would be commissioned to monitor the Fund’s holdings and assess the exposure to that particular conflict. Following this, decisions would be made. If the exposure was above an agreed threshold, the Fund would engage with LCIV regarding the holdings, and LCIV would advise on suitable alternative options.

· Cllr Iyngkaran and Cllr Dunstall expressed that the document reflected the views and values of the Committee and thanked officers for their work on the policy.

· Cllr Bevan raised a point regarding the United Nations declarations of responsible investment. Jamie confirmed that this would be looked into.

· It was noted that the policy would be reviewed on a periodic basis, annually, but that it could also be reviewed on an ad hoc basis should anything material occur. Jamie confirmed that this would be double-checked to ensure it was clearly stated within the policy.

RESOLVED

The Pensions Committee and Board is recommended:

3.1. To note and provide any comments regarding the draft responsible investment policy (Appendix 1)

3.2. Approve the draft Responsible Investment Policy to be issued for consultation with the Fund’s stakeholders

For the Pensions Committee and Board (PCB) to consider the statutory Annual Report from KPMG, which highlights their findings from the audit of the Pension Funds statutory accounts. 

Jamie Abbott introduced the report for this item. For the Pensions Committee and Board (PCB) to consider the statutory Annual Report from KPMG, which highlights their findings from the audit of the Pension Funds statutory accounts.

The following was noted in response to questions from the committee:

· Cllr Bevan raised the issue of declarations of interest, noting that the current declaration of interest did not cover interests relating to dependent relatives and therefore did not cover dependency interests in the Fund.

· It was explained that journals were accounting entries posted into the ledger, which then made up the balances in the financial statements. Currently, any journal entry below £40,000 could be posted without secondary approval. This was identified as a control deficiency and had been highlighted as such.

· It was explained that every pension scheme was valued using a standard set of assumptions, including the discount rate, RPI inflation, and CPI inflation. However, these assumptions were not consistent across all schemes. Depending on the nature of the scheme, actuaries derived a scheme-specific discount rate to match the duration of the scheme’s liabilities. Similarly, inflation assumptions were determined based on external market forces.

RESOLVED

The Pensions Committee and Board was recommended to:

3.1. Consider the contents of this report and any further oral updates given at the meeting by KPMG.

3.2. Note the Statement of Accounts 2024/25 will be presented to Audit Committee on the 29 January 2026

3.3. Note the contents, recommendations and management responses to the IAS 260.

3.4. Agree that the Committee delegates the sign off for the Pension Fund Accounts 2024/25, subject to any final changes required by the conclusion of the audit, to the Section 151 Officer in consultation with the Chair.

There were none.

To be confirmed.

To be confirmed.

Items 13-16 are likely to be subject to a motion to exclude the press and public from the meeting as they contain exempt information as defined in Section 100a of the Local Government Act 1972 (as amended by Section 12A of the Local Government Act 1985); para 3 – namely information relating to the financial or business affairs of any particular person (including the authority holding that information) and para 5 – information in respect of which a claim to legal professional privilege could be maintained in legal proceedings.

Items 13-16 are likely to be subject to a motion to exclude the press and public from the meeting as they contain exempt information as defined in Section 100a of the Local Government Act 1972 (as amended by Section 12A of the Local Government Act 1985); para 3 – namely information relating to

the financial or business affairs of any particular person (including the authority holding that information) and para 5 – information in respect of which a claim to legal professional privilege could be maintained in legal proceedings.

The exempt information was considered.

The exempt information was considered.

To confirm and sign the exempt minutes of the Pensions Committee and Board meeting on 1/12/25 as a correct record.

RESOLVED

To confirm and sign the exempt minutes of the Pensions Committee and Board meeting on 1/12/25 as a correct record.

There were none.