Agenda and 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 to the notice of filming at meetings and this information was noted.

To receive any apologies for absence.

There were no apologies for absence.

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 18 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 no declarations of interest.

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

There were no deputations, petitions, presentations, or questions.

Note from the Assistant Director of Corporate Governance and 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.

It was noted that Councillor John Bevan (Chair), Councillor Julie Davies (Vice-Chair), Councillor James Chiriyankandath, Councillor Paul Dennison, Councillor Viv Ross, Ishmael Owarish, and Randy Plowright had attended a training session on 4 March 2021 entitled: Sustainable Investments.

It was also noted that the Chair had undertaken the following training: London CIV – Low Carbon Investments Briefing, Pensions Investment Academy – ESG Regulation Developments, Pensions & Investment Research Consultants Ltd (PIRC) – a just transition in food production (January 2021); North London Pension Funds, Chairs Forum (February 2021).

To confirm one employee member for a four year term of office.

It was explained that the term of office for one employee member was about to expire. It was noted that Ishmael Owarish had been nominated as an employee member. It was explained that the Pensions Committee and Board was asked to confirm this appointment for a four year term of office.

RESOLVED

To confirm Ishmael Owarish as an employee member on the Pensions Committee and Board for a four year term of office.

To confirm and sign the minutes of the Pensions Committee and Board meeting held on 21 January 2021 as a correct record.

RESOLVED

That the minutes of the Pensions Committee and Board meeting held on 21 January 2021 be confirmed and signed as a correct record.

This report provides updates regarding:

·         The amount of visits made to the Haringey pension fund website.

·         An update in light of the current Coronavirus pandemic.

·         Details of an employer joining the pension fund.

·         A vacancy for a pensions administration apprentice.

The Pensions Manager introduced the report which provided an update on the amount of visits made to the Haringey Pension Fund website, an update in light of the Coronavirus pandemic, details of an employer joining the pension fund, and a vacancy for a pensions administration apprentice.

It was noted that CrystalCare Services had been appointed to provide cleaning services for Bruce Grove Primary School and it was proposed that they be admitted to the pension scheme. It was confirmed that only employees who had already been in the Haringey Pension Fund and were transferring to CrystalCare Services would be able to remain in the scheme throughout their contract term. It was noted that this would be a closed scheme so future employees would not be able to join the Haringey Pension Fund.

It was acknowledged that the Pension Administration Team had a vacancy for an apprentice. It was noted that the recruitment for this position was likely to commence in September 2021. It was added that the position would be generally advertised locally and through the Council scheme for apprentices; attempts would be made to appoint a local person but this could not be guaranteed. It was also confirmed that the apprentice would be able to gain pensions qualifications.

RESOLVED

1.    To note the report which gave a breakdown of the number of visits made to the Haringey pension fund website and an update regarding pension administration matters.

2.    To note and approve the admission of CrystalCare Services Limited as a new employer to the Pension Fund, subject to their securing a bond or a guarantee from a third party in line with the Local Government Pension Scheme (LGPS) Regulations to indemnify the pension fund against any future potential liabilities that could arise or paying an increase contribution rate in lieu of a bond.

3.    To note that the Pensions Administration Team had a vacancy for an apprentice. The vacancy would be advertised after the pandemic when supervision staff returned to work in the office.

This report reviews the Pension Fund’s Internal Dispute Resolution Procedure. It also reviews and updates the Pension Administration Strategy which has been sent to employers for comment.

The Pensions Manager introduced the item which reviewed and sought approval for the Pension Fund’s Internal Dispute Resolution Procedure (IDRP). It also reviewed, updated, and sought approval for the Pension Administration Strategy which had been sent to employers for comment.

It was explained that it was proposed to update the Pension Administration Strategy to reflect changes to the number of employees in the scheme and theamount of additional pension that scheme members could choose to purchase within the scheme. In relation to the IDRP, it was noted that no amendments were proposed but that the Pensions Committee and Board could agree any changes if required.

The Pensions Committee and Board commented that it would have been useful to see the proposed amendments in tracked changes but acknowledged that, in this case, the revisions were fairly minor. It was noted that the Pension Administration Strategy set out performance indicators; it was enquired how these were monitored and where these were reported to. The Pensions Manager explained that the performance indicators were monitored annually and included in an annual survey by The Pensions Regulator and it was noted that this information could be included in the quarterly report to the Pensions Committee and Board if useful.

It was asked how many disputes had been raised over the last three years. The Pensions Manager noted that she did not have the exact numbers at present but that only one or two cases had been to the Ombudsman. It was explained that there were three stages to the IDRP which included Stage 1, Stage 2, and then the Ombudsman. The number of cases was also included in an annual report to The Pensions Regulator.

It was noted that, on page 31 of the agenda pack, the Pension Administration Strategy stated that employer’s forums would be held at council offices; it was enquired whether this should include the ability to hold meetings virtually. The Pensions Manager explained that meetings were currently taking place virtually. The Pensions Committee and Board also noted that two acronyms were used in the report: FSAVC and GAD. It was requested that these acronyms were listed in full in the strategy. The Pensions Manager explained that this referred to Free Standing Additional Voluntary Contributions and Government Actuary Department and noted that these references could be updated.

It was enquired whether references to a leave of absence with permission in the Pension Administration Strategy included furlough and it was asked whether furlough had impacted any elements of the strategy or scheme member pensions. The Pensions Manager explained that the Pension Fund had not been advised of any furloughs but highlighted that there were regulations that referred to furlough and how this should be handled.

It was noted that there were some situations where the Pension Fund might recharge employers for additional costs and it was enquired how often this was reviewed. The Pensions Manager confirmed that this was reviewed annually and that it was not proposed to increase the charges for  ...  view the full minutes text for item 10.

This report provides updates on the following matters in respect of the three months to 31 December 2020:

·         Investment asset allocation

·         Independent Advisor’s Market Commentary

·         Update on the Fund’s accounts and annual report

·         Funding position update

·         Investment Performance

·         London Collective Investment Vehicle (LCIV) Update

·         Stewardship Update

The Head of Pensions and Treasury introduced the report which provided an update on the Pension Fund and investments. It was highlighted that the Pension Fund audit completion report had been circulated and published as a supplementary appendix to the report.

In relation to performance in the last quarter, it was explained that the fund outperformed the benchmark by approximately 50 basis points with an absolute return of 6.81%, largely due to growth in equities, the Multi-Asset Credit fund, and private equities. It was noted that the fund value was now nearly £1.6 billion.

It was noted that the Pensions Committee and Board had received a report on the 2019-20 Pension Fund audit at a previous meeting and that the audit completion report provided some minor updates. It was reported that there were no significant issues. It was explained there had been one outstanding item relating to the reconciliation of membership data but this had now been resolved; this just needed final confirmation and so had not been updated in the audit completion report.

The Pensions Committee and Board noted that the Pension Fund audit opinion had been delayed; it was enquired whether this was solely due to delays caused by the Covid-19 pandemic or whether these delays were likely to recur. The Head of Pensions and Treasury explained that the auditors had been ready to sign off the audit in November 2020 but that the National Audit Commission had issued a directive that the audit opinion for the Pension Fund and the Council should be issued at the same time. It was noted that the delays had mainly resulted from Covid-19 and it was not anticipated that these issues would recur.

It was confirmed that the section of the report on the portfolio allocation against benchmark, on page 74 of the agenda pack, should state that there had been a £97 million increase in the value of the Pension Fund between September and December 2020.

Some members noted that the report provided an update on companies operating in Occupied Palestinian Territory/ Israeli Settlements and enquired whether the Pension Fund had a policy for these sorts of investments. The Head of Pensions and Treasury explained that the Pension Fund had an Investment Strategy Statement and a policy on Environment, Social, and Governance (ESG) issues which provided guidance in these situations.

Some members stated that this was not just an ethical consideration and that investments should adhere to international law; some concerns were also raised that the language used in section 16 of the report, particularly 16.6 and 16.7, was slightly vague. It was noted that the UN had identified a list of companies that were involved in illegal activity and that due diligence had established that the Pension Fund had some investments with some of these companies. It was acknowledged that it was difficult to disengage from these investments but some members felt that the Pension Fund should move away from these investments. It was suggested that the Palestine Solidarity  ...  view the full minutes text for item 11.

This report presents the results of the investment management consultancy services contract tender and asks the Pensions Committee and Board to agree the selection of the Pension Fund’s investment management consultant following the outcome of the competitive tender process.

Following consideration of the exempt information,

RESOLVED

To agree the selection of the Pension Fund’s investment management consultant in line with the Council’s procurement guidelines and the outcome of the competitive tender process, as set out in the confidential Appendix 1 to the report, for a term of three years from 1 April 2021 with an option to extend by a further 12 months in line with the specification in the tender documents.

This report presents an Investment Strategy considerations paper and seeks approval for a change to the Pension Fund’s strategic asset allocation within the Investment Strategy Statement.

Following consideration of the exempt information,

RESOLVED

1.    To note the Investment Strategy Considerations paper, included as Confidential Appendix 1 to the report.

2.    To approve a change to the Pension Fund’s strategic asset allocation within the Investment Strategy Statement, as shown in Confidential Appendix 1 to the report, namely to:

·         Allocate 3% to the London Fund;

·         Reduce the allocation to gilts by 3% (from 10% to 7%); and

·         Switch the current/ residual investment in fixed interest gilts back to indexed linked gilts.

3.    To delegate authority to the Assistant Director of Finance to implement the above changes (if approved), after consultation with the Chair of the Pensions Committee and Board and Independent Advisor and after taking professional advice from the Pension Fund’s Investment Consultant.

4.    To delegate authority to the Assistant Director of Finance to update and republish the Pension Fund’s Investment Strategy Statement consistent with decisions made above.

This report presents suitability advice in relation to a top up of the allocation to renewable energy investments through the London Collective Investment Vehicle (LCIV) Renewable Infrastructure Fund (RIF) and seeks agreement for the additional allocation.

Following consideration of the exempt information,

RESOLVED

1.    To note the London Collective Investment Vehicle (LCIV) Renewable Infrastructure Fund (RIF) Suitability Advice, appended as Confidential Appendix 1 to the report.

2.    To agree that the Haringey Pension Fund commits to invest £65 million in the London Collective Investment Vehicle (LCIV) Renewable Infrastructure Fund (RIF), subject to the satisfactory completion of the due diligence process.

3.    To delegate authority to the Assistant Director of Finance to formally notify the London Collective Investment Vehicle (LCIV) of this decision and to implement the decision to invest in the Renewable Infrastructure Fund (if agreed), after consultation with the Chair of the Pensions Committee and Board and Independent Advisor.

4.    To delegate authority to the Assistant Director of Finance to update and republish the Pension Fund’s Investment Strategy Statement consistent with the decisions made above.

The Fund is a member of the Local Authority Pension Fund Forum (LAPFF) and the Committee and Board has previously agreed that the Fund should cast its votes at investor meetings in line with LAPFF voting recommendations. This report provides an update on voting activities on behalf of the Fund.

The Head of Pensions and Treasury introduced the report which provided an update on voting activities on behalf of the Fund. It was explained that, in this quarter, there had been two voting recommendations from the Local Authority Pension Fund Forum (LAPFF) relating to gender pay and the election of an independent Board Chair. The Pension Fund’s equity manager, Legal and General Investment Management (LGIM), had voted in line with both voting recommendations but the results of both votes had been contrary to the LAPFF recommendations.

RESOLVED

To note the report.

This paper provides an update on the Fund’s risk register and an opportunity for the Committee and Board to further review the risk score allocation.

The Head of Pensions and Treasury introduced the item and explained that the areas of focus for review at this meeting were Accounting and Investments. It was noted that risk 58 (investment strategy adopted by the London CIV through fund manager appointments) was ongoing but that the Pensions Committee and Board may want to review whether this needed to remain as a very high (red) risk.

The Pensions Committee and Board agreed to downgrade this to a high (amber) risk. It was noted that this risk would still be monitored and could change but that, currently, it was considered that a downgraded risk was more appropriate given the level of engagement with, work with, and the responses from the London Collective Investment Vehicle.

RESOLVED

1.    To note the risk register.

2.    To downgrade the risk rating for risk 58 (investment strategy adopted by the London CIV through fund manager appointments) from a very high (red) to a high (amber) rated risk.

3.    To note that the area of focus for review at the meeting was Accounting and Investments.

The purpose of the paper is to identify topics that will come to the attention of the Committee and Board in the next twelve months and to seek members’ input into future agendas. Suggestions for future training are also requested.

The Chair enquired about the recommendations of the Taskforce on Climate-related Financial Disclosure (TCFD) and whether this should be included in the forward plan. The Head of Pensions and Treasury explained that legislation had not yet been introduced for public sector funds and that there was currently no clear timeline for the implementation of any of the TCFD’s recommendations. Steve Turner, Mercer, stated that it would be useful if the Pensions Committee and Board could indicate whether there was demand for the recommendations to be implemented voluntarily, regardless of any legislation; it was noted that it was likely to be two years before anything was mandatory but that implementing the TCFD recommendations would be reputation enhancing. The Independent Advisor believed that this would be beneficial and that implementing these changes earlier would constitute good governance and good practice.

It was suggested that it may be appropriate to review some of the Pension Fund’s policy statements on Environmental, Social, and Governance (ESG) issues. It was also noted that the Pensions Committee and Board had agreed, at its last meeting, to consider a gap analysis in relation to benchmarking and to include this on the forward plan. It was clarified that there was a placeholder to undertake a cost benchmarking exercise and to consider the business plan and annual budget in November 2021.

The Chair noted that it would be useful to include a TCFD and an ESG review on the forward plan; this was agreed by the Pensions Committee and Board.

Councillor Davies added that, in relation to the records for training, she had completed the training needs analysis but had not yet completed the full online training programme.

RESOLVED

1.    To note the work plan, the training programme, and the update on member training, attached as Appendices 1-3 of the report.

2.    To include reviews of the Taskforce on Climate-related Financial Disclosure (TCFD) and Environmental, Social, and Governance (ESG) issues on the forward plan.

3.    To complete The Pension Regulator’s public sector toolkit and training needs analysis.

There were no items of urgent business.

The dates of future meetings will be confirmed at the Council meeting in May 2021.

It was noted that the dates of future meetings would be confirmed at the Council meeting in May 2021.

It was noted that Oladapo Shonola, Interim Head of Pensions and Treasury, would be concluding his interim role with the Council. On behalf of the Pensions Committee and Board, the Chair extended thanks to Oladapo Shonola for his excellent work. The Assistant Director of Finance added that Oladapo Shonola had covered this post at short notice, providing strong continuity for the service. It was noted that this was the second time he had covered this role on an interim basis and the Council had been delighted to be able to have him back. The Pensions Committee and Board was informed that Tim Mpofu would be joining the Council as the new permanent Head of Pensions and Treasury.

Items 21-26are 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).

RESOLVED

That the press and public be excluded from the meeting for consideration of items 21-26 as they contained 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).

It was noted that the order of business was amended to enable representatives from the London Collective Investment Vehicle and Mercer to take part in discussions and then to depart before any decisions concerning their organisations were made by the Pensions Committee and Board.

It was agreed to consider item 22 (Pension Fund Quarterly Update and Investments Update), then the discussion of items 24 (Investment Strategy Considerations on the Strategic Asset Allocation to Gilts and/ or the London Fund) and 25 (London Collective Investment Vehicle (LCIV) Renewable Infrastructure Fund (RIF) Suitability Advice), then the decisions in relation to items 24 and 25, followed by item 23 (Investment Management Consultancy Services Contract Award).

As per item 11.

The Pensions Committee and Board considered the exempt information.

As per item 12.

[The representatives from Mercer left the meeting for the duration of this item.]

The Pensions Committee and Board considered the exempt information.

As per item 13.

[The representatives from the London Collective Investment Vehicle (LCIV) and Local Pensions Partnership Investments (LPPI) left the meeting for the debate and decision in relation to this item.]

The Pensions Committee and Board considered the exempt information.

As per item 14.

[The representatives from the London Collective Investment Vehicle (LCIV) left the meeting for the debate and decision in relation to this item.]

The Pensions Committee and Board considered the exempt information.

To confirm and sign the exempt minutes of the Pensions Committee and Board meeting on 21 January 2021as a correct record.

RESOLVED

That the exempt minutes of the Pensions Committee and Board meeting held on 21 January 2021 be confirmed and signed as a correct record.

There were no new items of exempt urgent business.