Agenda and draft minutes

Pensions Committee and Board
Wednesday, 27th April, 2022 6.00 pm

Venue: River Park House, 225 High Road, Wood Green, London, N22 8HQ

Contact: Fiona Rae, Acting Committees Manager  3541 Email: fiona.rae@haringey.gov.uk

Note: To watch this meeting, copy and paste the following link into your internet browser: https://teams.microsoft.com/l/meetup-join/19%3ameeting_MjBiYWNkNTUtN2Q2My00NTMyLWJlZjktZDZiNmFhNGZjZWMz%40thread.v2/0?context=%7b%22Tid%22%3a%226ddfa760-8cd5-44a8-8e48-d8ca487731c3%22%2c%22Oid%22%3a%22515ca3a4-dc98-4c16-9d83-85d643583e43%22%7d 

Items
No. Item

1.

FILMING AT MEETINGS

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.

Minutes:

The Chair referred to the notice of filming at meetings and this information was noted.

2.

APOLOGIES

To receive any apologies for absence.

Minutes:

Apologies for absence were received from Thomas Skeen, Randy Plowright, Alex Goddard (Mercer), Steve Turner (Mercer), and John Raisin (Independent Advisor).

3.

URGENT BUSINESS

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 15 below).

Minutes:

There were no items of urgent business

ORDER OF BUSINESS

The Chair proposed to bring forward the decision-making items on the agenda, items 10 and 14. This was agreed by the Pensions Committee and Board. The order of business was amended to take items 1-7, followed by item 10, then item 14, before returning to the advertised order of business.

4.

DECLARATIONS OF INTEREST

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.

 

Minutes:

There were no declarations of interest.

5.

DEPUTATIONS / PETITIONS / PRESENTATIONS / QUESTIONS

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

Minutes:

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

6.

RECORD OF TRAINING UNDERTAKEN SINCE LAST MEETING

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.

Minutes:

There had been no training since the last meeting.

7.

MINUTES pdf icon PDF 146 KB

To confirm and sign the minutes of the Pensions Committee and Board meeting held on 2 December 2021as a correct record.

 

To note the minutes of the informal Pensions Committee and Board meeting held on 15 March 2022. (To follow)

Additional documents:

Minutes:

RESOLVED

 

To confirm and sign the minutes of the Pensions Committee and Board meeting held on 2 December 2021 as a correct record.

8.

PENSION ADMINISTRATION REPORT pdf icon PDF 205 KB

This report provides updates regarding:

 

·         Membership update

·         Resourcing of the pensions administration team

·         Pensions administration software procurement

·         Pensions administration service performance in 2021

·         Update on McCloud remedy activities

Additional documents:

Minutes:

The Head of Pensions & Treasury introduced the report that provided an update on the following Pension Fund’s administration activities:

-       Membership update;

-       Resourcing of the pensions administration team;

-       Pensions administration software procurement;

-       Pensions administration service performance in 2021; and

-       Update on McCloud remedy activities.

 

RESOLVED

 

To note this report and the information provided regarding the Pension Fund’s administration activities.

9.

PENSION FUND QUARTERLY INVESTMENT AND PERFORMANCE UPDATE pdf icon PDF 294 KB

This report provides the following updates for the quarter ended 31 December 2021:

 

·         Independent advisor’s market commentary

·         Investment asset allocation

·         Investment performance

·         Funding position update

·         London Collective Investment Vehicle (LCIV) update

·         External audit update

Additional documents:

Minutes:

The Head of Pensions & Treasury introduced the report that provided the following updates for the quarter ended 31 December 2021:

-       Independent advisor’s market commentary;

-       Investment asset allocation;

-       Investment performance;

-       Funding position update;

-       London Collective Investment Vehicle (LCIV) update; and

-       External audit update.

 

RESOLVED

 

To note the information provided in section 6 of the report in respect of the activity for the quarter ended 31 December 2021.

10.

UPDATED CIPFA GUIDANCE AND HARINGEY TRAINING POLICY pdf icon PDF 219 KB

To receive an update on CIPFA pensions knowledge and skills, to adopt the CIPFA 2021 Code of Practice on Local Government Pension Scheme (LGPS) Knowledge and Skills, and to approve the Training Policy.

Additional documents:

Minutes:

The Head of Pensions & Treasury highlighted that members had been informally updated on this agenda item at the inquorate meeting on 15 March 2022. He reviewed what had been discussed at this meeting outlining:

-       The details of the changes that the Chartered Institute of Public Finance Accountants (CIPFA) had made to its pensions, knowledge, and skills guidance;

-       Presentation of the revised training policy for members of the Pensions Committee and Board and Senior Fund Officers. This was pertinent due to the forthcoming local elections, that would result in new members joining the Committee. The policy outlined how a training programme would be developed for new and existing members of the Pensions Committee and Board.

 

RESOLVED

 

1.    To note the Independent Advisor’s papers, appended as Appendix 1 and Appendix 2 to this report, and the advice contained therein.

 

2.    To approve the adoption of the CIPFA 2021 Code of Practice on Local Government Pension Scheme (LGPS) Knowledge and Skills as outlined in Appendix 1 to this report. The adoption of this 2021 Code of Practice will be applicable to Pensions Committee and Board Members, and Senior Fund Officers.

 

3.    To approve the Training Policy for Pension Committee and Board Members, and Senior Fund Officers of March 2022 (attached as Appendix 2 to this report).

11.

LOCAL AUTHORITY PENSION FUND FORUM (LAPFF) VOTING UPDATE pdf icon PDF 219 KB

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.

Minutes:

The Head of Pensions & Treasury stated that the report provided an update the Local Authority Pension Fund Forum’s (LAPFF) engagement and voting activities on behalf of the Pension Fund.

 

RESOLVED

 

To note the information provided in section 6 of the report in respect of the activity for the quarter ended 31 December 2021.

12.

RISK REGISTER pdf icon PDF 293 KB

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.

Additional documents:

Minutes:

The Head of Pensions & Treasury gave an update on the Pension Fund’s risk register.

 

This paper provides an update on the Pension Fund’s risk register and an opportunity for the Committee and Board to further review the risk score allocation. The following was highlighted. The risk register focused on investment risk which looked at high inflationary risk and increasing geopolitical risk.

 

RESOLVED

 

To note the Pension Fund’s risk register.

13.

FORWARD PLAN pdf icon PDF 192 KB

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.

Additional documents:

Minutes:

The Head of Pensions & Treasury introduced the forward plan illustrating that it aimed to identify topics that would arise in the next twelve months at subsequent committee meetings.

 

RESOLVED

 

To note the forward plan.

14.

PROPERTY PORTFOLIO REVIEW pdf icon PDF 307 KB

This report provides the Pensions Committee and Board (PCB) with a review of the Pension Fund’s property portfolio and outlines the options to address the investment portfolio’s current underweight position to property.

Minutes:

The Head of Pensions & Treasury highlighted that members had been informally updated on this agenda item at the inquorate meeting on 15 March 2022. He reviewed what had been discussed at this meeting outlining:

-       The Pension Fund currently had an underweight position to its property allocation. The Pensions Committee and Board was presented with various options to address this. The following options were:

o   Agree a top-up with Aviva Lime Property Fund of £30 million; and

o   Update the Pension Fund’s strategic asset allocation within the Investment Strategy Statement as outlined in the report.

 

RESOLVED

 

1.    To note Mercer’s Review of Property Portfolio Paper, appended as Confidential Appendix 1, and the advice contained therein.

 

2.    To agree that the Pension Fund commits to invest an additional £30 million to the Aviva Lime Property Fund.

 

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

i.      Reduce the allocation to Core Property (managed by CBRE), from 7.5% to 6.5%.

ii.     Reduce the allocation to Core Property (managed by CBRE), from 7.5% to 6.5%.

 

4.    To delegate authority to the Assistant Director of Finance (Deputy S151 Officer) to implement the above changes (if approved), after consultation with the Chair of Pensions Committee and Board. This will include determining whether to make a commitment to the Long Lease Property strategy through the ‘queue’, or whether to seek to purchase units in the fund on the secondary market. This will be done after taking proper advice from the Pension Fund’s investment consultant.

 

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

15.

NEW ITEMS OF URGENT BUSINESS

Minutes:

There were no items of urgent business.

16.

DATES OF FUTURE MEETINGS

To note the (provisional) dates of future meetings:

 

11 July 2022

12 September 2022

22 November 2022

23 January 2023

21 March 2023

Minutes:

It was noted that the (provisional) dates of future meetings were:

 

Tuesday, 12 July 2022

Monday, 12 September 2022

Tuesday, 22 November 2022

Monday, 23 January 2023

Tuesday, 21 March 2023

17.

EXCLUSION OF THE PRESS AND PUBLIC

Items 18-21 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).

Minutes:

RESOLVED

 

That the press and public be excluded from the meeting for consideration of items 18-21 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); paras 3 and 5; namely information relating to the financial or business affairs of any particular person (including the authority holding that information) and information in respect of which a claim to legal professional privilege could be maintained in legal proceedings.

18.

PENSION FUND QUARTERLY UPDATE AND INVESTMENTS UPDATE

As per item 9.

Minutes:

The Pensions Committee and Board considered the exempt information.

 

A member noted that information in reports and appendices could be presented differently for clarity. The Head of Pensions & Treasury agreed to liaise with the member about possible amendments.

19.

PROPERTY PORTFOLIO REVIEW

As per item 14.

Minutes:

The Pensions Committee and Board considered the exempt information.

20.

EXEMPT MINUTES

To confirm and sign the exempt minutes of the Pensions Committee and Board meeting on 2 December 2021as a correct record.

 

To note the exempt minutes of the informal Pensions Committee and Board meeting held on 15 March 2022. (To follow)

Minutes:

RESOLVED

 

To confirm and sign the exempt minutes of the Pensions Committee and Board meeting on 2 December 2021 as a correct record.

21.

NEW ITEMS OF EXEMPT URGENT BUSINESS

Minutes:

There were no new items of exempt urgent business.