Agenda and minutes

Venue: George Meehan House, 294 High Road, Wood Green, London, N22 8JZ

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

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 Craig Pattinson.

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 15below).

Minutes:

There were no items of urgent business.

 

It was noted that there were late reports in relation to items 7 (Minutes), 10 (Haringey Pension Fund Annual Report), and 20 (Exempt – Pension Fund Quarterly Update and Investments Update).

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:

Councillor Yvonne Say (Chair), Councillor John Bevan (Vice-Chair), Councillor Nick da Costa, Councillor Thayahlan Iyngkaran, Councillor Matt White, Councillor Tammy Hymas, Keith Brown, and Ismael Owarish had attended a training session in relation to Liability-Driven Investment (LDI) and actuarial valuation on 22 November 2022.

 

It was also noted that Councillor John Bevan had undertaken the following training: SPS Investment Strategies for Pension Funds, Man Group European Investment Symposium, SPS Fiduciary Management, OCIO & Investment Governance (May 2022); Partners Group London Investor Day 2022, SPS Impact investment and ESG for pension funds, PFIF portfolios real assets and alternatives for pension funds (June 2022); Local Authority Pension Fund Forum business meeting (July 2022); SPS Optimising Value from Bond Investments for Pension Funds, PFIF Fiduciary Management & Outsourcing CIOs for Pension Schemes Latest Developments (September 2022); and MetLife Investment Management Insurance Insights / Macro Strategy, PFIF LDI & Hedging what next: lessons learnt from crisis (October 2022).

 

The Chair reminded members to inform the Pensions Committee and Board officers whenever they had attended training so that this could be recorded.

 

7.

MINUTES pdf icon PDF 438 KB

To confirm and sign the minutes of the Pensions Committee and Board meeting held on 12 September 2022as a correct record.

Minutes:

RESOLVED

 

To confirm and sign the minutes of the Pensions Committee and Board meeting held on 12 September 2022 as a correct record.

8.

PENSION ADMINISTRATION UPDATE pdf icon PDF 210 KB

This report provides updates regarding the Pension Fund’s administration activities:

 

·         Pension Fund membership update

·         Resourcing of the pensions administration team

·         Approval of new admission agreements

·         Details of an employer joining the pension fund

·         Online Member Self Service portal update

Minutes:

The Pensions Manager introduced the report which provided updates regarding membership, resourcing of the Pensions Administration Team, approval of new admission agreements, details of an employer joining the pension fund, and an online member self service portal update.

 

In relation to resourcing, it was noted that appointments had been made to the Team Leader, Pensions Officer, and Pensions Payroll Officer roles. The recruitment for the remaining vacancies for a Senior Pensions Officer, Pensions Officer, and Apprentice was anticipated to take place in 2023, after the team had inducted the new members. It was noted that officers had discussed the apprentice role with the Head of Apprenticeships to outline the steps required for this recruitment; the team was now in the process of drafting a job description and determining what qualifications an apprentice could undertake in the team.

 

In response to a query about the use of the Member Self Service (MSS) portal and visits to the website, the Pensions Manager explained that the total number of visits to the website was not necessarily a useful figure as this was often skewed by the activities of the Pensions Administration Team. It was noted that the number of active members who had enrolled in the MSS portal was lower than expected and officers were looking to encourage use of the portal; this would enable people to undertake some basic administration, including viewing their annual benefit statement online. It was also confirmed that members could still request paper copies of statements. In response to some questions, the Pensions Manager noted that it may be possible to see how many of the people registered for MSS had logged in to the portal and how the number of registrations compared to other schemes.

 

The Pensions Manager highlighted that the report also sought approval for the admission of Lunchtime Company Limited as a new employer into the Pension Fund. It was explained that external service providers were generally admitted to the Local Government Pension Scheme (LGPS) when they took over a service previously provided by the Council and were required to offer the LGPS to existing employees. In this case, the catering services for Alexandra Primary School and Belmont Infant and Junior Schools would now be provided by Lunchtime Company Ltd and it was proposed that they be admitted to the Haringey Pension Fund. It was confirmed that, as set out in the Council’s constitution, the Pensions Committee and Board had delegated authority to make this decision.

 

RESOLVED

 

1.    To note the report and the information provided regarding the Pension Fund’s administration activities set out in section 6 of the report.

 

2.    To approve the admission of Lunchtime Company Limited as a new employer to the Pension Fund in respect of service contracts with Alexandra Primary School and Belmont Infant and Junior School as set out in paragraphs 6.5 – 6.7 of the report.

9.

PENSION FUND QUARTERLY INVESTMENT AND PERFORMANCE UPDATE pdf icon PDF 260 KB

This report provides the following updates on the Pension Fund’s performance for the quarter ended 30 September 2022:

 

·         Independent advisor’s market commentary

·         Investment asset allocation

·         Investment performance

·         Funding position update

·         London Collective Investment Vehicle (LCIV) update

Additional documents:

Minutes:

The Head of Pensions and Treasury introduced the report which provided updates for the quarter ended 30 September 2022 in relation to the independent advisor’s market commentary, investment asset allocation, investment performance, funding position update, and London Collective Investment Vehicle (LCIV) update.

 

It was explained that, on 30 September 2022, the market value of the Pension Fund’s investment assets was £1.666 billion; this was a decrease of 1.26% since the last quarter. It was highlighted that, although performance had decreased and there had been a downturn in the market over the last few months, the Pension Fund was still outperforming the benchmark. The Head of Pensions and Treasury also highlighted that the Pension Fund now had approximately 71% of assets invested with the LCIV.

 

Following consideration of the exempt information, it was

 

RESOLVED

 

To note the information provided in section 6 of the report in respect of the activity for the quarter ended 30 June 2022.

10.

HARINGEY PENSION FUND ANNUAL REPORT pdf icon PDF 97 KB

To receive an update on and to approve, subject to the completion of the external audit, the Haringey Pension Fund Annual Report.

Additional documents:

Minutes:

Under s100B(4)(b) of the Local Government Act 1972, the Chair of the meeting was of the opinion that the report should be considered at the meeting as a matter of urgency by reason of special circumstances. These circumstances were so that the Pensions Committee and Board could consider and approve the Pension Fund draft annual report before the publication deadline of 1 December 2022 and that the information required for the report was not available at the time of the agenda publication. This was agreed by the Chair on 22 November 2022.

 

The Head of Pensions and Treasury introduced the report which presented the Haringey Pension Fund Annual Report and unaudited accounts for 2021/22 for approval, subject to the successful completion of the external audit exercise.

 

It was explained that, under the Local Government Pension Scheme Regulations 2013, it was a requirement for all schemes to produce and publish an annual report by 1 December each year. Normally, the accounts would be finalised, an audit opinion would be provided, member approval would be sought, and then the report would be published. However, due to the delays caused by the Covid-19 pandemic, the audit for 2020-21 was still ongoing; this had been explained in more detail at the Pensions Committee and Board meeting on 15 September 2022.

 

The Head of Pensions and Treasury stated that the annual report relied on the finalised accounts but that, in order to meet the 1 December deadline, it was proposed that the Pensions Committee and Board approved the draft Pension Fund Annual Report; this would be uploaded to the website to meet the deadline. Once the audit was completed, an update would be presented to the Pensions Committee and Board and, if relevant, an updated version of the Pension Fund Annual Report would be proposed for approval and uploaded to the Haringey Pension Fund’s website. It was highlighted that the report sought approval of the draft report, rather than the final report, to reflect what was currently possible with the delays to the external audit.

 

The Committee accepted that the proposal to agree the draft report was the best approach in the circumstances. It was confirmed that members could send any further comments or questions to the Head of Pensions and Treasury if required. It was also clarified that no significant changes to the Pension Fund Annual Report were anticipated and any outstanding issues were expected to be resolved; if there were any material issues, the auditors would attend a meeting of the Pensions Committee and Board to communicate these.

 

Some members enquired about the increased cost of management expenses noted in the Pension Fund Accounts. The Head of Pensions and Treasury noted that, overall, management fees had increased. It was explained that this was generally driven by performance-related fees and that, as the total assets of the Pension Fund had increased from £1.6 billion to £1.8 billion, an increase in management fees was to be expected. It was added that the process for performance-related  ...  view the full minutes text for item 10.

11.

RISK REGISTER pdf icon PDF 298 KB

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

Additional documents:

Minutes:

The Head of Pensions and Treasury introduced the item which provided an update on the Pension Fund’s risk register and an opportunity for the Pensions Committee and Board to further review the risk score allocation.

 

It was noted that, at the last meeting, the Pensions Committee and Board had requested a more detailed version of the risk register; this had been provided and any views or comments were welcomed. It was highlighted that section 6.5 of the report set out the key risks. It was noted that the full risk register was now attached to the report, and would be included in future reports, for reference.

 

The Head of Pensions and Treasury highlighted the key risk relating to the impact of high Consumer Price Index (CPI) inflation. It was anticipated that this would lead to an uplift in benefits from April 2023 and this would likely form part of the Pension Committee and Board’s consideration of the Investment Strategy Statement (ISS) in 2023. The increasing risk of market downturn was also noted and it was mentioned that members needed to be aware of the possible impact of this on the investment portfolio. In relation to the delay in publishing the accounts, it was explained that the draft statement was available but that the auditors were yet to provide an update on when the external audit for 2021-22 would commence.

 

RESOLVED

 

To note the Pension Fund’s risk register.

12.

LOCAL AUTHORITY PENSION FUND FORUM (LAPFF) VOTING UPDATE pdf icon PDF 299 KB

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

Minutes:

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

 

It was noted that there had only been one Annual General Meeting (AGM) over the summer period and that Legal and General Investment Management (LGIM) had voted in line with the LAPFF recommendation. In relation to the other engagements undertaken by LAPFF, it was stated that this was reported quarterly on the LAPFF website and members were encouraged to read these reports.

 

Some members noted that not all councils passed on details of the LAPFF recommendations to their investment managers. The Head of Pensions and Treasury noted that the voting alerts were always passed on to the relevant investment managers on behalf of the Haringey Pension Fund and that investment managers often provided reasons if they were not intending to vote in line with the LAPFF recommendations.

 

RESOLVED

 

To note the report.

13.

FORWARD PLAN pdf icon PDF 194 KB

This paper has been prepared to identify topics that will come to the attention of the Pensions Committee and Board over the upcoming months and seek members input into future agendas. Suggestions on future training topics are also requested.

Additional documents:

Minutes:

The Head of Pensions and Treasury introduced the report which presented the forward plan for consideration.

 

It was explained that some forward plan items were mandatory but that members were invited to submit any requests for areas of focus to the Head of Pensions and Treasury; it was noted that the recent training on Liability Driven Investment (LDI) had been included following a member request.

 

The Head of Pensions and Treasury stated that two delegates from the Haringey Pension Fund would be attending the Local Authority Pension Fund Forum (LAPFF) conference. There was also a Local Government Association (LGA) conference on Local Government Pension Scheme (LGPS) governance in January 2023 and members were encouraged to attend. It was added that a full list of events was provided in Appendix 2 to the report. It was agreed that all future training events could be included in the forward plan so that members could express their interest in attending in advance.

 

RESOLVED

 

To note the Pensions Committee and Board’s forward plan.

14.

HARINGEY PENSION FUND ACTUARIAL VALUATION UPDATE pdf icon PDF 314 KB

This report provides the Pensions Committee and Board with information regarding the 2022 actuarial valuation exercise which is currently underway and which will be a recurring item for several of the upcoming meetings.

Minutes:

Following consideration of the exempt information, it was

 

RESOLVED

 

1.    To note Haringey Pension Fund’s draft Actuarial Valuation Results paper, prepared by the Pension Fund’s Actuary, Hymans Robertson and appended as Confidential Appendix 1, and the advice contained therein.

 

2.    To note the overview of the Funding Strategy Statement Review paper, appended as Confidential Appendix 2 to this report.

15.

GOVERNMENT CONSULTATION ON GOVERNANCE AND REPORTING OF CLIMATE CHANGE RISKS pdf icon PDF 200 KB

This report provides the Pensions Committee and Board (PCB) with the draft response to the of the Government’s Consultation on Local Government Pension Scheme (LGPS): Governance and reporting of climate change risks (the Consultation) which waspublished by the Department for Levelling Up, Housing and Communities (DLUHC) on 1 September 2022. The Consultation will close for responses on 24 November 2022.

Minutes:

The Head of Pensions and Treasury introduced the report which provided the draft response to the of the Government’s Consultation on Local Government Pension Scheme (LGPS): Governance and reporting of climate change risks (the Consultation) which was published by the Department for Levelling Up, Housing and Communities (DLUHC) on 1 September 2022. The Consultation would close for responses on 24 November 2022.

 

Following consideration of the exempt information, it was

 

RESOLVED

 

1.    To note the draft response to the Consultation, appended as Confidential Appendix 1 to this report, and provide any comments and feedback on the contents of the draft response to the Consultation.

 

2.    To delegate authority to the Head of Pensions and Treasury to submit the Consultation response on behalf of the Haringey Pension Fund, subject to any comments and feedback provided by the Pensions Committee and Board, after consultation with the Chair of the Pensions Committee and Board.

16.

NEW ITEMS OF URGENT BUSINESS

Minutes:

There were no items of urgent business.

17.

DATES OF FUTURE MEETINGS

To note the dates of future meetings:

 

12 December 2022

23 January 2023

21 March 2023

Minutes:

It was noted that the dates of future meetings were:

 

12 December 2022 (this meeting would be cancelled as it was no longer required)

23 January 2023

21 March 2023

18.

EXCLUSION OF THE PRESS AND PUBLIC

Items 19-23 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 – 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.

Minutes:

RESOLVED

 

That the press and public be excluded from the meeting for consideration of items 19-23 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.

19.

EXEMPT - PENSION FUND QUARTERLY UPDATE AND INVESTMENTS UPDATE

As per item 9.

Minutes:

The Pensions Committee and Board considered the exempt information.

20.

EXEMPT - HARINGEY PENSION FUND ACTUARIAL VALUATION UPDATE

As per item 14.

Minutes:

Under s100B(4)(b) of the Local Government Act 1972, the Chair of the meeting was of the opinion that the report should be considered at the meeting as a matter of urgency by reason of special circumstances. These circumstances were so that the Pensions Committee and Board could consider an amended version of Appendix 2 which included updated information that was not available at the time of the agenda publication. This was agreed by the Chair on 22 November 2022.

 

The Pensions Committee and Board considered the exempt information.

21.

EXEMPT - GOVERNMENT CONSULTATION ON GOVERNANCE AND REPORTING OF CLIMATE CHANGE RISKS

As per item 15.

Minutes:

The Pensions Committee and Board considered the exempt information.

22.

EXEMPT MINUTES

To confirm and sign the exempt minutes of the Pensions Committee and Board meeting on 12 September 2022 as a correct record.

Minutes:

RESOLVED

 

To confirm and sign the exempt minutes of the Pensions Committee and Board meeting held on 12 September 2022 as a correct record.

23.

NEW ITEMS OF EXEMPT URGENT BUSINESS

Minutes:

There were no new items of exempt urgent business.