Agenda item

This report presents the Pension Fund Annual Report and audited Accounts for 2018/19 for the Committee and Board’s approval.  The annual audit report from the Fund’s external auditor BDO is also presented. 

The Head of Pensions introduced this report which presented the Pension Fund Annual Report and audited Accounts for 2018/19 for the PCB’s approval. The annual audit report from the Fund’s external auditor BDO was also presented.

The PCB was informed Appendix 1 - Haringey Pension Fund Draft Audit Completion Report, had been sent as a late item due to not being ready for circulation at the publication stage.

The Head of Pensions took the PCB through the Annual Pension Fund Report and Accounts for the year ended 31 March 2019 (at pages 19 – 62). It was highlighted to the PCB that investments had performed better than at the previous evaluation.

Following discussion, it was noted:

• Responding to a query over membership growth declining, Officers informed that the Fund lost 600 members when College of Haringey, Enfield and North East London left the Fund. Officers assured the PCB that there was an upward trend for membership of the Fund despite this.
• Regarding the McCloud ruling, Officers informed that the Section 151 Officer and Chair had delegated authority to make any changes required to the account to ensure the statutory deadline was met.
• Officers informed that CQS was the one Fund manager not a signatory to the ‘United Nations Principles for Responsible Investment’ initiative. Officers confirmed they would follow this up with CQS (Action: Head of Pensions).
• A member queried whether the verbal agreement between the Chief Whips of the Labour Party and Liberal Democrats to ensure consistency in membership should be included in the Annual Report. Officers responded that this would not usually be a matter included in the Annual Report; to which the PCB agreed. Officers noted committee turnover was being monitored on the risk register.
• Responding to inaccuracies identified between the tables on pages 38 and 40, Officers confirmed errors on page 40 would be amended.

The PCB were next taken through the Audit report by BDO (represented by Leigh Lloyd-Thomas). It was highlighted that:

• The audit was positive but the final figure on how much the Fund’s liabilities were over the McCloud case had yet been finalised. 
• BDO estimated that the impact on GMP equalization would increase the scheme liabilities by £6.2 million and this had not been included in the scheme liabilities disclosure.
• BDO were content with all the assumptions made.
• Female mortality for the Fund’s active and deferred members was lower than expected based on national data.

RESOLVED

1.    That the Committee and Board notes the findings of the external auditor in their report attached in Annex 1.

2.    That the Committee and Board note and approve the Pension Fund Annual Report and Fund Accounts for 2018/19.

3.    That the Committee and Board delegate authority to the Director of Finance, in consultation with Chair of the Pensions Committee, to make any necessary final changes to the published accounts and approve the Audited Statement of Accounts for 2018/19, subject to reporting back any significant changes made, to ensure the accounts are signed off by the 31 July deadline.

4.    That the Committee and Board gives the Chair of the Committee and Board and Director of Finance (S151 Officer) authority to sign the letter of representation to the Auditor as set out in paragraph 6.4 of this report.