Agenda and draft minutes

Pension Board - Wednesday 31st March, 2021 6.30 pm

Venue: This meeting will take place virtually

Contact: Toby Howes, Senior Committee and Governance Officer  Tel: 07815 66385T; Email:


No. Item



To note any changes to the membership.


1.1      There were no changes to the membership.


Declarations of Interest

To receive declarations of interest by Members and Officers of any pecuniary interest or any other significant interest in matters on this agenda.


2.1      There were no declarations of interest.


Ninutes pdf icon PDF 205 KB

To approve the minutes of the Pension Board meeting held on 16 June 2020.


3.1      RESOLVED:


           That the minutes of the meeting held on 16 June 2021 be approved as an accurate record of proceedings.


Pension Administration Update pdf icon PDF 237 KB

Report of the Director of People Services.


4.1      Sarah Hay (Senior Payroll and Pensions Officer) introduced the report and advised that the Pension Administration Service was operating as business as normal, although staff were working from home because of the current COVID-19 restrictions. The key performance indicators were holding up well, although there had been a few instances of late lump sum pension payments.


4.2      A review was taking place in respect of the Western Union overseas payments, although most payment queries had been successfully resolved.


4.3      Sarah Hay advised that the Pension Fund Committee had agreed that Hampshire County Council (HCC) take over pension administration duties after Surrey County Council’s proposal re trebling costs to provide this service in the future.


4.4      The Board sought additional information concerning HCC regarding its experience of pension administration provision and commented further that SCC’s performance had not been acceptable considering their rising costs and persistent underperformance.


4.5      Sarah Hay advised that HCC had considerable experience of managing pension administration services with other local authorities and that she was confident that they would deliver an improved service.


4.6      The Board noted the report.


Fund Financial Management pdf icon PDF 656 KB

Report of the Tri-Borough Director of Treasury and Pensions.

Additional documents:


5.1      Phil Triggs (Tri Borough Director of Treasury and Pensions) introduced the report and advised that, despite the COVID-19 pandemic, the investment situation was now recovering and that this was positive for the Fund. There were however still a number of uncertainties with regards to the Brexit implications, as well as overseas COVID-19 variants.


5.2      Phil Triggs informed the Board that in future the Risk Register would be subject to the Charted Institute of Public Finance and Accountancy (CIPFA) framework requirements.


5.3      On a question regarding negative cashflow (contributions received minus pensions paid), any negative cash flows could be funded, most likely, from the Fund’s passive portfolios.  In response to queries from the Board, Phil Triggs commented that he was encouraged by recent senior appointments to the London Collective Investment Vehicle (LCIV) and officers would continue to keep the situation under review.


5.4      In reply to queries from the Board, Sarah Hay advised that care workers who had joined the Council, or other external organisations affiliated to the Fund, were being encouraged to join the Westminster pension scheme.


5.5      RESOLVED:


1.     That the risk registers to the Pension Fund be noted,


2.     That the cashflow position, the rolling 12-month forecast and the three-year forecast be noted


Performance of the Council's Pension Fund pdf icon PDF 507 KB

Report of the Director of Treasury and Pensions.

Additional documents:


6.1      Phil Triggs advised the Board that the Fund had recovered from the initial COVID-19 pandemic investment downturn and was currently 100% funded. The Fund had also received green flags in all areas in respect of the three-year Government Actuary Department (GAD) review and that there would be an update on this review at the next pension fund committee meeting.


6.2      Phil Triggs advised the Board that the LCIV Equities (Morgan Stanley sub-fund) had been selected by the Pension Fund Committee and were highly regarded for their Environmental, Social and Governance (ESG) credentials. Macquarie and Quinbrook had also been appointed in respect of renewable energy infrastructure investments.


6.3      Members asked if there were any investment risks in respect of China investments and the possibility of sanctions and sought views in of interest rates.


6.4      In reply, Phil Triggs advised that China was not a specific asset allocation within the Fund’s asset allocation policy but would be part of the global equity investment indices. External global equity portfolio managers are required to pay close attention to all ESG criteria as well as reputational risks to the Council. With regard to interest rates, these were not anticipated to rise over the short to medium term. However, Deloitte were monitoring the economic backdrop and the Board would be updated on the matter at the next meeting,


6.5      RESOLVED:


That the performance of the investments, changes to asset allocation and the funding position be noted.


Any Other Business The Chairman Considers Urgent


7.1       The Chairman requested that the next meeting be arranged to take place in early July.