Agenda and minutes

The Chair and Fay Hammond (Director of Finace) to Welcome and Introduce members of the Local Pension Board.

a.    Apologies

Councillor Ayfer Orhan (Chair) welcomed and introduced the members of the Local Pension Board.

Apologies for absence received from Fay Hammond (Director of Finance), Councillor Pite and Milne.

Apologies for lateness received from Councillor Taylor.

The Chair to Present the following;

1. Pension Board minutes - 31 July 2018
2. Register of breaches of the law - None
3. Conflicts of interest register (Declaration of interests) - None
4. Risk Register

A.       Local Pension Board Minutes 31 July 2018 – AGREED

B.       Register of breaches of the law – None

C.       Declaration of interests – None

D.       Risk Register – No alterations

To consider the work commissioned to update the review of the governance arrangements in place for the Enfield Pension Scheme review the Pension.

Received a report for proposals regarding the review of the Enfield Pension Fund Governance arrangements.

Paul Reddaway (Head of Finance Pensions Investments) tabled a cover sheet to the Pension Fund Governance report.

Paul Reddaway (Head of Finance Pensions Investments) and Daniel Kanaris (Aon Representative) introduced the report.

NOTED

•         Paul Reddaway stated that at the previous Local Pension Board meeting, members asked for assurances that the Enfield Pension Fund was operating correctly

•         Paul Reddaway reported that Aon have been commissioned to run proposals for a governance review for the Local Pension Board to approve

•         Daniel Kanaris highlighted Aon’s proposals into the following sections;

o        Governance Framework

o        Scope of Governance Review

o        Personnel

o        Proposed Work Plan

o        Timing and Cost

•         Daniel Kanaris informed the board that Aon will review their current direction. They will make sure that Enfield have clear strategies and policies in order for them to meet the fundamental legislative requirements.

•         Aon will also review and observe Enfield’s decision-making committees ensuring that Enfield have an appropriate governance structure and that they are involving the right people with the appropriate skills and knowledge.

•         The final report submitted will have a summary and will be presented to the Pensions Board.

Daniel Kanaris left the meeting, the chair thanked him for his presentation.

Paul Reddaway invited the Board to ask questions and comments.

The Chair considered that the Aon review would provide an independent assurance to the Board on the effectiveness of how the Pension Board operated. This would be best captured by approving option 1. The Board would consider if option 2 and 3 where required following the completion of initial report by Aon. Paul Reddaway explained that the cost of the report would be met by the pension Fund ‘s governance budget  

The Chair suggested that the Board should try and avoid ‘To Follow’ reports to allow members enough time to read the reports in detail prior to the Pensions Board meetings.

Paul Bishop (Vice-Chair) stated that papers should not be tabled on at the meeting particularly when a decision is required.

Paul Reddaway explained the main body of the report which set out Aon’s proposal and options was sent out to members in line with the democratic services timetable, however Paul apologised because the covering report was tabled late. 

Update on staff training and work priorities.

(TO FOLLOW)

Received a Briefing Report on Training/Qualifications - Continual Professional Development.

Tim O’Connor (Pension Manager) presented the item.

NOTED

•         Tim O’Conner highlighted that training is being delivered to the Pensions Team. Tim stated that it is important to make sure that members of the Pension Fund receive a professional and knowledgeable service.

•         Tim O’Connor stated that there is currently a 6 week turn around period for transfers in and out. Training is underway which will ensure that all members of the Pension Team are fully equipped to meet ongoing challenges.

•         It was noted that the Pensions team has several new officers. They currently have eight members of staff, two of which are part time. One to one training sessions are currently being held to improve the general understanding of benefit statements. 

The Committee noted the progress being made and thanked Tim O’Connor for his report.

To consider the latest work of the PPI & IC 7 draft agenda for the next meeting.

Received minutes from the Pension Policy & Investment Committee on the 1st August 2018.

Councillor Taylor (Chair PP&I Committee) highlighted key points from the minutes of the last meeting.

NOTED

•         The Committee agreed that the additional allocation (c.6% of total assets) to fixed income will be allocated to a multi asset credit (MAC) mandate to re-position the bond portfolio strategic allocation.

•         A MAC fund product is available on the London CIV and is being benched marked against other similar providers.

•         The Committee is in the process of reviewing the Funds’ Responsible Investment (RI) strategy. Cllr Taylor has met Share Action and Southwark Council to discuss the issue of fossil fuels.

•         It was stated that developing a good Responsible Investment policy required clear objectives and investment beliefs and needed a holistic approach, rather than merely looking at individual environmental social and governance issues.

The Chair then invited Members of the Board to ask Questions/Discuss:

•         A question was asked if there are any existing principles that should be guiding the proposals?

•         This was last reviewed in n January 2017 and has been included in the fund’s investment strategy statement. The Committee is now revising its responsible investment policy and will bring it back to the Pensions Board once it has been finalised.

The Chair thanked Councillor Taylor for the highlighted updates.

To receive an overview of the proposal for LGPS

 Funding reporting within the context of pooling investments.

Received proposals for LGPS Fund reporting in a “Pooled World”.

Paul Reddaway (Head of Finance Pension Investments) presented the item.

NOTED

•         The Chartered Institute of Public Finance and Accountancy (CIPFA) have put through a proposal for revised reporting for Local Government Pension Scheme (LGPS) funds

•         It was highlighted that CIPFA needed to be more transparent when reporting costs and performance by the Local Government Pension Scheme (LGPS) funds and pools

•         It is essential that disclosure   and reporting of all costs and performance is completed in a   consistent manner which meets Enfield’s requirements

•         Hidden Costs should be reported particularly on, transaction costs and trading costs.

The Board thanked Paul Reddaway for his presentation.

To consider the key themes of the Pension Regulator’s discussion paper on 21st Trusteeship and Governance.

Received a report on the Pensions Regulator’s 21st Century Trusteeship Campaign (Member of the Board to note the contents of the report).

The Local Pension Board Members noted the report.

To receive the regulators commentary on the results of the Public Service Pension Providers survey.

Received a Report on the Pensions Regulator Survey.

Paul Reddaway (Head of Finance Pension Investments) presented the item.

NOTED

•         The Pensions Regulator has undertaken a survey of Public Service Pension providers, this looked at governance and administration.

•         The Pensions Regulator advised Enfield that the existing data is the most important thing to look at. The Pensions Regulator advised Enfield to focus on existing data.

•         The importance of using internal controls was highlighted in the meeting. For example: The board must be notified of any breaches of the law.

The Board thanked Paul Reddaway for his presentation.

Pension Fund Governance and key legislation.

Received a presentation from Dionne Findley (Graduate Trainee) on LBE Pension Fund Governance Requirements. (Slides attached below)

The Committee thanked Dionne Findley for her presentation.

The Chair advised that any further questions can be emailed to Paul Reddaway on paul.reddaway@enfield.gov.uk

20^th December 2018

Thursday 20^th December 2018