Agenda and minutes

The Chair welcomed everyone to the meeting.

Apologies for absence were received from Paul Bishop, Alison Cannur, Tim O’Connor and Julie Barker.

Members are asked to declare any disclosable pecuniary, other pecuniary or non-pecuniary interests relating to items on the agenda.

Pauline Kettless declared a non-pecuniary interest as she is in receipt of a LGPS Pension from Enfield.

To agree the minutes of the previous meeting held on 15 December 2022.

The minutes of the meeting held on 15 December 2022 were AGREED.

Colin Cartwright (Aon) gave a brief presentation on this item and stated that it would be going to the Pension Policy and Investment Committee to be discussed in more detail on 29 March 2023. The contents of the presentation were NOTED.

The Pension Board is recommended to note the contents of this report and the attached Appendix.       

Ravi Lakhani, Interim Head of Pension Investments presented this item and highlighted key points from the report.

The Enfield Pension Fund has set the 19 days following the month in which the contributions were deducted from payroll to determine if a payment has been received on time. Contributions are received after the 19th day of each month following contributions deducted up to the 19 February 2023.

In total there have been 9 late payments of contributions out of 357 expected payments. This is attributed to seven different employers in the Fund due to administrative errors and staff absence.

The report was NOTED.

Andreas Andrea, Principal Exchequer Officer Pensions presented this item and highlighted the key points from the report.

The Pensions Increase (PI) is set for 10.1% but is still yet to be laid before parliament. Members will pay less contributions but once the pay award is agreed, the contribution rate will increase, and the arrears will be taken from 1 April.

DLUHC announced a consultation on changing the date on which Career Average pensions are revalued from 1 April to 6 April. The move is designed to bring the revaluation of LGPS CARE benefits into line with the Pension Input Period (PIP) used for Annual Allowance tax calculations.

The Annual Allowance calculation measures the increase in pension benefits over the PIP. If growth exceeds the Annual Allowance of £40,0001 Page 12 3 then a tax charge may be payable. The calculation of the growth allows for benefits to increase in line with a cost-of-living increase without being measured against the £40,000 limit.

The report was NOTED.

The Pension Board is recommended to:

a)         note the contents of this report;

b)         note the pension board terms of reference attached as Appendix 1: and

c)         approve the work programme for 2023/24 attached as Appendix 2

Ravi Lakhani, Interim Head of Pension Investments presented this item and highlighted the key points.

The report outlines the general remit and core functions of the Enfield Pension Board, the terms of reference and the work programme for 2023/24.

Bola Tobun developed the work programme but was due to be leaving the Council soon and Ravi Lakhani would like to propose some amendments to the work programme.

The report and terms of reference were NOTED, and the work programme was AGREED with the following to be included:

1.    Transparency of the Management fees being charged to Enfield

                          ACTION: Ravi Lakhani, Interim Head of Pensions Investments

It was also AGREED that due to the Budget report being omitted from this meeting it would be brought to the first meeting of the next municipal year.

               ACTION: Ravi Lakhani, Interim Head of Pensions Investments

The Pension Board are recommended to:

a)         Note the contents of this report;

b)         The issues discussed by LAPFF, set out in the Quarterly Engagement Report which is available on the LAPFF website:

https://lapfforum.org/wp-content/uploads/2023/01/LAPFF-Q4-QER.pdf

Ravi Lakhani, Interim Head of Pension Investments highlighted key points from the report.

The purpose of the report is the exercise of voting rights and engagement with investee companies are a key part of the Fund’s role as a long-term steward of assets. Ensuring good corporate governance and the adoption of sustainable business models at the companies in which the Fund invests should over the longer term ensure that they are able to deliver superior returns to the Fund.

The Fund currently delegates the exercise of its voting rights to its external equity managers, who are asked to comply as far as possible with the Fund’s voting policies. The move to a pooled structure over the medium term would significantly impact this arrangement as voting rights would need to be exercised at pool level rather than fund level.

The report was NOTED.

The Local Pension Board are recommended to note the contents of the draft Pension Policy & Investment Committee minutes.

The minutes of the Pension Policy and Investment Committee which was held on 18 January 2023 were NOTED.

To note the date of the future meeting:

Wednesday 12 April 2023

It was AGREED that the meeting due to be held on Wednesday 12 April 2023 at 10am is to be cancelled.

Future meeting dates had been previously provided by Bola Tobun and the following dates were AGREED by the Chair and the Board which is subject to approval at Annual Council on Wednesday 10 May 2023.

Wednesday 28 June 2023 – 10am

Wednesday 13 September 2023 – 10am

Wednesday 13 December 2023 – 10am

Wednesday 13 March 2023 – 10am

To consider passing a resolution under Section 100(A) of the Local Government Act 1972 excluding the press and the public from the meeting for the items listed as part 2 on the agenda on the ground that they involve disclosure of exempt information as defined in those paragraphs of Part 1 of Schedule 12A to the Act (as amended by the Local Government (Access to Information) (Variation) Order 2006).

The Pension Board is recommended to note the contents of this report.

Following the Part 2 discussion, the confidential report was NOTED.

The Chair extended thanks to Bola for all her help and support and wished her all the best in the future at Harrow Council.