Agenda item

4.1       Risk Management Policy and Register

4.2       Training and Policy Register

4.3       London Collective Investment Vehicle (LCIV) (To Follow)

4.4       Local Government Pension Scheme Update

4.5       Employer Late Payments (To Follow)

The Committee received the report (Report N: 149) of the Director of Finance on five standing items as follows:

a.    Risk Management Policy and Register

NOTED

1.    The entire contents of the risk register would need to be scrutinised on an annual basis.

2.    The risk register itself did not have any new risks added to it. It was being presented to the committee with the amendments and suggestions from the last meeting.

3.    Page 36 of the report under the PEN 08 risk, pensioner officer has been used and should be pension officer.

4.    Officers would like the committee to approve the policy so that they are able to start adding the Risk Management policy to the Annual Report.

5.    The risk register is comprehensive enough to pick up environmental change. It has been covered explicitly on page 37 of the report.

AGREED to approve the register subject to the above changes.

b.    Training and Policy Register

NOTED

1.     A training Policy is being introduced to the committee for their consideration, debate and any amendments that need to be included. A CIPFA technical knowledge and skills framework for training analysis has been included in the agenda from pages 64 – 67. If the training policy is approved, it will then be circulated to each member of the Pension Board and Pension Committee for review regarding their training needs.

2.     It was agreed at the last meeting that members identify their training needs and that early in the new year, a policy and training programme would be produced for members. This item to be tabled and heard again in February 2020, after review by members. The vice-chair to have oversight of training needs.

3.     The Committee to review the Training Policy at the next meeting and Members training needs.

AGREED that

          i.   The committee note the training Policy as a draft document.

         ii.   The Pension Board considers the Policy and whether appropriate for them.

c.    LCIV (London Collective Investment Vehicle)

NOTED

1.     Members attention was drawn to a questionnaire that officers had been asked to complete, as detailed at page 9 of the ‘to follow’ agenda. The questionnaire is the London CIV Governance Framework 2019 Review.

The deadline to complete the questionnaire is 30 November 2019 and officers had started to collate information for the committee to review and contribute to. This would be a matter for officers to complete if they have time, otherwise more time would be required or less questions.

2.     As detailed at para 3.6 – 3.12 (pages 2 – 3 of the ‘To Follow Agenda) the London CIV staff pension scheme & remuneration policy review. This paper had been heard at the last committee meeting advising the committee to sign the Pensions Pre-Charge agreement and the Pensions Guarantee agreement. The committee could not make this decision to sign and could only note this. The Chair/members are not authorised to sign an unlimited liability guarantee, recommend a cap be established and would be seeking legal advice over whether it is appropriate as a 3^rd party pension fund.

     AGREED

             i.    To note the contents of the report and the minutes of the last meeting in terms of the committee’s approach to the LCIV:

·         The committee were uncomfortable and concerned over the governance arrangements and the ability of the trustees to hold LCIV to account.

·         The committee agreed not to commit any further investments into the CIV until the concerns of the committee were addressed.

·         The committee were also looking to arranging a meeting with LCIV.

            ii.   To report the reservations of the committee to the LCIV.

           iii.    To refer the matter to the Council’s legal department regarding the authority to sign an unlimited liability guarantee.

d.    Local Government Pension Scheme Update

NOTED

1.      As detailed at Paragraph 3. (page 72) of the report regarding the CMA (Competition and Market’s Authority) order on fiduciary management and investment consultants.

2.      It had now become an order for every LGPS to have objectives set for Investment Consultants before 10 December 2019 deadline.

3.      Appendix 3 (pages 89-91) of the report details draft objectives, which could still be changed, but meets the deadline.

4.      As detailed at paragraph 3.13 (pages 73-74) of the report, regarding the Pensions Regulators LGPS Engagement report. The Pensions Admin team have confirmed that they now have a new system in place that will help them provide good data for the actuary going forward.

AGREED to note the recommendations of the report, as detailed at paragraph 2 (page 71) of the report.

e.    Employer Late Payments

NOTED

1.    This is a supplement of the agenda at page 47 of the report.

2.    There were only 9 late payments in the last financial quarter and the rest were on time.

3.    The council has a statutory obligation regarding the payment of pension funds and there is a time line for payments which will be met.