Agenda and minutes

Pensions Board - Thursday 12 August 2021 6.30 pm, MOVED

Venue: Committee Room (B6) - Lambeth Town Hall, Brixton, London, SW2 1RW

Contact: Marianna Ritchie, Democratic Services,  020 7926 8640, Email: mritchie@lambeth.gov.uk

Note: Information on how to access the meeting is set out on the agenda. However, if you just want to watch the live broadcast you can copy and paste the following link into your browser: https://bit.ly/3kyMsfX The video will remain available to view for 180 days. 

Items
No. Item

1.

Declarations of Pecuniary Interest

    Under Standing Order 4.4, where any councillor has a Disclosable Pecuniary Interest (as defined in the Members’ Code of Conduct (para. 4)) in any matter to be considered at a meeting of the Council, a committee, sub-committee or joint committee, they must withdraw from the meeting room during the whole of the consideration of that matter and must not participate in any vote on that matter unless a dispensation has been obtained from the Monitoring Officer.

    Minutes:

    There were no declarations of pecuniary interests.

2.

Minutes of the Previous Meeting pdf icon PDF 299 KB

    To approve and sign the minutes of the meeting held on 14 April 2021 as a correct record of the proceedings.

     

    Additional documents:

    Minutes:

    RESOLVED: That the minutes of the meeting held on 14 April 2021 be approved as an accurate record of the proceedings.

     

3.

Work Programme pdf icon PDF 119 KB

    Marianna Ritchie, Democratic Services, 020 7926 8640, mritchie@lambeth.gov.uk

    Minutes:

    RESOLVED: That the work programme be noted.

4.

Pension Administration Performance Report - April to June 2021 pdf icon PDF 415 KB

    Linda D’Souza, Head of Payroll and Pensions, 07854 752186, ldsouza@lambeth.gov.uk

    Additional documents:

    Minutes:

    Linda D’Souza, Head of Payroll and Pensions, introduced the report. It was explained that the performance levels for April to June 2021 had improved overall, with the exception of processing transfers for member benefits. This was a result of heightened vigilance placed on requests for transfers as the DWP had raised concerns over fraud in this area. Linda D’Souza also confirmed that a new Pensioner Representative had been appointed to the Pensions Committee, and asked members to let the Pensions Team know if they wanted to attend any of the training highlighted in the report.

     

    In response to questions from members Linda D’Souza explained that:

    ·         Members were able to access all the training courses mentioned;

    ·         Underpinning was the process by which pension benefits were protected for those members close to retirement at the introduction of the new CARE scheme in 2014;

    ·         Lambeth’s carbon footprinting exercise on equities had shown that the authority’s measures of carbon intensity and future potential emissions were below the benchmark, and that the team had instructed Mercer to undertake climate scenario testing which would inform the investment strategy when it was revised next year.

     

    Members were concerned about the length of time it was taking to decarbonise the fund, and wanted to ensure that the team recognised opportunities for avoiding climate risk instead of only mitigating it.

     

    RESOLVED:

     

    That the Pension Administration Service Performance update covering the period April 2021 to June 2021 be noted.

5.

Lambeth Pension Fund - Funding Issues Update pdf icon PDF 148 KB

    Additional documents:

    Minutes:

    Rob Browning, Head of Treasury and Pensions, introduced a representative from Hymans Robertson, the Fund’s actuary, who gave a presentation. Officers then responded to questions from members to explain that:

     

    ·         Data cleansing was an assessment carried out regularly to ensure that members’ contributions and payments were made based on the most accurate data;

    ·         A holistic view of the fund was taken to assess the effects of climate change and society’s behaviour, and the actuary would be bringing regular updates to the Board as this assessment progressed;

    ·         The actuary advised approximately half of all government pensions schemes in the UK and had shared knowledge of the others, so the approach to climate change as part of the valuation was well informed.

     

    RESOLVED:

     

    That the report, together with the information in the accompanying presentation prepared by the Fund’s actuary, be noted.

6.

Pension Fund Risk Register pdf icon PDF 171 KB

7.

Business Plan 2021/22 pdf icon PDF 153 KB

    Additional documents:

    Minutes:

    Rob Browning, Head of Treasury and Pensions, introduced the report and in response to questions from members explained that:

     

    ·         Since the investment strategy, which included detail on the approach to climate change, had been agreed in March 2020, work had been done to put the fund in a better position, and there were actions that could now be moved forward;

    ·         The investment strategy would be refreshed from March 2022 alongside the actuarial valuation, with the climate strategy developing alongside it.

     

    RESOLVED:

     

    That the Business Plan for 2021/22, set out at Appendix 1, be noted.

8.

Draft Annual Report and Accounts pdf icon PDF 157 KB

    Additional documents:

    Minutes:

    Rob Browning, Head of Treasury and Pensions, introduced the report and explained that:

     

    ·         Lambeth had agreed to sign up to the Stewardship Code, which would be taken to the Pensions Committee in October 2021;

    ·         The Committee had agreed to adopt the recommendations of the Taskforce for Climate-related Financial Disclosures framework, and work was ongoing to collate the required data and start preparing a draft report ahead of likely statutory deadlines in a few years.

     

    RESOLVED:

     

    That the decision made by the Pensions Committee in July 2021 in relation to the Draft Annual Reports and Accounts be noted.

     


9.

Investment Performance Report - Q1 2021 pdf icon PDF 271 KB

10.

Investment Performance (Manager) Report - Q1 2021

Minutes:

RESOLVED:

 

Unanimously that members of the Press and Public be excluded from the remainder of the meeting under Section 100A(4) of the Local Government Act 1972 on the grounds that: (i) it involved the likely disclosure of exempt information as defined in Paragraph 3 (Information relating to the financial or business affairs of any particular person (including the authority holding that information)) of Part 1 of Schedule 12A of the Act: and (ii) that the public interest in maintaining the exemption outweighed the public interest in disclosing the information.