Agenda and draft minutes

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

Contact: Shaughna Phillips, Telephone 020 7926 0045, Email: SPhillips4@lambeth.gov.uk 

Items
No. Item

1.

Quorum

    Minutes:

    It was noted that the Board was not quorate for the meeting. According to the Council’s procedure rules the meeting could continue but the decisions of the Board were non-binding.

     

    RESOLVED: That the decisions of this Board meeting be formally confirmed through the approval of the minutes at the next quorate meeting of the Board.

     

2.

Election of Chair

3.

Declaration of Pecuniary Interests

    Under Standing Order 4.4, where any councillor has a Disclosable Pecuniary Interest (as defined in the Members’ Code of Conduct (paragraph 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 interest.

4.

Minutes from the previous meeting pdf icon PDF 99 KB

5.

Lambeth Pension Fund Risk Management Strategy & Risk Register pdf icon PDF 285 KB

    Wards: All

     

    Report authorised by: Christina Thompson, Acting Strategic Director for Finance and Investment

     

    Contact for enquiries: Linda D’Souza, Interim Head of HR Operations, 07854 752186, ldsouza@lambeth.gov.uk 

     

    Additional documents:

    Minutes:

    Linda D’Souza, Acting Head of HR Operations, updated the Board on the Lambeth Pension Fund Risk Management Strategy and Register. Linda explained that there had been two new risks added to the risk register due to a recent judgement in the Court of Appeal – referred to as the McCloud ruling and the High Court ruling relating to the Guaranteed Minimum Pension (GMP) equalisation.

    These judgments affected all public sector pension funds, including the Local Government Pension Scheme. In response to a request from the Board for further explanation on the McCloud ruling, officers explained that the Government introduced reforms to public sector pension schemes effective from 2014, meaning most public sector workers were moved into a career average pension scheme. Some transitional protection was offered to scheme members who were closer to retirement age, however, the Court of Appeal ruled that the transitional protection offered to these members amounted to unlawful discrimination on the basis of age.

    Guidance from central government had not yet been received on the steps that needed to be taken to rectify the issues, as the judgment had only been made in July 2019.

    In response to a question from the Board, Hamant Bharadia explained that there was no mention of Brexit in the risk register as this was unlikely to affect the payment of benefits to, and collection of contributions from, members of the scheme.

     

    The Committee raised concerns about transparency regarding the use of exemptions to prevent information from being released into the public domain in the production of agendas and minutes for the Pensions Board and Pensions Committee. The Deputy Democratic Services Manager confirmed that the best way to ensure the concerns were addressed was to raise it with the Chair of the Pensions Committee and the Head of Treasury and Pensions.

     

    RESOLVED:To note the Lambeth Pension Fund Risk Management Policy/Strategy and Risk Register and the additional actions proposed to mitigate risk.

     

6.

Business Plan 2019/20 pdf icon PDF 108 KB

    Wards: All

     

    Report authorised by: Christina Thompson, Acting Strategic Director for Finance and Investment

     

    Contact for enquiries: Andrien Meyers, Treasury and Pensions, 020 7926 7089, ameyers@lambeth.gov.uk

     

     

    Additional documents:

    Minutes:

    HamantBharadia, Acting Director of Finance & Property presented the Business Plan 2019/20 to the Board. It was noted that the key area of work in the Business Plan was the review of governance for the Pensions Board and Committee.

     

    In response to a question from the Board, Hamant Bharadia confirmed that divestment was included in the Business Plan as part of the wider objective of reviewing the investment strategy of the fund (page 41). The Board requested that the Committee consider including a reference to divestment into the Business Plan, and requested that Officers raise this with the Chair of the Pensions Committee and the Head of Treasury and Pensions.

     

    RESOLVED:To approve the final version of the 2019/20 business plan shown in Appendix One.

     

7.

Pension Fund Annual Report pdf icon PDF 110 KB

    Wards: All

     

    Report authorised by: Christina Thompson, Acting Strategic Director for Finance and Investment

     

    Contact for enquiries: Andrien Meyers, Treasury and Pensions, 020 7926 7089, ameyers@lambeth.gov.uk

     

    Additional documents:

    Minutes:

    HamantBharadia, Acting Director of Finance & Property, introduced the annual report and outlined that the pension fund had increased by £62 million in the last year due to investment returns. The training plan for the Committee and Board were also being finalised, with a view to making training compulsory. However this change needed to be confirmed through the governance review for the Pensions Committee and Board.

     

    RESOLVED:To note the decision made by the Pensions Committee.

     

8.

Lambeth Pension Administration - Quarterly Performance Update to end of July pdf icon PDF 261 KB

    Wards: All

     

    Report Authorised by: Christina Thompson: Acting Strategic Director Finance & Investment

     

    Contact for enquiries: Linda Osborne, Pensions Manager, 020 7926 5762, losborne1@lambeth.gov.uk

     

    Minutes:

    Linda Osborne, Pensions Operations Manager, presented the Lambeth Pension Administration Quarterly Performance Update to end of July. The Board noted that:

     

    ·         The GMP reconciliation project was on schedule and nearing completion.

    ·         By comparing data held by both Lambeth and HMRC, it had been confirmed that some pensioners had been overpaid and some underpaid. 

    ·         It was anticipated that Lambeth would know the full impact of this analysis by summer 2020.

     

    RESOLVED:That the report, together with the information in the accompanying exempt from disclosure report, be noted.

     

9.

Lambeth Pension Fund - Investment Performance Review pdf icon PDF 203 KB

10.

Lambeth Pension Fund - Investment Manager's Summary