Agenda and draft minutes

Pensions Board - Wednesday 14 April 2021 6.30 pm

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

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 interest.

2.

Minutes of the Previous Meeting pdf icon PDF 302 KB

    To approve and sign the minutes of the meeting held on 13 January 2021 as a correct record of the proceedings.

     

    Additional documents:

    Minutes:

    The name of Item 4 on the agenda was changed to Lambeth Pension Administration – Performance report.

     

    The minutes of the meeting held on 13 January 2021 were approved with the above changes.

3.

Work Programme pdf icon PDF 116 KB

    Minutes:

    Officers explained that the next municipal year’s work programme was under construction. In response to questions officers stated that an update on the TCFD Strategy would be included in the work programme.

     

4.

Lambeth Pension Administration - Performance report for the period January 2021 to March 2021 pdf icon PDF 265 KB

    Report Authorised by: Fiona McDermott, Strategic Director Finance & Investment

     

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

     

    Additional documents:

    Minutes:

    Officers highlighted areas of the report, namely:

    ·         That they were preparing and issuing letters to pensioners specifying the pensions increase order for 2021 which was 0.5%;

    ·         That the recommendations made by the Pensions Board to the Pensions Committee had been discussed at the Pensions Committee meeting, and the risk rating for ESG had moved from a 1 to a 4, and that adding climate change as a specific risk would come into play when the TCFD framework was updated;

    ·         That the GMP reconciliation exercise was almost complete, and that rectifications should begin in May 2021; and,

    ·         That HMT published Directions Orders on 12 February which disapplied the exit cap regulations effective from 12 February 2021 and as there had been no scheme members in the Lambeth Pension Fund affected by the exit cap regulations, no rectification was necessary.

     

    RESOLVED:

     

    1. To note the Pension Administration Service Performance update covering the period January 2021 to March 2021.

5.

Lambeth Pension Fund - Risk Register pdf icon PDF 175 KB

    Report Authorised by: Fiona McDermott: Strategic Director for Finance and Investment

     

    Contact for enquiries: Linda D’Souza, Head of Payroll and Pensions – 07854 752186, ldsouza@lambeth.gov.uk : Robert Browning, Head of Treasury and Pensions – 07394 402801, rbrowning@lambeth.gov.uk.

     

    Additional documents:

    Minutes:

    There was a discussion about how to improve the functioning of the relationship between the Pensions Board and the Pensions Committee, and it was agreed that the Pensions Team and Democratic Services would liaise with the Board and Committee Chairs to arrange this.

     

    It was also agreed that all questions and communication should go through the Pensions Team, including requests for specific investments from external bodies.

     

    Officers explained that the risk rating for ESG risk was not higher than 4 given that ESG factors are considered at all stages of the investment strategy, are regularly monitored, and will be of increasing focus with upcoming regulatory changes around ESG reporting. In addition, the Fund’s current indirect exposure to fossil fuel investments was small in relation to the entire value of the Pension Fund.

     

    RESOLVED:

     

    1. To note and review the Lambeth Pension Fund Risk Register and the additional actions proposed to mitigate risk.

    2. To recommend any possible amendments to the Pensions Committee.

6.

Lambeth Pension Fund - Investment Performance Review pdf icon PDF 270 KB

7.

Lambeth Pension Fund - Investment Manager's Summary

Minutes:

RESOLVED:

 

That under section 100A-H of the Local Government Act 1972, the press and public be excluded from the remainder of the meeting on the grounds that, for the item of business summarised below, it was likely that exempt information, as defined by Section 1001 and Schedule 12a of the Local Government Act 1972 and as specified by reference to the appropriate paragraph thereof, would be disclosed to them:

 

3. Information relating to the financial or business affairs of any particular person including the authority holding that information.