Agenda and draft minutes

Pensions Committee - Wednesday 20 July 2022 6.30 pm

Venue: Committee Room (B06), Lambeth Town Hall, Brixton, London SW2 1RW

Contact: Democratic Services,  Email: democracy@lambeth.gov.uk

Note: Information on how to access the meeting is set out in 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/3RETBcx The video will remain available to view for 180 days. 

Items
No. Item

1.

Declarations of Pecuniary Interests

    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.

Election of the Vice-Chair

    To elect a Pensions Committee Vice-Chair.

    Minutes:

    The Chair, Councillor Adrian Garden, asked if anyone wished to be or wanted to nominate the post of Vice-Chair. Councillor Martin Bailey indicated that he wanted to be Vice-Chair and this was seconded, and supported by three other Members.

     

    RESOLVED: To elect Councillor Martin Bailey as Vice-Chair of the Committee for a period of two years.

     

3.

Minutes of the Previous Meeting pdf icon PDF 170 KB

    To approve and sign the minutes of the previous meeting held on the 30 March 2022.

    Minutes:

    RESOLVED: The minutes of 30 March 2022 meeting were approved.

     

4.

Work Programme and Action Monitoring Log 2022-23 pdf icon PDF 117 KB

5.

Investment Performance Review - 31 March 2022 pdf icon PDF 280 KB

    Additional documents:

    Minutes:

    Robert Browning, Head of Treasury and Pensions; Tony English from Mercer; and Sandy Dickson presented the report and summarised the financial performances, noting in particular that:

    • The market value of the pension fund decreased over the quarter to £1.8bn and had underperformed its quarterly and one-year benchmark, mainly because of the slowing global economy.
    • Regarding the investment strategy, there were plans in development with the London CIV to launch a residential fund.
    • The fossil fuel exposure’s figure was incorrect and had not actually doubled as suggested;  the correct records would be distributed after the meeting.
    • 100% of the Fund was actively managed.
    • Global equity performance continued to suffer as a result of the Russsian invasion of Ukraine.
    • Inflation was increasing and it had contributed to Fund underperformance.
    • Equities had been overweight earlier in 2021 and some of these had been sold to rebalance the Fund, with the majority of the proceeds still being held in reserve.

     

    RESOLVED:

    1. That the report, together with the information in the accompanying performance report at Appendix One, be noted.

     

6.

Lambeth Pension Fund - Risk Register pdf icon PDF 175 KB

    Additional documents:

    Minutes:

    Robert Browning, Head of Treasury and Pensions, presented the report and stated that:

    • This report provided the Pensions Committee and Board with details of the arrangements in place to manage the risks within the Lambeth Pension Fund.
    • It was a live document that was regularly updated and monitored.
    • There were no direct financial implications in agreeing this report outside of the ongoing administration and governance of the Pension

     

    Members noted the importance of membership training on the issue of monitoring risk and queried how to hold members accountable for not attending training.

     

    RESOLVED:

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

     

7.

Draft Annual Report 2021-22 pdf icon PDF 159 KB

8.

Business Plan 2022-23 pdf icon PDF 156 KB

    Contact for enquiries:Robert Browning, Head of Treasury and Pensions, 07394 402801, rbrowning@lambeth.gov.uk

     

    Additional documents:

    Minutes:

    Robert Browning, Head of Treasury and Pensions, introduced the report and noted:

    • It set out key objectives of the Pension Fund for 2022-23, such as administration and governance, communications, actuarial findings, funding, finance and risk management, and the wider Investment Strategy.
    • The administration and governance objectives ensured the Fund continued to be run in accordance with the relevant Regulations and agreed service standards and identified and rectified any instances of non-compliance at the earliest opportunity.
    • The Fund’s Investment Strategy will be revised later in the year and the investment management contract was being retendered.

     

    RESOLVED:

    1. To approve the Business Plan for 2022/23.

     

9.

General Update - July 2022 pdf icon PDF 282 KB

    Contact for enquiries:Robert Browning, Head of Treasury and Pensions, 07394 402801, rbrowning@lambeth.gov.uk

     

    Additional documents:

    Minutes:

    Robert Browning, Head of Treasury and Pensions; and Hamant Bharadia, Director of Finance and Property, presented the report and stated that:

    • Lambeth’s net fee savings from being in the London Collective Investment Vehicle (LCIV) were estimated at over £1m for the year ending March 2022.
    • The LCIV CEO was stepping down in March 2023.
    • The LCIV’s high turnover would be raised with the LCIV and discussed at the next meeting, with a Taskforce proposed to review issues.
    • Low Member attendance at training sessions was noted and it was suggested that members be named for not attending.
    • Formal training to be delivered by officers and/or advisers will be held before Committee meetings and Members are required to undertake their own necessary training during the year.

     

    RESOLVED:

    1. To note the report, together with the information in the accompanying papers.

     

10.

Investment Managers Performance Report - 31 March 2022

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.

11.

Net Zero Update

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.