Agenda and minutes

To receive any apologies for absence.

Apologies were received from Cllr Gordon King, David Bowater and Sarah Holbrook

The Chair sought an update on board membership.   Officers advised of potential new nominees from employers and the process, including nomination of candidates and ballots that will be used to secure member representatives.

Resolved:

To conduct the membership recruitment process as set out by the Fund Governance and Performance Manager.

To confirm as a true and correct record the minutes of the previous meeting held on 24 January 2019.

The Board’s action log is also attached for members’ information.

The Part 1 minutes of the meeting held on 24 January 2019 were approved.

It was noted that since the January meeting, a review of the actions log had been made against the original meeting minutes which had been recorded. Consequently, the actions log had been updated in two key regards;

·       That the reference numbers recorded on the actions log would reflect the minute numbers for each meeting

·       That actions on the log should only relate to actions determined in the minutes

The Action Log was discussed in respect of minute reference 36.

Cllr Richard Britton questioned the shifting deadlines on 36 and asked how the board would know this had been done.   Officers stated that that this action had been addressed and that internal audit always reviewed previous recommendations as part of future audits.   The third part of this action, relating to the reconciliation between the Payroll & Pension databases, remained ongoing.   A new action under minute 35 of these minutes would be created to recorded to monitor this reconciliation, as a bespoke Data Improvement Plan had now been implemented.    

It was agreed that the following actions could be closed;

•         42 (13/07/2017)

•         44 (13/07/2017)

•         9 (15/03/2018)

•         31 (12/07/2018)

•         36 (12/07/2018)

•         37 (12/07/2018)

•         60 (11/10/2018)

•         64 (11/10/2018)

•         67 (11/10/2018)

•         8 (24/01/2019)

•         13 (24/01/2019)

It was noted that both the older and new referencing system appeared on the current actions log.   As the older actions were cleared, the new referencing arrangement would become clearer.

Resolved:

The minutes from the meeting held on 24 January 2019 were approved.

That reference numbers on the Action Log would be made clearer and that actions would also be RAG rated.

To receive any declarations of disclosable interest.

Board Members’ Registers of Interest are available here, members are reminded to review their RoI on a regular basis and report any changes to Democratic Services.

There were no Declarations of Interest.

To receive any announcements through the Chairman.

The Chair reminded the board of its purpose in supporting the efficiency, compliance and effective and efficient governance of Wiltshire Pension Fund.

The Board’s attention was drawn to the Scheme Advisory Board’s Good Governance survey and the value of collective input into that process was highlighted.

The Board welcomes contributions from members of the public.

Statements

If you would like to make a statement at this meeting on any item on this agenda, please register to do so at least 10 minutes prior to the meeting. Up to 3 speakers are permitted to speak for up  ...  view the full agenda text for item 27.

There were no members of the public present.

To consider the Part 1 (public) minutes of the Wiltshire Pension Fund Committee held on 14 March 2019.

Resolved:

The board noted the minutes and key decisions of the Wiltshire pension Fund Committee and sub Committee.

A short presentation by the Investment Manager on the changes made by CIPFA to the annual report and accounts guidance.

Officers advised the board of CIPFA’s guidance on the production of an Annual Report and accounts and that Deloitte UK had been appointed as auditors and were starting work within seven days.  

The process for approval was set out as follows; the Pension Committee (18 July 2019) recommend the annual report and accounts to Audit Committee (24 July) whilst the Pension Board review the annual report electronically (by receiving a draft copy (10 July 2019)) to enable a recommendation to Pension Committee to approve both (26 September).

CIPFA’s guidance was said to be placing new emphasis upon; pension pooling costs and savings, and more consistent disclosure of key performance indicators.

The Chair sought clarity on who was checking against the separate guidance on annual report and accounting and was informed that this was done internally.   The Chair then asked that Deloitte UK confirm this as part of their audit.

The Chair thanked officers for their hard work.

A paper summarising the outcome of latest Internal Audit reports on key controls, GDPR & Fund transfers. Internal Audit’s reports are included in the appendix.

Officers advised the meeting that a second internal audit would take place later in the year covering the Pension Regulator Code of Practice 14 requirements. A report on that audit would be submitted to the Board.

Resolved:

That the board was to receive a six-monthly update on the Key Controls and GDPR audit recommendations and whether they have been actioned or completed.

A report providing an update on the latest Scheme, Legal, Regulatory and Fund developments for the Board’s information.

Officers talked through their report on changes to legal and regulatory frameworks and brought the Board’s attention to, reforms to public sector exit payments, fair deal consultation, cost cap mechanism, good governance and the absence of the pensions regulator from the document.

The board suggested that statutory actions be presented before strategy actions.

Resolved:

The Board noted the report.

A reportpresenting the current Risk Register forthe WiltshirePension Fund forreview by the Board.

Officers talked through a proposal to produce a re-formatted risk register and brought the board’s attention to the content being the same but that the changes made for a more evidence-based approach.

Cllr Richard Britten welcomed the changes and alignment with the corporate approach to expressing risk and responses to risk, but sought clarity on the nature of risk in distinguishing horizon risk, dynamic risk, ongoing risk and ceased risk.   There was also a request for more detail and granularity used to show the specific risks for mitigation - rather than an area of activity, such as ‘pooling’. 

The Chair suggested that presentation of risk against the eight CIPFA categories should be adopted, with a second categorisation for identifying risk split by business plan objective & service function.

The consistency of the register with LGPS guidance and its improved legibility was noted.

Resolved:

To note the proposed changes to the risk register and to develop it by providing more detail about specific actions taken to mitigate risk.

To sense check information recorded on the current risk register to ensure consistency.

A report presenting the fund’s administration key performance indicators for review by the board. 

Officers talked through a report on key performance indicators that linked KPIs to administration strategy of fund and employers, CIPFA disclosure requirements and data quality.

The Chair thanked officers and invited the board to comment.   The debate that followed highlighted that administration strategy KPIs could be presented after disclosure requirements KPIs and that the disclosure requirements would benefit from a trend line.   Where increased volumes of incoming work made for backlogs, it was suggested that the quantity of new, incoming cases be presented as context.   It was asked that the data missing on ‘Joiners’ in Appendix 3 be entered into the table.   Officers responded that they were aware of issue but currently faced some technical difficulties in resolving the matter.

Resolved:

The board noted the report and recommended making the changes highlighted in the discussion.

The new business plan which was approved by the Wiltshire Pension Fund Committee on 14 march 2019.

Officers talked through the Business Plan and the budget as a financial illustration of that plan.   The debate that followed addressed levels of resourcing and capacity and the approaches to year 1 and year 2.

The Board requested that the budget reflect the objectives and actions within the business plan.

The Chair thanked the team for the business plan and highlighted the processes it puts in place, the reporting mechanisms it establishes and its capacity to identify necessary future resources.

Resolved:

The board noted the plan.

The new Data Improvement Plan which was approved by the Wiltshire Pension Fund Committee on 14 march 2019.

The data improvement plan was introduced by officers and was welcomed by board members and the Chair as a good paper that provides a sound basis for future review of performance.

Resolved:

The board noted the report and that a sub-plan had been prepared in respect of the Payroll & Pension database reconciliation.   An update on the reconciliation would be provided in six months.

An update of the developments since a focus group took place on 23 January 2019.

Officers updated the board on work done to; develop the terms of reference of committee, sub committee and board, align meetings with the business cycle, manage member inductions and develop communications.

The discussion that followed distinguished the board’s role as being one of addressing compliance rather than one scrutinising committee decisions.  

Without the emphasis upon the role of compliance, there is a risk of duplication between board and committee.

Resolved:

The board noted the progress made by officers.

The Chair and officers present the latest draft LPB annual report for approval by the board.

The Chair invited comments on the annual report from board members.   Assurances of the accuracy of the training log and section covering the outcomes of LPB recommendations to Committee were sought and provided.   The following corrections were requested;

·       that Mike Pankiewicz should no longer be described as an ‘active’ member

·       that the independent advice fees should be verified

The Chair thanked the team for their hard work.

Resolved:

The board approved the report for publication, subject to the corrections being made.

The Chairman will lead a discussion on how the meeting went and request feedback on how the Board could be developed, and for members to feedback any relevant updates. 

The board discussed a Unison report on LGPS and environmental and social governance.

Resolved:

The board recommended that the committee address ESG as part of the fund’s Investment Strategy.

Any other items of business which, in the opinion of the Chairman, should be considered as a matter of urgency. Urgent items of a confidential nature may be considered under Part II of this agenda.

There were no urgent items.

Thenext meeting of theBoardwill beheld on22 August 2019.

TheBoard’s Forward Work Plan is attached for members’ consideration.

The date of the next meeting was set as 22 August 2019.  As this date falls in the holiday period, member availability would be checked prior to the meeting being confirmed.

Mike Pankiewicz requested confirmation on whether the August meeting would be quorate in view of Member Representatives terms of office expiring on 14 July.   Officers noted that the Union Member appointments and active member appointments followed a separate process under the terms of reference.   With the Union member appointments due to be confirmed in July, officers were confident that the August meeting would be quorate. 

To consider passing the following resolution:

To agree that in accordance with Section 100A(4) of the Local Government Act 1972 to exclude the public from the meeting for the business specified in Item Numbers 21 – 24 because it is likely that if members of the public were present there  ...  view the full agenda text for item 41.

Resolved:

To agree that in accordance with Section 100A(4) of the Local Government Act 1972 to exclude the public from the meeting for the business specified in Minute Numbers 42 - 44 because it is likely that if members of the public were present there would be disclosure to them of exempt information as defined in paragraphs 1 & 3 of Part I of Schedule 12A to the Act and the public interest in withholding the information outweighs the public interest in disclosing the information to the public. The Chairman moved to Part 2 of the meeting.

A verbal update by the Investment Manager

Resolved:

The board noted the update.

To consider the Part 2 (private) minutes of the meetings of the Wiltshire Pension Fund Committee held on 14 March 2019 and the Investment Sub-Committee held on 21 February 2019.

To also consider the minutes of the Brunel Partnership Oversight Board held on 14 November 2018 and 31 January 2019.  ...  view the full agenda text for item 43.

Resolved:

The board noted the minutes of Wiltshire Pensions Fund Committee and Investment sub-Committee and Brunel Partnership Oversight Board.

To confirm the part 2 (confidential) minutes of the Local Pension Board meeting held on 24 January 2019.

Resolved:

The board approved the Part 2 Minutes of the Local Pension Board held on 24 January 2019.