Agenda and draft minutes

To note any changes to the membership of the Board.

The Chairman began by informing Members that Karl Read had been appointed as a new Member of the Board pending ratification by Full Council during their meeting on 20 February 2024.

Nominations were then sought for a Vice-Chair for the year 2024-25. The Chairman thanked Marlene Corbey for her hard work, dedication, and time as Vice-Chair during the past two years.

Finally, the Chairman noted that he had been appointed as Chairman of the Board on a 4-year contract from April 2020 and as such, his tenure was coming to an end. However, he had agreed to continue in the role for another year in response to an invitation from officers to do so.

Following which, it was:

Resolved:

The Board elected George Simmonds as Vice-Chair of the Local Pension Board for the year 2024-25.

To notethe attendanceof anynon-members of the Board present.

The Chairman welcomed Councillor Richard Britton, Chairman of the Wiltshire Pension Fund Committee, to the meeting.

To receive any apologies for absence or substitutions for the meeting.

Apologies for absence were received from:

·       Marlene Corbey

To approve and sign as a true and correct record the Part I (public) minutes of the previous meeting held on 1 November 2023.

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

The Part I (public) minutes of the previous meeting of the Board held on 1 November 2023 were considered alongside the Board’s Action Log. After which, it was:

Resolved:

The Board approved and signed the Part I (public) minutes of the previous meeting held on 1 November 2023 as a true and correct record.

To receive any declarations of disclosable interests or dispensations granted by the Standards Committee.

To receive an update on the Register of Interests.

There were no declarations of interest from Members of the Board.

The Democratic Services Officer alongside Richard Bullen, Fund Governance Manager, updated the Board with regard to Members’ Registers of Interest forms and the Code of Conduct and Conflict of Interest Policy guidelines as attached to the Agenda Pack.

It was confirmed that Registers of Interest forms for all Members of the Board were on file, with copies of such available on the public meeting page for the Local Pension Board. Members were asked to review their Registers of Interest and send any updated forms to the Democratic Services Officer if needed.

It was further confirmed that there were no changes to the existing Code of Conduct and Conflict of Interest Policy, but Members were informed that as there was a new tPR (The Pensions Regulator) General Code of Practice being introduced, there was a chance that the policy would need to be reviewed in the future.

Following which, it was: 

Resolved:

The Board approved the Conflict of Interest Policy.

To receive any announcements through the Chairman.

The Chairman urged those Members who hadn’t completed the training needs analysis to do in order to assist with future training sessions.

Furthermore, with the introduction of the new tPR (The Pensions Regulator) General Code of Practice, Members were informed that officers had arranged a training event on the 13 March 2024 to be presented by Hymans Robertson and any Members that could attend were urged to do so.

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  ...  view the full agenda text for item 7.

There were no statements or questions submitted.

To consider the Part I (public) minutes, and recommendations arising, from the meetings of the Wiltshire Pension Fund Committee on 23 November 2023 and 14 December 2023.

The Part I (public) minutes of the previous meetings of the Wiltshire Pension Fund Committee held on 23 November and 14 December 2023 were considered. Following which, it was:

Resolved:

The Board noted the Part I (public) minutes of the previous meetings of the Wiltshire Pension Fund Committee held on 23 November and 14 December 2023.

A report for the Board’s ongoing oversight of:

·       Scheme, Regulatory, Legal, and Fund Update

·       Risk Register

·       Administration KPI update – 1 October 2023 to 31 December 2023

a)    Key business plan items – Aggregation Backlogs / i-Connect & Controls / Resourcing

b)    Outsourcing updates

c)    Business Plan 2024/27 summary

·       Audit update  ...  view the full agenda text for item 9.

Jennifer Devine, Head of Wiltshire Pension Fund, presented the Headlines and Monitoring (HAM) report which provided information highlighting key issues and developments to enable to the Board to fulfil its monitoring role.

The report detailed updates in the following areas:

·       Scheme, Regulatory, Legal, and Fund Update

·       Risk Register

·       Administration KPI Update – 1 October to 31 December 2023

a)    Key Business Plan Items – Aggregation Backlogs/i-Connect and Controls/Resourcing

b)    Outsourcing Updates

c)    Business Plan 2024-27 Summary

·       Audit Update

a)    SWAP Audit KPI – 2023-24

b)    SWAP Audit KFC – 2023-24

Officers began by drawing attention to Paragraphs 5 and 6 of the report which detailed the significant resourcing issues being experienced by the Fund which was negatively impacting on officers’ ability to deliver the Business Plan priorities, increasing strain on staff, and workloads for managers who were required to act down. Recruitment campaigns were still ongoing, and Members were reassured that they would be updated on any progress.

Two presentations were then delivered by Nat Harrison, Employer Services Work Management Officer, and Matt Thorpe, Service Improvement Lead Analyst, with the first focussing on updating Members on the i-Connect project.

The different resources and actions that had been undertaken and introduced for employers and Fund officers were detailed, including:

·       Updated online resources.

·       New i-Connect user request forms.

·       Publication of a new i-Connect Guide with FAQs.

·       Development of an i-Connect Common Errors page.

·       Further internal training and the development of a site containing all relevant training documents and updated process and procedure notes.

·       Creation of a training log detailing personal training and development plans.

Further controls had been implemented such as the development of a mandatory pre-onboarding checklist, and monthly meetings on employer data and contributions. Additionally, both the Employer Data Quality Categorisation Policy and Employer Data Quality Checking Guide had been approved in January 2024 and it was confirmed that all policies and guides had been aligned.

Future projects were detailed including an i-Connect Online Return video which would set out the process for employers, and a Knowledge Test to help employers both improve their knowledge of i-Connect for internal staff training, and to ensure that those people responsible for the i-Connect submission within their organisations had a certain level of knowledge. Furthermore, officers were looking to introduce a system in which employers could manually upload documents themselves instead of emailing to officers, thus reducing processing and administration time for Fund officers.

In response to questions, it was explained that if an employer did not pass the Knowledge Test first time, officers would engage with them to improve understanding until the point of passing. It was confirmed that positive feedback had been received from employers with regard to the changes implemented and that just under 140 employers had been onboarded, with officers continuing to work with the remaining employers due to either the complexity of their organisations or resistance to the changes.

The second presentation focused on the different service improvements that  ...  view the full minutes text for item 9.

LPB to endorse its budget 2024/25 as part of the recommendation to be submitted to the Pension’s Committee. To be presented by the Investment and Accounting Team Lead.

Members considered the report on the Local Pension Board budget. There being no questions or comments, it was:

Resolved:

The Board agreed the draft Local Pension Board Budget and recommended to the Wiltshire Pension Fund Committee that it was included in the Fund’s Administration Budget for 2024-25.

An update by the Investment and Accounting Team Lead concerning the operational accounting arrangements and monitoring of the quarterly budget.

Christopher Moore, Investment and Accounting Team Lead, updated the Board on the issues in relation to the Fund’s key financial controls as per the report.

Officers highlighted Paragraphs 3 and 4 of the report which referred to the delays to the final sign offs for the full Wiltshire Council Accounts for 2019-20, 2020-21, and 2021-22. Officers emphasised that the delays were due to an issue within the Wiltshire Council figures and not in relation to the Fund’s. Furthermore, officers had complied with all requests by the external auditors for further information and in line with The Pensions Regulator (TPR) requirements, had published a subsequent Events Notice in the audit report section explaining the unaudited status.

The ongoing payroll reconciliations in respect of correcting the discrepancies between the Altair pension administration system and SAP payroll records was then discussed. Officers noted that the graph under Paragraph 5 of the report showed a significant improvement in December 2023 as a result of the hard work undertaken to bulk correct cases. As such, the Fund was close to resolving all discrepancies between the payroll and Altair system.

The issues that Fund officers were encountering with regard to the Council’s Evolve system since its launch in November 2023 were then detailed as per Paragraphs 7 and 8. Members were reassured that officers were working closely with the Evolve Team to overcome the issues and to ensure that statutory reports could be completed on time. As a result, officers were seeking temporary resources to assist in clearing the backlog of work and to reestablish working practices for the future, hence the increased risk register rating from medium to high for the accounting function. Members expressed concern as to the issues being experienced and queried if the reconciliations could be made if the additional resource was not acquired. Officers explained that they were facing some recruitment challenges and although the work could be completed by existing officers, it would result in increased strain on those staff.

At the end of the discussion, it was then:

Resolved:

The Board used the report to monitor progress against resolving the issues which had been identified.

The Employer Funding & Risk Lead will update the Board on employer related activities.

a)    The Employer Scorecard

b)    Employer Compliance – DSAs

c)    The Employer Review – internal working practices

d)    Employer Forum

Matt Allen, Employer Funding & Risk Lead, updated the Board on employer related activities, which included:

1)    The Employer Scorecard

2)    Employer Compliance – DSAs

3)    The Employer Review – internal working practices

4)    The Employer Forum

Each of the above activities were then discussed in order as per the report.

With regard to Employer Scorecards, Members queried how many employers were meeting their targets to which officers explained that as the scheme was still being drafted, those figures were still being calculated. Furthermore, there was an Employer Data and Contributions Working Group who met monthly and who had helped to develop the scheme and would therefore continue to monitor its progress.

Members felt that the Employer Review focussing on internal working practices was a positive step forward with regard to identifying areas for improvement, transparent reporting, and clear actions for officers to undertake. Officers were then praised in respect to the Employer Forum, and Members were keen to see higher employer attendance for the next meeting.

In response to a question, officers confirmed that the value of the London property pertaining to the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Debt Spreading Arrangement (DSA) and Legal Charge, was approximately £20m. It was further clarified that the DSA stipulated a five-year payment plan until June 2028, and officers were confident that the full amount would be paid within this timeframe.

After which, it was:

Resolved:

The Board noted the report.

The Pension Administration Lead will present an “immediate payments” update following transfer of the fund payment process to Oracle.

James Franklin, Pension Administration Lead, presented an “immediate payments” update to the Board following the transfer of the Fund payment process to Oracle.

Officers began by providing a brief background to the report as per Paragraphs 2 to 5, before moving on to explaining the issues experienced with member and supplier payments and accounting as a result of the transition to Oracle as per Paragraphs 6 to 11. Officers emphasised that Fund officers sought to liaise with the Evolve Team with regard to member communications and immediate payment loading arrangements to Oracle ahead of its launch, but due to time constraints faced by the Evolve Team, they were unable to respond to officers until 3 days before the official launch date. Despite this, as the Altair Immediate Payments and Integrated System went live on 8 December 2023, the Fund was in control of its own payments, thus reducing the risk of incorrect or duplicate payments and improving the processing time of payment tasks.

It was stressed that as the payroll system was split from the initial Oracle implementation and was planned to be launched in April 2024, officers felt that there were significant risks to the operations of the Fund during that transition which would be further exacerbated by the annual pensions increase exercise occurring at the same time. As such, officers were requesting information on timings and resource requirement from the Evolve Team to ensure adequate time to load and test data before and during the migration to minimise the risk of a second and more significant service disruption.

Members expressed concerns as to the potential impacts to the Fund during the imminent payroll integration and sought further clarity on Bullet Point B of Paragraph 6. In response, officers confirmed that the Fund was not the only affected service area during the initial transition and that senior officers within the Council were aware of the impact on the Fund. The additional administration work necessary in order to rectify the issues, and the subsequent impact on other Fund services, was discussed, with officers highlighting that as the Council were experiencing similar resourcing issues to that of the Fund, additional support from the Evolve Team would be difficult to negotiate.

Councillor Richard Britton, Chairman of the Wiltshire Pension Fund Committee (WPFC), raised his concerns on the matter and stated that he had liaised with the Chairman of the Evolve Task Group and had requested assurance from senior Council officers that they were aware of the impact on the Fund, and of Fund requirements moving forward. Cllr Britton noted that he was not satisfied with the response received and was concerned as to the risk to the Fund if the payroll integration were to go ahead come April 2024. Members echoed Cllr Britton’s concerns and unanimously agreed with the Chairman’s suggestion of requesting that a senior officer attend the next meeting of the WPFC with a report outlining a response to the issues raised by Board Members.

At the conclusion of the  ...  view the full minutes text for item 13.

The Pension Administration Lead will present an updated version of the Administering Authority Discretions Policy for review by Members.

The Board considered the updated version of the Administering Authority Discretions Policy. There being no question or comments, it was:

Resolved:

The Board recommended the recent amendments to the Administering Authority Discretions Policy to the Wiltshire Pension Fund Committee.

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.

Members had a comfort break from 11.55am to 12.00pm.

Jennifer Devine, Head of Wiltshire Pension Fund, updated the Board on the results of the recent member Responsible Investment Survey ahead of a full report being published and circulated in the near future.

Members were shown breakdowns of the response rates, member engagement, and respondents’ views on Environmental, Social, and Governance (ESG) considerations, specific types of companies, and the Fund’s investment approach. Officers confirmed that there were a number of actions that would be undertaken as a result of the responses and members’ views.

It was highlighted that following from the latest responsible investment guidance, sustainability and climate change issues were firmly established financial issues and therefore needed to be considered as part of a Fund’s fiduciary duty in order to prevent potential legal challenge.

To note that the next ordinary meeting of the Board will be held on 22 May 2024.

The Board’s Forward Work Plan is attached for members’ consideration.

The date of the next ordinary meeting of the Local Pension Board was confirmed as 22 May 2024.

The Board additionally considered the Scheme Year Forward Work Plan. After which, it was:

Resolved:

The Board noted the Forward Work Plan.

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 18-23 because it is likely that if members of the public were present there would be  ...  view the full agenda text for item 17.

The Board considered the recommendation to exclude the public. Following which, it was:

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 Item Numbers 18-24 because it is likely that if members of the public were present there would be disclosure to them of exempt information as defined in paragraph 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.

To consider the Part II (private) minutes, and recommendations arising, from the last meetings of the Wiltshire Pension Fund Committee held on 23 November 2023 and 14 December 2023 respectively.

The Part II (private) minutes of the previous meetings of the Wiltshire Pension Fund Committee held on 23 November and 14 December 2023 were considered. Following which, it was:

Resolved:

The Board noted the Part II (private) minutes of the previous meetings of the Wiltshire Pension Fund Committee held on 23 November and 14 December 2023.

A verbal update on the report from officers summarising the ongoing Brunel governance arrangements.

Jennifer Devine, Head of Wiltshire Pension Fund, presented a verbal update to the Board summarising the ongoing Brunel governance arrangements.

Resolved:

The Board noted the update.

The Head of Wiltshire Pension Fund and Pension Administration Lead will present the KPI Improvement Plan, including a summary of the results of the recent staff engagement survey.

Jennifer Devine, Head of Wiltshire Pension Fund, and James Franklin, Pension Administration Lead, presented the KPI Improvement Plan, which included a summary of the results of the recent Staff Engagement Survey.

Resolved:

The Board noted the update.

The Fund Governance Manager will present an updated version of the Scheme of sub-delegation for review by the Board.

Richard Bullen, Fund Governance Manager, presented an updated version of the Scheme of Sub-Delegation for review by the Board.

Resolved:

The Board noted the changes to the Scheme of Sub-Delegation following the Fund’s operational restructure.

Pension Fund procurement and how performance of suppliers can be monitored.

Richard Bullen, Fund Governance Manager, delivered a presentation on Pension Fund procurement and how the performance of suppliers could be monitored.

Resolved:

The Board noted the update.

To approve and sign as a true and correct record the Part II (private) minutes of the previous meeting held on 1 November 2023.

The Part II (private) minutes of the previous meeting of the Board held on 1 November 2023 were considered. After which, it was:

Resolved:

The Board approved and signed the Part II (private) minutes of the previous meeting held on 1 November 2023 as a true and correct record.

Anyother itemsofbusiness of a confidential naturewhich,inthe opinionoftheChairman,shouldbe consideredas amatterofurgency.

There were no urgent Part II items.