Agenda and minutes

Pension Committee - Tuesday, 5th July, 2022 7.00 pm

Venue: Civic Offices, St Nicholas Way, Sutton SM1 1EA

Contact: Andy Gemmell, Committee Services Officer Tel: 020 8770 4990 | Email: committee.services@sutton.gov.uk

Items
No.	Item
1.	Welcome and introductions Minutes: The Chair, Councillor Cryss Mennaceur, welcomed those present.
2.	Apologies for absence and declarations of interest View the background to item 2. Minutes: Apologies for absence were received from Councillor Richard Clifton. There were no declarations of interest.
3.	Minutes of the previous meeting View the background to item 3. To approve as a correct record the minutes of the meeting held on 15 March 2022. Supporting documents: Minutes , 15/03/2022 Pension Committee , item 3. PDF 125 KB Restricted enclosure 5 View the reasons why document 3./2 is restricted Minutes: RESOLVED: That the minutes, including the exempt section, of the previous meeting held on 15 March 2022 be agreed as an accurate record.
4.	Any urgent business View the background to item 4. To consider any items which, in the view of the Chair, should be dealt with as a matter of urgency because of special circumstances (in accordance with S100B(4) of the Local Government Act 1972). Minutes: There was no urgent business.
5.	Election of a Vice Chair Minutes: Councillor Cryss Mennaceur proposed that Councillor Sunita Gordon be elected as Vice Chair of the Pension Committee. This was seconded by Councillor Tom Drummond. RESOLVED: Councillor Sunita Gordon be appointed as Vice Chair of the Pension Committee.
6.	Governance Update Supporting documents: (6) Governance Update_ (R) _ Pension Committee _ 20220705 , item 6. PDF 180 KB (6a) LBS PC Governing Document , item 6. PDF 111 KB (6b) Governance Review Actions 31_05_22 - Sheet1 , item 6. PDF 77 KB (6c) Risk Register 31.05.2022 - LBS Pension Fund - Risk Register , item 6. PDF 103 KB Minutes: The Head of Pensions Investments introduced the report. In response to questions, officers advised that the scheme advisory board commissioned a governance project which suggested key actions each local government pension fund should complete. This included a suggestion for funds to do an independent review of its pension scheme. Officers advised that the London Borough of Sutton is ahead of other London boroughs in terms of the governance arrangements being carried out. RESOLVED: To note the Governing Body document at Appendix A for the Pensions Committee. To note the appointment of a co-opted scheme member representative to the Pensions Committee and the ongoing recruitment process for an employer representative. To note the progress on the governance review recommendations at Appendix B. To review the Risk Register at Appendix C.
7.	Work of the Pension Board 2021-22 Supporting documents: (7) Work of the Pension Board 2021-22_ (R) _ Pension Committee _ 20220705 , item 7. PDF 170 KB Minutes: The Assistant Director of Finance introduced the report alongside the Independent Chair of the Pension Board. In response to questions, officers advised that members of the pension board are able to attend the training organised for the members of the committee and that more would be done by officers to ensure this happens. The Independent Chair of the Pension Board advised the committee that more partnership working between the board and the committee would benefit the management of the fund. RESOLVED: To note the report.
8.	Pensions Administration Update Supporting documents: (8) Pensions Administration Update_ (R) _ Pension Committee _ 20220705 , item 8. PDF 193 KB (8a) Pensions Administration Update - Appendix A - Action Plan from Structure_Efficiency Review , item 8. PDF 70 KB Minutes: The Assistant Director of Finance introduced the report. In response to questions, officers advised that the pension’s admin software changes are a national issue and all scheme administrators are facing similar issues. Officers will be focusing on testing of the software to ensure efficient administration. Officers advised that the lack of resources within the team is causing issues for the management of the fund. The committee raised concerns with the use of Excel calculators only being used for training, and not the administration of the fund. Officers clarified that the figures within the report are only relative to Suttons’ pension fund. Officers advised that the number of scheme members’ still working for the Council has remained static for a number of years. Officers informed the committee that when new software is implemented to manage the fund, training is given to officers to ensure efficient management of the fund. Officers clarified that Sutton uses the same management software as its partner borough Kingston. RESOLVED: To note the report.
9.	McCloud Remedy Project Update Supporting documents: (9) McCloud Remedy Project Update_ (R) _ Pension Committee _ 20220705 , item 9. PDF 168 KB (9a) McCloud Remedy Project Update - Annex A - Summary Project Plan , item 9. PDF 61 KB (9b) McCloud Remedy Project Update - Annex B - Risk Log , item 9. PDF 62 KB (9c) McCloud Remedy Project Update - Annex C - Project Budget , item 9. PDF 54 KB Minutes: The Assistant Director of Finance introduced the report alongside the PMO Project Manager. In response to questions, officers advised that Sutton is working closely with AON to source the information relevant to the project. RESOLVED: To note the report.
10.	Cyber Security Policy Supporting documents: (10) Cyber Security Policy_ (R) _ Pension Committee _ 20220705 , item 10. PDF 260 KB (10a) LB Sutton draft Cyber Security Policy , item 10. PDF 489 KB Minutes: The Pension Finance and Investments Manager introduced the report. In response to questions, officers advised that the Cyber Security Policy has made good progress and the independent reviewers are working closely with the Council’s IT department to ensure it is fit for purpose. Officers advised that security breaches are reported to the committee, officers clarified that work is being done with an external provider to ensure our security policies are robust and secure. Officers advised the committee that regular training is given to the workforce regarding online security and this does not cause increased expenditure for the fund. Officers noted that our IT department is working on business continuity procedures in case of a major breach to the Council’s systems. RESOLVED: To approve the London Borough of Sutton Pension Fund Cyber Security Policy at Appendix A.
11.	Administering Authority Discretions Policy Supporting documents: (11) Administering Authority Discretions Policy_ (R) _ Pension Committee _ 20220705 , item 11. PDF 156 KB (11a) DRAFT - LBS PF Administering Authority Discretions Policy - June 2022 , item 11. PDF 205 KB Minutes: The Assistant Director of Finance introduced the report. In response to questions, officers advised a three year review period is best practice across funds. RESOLVED: To approve the Administering Authority Discretions Policy at Appendix A.
12.	Sutton Pensions Fund Business Plan 2022-25 Supporting documents: (12) Sutton Pensions Fund Business Plan 2022-25 , item 12. PDF 167 KB (12a) LBS PF Business Plan 2022-25 , item 12. PDF 137 KB Minutes: The Head of Pensions Investments introduced the report. In response to questions, officers clarified the wording around responsible investments. Officers advised that light touch reviews are good practice and the investment strategy review is on the agenda for the March 2023 meeting of the committee. RESOLVED: To approve the Business Plan 2022-25 for the Pension Fund.
13.	Work Programme Update Supporting documents: (13) Work Programme Update_ (R) _ Pension Committee _ 20220705 , item 13. PDF 158 KB Minutes: The Head of Pensions Investments introduced the report. Officers advised the report was a draft plan as to what the committee could expect over the next year in terms of agenda items coming to future committee meetings such as responsible investing and triennial valuation. RESOLVED: To note the updated work programme for the Committee.
14.	Investment and Manager Performance to 31 March 2022 Supporting documents: (14) Investment and Manager Performance to 31 March 2022_ (R) _ Pension Committee _ 20220705 , item 14. PDF 167 KB (14a) London Borough of Sutton Pension Fund Q1 2022 , item 14. PDF 1 MB Restricted enclosure 35 View the reasons why document 14./3 is restricted Restricted enclosure 36 View the reasons why document 14./4 is restricted Minutes: The minutes of this item were exempt.
15.	London Collective Investment Vehicle Update Supporting documents: Restricted enclosure 38 View the reasons why document 15./1 is restricted Restricted enclosure 39 View the reasons why document 15./2 is restricted Minutes: The minutes of this item were exempt.
16.	Exclusion of the public and press The following motion should be moved, seconded and approved if the committee wishes to exclude the public and press to deal with reports revealing exempt information: “That the public and press be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined in paragraph X Schedule 12A of the Local Government Act 1972.” Minutes: The motion to exclude the public and press from the remainder of the meeting was moved by Councillor Cryss Mennaceur and seconded by Councillor Sunita Gordon during the Investment and Manager Performance to 31 March 2022 item. RESOLVED: That the public and press be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined in paragraph 3 Schedule 12A of the Local Government Act 1972.