Agenda and minutes

Pension Committee - Tuesday, 14th March, 2023 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
41.	Welcome and introductions Minutes: The Chair, Councillor Cryss Mennaceur, welcomed those present including welcoming Fiona Kemp, the new Scheme Employer co-optee to the Committee. The committee congratulated the Pension Investment team on their recent Diversity and Inclusion award at the annual LAPF Investment Awards.
42.	Apologies for absence and declarations of interest View the background to item 42. Minutes: Apologies for absence were received from Councillor Peter Geiringer with Councillor Eric Allen attending as a substitute. Councillor Eric Allen declared that he was a member of the Sutton Pension Fund.
43.	Minutes of the previous meeting View the background to item 43. To approve as a correct record the minutes of the meeting held on 13 Dec 2022. Supporting documents: Minutes , 13/12/2022 Pension Committee , item 43. PDF 18 KB Restricted enclosure 5 View the reasons why document 43./2 is restricted Minutes: RESOLVED: 1. That the minutes of the previous meeting held on 13 December 2022 be agreed as an accurate record.
44.	Any urgent business View the background to item 44. 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.
45.	Pension Administration Update Supporting documents: 5. Pension Administration Update_ (R) _ Pension Committee _ 20230314 , item 45. PDF 163 KB 5a. Pension Administration Update_ (R) _ Pension Committee _ 20230314 _ Appendix A , item 45. PDF 243 KB 5b. Pension Administration Update_ (R) _ Pension Committee _ 20230314 _ Appendix B , item 45. PDF 51 KB Minutes: The Head of Insurance and Pensions Administration introduced the report. Members noted that appointments had been made to vacancies in the team and those candidates were in the process of starting. However, there are still some unfilled vacancies. It was added that staff training was being carried out which aimed to support retention and progression of staff and development of the team. Officers explained that the outstanding issue of the legal deadline reporting had been escalated with the software provider, and that the Pension Board were aware of the issue. The software issues including reporting would be included in the Board’s update report to the Pension Committee’s next meeting. Officers drew attention to the fact that Sutton was not the only client reporting performance concerns to the software provider. Officers explained that this issue related to reporting, rather than the completion of the processes affecting scheme members. Officers added that the processes which were prioritised were those concerning life events, such as deaths or retirements. In response to questions from Members, Officers clarified the data in the report’s appendices. RESOLVED: 1. The update be noted.
46.	Guaranteed Minimum Pension (GMP) Reconciliation Project Update Supporting documents: 6. GMP Reconciliation Project Update_ (R) _ Pension Committee _ 20230314 , item 46. PDF 175 KB 6a. GMP Reconciliation Project Update_ (R) _ Pension Committee _ 20230314 _ Appendix A , item 46. PDF 225 KB 6b. GMP Reconciliation Project Update_ (R) _ Pension Committee _ 20230314 _ Appendix B , item 46. PDF 63 KB Minutes: The Head of Insurance and Pensions Administration introduced the report. Officers explained that 485 pensioners had been affected by historic over or underpayments, and that over time some of the errors had compounded. It was noted that this was a national issue. In relation to the figures provided, relating to the value of the errors, Members asked about the likelihood of variance either positive or negative. Officers explained that data had been collated from information within the system, calculations made and no bias added to the data. It was expected that little variance from the figures provided would be reported and that costs were unlikely to materially change as the rectification took place. Members expressed they would like assurance that the estimates were accurate and the value of overpayments that the fund was waiving did not materially change. Officers confirmed that they would provide updates to the Chair if the estimates were materially different to the actual calculations. Members acknowledged that the policy should be fair to all members, and that it could not be altered once it has started to be implemented. Officers explained the first group of pensioners affected would be contacted in May 2023, and communications and FAQs would be developed prior to the contact. It was acknowledged that although there would be no request for overpayments to be repaid, some of the members affected will receive reduced on-going pensions. RESOLVED: 1. The policy of waiving historic overpayments identified as a result of Guaranteed Minimum Pension (GMP) reconciliation be approved. 2. The plan and timetable to deliver phase two of the Guaranteed Minimum Pension (GMP) reconciliation project be noted.
47.	McCloud Remedy Project Update Supporting documents: 7. McCloud Remedy Project Update_ (R) _ Pension Committee _ 20230314 , item 47. PDF 174 KB 7a. McCloud Remedy Project Update_ (R) _ Pension Committee _ 20230314 _ Appendix A , item 47. PDF 37 KB 7b. McCloud Remedy Project Update_ (R) _ Pension Committee _ 20230314 _ Appendix B , item 47. PDF 38 KB 7c. McCloud Remedy Project Update_ (R) _ Pension Committee _ 20230314 _ Appendix C , item 47. PDF 71 KB Minutes: The Head of Insurance and Pensions Administration introduced the report. In response to questions from Members, Officers clarified the data provided in appendix C. RESOLVED: 1. The report be noted.
48.	Governance and Risk Update Supporting documents: 8. Governance and Risk Update_ (R) _ Pension Committee _ 20230314 , item 48. PDF 168 KB 8a. Governance and Risk Update_ (R) _ Pension Committee _ 20230314 _ Appendix A , item 48. PDF 26 KB 8b. Governance and Risk Update_ (R) _ Pension Committee _ 20230314 _ Appendix B , item 48. PDF 3 MB 8c. Governance and Risk Update_ (R) _ Pension Committee _ 20230314 _ Appendix C , item 48. PDF 75 KB Minutes: The Head of Insurance and Pensions Administration introduced the report. Members noted that administration of the pension fund is a complex function and is dependent on software. Officers explained software is included in a variety of risks included within the risk register. Officers confirmed that officers were capable of completing manual calculations and robust checking and testing processes are in place. It was noted that the training plan was detailed and a useful resource. RESOLVED: 1. The risk register be noted. 2. The 2023/24 training plan was noted.
49.	Work Programme Supporting documents: 9. Work Programme Update_ (R) _ Pension Committee _ 20230314 , item 49. PDF 157 KB Minutes: The Senior Finance Lead - Pensions Investments & Reporting introduced the report. There were no further questions. RESOLVED: 1. The updated work programme for the Committee be noted.
50.	Investment and Manager Performance to 31 December 2022 Supporting documents: 10. Investment and Manager Performance to 31 December 2022_ (R) _ Pension Committee _ 20230314 , item 50. PDF 186 KB 10a. Investment and Manager Performance to 31 December 2022_ (R) _ Pension Committee _ 20230314 _ Appendix A , item 50. PDF 1 MB Restricted enclosure 29 View the reasons why document 50./3 is restricted Restricted enclosure 30 View the reasons why document 50./4 is restricted Minutes: The minutes of this item were partially exempt. The Pensions Finance & Investments Manager introduced the report. RESOLVED: 1. The performance of the Fund during the quarter ended 31 December 2022 be noted.
51.	London Collective Investment Vehicle Update Supporting documents: Restricted enclosure 32 View the reasons why document 51./1 is restricted Restricted enclosure 33 View the reasons why document 51./2 is restricted Minutes: The minutes of this item were exempt.
52.	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 Tom Drummond during the Investment and Manager Performance to 31 December 2022 item. RESOLVED: 1. 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.