Agenda and minutes
PDF 208 KBVenue: Civic Offices, St Nicholas Way, Sutton SM1 1EA
Contact: Dominic Ryan, Committee Services Officer Tel: 020 8770 4990, Email: committee.services@sutton.gov.uk
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Welcome and introductions Minutes: The Chair, Councillor Cryss Mennaceur, welcomed those present. |
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Apologies for absence and declarations of interest Minutes: There were no apologies for absence.
There were no declarations of interest. |
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Minutes of the previous meeting To approve as a correct record the minutes of the meeting held on 27 June 2023. Supporting documents:
Minutes: RESOLVED: that the minutes of the meeting held on 27 June 2023 be agreed as an accurate record. |
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Any urgent business 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. |
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Pension Administration Update Supporting documents:
Minutes: The Head of Insurance and Pensions Administration introduced the report.
In response to a question, officers advised that the minor breach was dealt with according to the wider breach reporting process, and not deemed material enough to be reported to the Information Commissioner's Office (ICO) and stated that the breach had not affected other council systems. Officers advised that the error was being investigated by the council’s IT service and the relevant external software provider to see where the issue is arising.
The committee queried what the printer queue error was. Officers explained that the error was resulting in documents not printing in the order that they are sent to be printed.
The committee also enquired as to why the number of leavers of the pension scheme was larger compared to other categories. Officers detailed that this data was produced after the annual return process and a large amount of leavers were reported to the fund within these data returns. Also, leaver related processes are often one of the lower priority types of process so whilst capacity has been lower, other member-facing processes would have been prioritised. In addition, officers stated that scheme membership was consistent and is not a cause for concern.
In response to a question, officers advised that the team were processing both newer and older cases and that as the team capacity increases, they were expecting the numbers for benefits processing to fall and hold at an acceptable level
The committee enquired about the level of overdue general query correspondence. Officers explained that the report does not pick up all correspondence including any basic, same day correspondence. Officers also stated that, in general, those queries that were overdue (over 10 days) were more complicated cases. These complicated cases often required input from other officers and scheme employers/payroll providers, thus explaining delays experienced.
RESOLVED: To note the update. |
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Annual Report and Accounts 2022-23 Supporting documents:
Minutes: The Head of Pensions Investments introduced the report.
In response to a question, officers stated that a bulk transfer to Croydon Pension Fund stemmed from Sutton Council outsourcing services via the South London Waste Partnership.
The Committee also enquired about the audit of the accounts, specifically when the audit was due to conclude. Officers detailed that 1st December 2023 was the deadline for Annual Reports to be received by the Scheme Advisory Board and we are awaiting the audit of Council-wide accounts.
A question was raised on the figure relating to investment advice. Officers advised that the figure in question did not include investment advice from Mercer and that this was captured in the section relating to management fees. Officers said they would provide clarification outside of the meeting.
In response to a question, officers advised that there was a regular review of policies and that they had a tracker in place in order to manage this process.
RESOLVED: To approve the Pension Fund Annual Report 2022/23 and delegate to the Strategic Director of Resources, in consultation with the Chair of the Pensions Committee, any changes that are required to be made to the report, as a result of the external audit. |
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Governance and Risk Update Supporting documents:
Minutes: The Head of Insurance and Pensions Administration introduced the report.
The Committee enquired further about Risk 5 and why it was labelled outside of control. Officers detailed that interest rates, which affected this risk, were determined by the Bank of England. Officers explained that due to the high interest rates, the value of liabilities and assets increases in favour of the fund. Officers clarified that this risk had been placed in the green category because they were not expecting lower interest rates in the foreseeable future.
RESOLVED: 1. To note the update and the risk register. 2. To approve proposed amendments to the Administering Authority Discretions Policy, as outlined in Appendix B. |
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McCloud Remedy Project Update Supporting documents:
Minutes: The Head of Insurance and Pensions Administration introduced the report.
The committee inquired as to the period of time the report related to, with officers detailing that it reflected a period between 1 April 2014 to 31 March 2022. Officers continued by explaining that in order to evaluate impact in more detail, further research was needed. Officers hoped that the bulk of cases would be analysed by the software, however were aware that the more complicated cases would need to be handled by the team. Overall, their estimates suggest that impact on the membership will be minimal and will not affect a large share.
The committee enquired about paragraph 3.13 and asked whether the figure of 1.2% of the membership related was a local reflection or a national picture that had been extrapolated locally. Officers explained that this was a national figure and was provided by a software provider.
The committee asked whether the cost of the scheme would change over time and officers detailed that the budget has been reviewed and costs are not expected to change, although the pacing of the spend may change.
The committee queried about the recent eligibility of 18,000 teachers nationwide into the scheme and the potential cost impact this would have. Officers stated that clarification was still needed, and that the outcome would return to a future meeting of the committee.
RESOLVED: To note the report. |
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Review of Work Programme Supporting documents: Minutes: The Pensions Finance and Investments Manager introduced the report.
RESOLVED: To note the updated work programme for the Committee. |
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Quarterly Investment Performance Supporting documents:
Minutes: The minutes of this item were exempt. |
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London Collective Investment Vehicle Update Supporting documents:
Minutes: The minutes of this item were exempt. |
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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 was moved by Councillor Cryss Mennaceur and seconded by Councillor Tom Drummond during the Quarterly Investment Performance 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. |