Agenda and minutes

Pension Committee - Tuesday, 12th December, 2023 7.00 pm

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

Contact: Dominic Ryan, Committee Services Officer Tel: 020 8770 4990, Email: committee.services@sutton.gov.uk

Items
No.	Item
27.	Welcome and introductions Minutes: The Chair, Councillor Cryss Mennaceur, welcomed those present.
28.	Apologies for absence and declarations of interest View the background to item 28. Minutes: There were no apologies for absence. A declaration of interest was raised by Councillor Tom Drummond during Item 12, LBS Contribution Rates Review 2023. He declared that he was also a member of the Strategy and Resources committee, but it was noted that he could still take part in the discussions.
29.	Minutes of the previous meeting View the background to item 29. To approve as a correct record the minutes of the meeting held on 10 October 2023. Supporting documents: Minutes , 10/10/2023 Pension Committee , item 29. PDF 119 KB Restricted enclosure 5 View the reasons why document 29./2 is restricted Minutes: RESOLVED: that the minutes of the meeting held on 10 October 2023 be agreed as an accurate record.
30.	Any urgent business View the background to item 30. 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.
31.	Pension Administration Update Supporting documents: 5. Pension Administration Update (R) _ Pension Committee _ 20231212 , item 31. PDF 177 KB 5a. Benefits processing performance data (to 30 October 2023) (A) _ Pension Committee _ 20231212 , item 31. PDF 240 KB Minutes: The Committee welcomed the new Head of Pensions Administration, who introduced the item. Members highlighted item 3.8 and inquired into the timescale expected for the backlog of cases to be cleared. Officers stated that their priority was to handle critical cases and highlighted the importance of achieving Key Performance Indicators. They indicated that they were working to tackle delays in processing transfers and to support those leaving the Fund. Officers confirmed that the present backlogs relating to transfers were affecting all funds and hoped that the challenges would be tackled within 6 months. The backlogs on other areas would take longer to resolve. Additionally, Members inquired as to whether all the annual benefits statements from all employers have been completed, with Officers confirming this Members noted two Internal Dispute Resolution Procedures (IDRP) complaints and inquired whether they were linked to the status of the backlog. Officers informed Members that they were exploring this. RESOLVED: 1. To note the update.
32.	Governance and Risk Update Supporting documents: 6. Governance and Risk Update_ (R) _ Pension Committee _ 20231212 , item 32. PDF 164 KB 6a. Appendix A - Risk register (A) _ Pension Committee _ 20231212 , item 32. PDF 108 KB Minutes: The Head of Insurance and Pensions Administration introduced the item. Members highlighted section 3.6 of the report, which referenced penalty charges of £30,000. Members inquired as to whether this related to employers who were late and, furthermore, if the money received from the penalty charge could be used to tackle the backlog. Officers confirmed that the money was incurred from the employers in question and that it was a daily penalty charge. Officers said that it would be a possibility to use the money towards the backlog, but highlighted that the money in question was not a recurring source of income for the fund. RESOLVED: 1. To note the update and the risk register.
33.	Sutton Pension Fund 2023-24 Budget - six month update Supporting documents: 7. Sutton Pension Fund 2023-24 Budget - six month update (R) _ Pension Committee _ 20231212 , item 33. PDF 169 KB Minutes: The Head of Pensions Investments introduced the item. RESOLVED: 1. To note the mid-year update on The Fund’s 2023-24 budget.
34.	Work Programme Update Supporting documents: 8. Work Programme Update (R) _ Pension Committee _ 20231212 , item 34. PDF 156 KB Minutes: The Senior Finance Lead - Pensions Investments & Reporting introduced the item. Members noted that the training course relating responsible investments, with a focus on impact investing, offered to members was very positive. Officers detailed that they will be able to re-run training sessions for members if required. Officers also highlighted that a future training session would focus around a review of the responsible investment statement. RESOLVED: 1. To note the updated work programme for the Committee.
35.	Investment and Manager Performance to 30 September 2023 Supporting documents: 9. Investment and Manager Performance to 30 September 2023 (R) _ Pension Committee _ 20231212 , item 35. PDF 174 KB 9a. Appendix A - Quarterly Performance Report September 2023 (Mercer) (A) _ Pension Committee _ 20231212 , item 35. PDF 1 MB Restricted enclosure 19 View the reasons why document 35./3 is restricted Restricted enclosure 20 View the reasons why document 35./4 is restricted Minutes: The Pensions Finance and Investments Manager introduced the item. Members raised that, during the last meeting of the Pension Committee, Artificial Intelligence (AI) stocks were discussed and members noted that the performance of these stocks has not been entirely positive. Officers detailed that they would provide members with further information about the proportion of the pension fund stock that was related to AI. Officers discussed how during 2023, there was an enthusiasm for AI and thus stocks relating to AI, which had given good returns. Officers said they recognised this trend would not continue indefinitely and confirmed they were monitoring the success of the stock. Members asked to what extent AI stocks were considered responsible investment, with Officers detailing they would provide Members with a response. Members inquired as to the ratings of investment managers featured in the report. Officers explained processes around research and detailed that they were due to meet researchers shortly. Members raised questions related to the impact of a deprecation of the GBP against USD and asked Officers how they expected to see this develop going forward. Officers emphasised the status of the fund as a long term investor and therefore acted under the assumption that there would be rises and falls within currency exchange rates and would even out within a long-term vision.
36.	London Collective Investment Vehicle Update Supporting documents: Restricted enclosure 22 View the reasons why document 36./1 is restricted Restricted enclosure 23 View the reasons why document 36./2 is restricted Minutes: The minutes of this item were exempt.
37.	Investment Strategy Implementation Plan Supporting documents: Restricted enclosure 25 View the reasons why document 37./1 is restricted Restricted enclosure 26 View the reasons why document 37./2 is restricted Minutes: The minutes of this item were exempt.
38.	LBS Contribution Rates Review 2023 Supporting documents: Restricted enclosure 28 View the reasons why document 38./1 is restricted Restricted enclosure 29 View the reasons why document 38./2 is restricted Restricted enclosure 30 View the reasons why document 38./3 is restricted Minutes: The minutes of this item were exempt.
39.	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 Chair proposed that the meeting enter an exempt session for the remainder of the meeting. This proposal was seconded by Councillor Drummond and agreed by the committee. The meeting was then closed to the public and press. 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.