Agenda and minutes

Pension Committee - Tuesday, 25th June, 2024 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

Media

Items
No.	Item
1.	Welcome and introductions Minutes: The Chair, Councillor Cryss Mennaceur, welcomed those present. The Chair announced that the meeting’s audio would be recorded and available for playback following the meeting. The Chair reminded the Committee that, following a decision at Annual Council, Independent Members of the Committee had new voting rights within committee matters.
2.	Apologies for absence and declarations of interest View the background to item 2. Minutes: There were apologies for absence from Fiona Kemp. 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 Tuesday 12 March 2024. Supporting documents: Restricted enclosure 4 View the reasons why document 3./1 is restricted Minutes , 12/03/2024 Pension Committee , item 3. PDF 129 KB Minutes: RESOLVED: 1. That the minutes of the previous meeting held on 12 March 2024 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.	Work of the Pension Board 2023 to 2024 Supporting documents: 5. Work of the Pension Board 2023 to 2024_ (R) _ Pension Committee _ 20240625 , item 5. PDF 204 KB Minutes: The Chair of the Pension Board introduced the report. Members of the Committee expressed concern that some members of the Board had not completed the necessary training modules. The Chair of the Pension Board recognised the Committee’s concerns and the need for all members to complete the required training. He described how he had met with the Pensions Administration team to discuss what actions could be taken to amend this in order to ensure that the Board, and thus scheme members, were experiencing the benefit of the training offered. The Chair of the Pension Board noted that he had completed other training sessions in addition to those mentioned through similar roles he held, which had supported him in his role. The Committee noted additional concerns regarding the attendance of members of the Pension Board which The Chair of the Pension Board acknowledged. Members commended the approach taken by the Pension Board towards the Risk Register, which focused more on strategic than operational risks. Members inquired further as to the process of Pension Board member selection. Officers explained the different processes used for employer, member and pensioner representative selection. RESOLVED: 1. To note the report.
6.	Pension Administration Performance Update Supporting documents: 6. Pension Administration Performance Update (R) _ Pension Committee _ 20240625 , item 6. PDF 166 KB 6a. Appendix A - Benefits processing performance data _ Pension Committee _ 20240625 , item 6. PDF 227 KB Minutes: The Assistant Director of Finance introduced the report. The Committee explored the minor breach highlighted and inquired as to the mechanisms put in place to stop further instances occurring. Officers explained that individuals had been spoken to by their managers and were reminded of the established protocols. Members noted that the errors in question were related to paper misplacement and inquired what steps could be taken to reduce these errors. Officers stated that steps have been taken to reduce paper use generally in the service and all staff are required to complete annual data training. Members asked whether the level of turnover present within the Pensions Administration team was a result of market imbalance. Officers confirmed this and noted that other councils were experiencing recruitment challenges, particularly within senior positions. Members inquired as to the level of progress made against the backlog of cases within the present quarter. Officers noted that the figures overall had been relatively static during the quarter and that the levels of leavers had increased. The Committee inquired as to the increase in officers workload in light of the backlog. Officers stated that elements of the backlog had existed for a longer period and confirmed that they were in communication about this with employers. Officers noted that they conducted a training session for employers, which had contributed to improvements. Officers confirmed that this training would be offered quarterly for employers. Members raised the possibility of receiving monthly returns from employers. Officers noted this question and would investigate further. The Committee inquired as to the changes within work allocation and how this had affected team morale. Officers explained that the structure of the team had been amended and an officer had assumed a leadership role to oversee the day-to-day allocation of cases. Officers explained that they had been transparent with the team and acknowledged that there would be potential elements of trial and error within the structural changes, but noted that feedback had been positive overall. Members asked whether there was a way in which a stop within a person’s payment could be used to trigger a notification within the team in order to act on cases quicker. Officers explained that this was not possible at present but that the opportunity may become available. RESOLVED: 1. To note the update.
7.	Pension Administration Projects Update Supporting documents: 7. Pension Administration Projects Update (R) _ Pension Committee _ 20240625 , item 7. PDF 170 KB Minutes: The Assistant Director of Finance introduced the report. Members asked about the nature of different projects, noting that many were recurring and completed periodically whilst others were one-off tasks. Officers stated that, moving forward, individual and recurring projects would be separated in reporting. The Committee inquired as to how issues within the triennial valuation were being tackled, particularly the backlog and late returns from employers. Officers highlighted that the data improvement project featured in the report aimed to tackle these concerns and that resources in the team had increased in these areas. Members inquired about the potential impact late returns from employers would have on their FRS and IES reports. Officers confirmed that they had communicated the impact with employers who increasingly recognised the need to submit returns in the appropriate time. RESOLVED: 1. To note the update.
8.	Pension Administration Strategy Update Supporting documents: 8. Pension Administration Strategy Update (R) _ Pension Committee _ 20240625 , item 8. PDF 169 KB 8a. Appendix A - Draft Pension Administration Strategy _ Pension Committee _ 20240625 , item 8. PDF 383 KB Minutes: The Assistant Director of Finance introduced the report. Members inquired as to why the level of respondents was limited and whether changes could be made in the communication to employers. Officers highlighted that the level was relatively consistent with past responses. Officers stated that efforts were being made to share this with employers including at a training event. The Committee inquired as to when the reporting of instances of employers failures to the Pensions Regulator would be coming to the Committee. Officers stated that this would be featured in a future Administration Performance Update to Committee. Members noted that the default method of payslips was via email and inquired as to how the team was contacting those who had previously not provided an email address. Officers stated that receiving payslips by post was still an option available to scheme members and would investigate the question of email collection further. RESOLVED: 1. To approve the draft pension administration strategy.
9.	Governance and Risk Update Supporting documents: 9. Governance and Risk Update (R) _ Pension Committee _ 20240625 , item 9. PDF 181 KB 9a. Appendix A - Governance and Risk Update (R) _ Pension Committee _ 20240625 , item 9. PDF 113 KB 9b. Appendix B - Admission and Cessation Performance _ Pension Committee _ 20240625 , item 9. PDF 24 KB Minutes: The Assistant Director of Finance introduced the report. Members asked how many employers had participated in the training offered. Officers confirmed that 20 employers attended and that the training would be repeated for others. Officers noted that they aimed to record the information and share it with participants. The Committee explored further the status of the voluntary early retirement scheme. Officers detailed that a voluntary redundancy scheme was launched in 2023, the decisions following applications were made in early 2024 and those who have chosen voluntary redundancy have established plans to move on from the service. RESOLVED: 1. To note the update and risk register.
10.	Work Programme Update Supporting documents: 10. Work Programme Update _ Pension Committee _ 20240625 , item 10. PDF 157 KB Minutes: The Senior Finance Lead - Pensions Investments & Reporting introduced the report. Members highlighted the Responsible Investment training set to be offered in September 2024 and provided positive feedback on training previously held. The Committee inquired as to the mandatory nature of the training. Officers confirmed that the training was not at present mandatory for the Pension Committee but was mandatory for the Board. Officers advised that training for the Pension Committee could become mandatory in the future. RESOLVED: 1. To note the work programme.
11.	Investment and Manager Performance to 31 March 2024 Supporting documents: 11. Investment and Manager Performance to 31 March 2024 (R) _ Pension Committee - 20240625 , item 11. PDF 275 KB 11a. Appendix A - Quarterly Performance Report March 2024 (Mercer) _ Pension Committee _ 20240625 , item 11. PDF 2 MB Restricted enclosure 25 View the reasons why document 11./3 is restricted Restricted enclosure 26 View the reasons why document 11./4 is restricted Minutes: The Head of Pensions Investments introduced the report. Members explored the reasons behind the improvement in funding level, noting that liabilities had decreased. Officers confirmed that the improvement in funding level was a consequence of both strong investment returns and a decrease in liabilities. RESOLVED: 1. To note the performance of the Fund during the quarter ended 31 March 2024. 2. To note the funding level as at 31 March 2024.
12.	London Collective Investment Vehicle Update Supporting documents: Restricted enclosure 28 View the reasons why document 12./1 is restricted Restricted enclosure 29 View the reasons why document 12./2 is restricted Minutes: The minutes of this item were exempt.
13.	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.