Agenda and minutes
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Contact: Committee Services 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.
Fiona Kemp explained that this would be her last meeting in the role of cooptee. Officers and Members thanked Ms Kemp for her work and contributions to the Committee. Officers explained that the process to recruit a replacement to the role was being progressed.
The Strategic Director, Resources drew attention that the Sutton Pension fund had been awarded the 2024 LGPS Fund of the Year, assets under £2.5 billion. Members congratulated the Pensions team. |
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Apologies for absence and declarations of interests Minutes: Apologies for absence were received from Councillor Patrick Magnus.
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 1 October 2024. Supporting documents:
Minutes: RESOLVED:
1. that the minutes of the meeting held on 1 October 2024 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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Update on Pension Reforms and Government Consultation Supporting documents:
Minutes: The Strategic Director, Resources Introduced the report.
Officers explained further information and detail was required to allow full understanding of implications of the reforms, examples included a definition of what ‘local’ actually means. There was some concern expressed that the reform may create additional short term costs for the fund.
Members discussed the proposals around how decisions on local investment would be made and noted the government’s intention and preference to use the Mayoral model to help shape proposals. Members discussed how this would work in London with the GLA and highlighted there should be more of a role for individual councils possible through London Councils to contribute to this. The Strategic Director noted these concerns and advised that he would include them in our response.
Resolved:
1. To note the report summarising the interim findings of the Pensions Investment Review (Appendix A) and the LGPS fit for the future consultation (Appendix B) and provide any comments be noted. 2. Responsibility for responding to the consultation by 16 January 2025 be delegated to the Strategic Director of Resources in conjunction with the Chair of the Pension Committee. |
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Pension Administration Performance Update Supporting documents:
Minutes: The Interim Head of Pensions Administration introduced the report.
Members noted the positive improvement in the benefits processing performance data would result in improved data quality when the fund triennial valuation was completed in 2025.
Officers explained that Encompass staff who are transferring back to the Council in January 2025 had been supported as a group, and that individuals had been able to ask questions about the process of moving pensions. Information was provided to staff, however Officers explained that the team were unable to offer staff financial advice on whether transferring previous pensions into the LGPS was in their best interests.
Resolved
1. The update be noted |
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Pension Administration Projects Update Supporting documents:
Minutes: The Interim Head of Pensions Administration introduced the report.
Officers explained the process for connecting the Funds data to the national Government Dashboard by October 2025. Members enquired about the GDPR implications from sharing data to the Dashboard, and Officers explained that GDPR concerns were addressed by the Integrated Service Provider (ISP) and through the Funds procurement process.
In relation to the Guaranteed Minimum Pension (GMP) reconciliation officers clarified that all members impacted had been contacted via a mail out, and affected members would be contacted again in January 2025 reminding them that from February 2025 their pension benefits would be corrected.
Resolved
1. The update be noted |
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Governance and Risk Update Supporting documents:
Minutes: The Interim Head of Pensions Administration introduced the report.
Officers introduced the Funds risk register and highlighted the current amber risks. In a discussion regarding Cyber Security, Risk 3, Officers confirmed that an unpublished Cyber Security Policy was in place and was being reviewed. Members also enquired about Risk 1 and whether in light of the reduced backlogs this could be reassessed. Officers explained that the Data Improvement Policy was currently being reviewed along with Risk 1 on the Funds Risk Register.
Officers explained that employers had been exposed to risk through ill-health retirements and arrangements were now in place to revert back to the previous model prior to the 2022 triennial valuation. By reverting to the previous model, the risk on the Fund of employers not purchasing external insurance would be removed. Officers explained that the decision that a fund member retire through ill health was a decision made by the employer rather than the fund with legal processes in place which defined ill health retirement.
Resolved:
1. The revised policy on ill health retirement strain costs and draft Funding Strategy Statement (FSS) be approved
2. The update and risk register be noted. |
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Triennial Actuarial Valuation Timeline Supporting documents:
Minutes: The Head of Pensions Investments and Treasury introduced the report.
Members noted that the impact of the government’s Pension reform would be considered within the valuation.
Resolved
1. The proposed timeline for completing the Actuarial Valuation in line with statutory requirements be noted |
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Work Programme Update Supporting documents: Minutes: The Pensions Finance & Investments Manager introduced the report.
Officers confirmed future training would focus on gaps shown in the recent survey.
Resolved
1. The updated Work Programme for the Committee be noted |
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Sutton Pension Fund 2024-25 Budget - Six Month Update Supporting documents: Minutes: The Head of Pensions Investments and Treasury introduced the report.
Members discussed the reasons for the rise in members taking the lump sum, and suggested there were a variety of reasons why members were choosing this option.
Resolved
1. The mid-year update on the Fund’s 2024-25 budget be noted |
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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.
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. |
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Investment and Manager Performance to 30 September 2024 Supporting documents:
Minutes: The Head of Pensions Investments and Treasury introduced the report
Officers clarified that a second money market had now been added to the fund.
Members discussed the reasons why the fund had performed well and noted that a high investment in equities, had supported positive performance over the long term, with the bench mark being out performed. Officers added that the performance of the fund was related to investment decisions.
Officers explained that although in the future it is likely the London CIV will have a greater role to play in investment decisions there would still be clear ways that the fund could hold them to account.
Resolved
1. The performance of the Fund during the quarter ended 30 September 2024 be noted. 2. The Fund’s actual asset allocation as at 30 September 2024 be noted . 3. The funding level as at 30 September 2024 be noted. |
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London Collective Investment Vehicle Update Supporting documents:
Minutes: The Pensions Finance & Investments Manager introduced the report.
Officers confirmed that the role of the CIV’s Chief Investment Officer was under discussion.
It was explained that assets are managed through a range of services, it was added that capacity was a concern however, this was being monitored.
Resolved
1. The update on the London Collective Investment Vehicle be noted.
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