Venue: By Zoom. View directions
Contact: Rachel Pugh 01597 826496
No. | Item |
---|---|
Apologies To receive apologies for absence. Minutes: Apologies for absence were received from: Wayne Thomas (Employer Representative) John Byrne (Scheme Member Representative)
|
|
Declarations of interest To receive any declarations of interest. Minutes: There were no declarations of interest.
|
|
Minutes of the Board PDF 90 KB To authorise the Chair to sign the minutes of the meeting of the Board held on 10 February 2023 as a correct record. Minutes: The minutes of the meetings held on 10 February 2023 were agreed as correct records.
|
|
Matters arising Verbal update from the Chair. Minutes: Chairman’s signature to be amended at the end of the minutes.
The Chair advised that The Pension Regulator [TPR] had advised it intends to place the legislation, in respect of the Singular Modular Code before Parliament very soon. The Chair will have the opportunity to speak with the Pension Regulator on the 18 May 2023, and provide an update to the Board.
The Board welcomed Ian Jones as a new Scheme Member Representative.
The Pensions Fund Manager advised that a recruitment exercise has begun with a view to seeking a replacement Employer Representative position, which will arise later in the year.
|
|
Review of Risk Register PDF 70 KB To review the Risk Register and consider any new risks. Additional documents: Minutes: The Board undertook at “deep dive” of the Investment pillar of the Risk Register. It was noted that the Pensions and Investment Committee have welcomed recommendations from previous “deep dives”.
Noted: The Latest Risk Review column in the report reflects the first review not the latest. The Risk Register Matrix is on a scoring basis from 1 to 5
The Board noted the following or made the following comments [the numbers shown are the Risk Reference numbers]:
INVEST0001 - Pension Fund assets fail to deliver returns in line with the anticipated returns underpinning the valuation of liabilities over the long-term.
The Pension Fund Manager informed Board that prudence has increased since the risk was identified in 2016 and that regular funding updates are received from the Actuary and regular strategy reviews are undertaken with the investment consultant.
The Board felt the Inherent Risk Score was too low due to the importance of the investment return when setting up employer contribution rates.
The Board recommended that the Inherent Risk score for INVEST0001 was increased slightly from the current score of 6
INVEST0002 - Inappropriate long-term investment strategy.
INVEST0001 and INVEST0002 are interlinked and should remain within the risk register.
The Board recommended that the narrative throughout the report, in the right-hand column, should be updated.
INVEST0003 - Active investment manager under-performance relative to the benchmark.
The Board agreed that the risk is to be updated to reflect that most assets have been pooled and noted that regular reviews were being held with contractors monitoring the pool. Assurance has been received that changes will be made when required.
The Board recommended that Controls and Actions section of risk INVEST0003 could be expanded to reflect internal controls and the multi-layered processes in place, due to the pooling of funds.
INVEST0004 - To permit deficits to be eliminated over a recovery period rather than immediately, introduces the risk that action to restore solvency is insufficient between successive measurements.
The Pension Fund Manager explained that the risk reflected that employers in deficit have been identified and a recovery plan has been put in place.
The Board recommended that to demonstrate a higher level of prudence additional information should be added to risk INVEST0004 and to include the triennial valuation information.
INVEST0005- Permitting contribution rate changes to be introduced annual steps rather than immediately, introduces a risk that action to restore solvency is insufficient between successive measurements. The risk was initially identified in 2016 and the Board agreed it should now reflect any recent changes to employers’ contribution rates. It was noted that a key control remains in place with the Actuary having to sign off any approach at each valuation.
Discussions were held around the refunds to exiting employers and if an additional risk should be added around cash flow, this would be considered by the Pension Fund Manager and other risk register pillars checked for duplication.
The Board recommended that additional information to reflect the issues of two way exiting employers is added ... view the full minutes text for item 5. |
|
Future Board Meetings 2023 12 June – 2pm 11 September – 2pm 20 November - 10am Minutes: The Board noted the meeting dates:
2023 12 June – 2pm 11 September – 2pm 20 November - 10am
|