To receive the Administration and Governance Report
Minutes:
The Committee reviewed the Update. The Pension Fund Manager highlighted the following:
2. Scheme Advisory Board (SAB) Updates
2.2 – a full Annual Report has been produced by the SAB using data from the individual LGPS funds has been produced by the Local Government Pension Scheme (LGPS), which the fund showed a positive trend in funding levels and assets held.
A query was answered in response to management fees and explained that it was percentage based, and more information would be presented to the Committee at the next meeting.
2.3 – the Powys Fund’s Annual Report would be published by 01 December 2023. Additional guidance on how to make the report easier to produce will be provided by the SAB in future .
2.5 – The Scheme Advisory Board published a scheme valuation report, derived from the individual Funds valuation reports from 31March 2022 which showed improvements in the overall funding level of the LGPS as a whole.
3. Local Government Pension Scheme (LGPS) Updates
3.1 – a response had been submitted on behalf of the Powys Pension Fund to the Department for Levelling Up, Housing and Communities (DLUHC) regarding the levelling up and pooling of funds consultation.
The Pension Fund Manager explained that a strong message had been provided from Wales including potential implications from changes that may be introduced. It was noted that the Powys Fund value is approximately £800m and the Welsh Pensions Partnership (WPP) was over £20b.
3.2 – McCloud, a Local Government Pension Scheme amendment was implemented on 01 October 2023, retrospective work would be undertaken by the Pensions Team in order to ensure that all member records affected were corrected accordingly. The Pension Fund Manager responded to a query around the costs within the scheme and explained that the impact would be on administration and liability and not expected on the investment management cost.
Assurance was provided to the Committee by the Section 151 Officer that any review around resources will be carried out with benchmarking against other funds and emphasised that Powys did not have the same economies of scale as other funds.
The Chair of the Powys Pensions Board commented that a key link was evident between the level of resource and frequency of breaches, and adequate resources was expected by the Pensions Regulator to provide the administrative function.
6. Risk Register
6.1 – an addition was added to the Investment Pillar around climate change.
INVEST0012 – the risk reflected the actions of the Welsh Pensions Partnership (WPP), the Committee requested that the risk be aligned with separate issues of the eco system and food production.
ADMIN0010 – Work is ongoing in respect of existence checking for overseas pensioners. The Pensions Team had reached out to gain more understanding on how other funds carry out checks which may in turn be introduced.
7. Breaches Register
7.2 - a new breach had been identified and added to register for employers that do not submit pension contributions within the statutory timeframes. The Pensions Team have introduced a dedicated post in place to monitor and support all employers to ensure compliance with the regulations.
It was moved and duly seconded to note the report and approve the risk register.
Resolved:
Recommendation: INVEST0012 to include separate elements that are aligned with climate change (food production and the eco system).
Supporting documents: