Agenda and minutes

To agree the procedures for the operation of hybrid meetings.

RESOLVED -

THAT the Council’s procedure rules for hybrid meetings be agreed.

There were no apologies.

Vinothan Sangarapillai declared for the sake of transparency that he was a member of the Local Government Pension Scheme.   

Broadcast of the meeting

The Chair to announce the following: ‘In addition to the rights by law that the public and press have to record this meeting, I would like to remind everyone that this meeting is being broadcast live by the Council to the Internet and can be viewed on our website for twelve months after the meeting. After that time, webcasts are archived and can be made available upon request.

If you have asked to address the meeting, you are deemed to be consenting to having your contributions recorded and broadcast, including video when switched on, and to the use of those sound recordings and images for webcasting and/or training purposes.’

Any other announcements

Broadcast of the meeting

The Chair announced that “In addition to the rights by law that the public and press have to record this meeting, I would like to remind everyone that this meeting is being broadcast live by the Council to the Internet and can be viewed on our website for twelve months after the meeting. After that time, webcasts are archived and can be made available upon request. 

? 

If you are seated in the Committee Room or participating via Teams, you are deemed to be consenting to having your contributions recorded and broadcast, and to the use of those sound recordings and images for webcasting and/or training purposes.”

The Chair also announced that the agenda items would be considered in the following order, after item 8 on the agenda, item 10, item 11, item 9 and then the remaining agenda items.    

There was no urgent business.

To approve and sign the minutes of the meeting held on the 6^th April 2022.

It was noted that on page 18 of the minutes, first paragraph, that ‘October CBI figure’ should be amended to read ‘October CPI figure…’.  Subject to this amendment it was  

RESOLVED -

THAT the minutes of the meeting held on 6^th April 2022 be agreed and signed as an accurate record. 

Report of the Executive Director Corporate Services

The Pension Board has responsibility for assisting the Pension Committee in ensuring compliance with the Scheme Regulations, other legislation relating to governance and administration, and the requirements of the Pension Regulator. The Pension Board must also ensure the effective and efficient governance and administration of the scheme. This report summarises the items presented and decisions made at the Pension Committee meetings on 21 July 2021 and 21 September 2022.

Consideration was given to a report of the Executive Director Corporate Services.

The Pension Board responsibilities included assisting the Pension Committee in ensuring compliance with the scheme regulations, other legislation relating to governance and the requirements of the Pension Regulator. The role of the  Board provided oversight of assurance and governance of the scheme administration but was not decision making.

Consideration was given to a report that summarised the items presented and decisions made at the Pension Committee meetings held on 21 July 2021 and 21 September 2022. This information included the performance of the fund over the past four to five years and how new investments had contributed to the rebalancing the fund’s assets.  

Members noted the report and asked about how the recent volatility in the gilts market might have affected the pension fund.  They also asked about the London Collective Investment Vehicle (LCIV) and the percentage of Camden’s funds in the LCIV.

In response the Board was informed that it was too soon to assess the impact of the recent volatility in the gilts market and that the effect on funding assumptions would be assessed in due course.  The press reports about pensions being affected were private pension funds linked to the gilts market. It was not anticipated that public sector pension funds would have been significantly impacted and it was confirmed that 70% of Camden’s funds were in the London Collective Investment Vehicle.   

With regard to the Pension Committee Business Plan, following the local elections in May 2022 there were now newly elected Councillors on the Pension Committee and it was noted that they had been encouraged to take part in the training opportunities linked to theirs roles as members of the committee.   

RESOLVED –

THAT the report be noted.

Report of the Executive Director Corporate Services

This report details the Pension Fund cash flow and membership statistics for the previous year and over the longer term.

The Pension Committee, at its meeting on 21 July 2022, noted the contents of the report.

Consideration was given to a report of the Executive Director Corporate Services that provided details of the Pension Fund cash flow and membership statistics for the previous year and over the longer term. The Pension Committee, at its meeting on 21 July 2022 had noted the contents of the report.

The Board noted the factors affecting the cash flow and membership and how these factors had affected the pension fund. There had been a significant rise in the value of both transfers in and out of the scheme but after investment income the total net inflow was slightly reduced compared to 2020/21 owing to the increased cost information provided in the report.

It was noted that there had been a considerable decrease in active membership and that this had mainly been due to the transfers out of the fund from the Local Government Management Board, the Improvement & Development Agency, and Local Government Employers, these were linked memberships and had been transferred to the Merseyside Pension Fund.

The most recent auto-enrolment exercise for Camden employees was noted. The ability of staff to reduce their pension contributions, as an alternative to leaving the pension scheme entirely during these financially difficult times, was welcomed as an option for staff members.               

RESOLVED –

THAT the report be noted.

Report of the Executive Director Corporate Services

This report considers the contribution strategy for the Council as the major employer in the Pension Fund, amongst 27 other much smaller employers. It considers the current stabilisation strategy that is applied to the Council (rates move within a window capped by +1% and a floor of -1%) and presents analysis from the Fund’s actuary for seven different contribution strategies to be applied from 1 April 2023 in 4 different models.

The Pension Committee, at its meeting on 21 September 2022, noted the contents of the report.

Consideration was given to a report of the Executive Director Corporate Services that set out the Council’s contribution as the major employer in the Pension Fund, amongst 27 other much smaller employers. The report considered the current stabilisation strategy that had been applied to the Council and presented an analysis from the fund’s actuary for the different  contribution strategies that could be applied to the fund from 1 April 2023 in  different models. 

The Pension Board noted that the Pension Committee, at its meeting in September had considered the report, the modelling of the seven contribution options under four different scenarios and had decided to reduce the percentage contribution. The Pension Committee’s agreement that this decision would be kept under review was welcomed by the Board. 

The report and the strong position of the pension was welcomed. The Part II section of the report was noted and it was

RESOLVED –

THAT the report be noted.

Report of the Executive Director Corporate Services

This report updates Pension Board on the assumptions underpinning the triennial valuation for salary growth, discount rate (asset outperformance assumption) and other assumptions used in calculating the triennial valuation of the Pension Fund liabilities.

The Pension Committee, at its meeting on 21 July 2022, noted the contents of the report.

Consideration was given to a report of the Executive Director Corporate Services

The Fund’s actuary, Hymans Robertson, and Pension Shared Service had prepared the data for the Fund’s triennial valuation, with the work of the review actuary set out in Appendix A to the report.  Some of the most important assumptions underpinning the triennial valuation were the discount rate, Consumer Price Index (CPI) inflation and salary growth.

The Board noted the report, the review of assumptions and the decisions made in order to progress the triennial valuation.

RESOLVED –

THAT the report be noted.

Report of the Executive Director Corporate Services

This report presents the initial whole fund results of the triennial valuation from the Pension Fund’s actuary (Hymans Robertson).

The Pension Committee, at its meeting on 21 September 2022, noted the contents of the report.

Consideration was given to a report of the Executive Director Corporate Services that presented the initial whole fund results of the triennial valuation from the Pension Fund’s actuary (Hymans Robertson). 

Members of the Pension Board commented on the strong funding levels,  the return on investments and that this strong position was testament to the focused work of all those involved in the management of the pension fund.              

The Part II section of the report was noted and it was

RESOLVED –

THAT the report be noted.

There was no such business.

To note that the next meeting of the Pension Board will take place on Tuesday 28^th March 2023 at 4.00p.m.

It was noted that the next meeting would be taking place on Tuesday 28^th March 2023.