Pension Sub-committee And Pension Board - 21/09/2020
At a JOINT MEETING of the PENSION SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE AND THE PENSION BOARD held at Dundee on 21st September, 2020.
Present:-
PENSION SUB-COMMITTEE
BAILIES
|
Willie SAWERS |
Kevin KEENAN |
COUNCILLORS
|
Anne RENDALL |
George McIRVINE |
Steven ROME |
PENSION BOARD
|
Arthur NICOLL |
Kenny DICK |
Stephen MASSEY |
|
Bob BRAWN |
|
George RAMSAY |
Bailie Willie SAWERS, in the Chair.
I DECLARATION OF INTEREST
No declarations of interest were made.
II MINUTE OF PREVIOUS MEETING
The minute of meeting of 19th December, 2019 was submitted and approved.
The undernoted items had previously been agreed remotely by members of the Sub-Committee and Board due to the Covid-19 Pandemic.
III TAYSIDE PENSION FUND ANNUAL AUDIT PLAN 2019/2020
There was submitted Report No 119-2020 by the Executive Director of Corporate Services providing a summary of the responsibilities and approach of Audit Scotland in respect of Tayside Pension Funds external audit for 2019/2020.
The Sub-Committee and Board noted the report by Audit Scotland.
IV TREASURY POLICY STATEMENT
There was submitted Report No 121-2020 by the Executive Director of Corporate Services reviewing the Councils Treasury Policy Statement which was intended to govern all treasury activities carried out by Tayside Pension Fund.
The Sub-Committee and Board approved the policies and procedures laid out in the Treasury Policy Statement 2020/2021, noting that the Treasury Policy Statement must be reviewed annually.
V TREASURY MANAGEMENT STRATEGY
There was submitted Report No 122-2020 by the Executive Director of Corporate Services reviewing the Treasury Management Strategy for Tayside Pension Fund.
The Sub-Committee and Board approved the Treasury Management Strategy.
VI FUNDING STRATEGY STATEMENT
There was submitted Report No 123-2020 by the Executive Director of Corporate Services reviewing the Funding Strategy Statements for the Tayside Pension Fund.
The Sub-Committee and Board approved the Funding Strategy Statement for Tayside Pension Fund.
VII STATEMENT OF INVESTMENT PRINCIPLES
There was submitted Report No 124-2020 by the Executive Director of Corporate Services reviewing the Statements of Investment Principles for Tayside Pension Fund.
The Sub-Committee and Board noted the information within the report and approved the Statements of Investment Principles.
VIII COVID-19 AND EMPLOYERS' CONTRIBUTIONS
There was submitted Report No 145-2020 by the Executive Director of Corporate Services providing information on Tayside Pension Fund employers and their ability to meet their responsibilities in respect of their monthly pension contributions in light of the current public health restrictions. The report also detailed available remedies allowed within LGPS regulations.
The Sub-Committee and Board agreed that authority to make suitable arrangements in relation to amending employer contribution scheduling be delegated to the Executive Director of Corporate Services in line with the requirements of The Pensions Regulator as detailed in the report and informed by a risk-based assessment in keeping with guidance available.
IX INTERNAL AUDIT RISK ASSESSMENT AND AUDIT PLAN 2019/2020 AND 2020/2021
There was submitted Report No 151-2020 by the Executive Director of Corporate Services setting out the risk assessment undertaken by PwC and detailing their internal audit plans for Tayside Pension Fund for 2019/2020 and 2020/2021.
The Sub-Committee and Board reviewed and approved the Internal Audit plans by PwC as detailed.
X TAYSIDE PENSION FUND INTERNAL ANNUAL AUDIT REPORT 2019/2020
There was submitted Report No 164-2020 by the Executive Director of Corporate Services providing the Sub-Committee and Board with the Annual Audit Report prepared by the Funds Internal Auditor, PricewaterhouseCoopers (PwC).
The Sub-Committee and Board noted the content of the annual report as well as the content of the appended reports on specific audit exercises undertaken, approved the management response.
XI TAYSIDE PENSION FUND ANNUAL GOVERNANCE AND GOVERNANCE COMPLIANCE STATEMENTS
There was submitted Report No 165-2020 by the Executive Director of Corporate Services presenting the Annual Governance Statement and Governance Compliance Statement for approval and inclusion into the unaudited Annual Accounts for the year ended 31st March, 2020. The report also set out the governance arrangements of Tayside Pension Fund and the extent to which it complied with regulations.
The Sub-Committee and Board agreed to:-
(i) approve the Annual Governance and Governance Compliance Statements which were included as an Appendix to the report; and
(ii) instructed the inclusion of the statements in the Annual Accounts for the year to 31st March, 2020.
XII TAYSIDE PENSION FUND ANNUAL REPORT AND ACCOUNTS 2019/2020
There was submitted Report No 166-2020 by the Executive Director of Corporate Services providing additional commentary on the unaudited Annual Accounts 2019/2020 which were being submitted to the Sub-Committee and Board along with the report.
The Sub-Committee and Board agreed to:-
(i) note the content of the covering report;
(ii) note the unaudited Annual Accounts which had been submitted along with the report in Appendix A;
(iii) instruct the Executive Director of Corporate Services to arrange for the unaudited Accounts to be signed as necessary; and
(iv) instruct the Executive Director of Corporate Services to submit the Annual Accounts to the Funds external auditor.
The undernoted items were considered remotely by members of the Sub-Committee and Board in the usual way.
XIII TAYSIDE PENSION FUND RISK MANAGEMENT POLICY AND STRATEGY
There was submitted Report No 115-2020 by the Executive Director of Corporate Services presenting the Tayside Pension Funds Risk Policy and Strategy which would be subject to annual review.
The Sub-Committee and Board approved the Risk Management Policy and Strategy.
XIV TAYSIDE PENSION FUND TRAINING AND ATTENDANCE POLICY
There was submitted Report No 116-2020 by the Executive Director of Corporate Services presenting the Tayside Pension Funds Training Policy which would be subject to annual review.
The Sub-Committee and Board approved the Training Policy.
XV TAYSIDE PENSION FUND TRAINING PLAN 2020/2021
There was submitted Report No 117-2020 by the Executive Director of Corporate Services presenting the Tayside Pension Funds Training Plan which would be subject to annual review.
The Sub-Committee and Board approved the Training Plan for 2020/2021.
XVI TAYSIDE PENSION FUND BUSINESS PLAN 2020/2021
There was submitted Report No 125-2020 by the Executive Director of Corporate Services introducing the annual business plan for the Tayside Pension Fund.
The Sub-Committee and Board agreed to note the information within the report and approve the 2020/2021 Business Plan which applied to the administration and management of the Tayside Pension Fund.
XVII RISK REGISTER
There was submitted Report No 244-2020 by the Executive Director of Corporate Services updating the Risk Register for Tayside Pension Fund.
The Sub-Committee and Board approved the Quarterly Risk Register for Tayside Pension Fund which was updated on 4th September, 2020, and noted the following change to the risk profile since the previous report:-
Risk 2 - Failure to collect and account for employer contributions
Due to disruptions caused by Covid-19, there was an increased likelihood that employers would be unable to provide contributions within required timescales.
Risk 7 - Significant rise in employer contribution due to poor/negative investment returns
With a negative global economic outlook, there was an increased likelihood of significantly reduced investment returns.
Risk 10 - Equity Risk
There was an increased risk of substantial market decline resulting in financial loss due to concerns around coronavirus and the impact that this may have on the global supply chain.