Pension Sub-committee And Pension Board - 13/12/2021
At a JOINT MEETING of the PENSION SUB-COMMITTEE of the POLICY AND RESOURCES COMMITTEE AND THE PENSION BOARD held remotely on 13th December, 2021.
Present: -
PENSION SUB-COMMITTEE
BAILIES
|
Willie SAWERS |
Kevin KEENAN |
|
COUNCILLORS
|
Anne RENDALL |
Steven ROME |
George McIRVINE |
|
|
Philip SCOTT |
|
PENSION BOARD
|
Councillor Bob BRAWN |
Arthur NICOLL |
George RAMSAY |
|
|
Kenny DICK |
|
Bailie Willie SAWERS, in the Chair.
I DECLARATION OF INTEREST
No declarations of interest were made.
II APOLOGIES
The Sub-Committee and Board noted that no apologies had been received.
III MINUTE OF PREVIOUS MEETING
The minute of meeting of 20th September, 2021 was submitted and approved.
IV APPOINTMENT OF CHAIRPERSON OF PENSION BOARD
Reference was made to Agenda Note AN42-2021 whereby it was agreed by the Sub-Committee and Board that in accordance with the Public Service Pensions Act 2013, Kenny Dick be appointed to the post of Chair of the Pension Board for the period of 12 months.
V RISK REGISTER
There was submitted Report No 341-2021 by the Executive Director of Corporate Services updating the Risk Register for the Tayside Pension Fund.
The Sub-Committee approved the Quarterly Risk Register for Tayside Pension Fund which was updated on 20th September, 2021, and noted that there were no changes to risk profile since the previous report.
VI PENSION ADMINISTRATION PERFORMANCE
There was submitted Report No 342-2021 by the Executive Director of Corporate Services providing information on the recent quarters operational performance in relation to Pension Administration.
The Sub-Committee and Board noted the content of the report.
VII OPERATIONAL IMPLICATIONS OF LEGISLATION TO ADDRESS DISCRIMINATION IN LGPS
There was submitted Report No 343-2021 by the Executive Director of Corporate Services outlining the operational requirements of implementing the incoming legislation to address age discrimination in the LGPS and advising of the draft timescale of actions to be taken and the additional resources that would be required to implement the remedy the cases that had been identified within Tayside Pension Fund to have been affected.
The Sub-Committee and Board noted the content of the report and approved the recruitment of additional resources identified as required for successful implementation.
VIII OVERPAYMENTS POLICY
There was submitted Report No 344-2021 by the Executive Director of Corporate Services detailing the proposed policy in relation to the recovery of overpayments of pension.
The Sub-Committee and Board approved the policy, noting the content of the report.
IX TAYSIDE PENSION FUND INTERNAL AUDIT REPORT
There was submitted Report No 345-2021 by the Executive Director of Corporate Services submitting to the Sub-Committee and Board the Audit Report prepared by the Funds Internal Auditor, PricewaterhouseCoopers (PwC).
The Sub-Committee and Board noted the content of the report on the audit exercise undertaken, and approved the management response.
X TREASURY MANAGEMENT ACTIVITY 2021/2022 (MID YEAR REVIEW)
There was submitted Report No 346-2021 by the Executive Director of Corporate Services reviewing Tayside Pension Funds Treasury Management activities for the period 1st April, 2021 to 30th September, 2021.
The Sub-Committee and Board noted the content of the report.
XI PROPOSED TIMETABLE OF MEETINGS FOR 2022
There was submitted Report No 347-2021 by the Executive Director of Corporate Services proposing a suggested programme of meetings of the Pension Sub-Committee and Pension Board in 2022.
The Sub-Committee and Board examined the dates set out in the timetable in Appendix 1 to the report and agreed the proposed programme of meetings.
The Sub-Committee and Board resolved under Section 50(A)(4) of the Local Government (Scotland) Act 1973 that the press and public be excluded from the meeting for the undernoted items of business on the grounds that they involved the likely disclosure of exempt information as defined in paragraphs 4, 6 and 11 of Part I of Schedule 7A of the Act.
XII TAYSIDE PENSION FUNDS
(a) PERFORMANCE SUMMARIES
There was submitted Report No 348-2021 reviewing the investment performance of the Funds Investment Managers for the quarter to 30th September, 2021. The report compared investment performance of the Fund with the Funds specific benchmarks which consisted of various stock and security market indices.
The Sub-Committee and Board noted the information contained therein with regard to the performance of the Tayside Main Fund and their Fund Managers.
(b) SUMMARIES OF INVESTMENTS AND TRANSACTIONS
There was submitted Report No 329-2021 by the Executive Director of Corporate Services reviewing the investment activities of Tayside Pension Funds five Fund Managers for the quarter to 30th September, 2021 and summarising the transactions of each Fund Manager and showing the market values of the Pension Fund.
The Sub-Committee and Board noted the information contained therein with regard to the activities of the Tayside Pension Fund and its Fund Managers.
(c) QUARTERLY FUNDING UPDATE AS AT 30TH JUNE, 2021
There was submitted Report No 349-2021 by the Executive Director of Corporate Services reviewing the current funding level of the Fund as assessed by the Fund Actuary.
The Sub-Committee and Board noted the content of the report.
XIII SOCIALLY RESPONSIBLE INVESTMENT
Reference was made to Article XV of the Minute of Meeting of the Pension Sub-Committee of the Policy and Resources Committee of 21st June 2021 whereby approval was given to Report No 209‑2021 - Socially Responsible Investment.
There was submitted Report No 350-2021 by the Executive Director of Corporate Services reviewing the progress by the Fund Managers regarding positive engagement in line with the Policy on Environmental, Social and Corporate Governance.
The Sub-Committee and Board noted the information contained within the report with regards to the activities of the Fund Managers during the six-month period ended 30th September, 2021.
XIV ANNUAL ASSESSMENT OF INVESTMENT ADVISORY SERVICES 2021
There was submitted Report No 351-2021 by the Executive Director of Corporate Services providing information on the annual assessment of investment advisory service performance as required by the Competition and Markets Authority.
The Sub-Committee and Board noted the content of the report.
XV PROPOSED STRATEGY TO END INVESTMENT IN FOSSIL FUEL COMPANIES NOT STRONGLY COMMITTED TO CARBON REDUCTION
There was submitted Report No 352-2021 by the Executive Director of Corporate Services detailing a proposed strategy to end investment in fossil companies that were not committed to reducing carbon emissions.
The Sub-Committee and Board approved the proposed strategy and authorised officers to undertake consultation and amend investment policies for subsequent consideration of the Sub-Committee and Board.
XVI EXITING EMPLOYER REPORT
There was submitted Report No 353-2021 by the Executive Director of Corporate Services detailing a request from Carnoustie Golf Links to exit as employers from Tayside Pension Fund.
The Sub-Committee and Board noted the information contained within the report, and approved the request for employer exit as at 31st December, 2021.
Thereafter, the Chair, on behalf of the Sub-Committee and Board, Fund and officers thanked Mr Gordon Murray, the employers representative on the Pension Board, for his contribution and service to the Pension Board since its establishment in 2015.
XVII EXITING EMPLOYER REPORT
There was submitted Report No 357-2021 by the Executive Director of Corporate Services providing information on the exit of Balnacraig School from Tayside Pension Fund as a result of insolvency.
The Sub-Committee and Board noted the information contained within the report.
XVIII PRESENTATION
Jeremy Podger and David Barbour of Fidelity gave a short presentation to the Sub-Committee and Board.
After Ms Podger and Mr Barbour had given their presentation and answered questions from members, the Chair thanked the presenters on behalf of members of the Sub-Committee and Board.
Willie SAWERS, Chair.
There was submitted Report No 345-2021 by the Executive Director of Corporate Services submitting to the Sub-Committee and Board the Audit Report prepared by the Funds Internal Auditor, PricewaterhouseCoopers (PwC).
The Sub-Committee and Board noted the content of the report on the audit exercise undertaken, and approved the management response.
X TREASURY MANAGEMENT ACTIVITY 2021/2022 (MID YEAR REVIEW)
There was submitted Report No 346-2021 by the Executive Director of Corporate Services reviewing Tayside Pension Funds Treasury Management activities for the period 1st April, 2021 to 30th September, 2021.
The Sub-Committee and Board noted the content of the report.
XI PROPOSED TIMETABLE OF MEETINGS FOR 2022
There was submitted Report No 347-2021 by the Executive Director of Corporate Services proposing a suggested programme of meetings of the Pension Sub-Committee and Pension Board in 2022.
The Sub-Committee and Board examined the dates set out in the timetable in Appendix 1 to the report and agreed the proposed programme of meetings.
The Sub-Committee and Board resolved under Section 50(A)(4) of the Local Government (Scotland) Act 1973 that the press and public be excluded from the meeting for the undernoted items of business on the grounds that they involved the likely disclosure of exempt information as defined in paragraphs 4, 6 and 11 of Part I of Schedule 7A of the Act.
XII TAYSIDE PENSION FUNDS
(a) PERFORMANCE SUMMARIES
There was submitted Report No 348-2021 reviewing the investment performance of the Funds Investment Managers for the quarter to 30th September, 2021. The report compared investment performance of the Fund with the Funds specific benchmarks which consisted of various stock and security market indices.
The Sub-Committee and Board noted the information contained therein with regard to the performance of the Tayside Main Fund and their Fund Managers.
(b) SUMMARIES OF INVESTMENTS AND TRANSACTIONS
There was submitted Report No 329-2021 by the Executive Director of Corporate Services reviewing the investment activities of Tayside Pension Funds five Fund Managers for the quarter to 30th September, 2021 and summarising the transactions of each Fund Manager and showing the market values of the Pension Fund.
The Sub-Committee and Board noted the information contained therein with regard to the activities of the Tayside Pension Fund and its Fund Managers.
(c) QUARTERLY FUNDING UPDATE AS AT 30TH JUNE, 2021
There was submitted Report No 349-2021 by the Executive Director of Corporate Services reviewing the current funding level of the Fund as assessed by the Fund Actuary.
The Sub-Committee and Board noted the content of the report.
XIII SOCIALLY RESPONSIBLE INVESTMENT
Reference was made to Article XV of the Minute of Meeting of the Pension Sub-Committee of the Policy and Resources Committee of 21st June 2021 whereby approval was given to Report No 209‑2021 - Socially Responsible Investment.
There was submitted Report No 350-2021 by the Executive Director of Corporate Services reviewing the progress by the Fund Managers regarding positive engagement in line with the Policy on Environmental, Social and Corporate Governance.
The Sub-Committee and Board noted the information contained within the report with regards to the activities of the Fund Managers during the six-month period ended 30th September, 2021.
XIV ANNUAL ASSESSMENT OF INVESTMENT ADVISORY SERVICES 2021
There was submitted Report No 351-2021 by the Executive Director of Corporate Services providing information on the annual assessment of investment advisory service performance as required by the Competition and Markets Authority.
The Sub-Committee and Board noted the content of the report.
XV PROPOSED STRATEGY TO END INVESTMENT IN FOSSIL FUEL COMPANIES NOT STRONGLY COMMITTED TO CARBON REDUCTION
There was submitted Report No 352-2021 by the Executive Director of Corporate Services detailing a proposed strategy to end investment in fossil companies that were not committed to reducing carbon emissions.
The Sub-Committee and Board approved the proposed strategy and authorised officers to undertake consultation and amend investment policies for subsequent consideration of the Sub-Committee and Board.
XVI EXITING EMPLOYER REPORT
There was submitted Report No 353-2021 by the Executive Director of Corporate Services detailing a request from Carnoustie Golf Links to exit as employers from Tayside Pension Fund.
The Sub-Committee and Board noted the information contained within the report, and approved the request for employer exit as at 31st December, 2021.
Thereafter, the Chair, on behalf of the Sub-Committee and Board, Fund and officers thanked Mr Gordon Murray, the employers representative on the Pension Board, for his contribution and service to the Pension Board since its establishment in 2015.
XVII EXITING EMPLOYER REPORT
There was submitted Report No 357-2021 by the Executive Director of Corporate Services providing information on the exit of Balnacraig School from Tayside Pension Fund as a result of insolvency.
The Sub-Committee and Board noted the information contained within the report.
XVIII PRESENTATION
Jeremy Podger and David Barbour of Fidelity gave a short presentation to the Sub-Committee and Board.
After Ms Podger and Mr Barbour had given their presentation and answered questions from members, the Chair thanked the presenters on behalf of members of the Sub-Committee and Board.
Willie SAWERS, Chair.
There was submitted Report No 353-2021 by the Executive Director of Corporate Services detailing a request from Carnoustie Golf Links to exit as employers from Tayside Pension Fund.
The Sub-Committee and Board noted the information contained within the report, and approved the request for employer exit as at 31st December, 2021.
Thereafter, the Chair, on behalf of the Sub-Committee and Board, Fund and officers thanked Mr Gordon Murray, the employers representative on the Pension Board, for his contribution and service to the Pension Board since its establishment in 2015.