Pension Sub-committee And Pension Board - 23/06/2025
At a JOINT MEETING of the PENSION SUB-COMMITTEE of the CITY GOVERNANCE COMMITTEE AND THE PENSION BOARD held remotely on 23rd June, 2025.
Present:-
PENSION SUB-COMMITTEE
BAILIES
|
Willie SAWERS |
Kevin KEENAN |
COUNCILLORS
|
Ken LYNN |
Steven ROME |
Michael CRICHTON |
PENSION BOARD
|
Bill DUFF |
Stewart DONALDSON |
Arthur NICOLL |
|
|
George RAMSAY |
|
Bailie Willie SAWERS, Convener in the Chair.
I APOLOGIES
The Sub-Committee and Board noted apologies had been received from Councillor McHugh.
II DECLARATION OF INTEREST
No declarations of interest were made.
III MINUTE OF PREVIOUS MEETING
The minute of meeting of 17th March, 2025 was submitted and approved.
IV TAYSIDE PENSION FUNDS RISK REGISTER
There was submitted Report No 163-2025 by the Executive Director of Corporate Services seeking approval for the Quarterly Risk Register for Tayside Pension Fund.
The Sub-Committee and Board:-
(i) approved the Quarterly Risk Register for Tayside Pension Fund, noting no change from the previous quarterly report.
V TAYSIDE PENSION FUND INTERNAL ANNUAL AUDIT REPORT 2024/2025
There was submitted Report No 164-2025 by the Executive Director of Corporate Services submitting the Annual Audit Report for 2024/2025 prepared by the Funds Internal Auditor, PricewaterhouseCoopers (PwC).
The Sub-Committee and Board:-
(i) noted the content of the Annual report.
VI PENSION ADMINISTRATION PERFORMANCE - UPDATE TO 31ST MARCH, 2025
There was submitted Report No 165-2025 by the Executive Director of Corporate Services providing information on the recent quarters operational performance in relation to Pension Administration and other general developments in this area over the above period.
The Sub-Committee and Board:-
(i) noted the content of the report by Audit Scotland at Appendix A to the report.
VII STATEMENT OF INVESTMENT PRINCIPLES REVIEW
There was submitted Report No 166-2025 by the Executive Director of Corporate Services reviewing Statement of Investment Principles for Tayside Pension Fund.
The Sub-Committee and Board:-
(i) noted the information within the report, noting the changes to benchmark in Appendix C effective from 1st April, 2025; and approved the Statements of Investment Principles contained in Appendix 1 to the report which had been revised in keeping with audit recommendations.
VIII FUNDING STRATEGY STATEMENT 2025
There was submitted Report No 167-2025 by the Executive Director of Corporate Services reviewing the Funding Strategy Statement for Tayside Pension Fund.
The Sub-Committee and Board:-
(i) approved the Statement, noting the introduction of alternative treatment of employer exit credits following the Local Government Pension Scheme (Scotland) (Amendment) Regulations 2025 which came into force on 1st April, 2025; and
(ii) noted the introduction of alternative treatment of employer exit credits following the Local Government Pension Scheme (Scotland) (Amendment) Regulations 2025 which came into force on 1st April, 2025.
IX TAYSIDE PENSION FUND INTERNAL AUDIT REPORTS - INVESTMENT STRATEGY REVIEW
IX TAYSIDE PENSION FUND INTERNAL AUDIT REPORTS - INVESTMENT STRATEGY REVIEW
There was submitted Report No 361-2025 by the Executive Director of Corporate Services submiting the audit report prepared by the Funds Internal Auditor, PricewaterhouseCoopers (PwC).
The Sub-Committee and Board:-
(i) noted the content of the report on the audit review undertaken; and
(ii) approved the management response.
X TAYSIDE PENSION FUND ANNUAL GOVERNANCE AND GOVERNANCE COMPLIANCE STATEMENTS
There was submitted Report No 352-2025 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, 2025. This report set out the governance arrangements of Tayside Pension Fund and the extent to which it complied with regulations.
The Sub-Committee and Board:-
(i) approved the Annual Governance and Governance Compliance Statements which are included as an Appendix to this report; and
(ii) instructed the inclusion of the statements in the Annual Accounts for the year to 31st March, 2025.
XI TAYSIDE PENSION FUND ANNUAL REPORT AND ACCOUNTS 2024/2025
There was submitted Report No 353-2025 by the Executive Director of Corporate Services providing some additional commentary on the unaudited Annual Accounts 2024/2025 which were submitted to the Committee along with this report.
The Sub-Committee and Board:-
(i) noted the content of the covering report;
(ii) noted the unaudited Annual Accounts which were submitted along with this report in Appendix A to the report;
(iii) instructed the Executive Director of Corporate Services to arrange for the unaudited Accounts to be signed as necessary; and
(iv) instructed the Executive Director of Corporate Services to submit the Annual Accounts to the Funds external auditor.
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 FUND
(a) TAYSIDE PENSION FUND PERFORMANCE SUMMARY
There was submitted Report No 354-2025 by the Executive Director of Corporate Services reviewing investment performance of the Funds investment managers for the quarter to 31st March, 2025. The report compared investment performance of the Fund with the Funds specific benchmarks which consist of various stock and security market indices.
The Sub-Committee and Board:-
(i) 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 SUMMARIES OF INVESTMENTS AND TRANSACTIONS 1ST JANUARY, 2025-31ST MARCH, 2025
There was submitted Report No 355-2025 by the Executive Director of Corporate Services reviewing the investment activities of Tayside Pension Funds five Fund Managers for the quarter to 31st March, 2025 and summarising the transactions of each Fund Manager and showing the market values of the Pension Fund.
The Sub-Committee and Board:-
(i) noted the information contained therein with regard to the performance of the Tayside Main Fund and their Fund Managers.
(c) QUARTERLY FUNDING UPDATE AS AT 31ST MARCH, 2025
There was submitted Report No 356-2025 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:-
(i) noted the report by the Fund Actuary.
XIII SOCIALLY RESPONSIBLE INVESTMENT - ANNUAL REPORT
There was submitted Report No 357-2025 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 approved by the Sub-Committee (Article XIV of the Minute of Meeting of the Pension Sub-Committee of the Policy and Resources Committee of 18th March, 2024, Report No 81-2024 refers).
The Sub-Committee and Board:-
(i) noted the information contained within this report with regards to the activities of the Fund Managers during the year ended 31st March, 2025.
XIV ASSET ALLOCATION - OPPORTUNISTIC MANDATE UPDATE
There was submitted Report No 358-2025 by the Executive Director of Corporate Services, providing an update as to the current exercise in relation to the procurement of an investment manager to manage the opportunistic asset allocation (5% value of the Fund (circa 250-290m). It also presented a recommended plan to enable successful selection and appointment of an opportunistic mandate manager for Tayside Pension Fund.
The Sub-Committee and Board:-
(i) noted the content of report and approved delegation of authority to Officers to progress.
XV PORTFOLIO REVIEW - ADVISORS OUTCOME AND RECOMMENDATION
There was submitted Report No 359-2025 by the Executive Director of Corporate Services, informing of the findings and recommendations of the Funds investment advisors Isio, following an equity portfolio review with specific focus on one of the Fund Managers equity mandates to ensure that equity mandates remain capable of achieving Fund objectives.
The Sub-Committee and Board:-
(i) approved Isios recommendations summarised in section 7 of the report, noting the content of their full report (Appendix A to the report).
XVI PRESENTATION
Chris Lyons, Robert Rayner and John Daly from LGIM gave a short presentation to the Sub-Committee and Board.
After Mr Lyons, Mr Rayner and Mr Daly 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.