Agenda item

11:50

This report proposes a Business Plan, Budget and Training Plan for the forthcoming financial year. The report also includes a review against the key priorities set out in the Annual Business Plan for 2023/24.

The Committee is RECOMMENDED to:

a.     Note the progress against the service priorities for 2023/24;

b.    Determine their preferred approach to the proposed activity-based exclusions as set out in Annex 2; and

c.     approve the Business Plan, Budget, Training Plan and Cash Management Strategy for 2024/25 as set out at Annex 1, and authorise the Executive Director of Resources & Section 151 Officer to approve the Special Reserved Matter in respect of the Brunel budget.

Sean Collins, Service Manager Pensions, presented the report to the Committee.

The report set out the business plan and budget for the Pension Fund for 2024/25 and key priorities for the Fund as agreed at the workshop, detailedd the key service activities for the year, and included the proposed budget and cash management strategy for the service. The report also reviewed the progress against the key service priorities included in the 2023/24 Plan as context for setting the key priorities going into the next financial year.

Members asked if there had been feedback from Hymans regarding criticism of the knowledge assessment. Members felt that the test included knowledge that members were not required to know. The Service Manager had contacted Hymans who had argued that it was a difficult balance, and they were expecting government guidance on this. Hymans expected Committee members to have sufficient knowledge & skills to be able to robustly challenge advice from officers and advisors.

Members made the point that there was no opportunity for learning from the test itself and asked for this to be fed back to Hymans.

The Service Manager spoke about having training and knowledge recognised in terms of special responsibility allowances. The Pension Fund Committee members had a training burden that was greater than other committees.

The Service Manager reported to the Committee that an escalation policy leading to selective divestments had been agreed with Brunel and other partner Funds. Specific targets had been agreed for 2024, with more ambitious targets provisionally agreed for 2025. This would be reported to Committee in the June meeting. Some parts of the report may be confidential due to potential impact on individual companies, and the needs to comply with the Market Abuse Regulations.

The Committee went into private session to discuss annex 2.

The committee clerk read out the exempt statement.

The Committee RESOLVED that, having been satisfied that the public interest test would be better served by not disclosing relevant information, and in accordance with the provisions of Section 100(A)(4) of the Local Government Act 1972, the public be excluded from the meeting for the following item of business because of the likely disclosure of exempt information as defined in Paragraphs 3 of Part 1 of Schedule 12A of the Act as amended.

The Committee opened the meeting to the public.

The Service Manager Pensions highlighted 3 priority areas identified in the workshop on 15 January and introduced the first of these as: further improvements to Governance – workforce planning, succession planning for two key posts, code of practice compliance and essential skills and knowledge.

Members enquired about succession planning and were informed that a job advertisement had been drafted to replace key officers and should go out next week. It was hoped that a replacement for the Service Manager Pensions would be able to start before the current officer leaves to enable a hand-over period. The position of Pension Services Manager was being covered by the Service Manager Pensions and the team leaders. There was a national shortage of skilled staff in this field and Hymans would find it difficult to provide temporary cover.

If a suitable candidate cannot be found, it was suggested that support could be sought from a colleague elsewhere in the LGPS whilst the Fund continued to recruit.

Councillor Howson asked for it to be noted that it was not possible for the Committee to do its work properly when the recruitment process was slow in advertising for key members of staff.

The Service Pensions Manager highlighted the second priority in the plan which was to improve the operational effectiveness of pension administration, improving data collection processes and to continue to develop the website, and the third priority to review the Investment Strategy Statement in light of the 2005 Valuation, Government policy, cashflow requirements and the responsible investment priorities.

RESOLVED to:

a)    Note the progress against the service priorities for 2023/24;

b)    Determine their preferred approach to the proposed activity-based exclusions as set out in Annex 2 and agreed in the exempt minutes.

c)    Approve the Business Plan, Budget, Training Plan and Cash Management Strategy for 2024/25 as set out at Annex 1, and authorise the Executive Director of Resources & Section 151 Officer to approve the Special Reserved Matter in respect of the Brunel budget.