Issue - meetings

Report by, Mukhtar Master, Head of Governance and Communications

This is the latest risk register as considered by the Pension Fund Committee on 7 March 2025.  The Board are invited to review the report and offer any further views back to the Committee.

The Governance and Communications Manager presented the Risk Register report as considered by the Pension Fund Committee at their meeting on 7 March 2025 and invited comments from the Board.  He advised that there were no key changes to note but highlighted the following that the Board should be mindful of:

·       Whilst there were no new emerging risks, a response from the Fit for the Future consultation had been received and identified that the Fund’s Pool would need to be merged, and this would be recognised as a new Risk for the next Committee meeting.

·       Risk 13: Insufficient Skills and Knowledge on Committee, had reduced from an Amber to Green risk, however it was recognised that the introduction of a new Committee would cause this to rise following the local elections in May.

·       No risks were removed from the Register.

·       An update to those risks where the rating had not changed was provided to the Board to add context.

In response to a query from the Board regarding the risks around a completely new membership of the Committee following the May elections, Mukhtar Master advised that the new Training Policy, agreed by the Committee detailed that all new members will complete Induction Training prior to being able to sit on the Committee.  Also, as part of the New Member Induction Programme, training sessions had been scheduled for all Councillors in May and June taking place prior to the first Committee meeting.

Mark Smith, Head of Pensions also reassured the Board that he would be meeting potential new members of the Committee at the New Member Welcome Day scheduled for 9 May and would also be aware of the Committee membership following Annual Council on 20 May, and work would start to induct new members from that point.

In response to a query raised by the Board regarding the MIFID II status of a new Committee being able to make investment decisions, Greg Ley, Pension Fund Investment Manager advised that this would be dependent on the individual Funds, however governance information was provided alongside those decisions to meet that status.  The Board requested that this be reviewed alongside Risk 21 going forward.

In response to queries surrounding training also be made available to Board members, Mark Smith advised that future training events could be made available to the Board, and that a joint training session for the Committee and Board was being planned for the Autumn.

The Board requested that Risk 18: Failure to Meet Government Requirements on Pooling and the direct intervention by a Secretary of State be raised to a Red Risk, and Mark Smith advised that this would be reviewed as part of the next Risk Register review.

The Board noted the report.

10.45

This report will present the latest position on the Fund’s risk register, including any new risks identified since the report to the last meeting. 

The Committee is RECOMMENDED to note the latest risk register and accept that the risk register covers all key risks to the achievement of their statutory responsibilities, and that the mitigation plans, where required, are appropriate. 

Mukhtar Master, Governance and Communications Manager presented the report of the Executive Director for Resources and Section 151 Officer which presented the latest position on the Fund’s risk register, including any new risks identified since the report to the last meeting.  He advised that following a holistic review of the register, no new or emerging risks were identified, however he wished to advise the Committee that a number of initiatives currently taking place within the Council that could potential present risks but cannot be taken into account until they are progressed.

He provided further context to Risk 12: insufficient resources from Committee to deliver responsibilities, which had increased from a green rating to an amber rating due to increased workload as a result of the OCC Transformation project that is underway which would lead to a likely increase in pension estimates, increasing the workload for the fund.

In response to a question from the Local Pension Board regarding Risk 15: insufficient skills and knowledge amongst officers, Mark Smith, Head of Pensions advised that all options for supporting retention and recruitment of staff would be explored as part of the Workforce Strategy, that would include agile working options and benefits as it was recognised that the Council was unable to match the higher salaries paid by the private sector.

In response to a question from the Committee regarding Risk 24: impact of a potential turnover of Pension Fund Committee members as a result of the election, it was agreed by the Committee that the Training Plan would be presented to the June meeting as an information item only, with no changes being made to the agreed policy, and Mark Smith updated the Committee on the proposed training scheduled as part of the new and existing Councillor Induction Programme.  It was also agreed that the date of May 2025 be removed from the risk, as it should relate to any change to the Committee, and not just the election scheduled for May 2025, and this was confirmed as carried out by Mukhtar Master.

The Committee also raised concerns of the rating of Risk 19: failure of pooled vehicle to meet local objectives, and whether this should be increased due to failure of Brunel to meet benchmarking objectives and whether this should be raised to amber to ensure it is highlighted as a potential issue for future Committee members to consider.

In response to concerns raised regarding the impact of staffing changes within Employers of the Scheme, Mark Smith advised that any significant impact of staffing changes to the Fund could be included within the reports to the Committee.

The Committee requested that Officers write to the relevant Minister to highlight their concerns of any changes to government initiatives that would impact the number of staff in Academies and Higher Education establishments able to join the LGPS, for example the creation of subsidiaries.  (ACTION)

The Committee were RESOLVED to note the latest risk register and accept that the risk register covered  ...  view the full minutes text for item 8