Agenda item

11.20

 

This report updates the Committee on the progress against each of the 10 Recommendations made in the Independent Governance Review completed by Hymans Robertson, and seek the Committee’s agreement on the way forward.

 

The Committee is RECOMMENDED to:

a.       Adopt the Conflict of Interest Policy as set out in Annex 1;

b.       Review the job description for a new Governance Officer role as set out in Annex 2, and agree the establishment of the new position;

c.       Comment on the future agendas for the meetings of the committee to be based on the key roles and responsibilities of the Committee as set out in annex 3, and in particular the proposal to focus on a review of investment performance annually, and the need for a separate annual business meeting;

d.       Agree the proposals to amend the current Training Policy to include an annual assessment and an escalation procedure to cover cases on non-engagement with the Policy;

e.       Ask Officers in conjunction with Hymans Robertson to amend the draft Training Programme as set out in Annex 4 based on the results of the initial knowledge assessment and bring the revised programme back to the December meeting for approval.

The Committee had before it for consideration a report updating progress against each of the 10 Recommendations made in the Independent Governance Review completed by Hymans Robertson.  The Committee was asked to agree a way forward.

 

Sean Collins introduced the report.  He recommended that the meeting consider each of the 10 Recommendations in turn.

 

1. Develop a fund specific conflicts of interest policy

In response to questions from Members, Sean Collins suggested that there should be an annual governance review.  Andrew McKerns, Hymans Robertson, confirmed that they have recommended the same format for a conflicts of interest policy across a number of Local Government Pension Schemes and that Hymans Robertson have regular discussions with the Pensions Regulator.

 

Recommendation a) to adopt the Conflict of Interest Policy set out in Annex 1 was proposed by the Chair and seconded by Councillor Bulmer.  The recommendation was agreed.

 

2. Review the Constitution of the Pension Fund Committee to widen Scheme Employer Representation.

 

It was agreed that there was no further action required as the Committee’s membership had been changed to comply with this.

 

3. Review the Terms of Reference for the Pension Fund Committee and Pension Board, to clarify roles and improve communication between the two bodies.

 

It was agreed that the deficiencies in communication between the Committee and the Local Pension Board should be overcome by the decision, already made, that the Chair attend meetings of the Board and that no amendments to the Terms of Reference were necessary.

 

4. To reduce key person risk and to support the findings of the Good Governance Project, the Committee should consider the establishment of a Governance Officer role. This role would be to support the Service Manager (Pensions) and service delivery of the Fund.

 

It was proposed to appoint a governance officer as well as a small team to support communications, training etc.  There would be a budgetary implication from this decision but it would most likely fall into 2022.

 

Councillor Bulmer proposed recommendation b) and it was seconded by Councillor Edosomwan.  The recommendation as agreed.

 

5. Review the agenda content for the Pension Fund Committee and Pension Board. Consider and implement an annual business meeting for the Fund.

 

Hymans Robertson had proposed a governance matrix and calendar to help the committee to plan its agendas across the year and focus on key issues.  Officers proposed that there was a need to reduce the focus on short-term investment performance and have a more in-depth review of investment performance once a year.  Hymans Robertson had also proposed holding a separate annual business meeting.

 

Councillor Bulmer stated that he was unconvinced of the need for a separate annual business meeting given that the business plan did not change much from year to year.

 

The Chair proposed to adopt recommendation c) on the basis that the annual business meeting be tried for one year as an experiment.  Councillor Bulmer seconded the proposal and it was agreed.

 

6. Review the process for risk review at the Fund.

 

Sean Collins noted that the risk process is reviewed by the Committee and Board at every meeting.  He recommended that there was no further action required and this was agreed by the Committee.

 

7. There should be a quarterly comparison of the progress on the business plan against the risk register.

 

Sean Collins reported that changes had been made to ensure the business plan and the risk register were aligned.  He suggested that this be noted and kept under review.  This was agreed by the Committee.

 

8. Sign off evidence should be provided by the Chair and the Committee to the Funds Annual Business Plan

 

Sean Collins stated that, because the plan and budget were discussed at a Committee meeting and its adoption was minuted, it was felt that no further action was required.  This was agreed by the Committee.

 

9. The Fund should set up a single storage site for all key documents related to the Fund easily accessible to members of the Committee and the Board.

 

Sean Collins reported that this was in progress.  Hymans Robertson’s Focal Point system was being set up to hold all relevant documents and members of the Committee and Board would be given accounts to access them.  It was agreed that there was no further action required by the Committee.

 

10. Develop a mandatory training policy including an escalation process where members of the Committee and/or Board fail to engage appropriately.

 

Sean Collins described the procedures proposed to ensure that members were engaged in training and that it was effective.  There would also be an escalation procedure in response to any lack of engagement.  He updated the report’s record of training to say that all of the Board and all but one member of the Committee had completed the knowledge assessment tool.  It was the intention to tie the training programme to the Committee’s and Board’s agendas in order to provide training at the best time.

 

Members asked for guidance on the best order in which to take training.  The Chair recounted that the most recent assessment he had undertaken was the toughest yet – especially on the accountancy side.

 

Andrew McKerns responded that the type of questions had changed somewhat this year and he was happy to take the feedback.

 

The Chair proposed recommendations d) and e).  This was seconded by Councillor Bulmer and agreed by the Committee.

 

RESOLVED: to

 

a. Adopt the Conflict of Interest Policy as set out in Annex 1;

 

b. Agree the job description for a new Governance Officer role as

set out in Annex 2, and agree the establishment of the new

position;

 

c. Agree the comments on the future agendas for the meetings of the

committee to be based on the key roles and responsibilities of

the Committee as set out in annex 3, and in particular the

proposal to focus on a review of investment performance

annually, and the need for a separate annual business meeting – agreed on a one-off experimental basis;

 

d. Agree the proposals to amend the current Training Policy to

include an annual assessment and an escalation procedure to

cover cases on non-engagement with the Policy;

 

e. Ask Officers in conjunction with Hymans Robertson to amend the

draft Training Programme as set out in Annex 4 based on the

results of the initial knowledge assessment and bring the revised

programme back to the December meeting for approval.