Agenda item

10.30

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 2024/25.

The Committee is RECOMMENDED to:

i)      Note the progress against the service priorities for 2024/25; and

ii)    Approve the Business Plan, Budget, Training Plan and Cash Management Strategy for 2025/26

Mark Smith, Head of Pension Fund presented the report of the Executive Director of Resources and Section 151 Officer which reviewed progress against the key priorities set out in the Annual Business Plan for 2024/25.  The Plan also set out the proposed business plan, budget, training plan and cash management strategy for the Pension Fund for 2025/26.

He provided further information regarding the key service priorities that were included in the 2024/25 Plan measured against their success, of which the majority were rated as being met or on target to be met.  He also advised that the two main causes for overspend in the 2024/25 budget had been for payment of the previous year’s external audit fees and the difficulty in estimating investment management fees in advance as the value of the asset fees were unknown at that time.

In response to a question from the Committee regarding the difficulties in estimating the investment management fees, Mark Smith advised that due to the recent push to investment in private markets, these are significantly more expensive than listed equities for example, but also depending on the size of the value of the assets and the value of the Fund, the fees increase in line with that.

In response to a question regarding the AMBER rating for the measure of success on key progress achieved for 2024/25, the increase in average scores for the National Knowledge Assessment, whilst at 100% completion rate, had not moved to GREEN due to the relatively new members of the Committee having just completed training.

In response to a question raised regarding the level of funding budgeted to support the required staffing to enable adequate resource to complete the work required, Mark Smith advised that whilst there was adequate staff in place, the challenge to promote existing staff to senior positions prevented those existing vacancies being filled.  The Committee requested that up to date variances be provided for the 2024/25 Pension Fund Budget – Q3 Update as the % variance figure was not correct as reported due to the outstanding roles being carried.

In response to a question raised regarding the rising Brunel Contract Costs when compared to the Fund’s local costs, Gregory Ley, Pension Fund Investment Manager advised that these costs had been reviewed by Officers as part of the Financial Sub-Group with Brunel, and felt to be appropriate increases, but would have also been caused by system upgrades.  Officers were requested to check if these increases were in line with other Pools, to determine where Brunel were placed.  (ACTION)

In response to queries raised regarding the level of increase for 2025/26 External and Internal Audit Fees, Gregory Ley advised that there had not been an internal audit carried out in 2024/25, but this has been confirmed for 2025/26, and external audit fees had been agreed by the public body, Public Sector Audit Appointments.

The Committee were RESOLVED to:

i)    Note the progress made against the service priorities for 2024/25; and

ii)  Approve the Business Plan, Budget, Training Plan and Cash Management Strategy for 2025/26