Pension Board and Committee – Work Programme

 


Future Pension Board Agenda

Item

Description

Author

Standing items (items that appear on each agenda)

Pension Committee Agenda

A consideration of the draft agenda of the Pension Committee.

Head of Pensions

Governance Report

A report on governance issues effecting the fund, developments in the LGPS, policy amendments and McCloud working group update

Pensions Manger – Governance and Compliance

Employer Engagement and Contributions Report

A report on Employer Engagement matters to note, Employer Contributions update, Communications from the Fund and Communications working group update

Pensions Manger – Employer Engagement

Pensions Administration report

An update on the performance of the Pensions Administration Team.

Head of Pensions Administration

Internal Audit reports

All internal audit reports on the ESPF are reported to the Board

Head of Internal Audit

East Sussex Pension Fund (ESPF) Quarterly budget report

An update on the ESPF’s budget. This is reported in Q2-4 only.

Head of Pensions

East Sussex Pension Fund (ESPF) Risk Register

A report on the ESPF’s Risk Register

Head of Pensions

Work programme

A report on the Board and Committee’s work programme

Head of Pensions

East Sussex Pension Fund (ESPF) Breaches Log

A report on the ESPF breaches log

Head of Pensions

Employer Admissions and Cessations

A report on the admission and cessation of employers to the ESPF.

Head of Pensions

1 June 2022

Good Governance Decision making matrix

Report to outline the revise the decision-making matrix for the Pension Fund, delegations and representations in line with SAB Good Governance project

Head of Pensions

Communications Policy

Revision to the Communications Policy

Head of Pensions

Covenant Review Report

Report from PWC on the covenant review project

Head of Pensions

External Audit Plan for the East Sussex Pension Fund 2021/22

Draft External Audit Plan for 2021/22 Pension Fund Financial Statements

Head of Pensions

Governance and Compliance Statement

Annual Review of Governance and Compliance Statement

Governance and Compliance Pensions Manager

Annual Report of the Pension Board

Annual report of the Pension Board to the Scheme manager outlining the work throughout the year

Head of Pensions with the Chair of the Board

Training Policy

Biannual review of the training Strategy

Governance and Compliance Pensions Manager

Expansion of Pension Board

Report on options of expanding Pension Board to 8 members from 6

Head of Pensions

Representation of Brighton and Hove CC on Pension Committee

Report on the request received for Brighton and Hove CC to be represented on the Pension Board

Head of Pension

Privacy Statement

Report on annual review of privacy statements

Governance and Compliance Pensions Manager

9 September 2022

Independent Auditors Report on the Pension Fund Account and Annual Report and Accounts 2021/22

A report on the External Audit findings of the Pension Fund financial Statements and the complete 2021/22 Annual Report and Accounts.

Head of Pensions

2022 Actuarial Valuation and Funding Strategy Statement

Report from the Fund Actuary on the March 2022 triennial valuation process, methodology and assumptions with a draft Funding Strategy Statement for approval prior to consultation

Head of Pensions

15 November 2022

Employer Forum Agenda

Discussion on Pension Fund Employer Forum Agenda topics

Pensions Manger – Employer Engagement

Annual Training Plan

Report on Training completed in the year and training recommendations for the up-coming year

Head of Pensions

8 February 2023

Business Plan and Budget 2023/24

Report to set the Budget for the Pension Fund for the Financial Year 2023/24 including the Business Plan with key deliverables for the year.

Head of Pensions

External Audit Plan for the East Sussex Pension Fund 2022/23

Draft External Audit Plan for 2021/22 Pension Fund Financial Statements

Head of Pensions

2022 Valuation report and results and Final Funding Strategy Statement (FSS)

Final report and results from the Fund Actuary of the 31 March 2022 triennial valuation with the final FSS for approval post consultation.

Head of Pensions

 


 

 

 


Actions requested by the Pensions Board

Subject Area

Detail

Status

Internal Audit reports

The Board requested that internal audit consider an audit of the common data sets

provided to the Pensions Regulator

TBC

Scheme administration

The Board requested a report on potential recommendations from the Scheme

Advisory Board (SAB) that the Scheme Manager role is removed from local

authority control.

Ongoing

discussions

Scheme administration

The Board requested a future report on how the ESPF KPIs for pension

administration compare with those of other local government pension schemes.

 

To be provided

when new KPI tool implemented

Decision making

To revise the decision-making matrix (including a RACI model) and to circulate it

for information.

 

To be provided

June 2022

 

 

 

 


 

 


Future Pension Committee Agenda

Item

Description

Author

Standing items (items that appear on each agenda)

 

 

 

Governance Report

A report on governance issues effecting the fund, developments in the LGPS, approval of policy amendments and McCloud working group update

Pensions Manger – Governance and Compliance

Employer Engagement and Contributions Report

A report on Employer Engagement matters to note, Employer Contributions update, Communications from the Fund and Communications working group update

Pensions Manger – Employer Engagement

Pensions Administration report

An update on the performance of the Pensions Administration Team.

Head of Pensions Administration

Internal Audit reports

Internal audit reports on the ESPF and annual audit plan.

Head of Internal Audit

East Sussex Pension Fund (ESPF) Quarterly budget report

An update on the ESPF’s budget - reported Q2-4 only

Head of Pensions

East Sussex Pension Fund (ESPF) Risk Register

A report on the ESPF’s Risk Register

Head of Pensions

Work programme

A report on the Board and Committee’s work programme

Head of Pensions

Investment Report

A Quarterly performance report of the investment managers

Head of Pensions and Investment Consultant

East Sussex Pension Fund (ESPF) Breaches Log

A report on the ESPF breaches log – reported only when a new breach is recognised, or status changed. Report goes quarterly to Board.

Head of Pensions

Employer Admissions and Cessations

A report on the admission and cessation of employers to the ESPF - reported only when outstanding admissions or cessations.

Head of Pensions

24 February 2022

2020 Stewardship Code Submission

Report outlining the Funds compliance with the 2020 Stewardship Code

Head of Pensions

Business Plan and Budget 2022/23

Report to set the Budget for the Pension Fund for the Financial Year 2022/23 including the Business Plan with key deliverables for the year.

Head of Pensions

Internal Audit Strategy and Plan

Draft internal audit Pension Fund Strategy and Audit Plan 2022/23

Internal Audit

Additional Voluntary Contributions (AVC) review

Paper reviewing the AVC provision to members

Head of Pensions

17 June 2022

Governance and Compliance Statement

Annual Review of Governance and Compliance Statement

Governance and Compliance Pensions Manager

Annual Report of the Pension Board

Annual report of the Pension Board to the Scheme manager outlining the work throughout the year

Head of Pensions with the Chair of the Board

Carbon Footprinting

A report on the carbon footprint of the portfolio of ESPF including whether investments are in line with transition pathways.

Head of Pensions

External Audit Plan for the East Sussex Pension Fund 2021/22

Draft External Audit Plan for 2021/22 Pension Fund Financial Statements

Head of Pensions

Covenant Review Report

Report from PWC on the covenant review project

Head of Pensions

Communications Policy

Revision to the Communications Policy

Head of Pensions

Training Policy

Biannual review of the training Strategy

Governance and Compliance Pensions Manager

20 July 2022 (no standing items)

Investment Strategy Review

Annual consideration on the effectiveness of the Investment strategy and suggested changes to the Investment Strategy Statement.

Head of Pensions

Training / Focus of choice

Time for specific training or to focus on a specific topic

Head of Pensions

27 September 2022

Independent Auditors Report on the Pension Fund Accounts 2021/22

A report on the External Audit findings of the Pension Fund financial Statements for 2021/22

Head of Pensions

Pension Fund Annual Report and Accounts 2021/22

2020/21 Annual Report and Accounts for approval

Head of Pensions

2022 Actuarial Valuation and Funding Strategy Statement

Report from the Fund Actuary on the March 2022 triennial valuation process, methodology and assumptions with a draft Funding Strategy Statement for approval prior to consultation

Head of Pensions

30 November 2022

Employer Forum Agenda

Discussion on Pension Fund Employer Forum Agenda topics

Pensions Manger – Employer Engagement

Annual Training Plan

Report on Training completed in the year and training recommendations for the up-coming year

Head of Pensions

22 February 2023

Business Plan and Budget 2023/24

Report to set the Budget for the Pension Fund for the Financial Year 2023/24 including the Business Plan with key deliverables for the year.

Head of Pensions

External Audit Plan for the East Sussex Pension Fund 2022/23

Draft External Audit Plan for 2021/22 Pension Fund Financial Statements

Head of Pensions

2022 Valuation report and results and Final Funding Strategy Statement (FSS)

Final report and results from the Fund Actuary of the 31 March 2022 triennial valuation with the final FSS for approval post consultation.

Head of Pensions

 

 

 

Actions requested by the Committee

Subject Area

Detail

Status

Beyond Oil and Gas Alliance

Request for a paper to be made available at February 2022 meeting to provide members with information on the Beyond Oil and Gas Alliance so Committee members have sufficient information to consider if they want to issue a public statement, calling on the UK Government to commit to becoming a core member of the Beyond Oil & Gas Alliance

To be presented in February 2022 meeting

Schroders Cash position

Request for officers / Isio to find out reasons for the large cash position in the Schroders portfolio

Complete – update to be provided February 2022 meeting

Correlation of assets

Request for a brief overview of how the portfolio investments are correlated

To be presented in February 2022 meeting

Inflation

Request for information on how increasing Inflation could impact the Fund

To be presented in February 2022 meeting

 


 

 

Current working groups

Title of working group

Detail and meetings since last Pensions Board and Committee meetings

Membership

Investment Implementation Working Group (IIWG)

The Investment Working Group and ESG working group have been amalgamated, as agreed at Pensions Committee 21 September 2020.

The IIWG has an advisory role to over oversee the implementation of decisions by the Pension Committee in relation to investment decisions and carry out detailed research and analysis for Pensions Committee.

Recent meetings

·         18 November 2021

·         6 December 2021

·         26 January 2022 – special meeting for Infrastructure Manager Selection Presentations (Core members only invited)

·         28 January 2022

William Bourne, Russell Wood, Sian Kunert, Representative from Investment Consultant

Cllr Fox or substitute committee member is invited to attend

Administration Working Group

The Administration Working Group was set up in 2021 following the conclusion of the ABS and Data Improvement Working Group. The group discuss ongoing administration projects and areas of administration focus

Recent meetings

·         2 December 2021

·         19 January 2022

Scheduled

·         28 March 2022

·         4 May 2022

·         5 July 2022

·         16 August 2022

·         18 October 2022

·         15 December 2022

Cllr Fox, Ray Martin, Stephen Osborne, Paul Punter, Sian Kunert, Ian Gutsell

Vacancy for Scheme Member Rep

McCloud Working Group

The McCloud Working Group has been established to oversee the implementation of the McCloud ruling within a prescribed timeframe and addressing any gaps and barriers preventing progress and ultimately delivery of the project.

A high-level impact assessment has been completed to identify those members of the scheme that will be affected by this ruling.

The Group have acknowledged there are many data requests of employers and this project needs to be managed carefully with other demands on employers time.

Recent meetings

·         12 January 2022 – supported by Hymans

Cllr Fox, Stephen Osborn, Lynda Walker, Paul Punter, Sian Kunert, Dave Kellond

Communications Working Group

The Communications Working Group was established by the Pensions Board in February 2021 to drive forward improvements in communications with stakeholders with support from employee and employer representatives.

Recent meetings

·         14 December 2021

Scheduled meetings

·         28  February 2022

 

Lynda Walker, Ray Martin, Cllr Druitt, Sian Kunert, Tim Hillman, Izzy Widdowson, Paul Linfield

Note - All Board members invited to attend

 

 

 


 

 


Training and Development - recent and future events

Title of Training/Briefing

Detail

Date

Attended

LGPS-Live – A webinar series

Scheme Advisory Board Update

·         Collaborations and Consolidation in the LGPS

·         Should We Worry About Inflation?

3 Nov ‘21

Cllrs: Hollidge, Hilton, Redstone

Aon’s Global Pension Risk Survey 2021/22 UK Survey findings

Looked at the results and findings of the survey

4 Nov ‘21

Cllrs Hilton, Hollidge

LGPS Climate Summit

Covered:

·         The Economics of Climate Change

·         From Risk to Opportunity

·         TCFD and the LGPS

·         Ensuring an inclusive Net Zero transition

·         What next after COP26?

·         Pooling and Climate Risk

·         Which truth? Data Malaise from Pandemic to Climate Crises

·         Addressing Greenwashing Risks: How Can the LGPS Steer Clear?

·         Driving the Transition: Effectively Investing in The Transition of Carbon Intensive Industries

·         How is Climate Change Shaping Private Equity and Venture Capital Investments?

·         Looking beyond – Biodiversity as an Investment Opportunity

·         Expectations for the LGPS 10 Years from Now

 

15 Nov ‘21

Cllr Hilton

Embedding ESG into Pension Scheme Decision-Making - a toolkit for pension trustees

Key elements of the A4S toolkit and how it can be used by trustees to drive consensus across their Board, and by advisers to share with their clients

16 Nov ‘21

Cllrs Hollidge, Hilton

ESPF Employer forum

·         WHEB Investment Manager

·         Compliance and Governance update

·         Administration Manager Update

·         Engagement and Website update

·         I-Connect update

 

24 Nov ‘21

R Martin, S Osborn, Cllr Illingworth.

Cllrs: Fox, Tutt, Hollidge, Redstone, Hilton

Evaluating the ESG Capabilities of Your Service Providers

Top tips and examples of good practice on procuring the right service providers to deliver your ESG objectives and assessing their continuous performance.

25 Nov ‘21

Cllr Hilton

LGPS Governance Conference 2022

• The Economics of Climate Change • From Risk to Opportunity • TCFD and the LGPS • ensuring an inclusive Net Zero transition • What next after COP26? • Pooling and Climate Risk • Which truth? Data Malaise from Pandemic to Climate Crises • Addressing Greenwashing Risks: How Can the LGPS Steer Clear? • Driving the Transition: Effectively Investing in The Transition of Carbon Intensive Industries • How is Climate Change Shaping Private Equity and Venture Capital Investments? • Looking beyond – Biodiversity as an Investment Opportunity • Expectations for the LGPS 10 Years from Now

 

20-21 Jan ‘22

Cllr Fox

Valuation

·         Purpose and objectives of the valuation

·         Valuing the assets and liabilities - methodology and approach

·         Data - requirements and the importance of data quality

·         Assumptions - how these are determined and their impact on results

·         A look back at the 2019 funding position and what we might expect at 2022

·         Hot topics impacting the valuation

 

27 Jan ‘22

N Palermo, S Osborn; Cllrs: Fox, Hollidge, Druitt, Illingworth, Redstone, Hilton

Title of Training/Briefing

Detail

Proposed Date

Invited

LAPF Strategic Investment Forum

·         Bonds – balancing your portfolio’s risk

·         Fading scars and enduring policies – long term capital market assumptions as a key driver of portfolio construction

 

3 Feb ‘22

Committee Members

Admin and Data Forum 2022

½ day event run by Professional Pensions’. Focus on the challenges that trustees and scheme managers are currently facing, as they evolve their administrative and data functions to meet regulatory duties, capture efficiencies and provide best outcomes for members.

 

8 Mar ’22

Committee Members

ESG Conference 2022 - Pensions, people, planet

2 day ESG conference run by PLSA

9-10 Mar ‘‘22

Committee Members

LGC Investment Seminar on 24-25 March 2022.

2 Day LGPS investment seminar held in Chester.

Due to costs for this event places are not offered to all 

24-25 Mar

Cllr Redstone