Issue - meetings

70.1     The Committee considered a report seeking approval of the 2020/21 business plan and budget for the East Sussex Pension Fund.

70.2     The Committee discussion included the following key issues:

·         The cost of the East Sussex Pension Fund Governance review  is being negotiated with Aon

·         The cost of the McCloud judgement has not yet been worked out but will likely have a considerable impact.

·         The Fund is providing the PAT with 4 Full Time Equivalent (FTE) employees to help deliver the Data Improvement Programme.

·         The PAT is looking to reduce the cost per customer by providing the same service and Key Performance Indicators (KPIs) across all six Local Government Pension Scheme (LGPS) it provides pension administration for.

70.3     The Committee RESOLVED to:

1) approve the business plan and budget for 2020/21; and

2) note that the budget may be subject to change in light of the impact of Covid-19, the McCloud Judgement, and the cost of commissioning and then implementing the recommendations of the East Sussex Pension Fund Governance review .

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41.1.      The Board considered a report on the 2020/21 business plan and budget for the East Sussex Pension Fund.

41.2.      DP asked why there was a smaller budget for 2020/21 compared to 2019/20.

41.3.      Russell Wood (RW) explained it was in part due to assets transferring to the custody of ACCESS and manager fees therefore being paid out by the ACCESS operator, LINK. This meant that there was no direct invoice to the ESPF, although the fees were still paid.  In addition, the cost of the Good Governance review and planned changes to the PAT team had not yet been modelled so were not included.

41.4.      Lynda Walker (LW) asked when the cost of the Good Governance review would be known.

41.5.      MK confirmed that it would be in time for the June Pension Committee meeting, along with the proposed cost of the PAT.

41.6.      LW asked whether managers fees being paid by the LINK meant there would no longer be transparency. 

41.7.      MK explained that LINK would publish details of the fees paid and they can be circulated once available.

41.8.      The Board RESOLVED to:

1) note the report; and

2) request that a comparison of the 19/20 and updated 20/21 budget is circulated to the Board when available.