Issue - meetings

70.1     The Committee considered a report on the outcomes of the Communications Review completed by the Head of Communications and Marketing on the ESPF.

70.2     The Committee’s discussion included the following key issues:

• The reason for stating that the number of scheme members interested in divestment issues was low is likely based on the low level of correspondence on the matter when taken as a percentage of the 78,000 members of the Fund. The Fund has not yet formally sought the views of its membership, although careful consideration of how this is done must be given. This is because it is difficult to ask simple questions on complex matters, and the fact that the ESPF is a defined benefit scheme with Trustees who have a fiduciary duty to provide a return on investment that may prevent them from enacting the preferences of the scheme membership.
• There is a need for the Fund to communicate with both its scheme members and the press and wider public. Consideration needs to be given to how this is done, for example, whether press and public communications come via the Corporate Communications Team.

70.3     The Committee RESOLVED to:

1) note the report and feedback from the Pension Board;

2) approve the recruitment of a designated Pension Fund Communications Manager;

3) approve the creation of a Correspondence Policy, which includes how the Fund should correspond with both employers and scheme members and with external queries from members of the public and the press; and

4) Endorse the establishment of a Pension Board Communications Working Group and request that the Board allow Committee Members to attend meetings of the Working Group.

63.1.     The Board considered a report on the outcomes of the Communications review completed by the Head of Communications and Marketing.

63.2.     TD welcomed the Communications Review but asked for reassurance that in future people who submit questions will be given sufficient answers to them and not just pointed to the website for answers.

63.3.     SK said that a correspondence policy would be an important step in setting out what people who contact the Fund can expect in the form of a response. Any responses beyond referral to any online resource would need to be proportionate and manageable within the resources of the Fund, for example, people may receive a response to a question but not necessarily be given the opportunity to engage in a long conversation with officers where there is a disagreement over a position on pension investment. Any correspondence policy would also need to define whether members of the Fund can expect a different response to members of the public or journalists. 

63.4.     TD asked what the evidence was for the comment in the Communication Review “there’s no evidence that most ESPF members or other stakeholders consider divestment from fossil fuel companies a pressing issue”.

63.5.     SK said that she would clarify how the Head of Communications reached that conclusion. SK argued that the Fund does not receive many questions from its members relating to issues such as divestment, despite the size of the Fund, and that most questions appear to be from local residents, although there is an overlap between the two groups. SK said the Fund has not sought to ask its members for its views on subjects such as this, which it could potentially do. It would be, however, extremely difficult for the Fund to act on the views of its membership where it could have a negative financial impact on the Fund. This is because it is a defined benefit scheme with fiduciaries (the Pension Committee) who have a legal duty to act in the best interests of the members (not in their own interest or of others) and should aim to receive a return on investment that can provide the benefits for its members. A defined contribution scheme, such as a private pension, may have greater scope as members can have a choice over where there contributions are invested and the   financial return they receive is based on their selected investment strategy.  

63.6.     TD felt that any correspondence policy should take into account that local residents are council tax payers and therefore have a right to comment on how the Fund’s assets are invested and that the Fund should consider their views and respond to them when appropriate to do so. He also asked whether there is an annual survey to members asking their views of the Fund.

63.7.     SK explained that the Fund does conduct an annual questionnaire, but it has until now been reliant on Orbis PAT setting the questions. The results were received last week and are currently  ...  view the full minutes text for item 63