Issue - meetings

77.1     The Committee considered a report on the quarter 3 budget update for 2021/22 and the forecast Business Plan and Budget for 2022/23. The Head of Pensions outlined the main budget variations for quarter 3 of the current financial year.

77.2     The Committee discussed the report and made the following points:

• The Fund staff costs currently show an underspend but will increase next year provided it is possible to recruit to the vacant posts. The Head of Pensions outlined that the estimate for next year is reasonable and assumes that it will be possible to fill all the currently vacant posts. The budget forecast includes upgrading and filling all the posts, but there may be some underspend if vacancies arise during the year.
• It was clarified that the underspend in investment manager fees in the current financial year is due to a change from client billing to fees being deducted at source. The Fund does receive quarterly updates from investment managers on their fees, so there is transparency in the fees that are being charged.
• The charge for the Environment, Social, and Governance (ESG) was explained further, the Head of Pensions will re-label this in the budget report.

77.3     The Committee RESOLVED to:

1) Note the forecast 2021/22 Quarter 3 outturn position for the East Sussex Pension Fund; and

2) Agree the Business Plan and Budget for 2022/23 contained in Appendix 1 of the report.