Issue - meetings

81.1     The Board considered a report providing an update on various governance workstreams completed and changes affecting LGPS and the ESPF.

81.2     Michael Burton (MB) drew the Board’s attention to the following:

-       More information has been received regarding McCloud post publication of the report sent to the Board. Officers are adopting a flexible approach and working through the data; there are significant gaps in data and some issues with formatting where data has been received and therefore implementation of the remedy is not yet possible and  will take some time to resolve.

-       The LGA has provided some suggested wording for members as a notification is required by Christmas, work is in progress for the required individual communications and officers are working hard to identify which pieces of work can be progressed. The McCloud remedy is not expected to impact many members but it will be a significant piece of work to resolve matters.

-       Teachers with excess service contracts may be entitled to remedy through the LGPS, this would require back dated contributions.  More information is expected in the New Year and officers will update the Board accordingly.

81.3     The Board considered the funding report, introduced by SK who drew the Board’s attention to the following:

-    The report will be included on a quarterly basis to enable the Board to have better oversight of the funding position and how it feeds into the wider strategy and position. The report rolls forward market information from the valuation date every quarter to monitor the current funding position.

-    There has been much volatility since March 22, investment returns are lower than expected however liabilities have also fallen and so the current funding position is the same as in March.

-    At the next valuation the assumptions will be reconsidered, the mortality rate is currently falling so the Fund’s liabilities may drop as a result.

81.4     Neil Simpson (NS) queried why there is no reference in the report that the real discount rate has changed, or to explain how that influences the liabilities and would welcome further information about what assumptions have changed and why, along with a view of liquidity of the Fund.

81.5     Officers confirmed that they would make training available to Board Members on actuarial matters and associated reports and that discussions at Pension Committee would be better summarised.

81.6     The Board congratulated the team on the 2023 LAPF Investment Award for Best LGPS Governance.

81.7       The Board RESOLVED to note the report.