Pension Sub-committee And Pension Board - 08/03/2021

At a JOINT MEETING of the PENSION SUB-COMMITTEE of the POLICY AND RESOURCES COMMITTEE AND THE PENSION BOARD held remotely on 8th March, 2021.

Present:-

PENSION SUB-COMMITTEE

BAILIES

COUNCILLORS

PENSION BOARD

Bailie Willie SAWERS, in the Chair.

It was noted that apologies had been received from Councillors Brawn and Davy, and Gordon Murray and Claire Shepherd.

I DECLARATION OF INTEREST

No declarations of interest were made.

II MINUTE OF PREVIOUS MEETING

The minute of meeting of 7th December, 2020 was submitted and approved.

III RE-APPOINTMENT OF TAYSIDE PENSION FUND BOARD MEMBERS

There was submitted Report Number 67-2021 by the Executive Director of Corporate Services setting out the proposed re-appointment of the current members of the Tayside Pension Fund Pension Board.

It was agreed that the Chair of the Pension Sub-Committee, as delegated by the Policy and Resources Committee, approve the re-appointment of all current members of the Pension Board of Tayside Pension Fund as required by pensions regulations.

IV RISK REGISTER

There was submitted Report No 68-2021 by the Executive Director of Corporate Services updating the Risk Register for the Tayside Pension Fund.

The Sub-Committee and Board approved the Quarterly Risk Register for Tayside Pension Fund which was updated on 10th February, 2021, and noted the following changes to risk profile since the previous report:-

Risk 1: Failure to process pension payments and lump sums on time.

Risk level had reduced as processes had been adapted to accommodate remote working which had successfully resulted in faster processing times. This had also enabled more effective resource allocation to meet requirements.

Risk 13: Failure to hold personal data securely (incorporating Cyber Crime).

Risk level had reduced as additional controls had been incorporated into revised processes.

Risk 14: Failure to keep pension records up-to-date and accurate.

Risk level had reduced as employer data confirmation exercises had been undertaken.

V TAYSIDE PENSION FUND RISK MANAGEMENT POLICY AND STRATEGY

There was submitted Report No 69-2021 by the Executive Director of Corporate Services providing information on the recent quarters operational performance in relation to Pension Administration.

The Sub-Committee and Board noted the content of the report

VI TAYSIDE PENSION FUND TRAINING AND ATTENDANCE POLICY AND TRAINING PLAN 2021-2022

There was submitted Report No 70-2021 by the Executive Director of Corporate Services presenting Tayside Pension Funds Training and Attendance Policy which was subject to annual review and the Training Plan for 2021-2022.

The Sub-Committee and Board noted that the training requirements of 2020-2021 had not been achieved due to Covid-19. The plan had been carried forward for remote delivery during the course of 2021/2022.

The Sub-Committee and Board also approved:-

(i)                            Training and Attendance Policy Contained in Appendix 1 to the report; and

(ii)                           Training Plan for 2021-2022 contained in report.

VIl PENSION ADMINISTRATION PERFORMANCE

 

There was submitted Report No 71-2021 by the Executive Director of Corporate Services providing information on the recent quarters operational performance in relation to Pension Administration.

 

The Sub-Committee and Board noted the content of the report.

 

VIIl INTERNAL AUDIT RISK ASSESSMENT AND AUDIT PLAN 2021/2022

 

There was submitted Report No 72-2021 by the Executive Director of Corporate Services setting out the risk assessment undertaken by PwC and detailing their internal audit plans for Tayside Pension Fund for 2021/2022.

 

The Sub-Committee and Board to review and approve the internal audit plans by PricewaterhouseCoopers (PwC) as detailed in Appendix A to the report.

 

lX TAYSIDE PENSION FUND

 

There was submitted Report No 73-2021 by the Executive Director of Corporate Services providing a summary of the responsibilities and approach of Audit Scotland in respect of Tayside Pension Fund for 2020/2021.

 

The Sub-Committee and Board agreed to note the report by Audit Scotland.

 

X TAYSIDE PENSION FUND INTERNAL ANNUAL AUDIT REPORT 2020/2021

 

There was submitted Report No 74-2021 by the Executive Director of Corporate Services, the Annual Audit Report for 2020/2021 prepared by the Funds Internal Auditor, PricewaterhouseCoopers (PwC) for consideration.

 

The Sub-Committee and Board noted the content of the Annual Report as well as the content of the appended reports on specific audit exercises undertaken, and approved the management response.

 

XI TREASURY POLICY STATEMENT 2021/2022

 

There was submitted Report No 75-2021 by the Executive Director of Corporate Services revising the Councils Treasury Policy Statement which is intended to govern all treasury activities carried out by Tayside Pension Fund.

 

The Sub-Committee and Board approved the policies and procedures laid out in the attached Treasury Policy Statement 2021/2022, noting that the Treasury Policy Statement must be reviewed annually.

 

XIl TREASURY MANAGEMENT STRATEGY 2021/2022

 

There was submitted Report No 76-2021 by the Executive Director of Corporate Services reviewing the Treasury Management Strategy for Tayside Pension Fund.

 

The Sub-Committee and Board examined the dates set out in the timetable and agreed the proposed programme of meetings as detailed.

 

XIIl PENSION ADMINISTRATION STRATEGY

 

There was submitted Report No 77-2021 by the Executive Director of Corporate Services setting out the Funds policy in respect of the standards required of both the Fund and the participating employers to ensure that statutory obligations were met and also to demonstrate effective and efficient service delivery. The strategy contained a variety of performance measures against which the Fund and participating employers were assessed, with performance reported to the Sub-Committee and Board.

 

The Sub-Committee and Board agreed to approve the strategy contained within the report, noting the introduction of charges to employers in exceptional circumstances and also consented to its distribution to all employers.

 

XIV TAYSIDE PENSION FUND

 

There was submitted Report No 78-2021 by the Executive Director of Corporate Services detailing the range of discretions available to Dundee City Council as the administering authority of Tayside Pension Fund, and the current policies in place in relation to these.

 

The Sub-Committee and Board noted the content of the report.

 

XV TAYSIDE PENSION FUND COMMUNICATION POLICY

 

There was submitted Report No 79-2021 by the Executive Director of Corporate Services presenting a communications policy as required by the Local Government Pension Scheme (Scotland) Regulations 2014.

 

The Sub-Committee and Board approved the revised Communications Policy which had been reviewed in conjunction with the Funds Administration Strategy.

 

XVI TAYSIDE PENSION FUND ACTUARIAL VALUATION AT 31ST MARCH, 2020

 

There was submitted Report No 80-2021 by the Executive Director of Corporate Services providing an update on the Actuarial Valuation of Tayside Pension Fund at 31st March, 2020.

 

The Sub-Committee and Board noted the information contained within the report.

 

XVIl FUNDING STRATEGY STATEMENT

 

There was submitted Report No 81-2021 by the Executive Director of Corporate Services reviewing the Funding Strategy Statement for the Tayside Pension Fund.

 

The Sub-Committee and Board approved the Funding Strategy Statement for Tayside Pension Fund contained in Appendix 1 to the report.

 

XVIIl STATEMENT OF INVESTMENT PRINCIPLES REVIEW

 

There was submitted Report No 82-2021 by the Executive Director of Corporate Services reviewing Statements of Investment Principles for Tayside Pension Fund.

 

The Sub-Committee and Board noted the information within the report and approved the Statements of Investment Principles contained in Appendix 1 to the report.

 

XIX UK STEWARDSHIP CODE

 

There was submitted Report No 83-2021 by the Executive Director of Corporate Services setting out the revision to the UK Stewardship Code.

 

The Sub-Committee and Board noted the content of the report.

 

XX TAYSIDE PENSION FUND BUSINESS PLAN 2021/2022

 

There was submitted Report No 84-2021 by the Executive Director of Corporate Services introducing the annual Business Plan for the Tayside Pension Fund.

 

The Sub-Committee and Board noted the information within the report and approved the 2021/2022 Business Plan which applied to the administration and management of the Tayside Pension Fund.

 

The Sub-Committee and Board resolved under Section 50(A)(4) of the Local Government (Scotland) Act 1973 that the press and public be excluded from the meeting for the undernoted items of business on the grounds that they involved the likely disclosure of exempt information as defined in paragraphs 4, 6 and 11 of Part I of Schedule 7A of the Act.

 

XXI TAYSIDE PENSION FUNDS

 

(a) PERFORMANCE SUMMARIES

 

There was submitted Report No 86-2021 reviewing the investment performance of the Funds Investment Managers for the quarter to 31st December, 2020. The report compared investment performance of the Funds with the Funds specific benchmarks which consisted of various stock and security market indices.

 

The Sub-Committee and Board noted the information contained therein with regard to the performance of the Tayside Main Fund and their Fund Managers.

 

(b) SUMMARIES OF INVESTMENTS AND TRANSACTIONS

 

There was submitted Report No 87-2021 by the Executive Director of Corporate Services reviewing the investment activities of Tayside Pension Funds five Fund Managers for the quarter to 31st December, 2020 and summarising the transactions of each Fund Manager and showing the market values of the Pension Fund.

 

The Sub-Committee and Board noted the information contained therein with regard to the activities of the Tayside Pension Fund and its Fund Managers.

 

(c) SECURITIES LENDING SIX MONTH ACTIVITY TO 31ST DECEMBER, 2020

 

There was submitted Report No 89-2021 by the Executive Director of Corporate Services providing an update on Securities Lending activity for the period ended 31st December, 2020.

 

The Sub-Committee and Board noted the content of the report.

 

XXIl ANNUAL PERFORMANCE REVIEW TO 31ST DECEMBER, 2020

 

There was submitted Report No 88-2021 by the Executive Director of Corporate Services considering the Isio report Annual Review of Investment Performance 2020 completed in February 2021.

 

The Sub-Committee and Board noted the content of the report by Isio as detailed in Appendix A to the report.

 

XXIII PRESENTATION

 

Jason Freeman and Sabriyah Denham from GSAM gave a short presentation to the Sub-Committee and Board.

 

After Mr Freeman and Ms Denham had given their presentation and answered questions from members, the Chair thanked the presenters on behalf of members of the Sub-Committee and Board.

 

 

 

 

Willie SAWERS, Chair.