Pension Sub-committee And Pension Board - 07/12/2020

At a JOINT MEETING of the PENSION SUB-COMMITTEE of the POLICY AND RESOURCES COMMITTEE AND THE PENSION BOARD held remotely on 7th December, 2020.

Present:-

PENSION SUB-COMMITTEE

BAILIES

COUNCILLORS

PENSION BOARD

Bailie Willie SAWERS, in the Chair.

I DECLARATION OF INTEREST

No declarations of interest were made.

II MINUTE OF PREVIOUS MEETING

The minute of meeting of 21st September, 2020 was submitted and approved.

III APPOINTMENT OF CHAIRPERSON OF PENSION BOARD

There was submitted Agenda Note AN41-2020 advising that in accordance with the Public Service Pensions Act 2013, the Sub-Committee and Board are asked to seek nominations for the post of Chair of the Pension Board for the period of 12 months.

It was agreed that George Ramsay continue in this role for a further period of 12 months.

IV TAYSIDE PENSION FUND RISK REGISTER

There was submitted Report No 327-2020 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 13th November, 2020, and noted that there were no changes to the risk profile since the previous report.

V PENSION ADMINISTRATION PERFORMANCE

There was submitted Report No 328-2020 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 INTERNAL ANNUAL AUDIT REPORTS 2020/2021

There was submitted Report No 339-2020 by the Executive Director of Corporate Services submitting to the Sub-Committee and Board the Audit Reports prepared by the Funds Internal Auditor, PricewaterhouseCoopers (PwC) following the reviews undertaken in line with the approved 2020/2021 Internal Audit plan (Article X of the Minute of Meeting of the Pension Sub-Committee of the Policy and Resources Committee and Pension Board of 21st September, 2020, Report No 151-2020 refers).

The Sub-Committee and Board noted the content of the report on the individual audit exercises undertaken for the current financial year, and approved the management responses.

VIl TREASURY MANAGEMENT ACTIVITY 2020/2021 (MID-YEAR REVIEW)

There was submitted Report No 329-2020 by the Executive Director of Corporate Services reviewing Tayside Pension Funds Treasury Management activities for the period 1st April, 2020 to 30th September, 2020.

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

VIIl PROPOSED TIMETABLE OF MEETINGS FOR 2021

There was submitted Report No 330-2020 by the Executive Director of Corporate Services proposing a suggested programme of meetings of the Pension Sub-Committee and Pension Board in 2021.

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

lX ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE POLICY

There was submitted Report No 331-2020 by the Executive Director of Corporate Services reviewing the Fund's current policy on Socially Responsible Investing (Article V of the Minute of Meeting of the Pension Sub-Committee of the Policy and Resources Committee of 24th June 2019, Report No 236-2019 refers).

The Sub-Committee and Board agreed to approve the Environmental, Social and Corporate Governance Policy for the Tayside Pension Funds, noting that there were no amendments to the policy previously approved.

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.

X TAYSIDE PENSION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 332-2020 reviewing the investment performance of the Funds Investment Managers for the quarter to 30th September, 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 333-2020 by the Executive Director of Corporate Services reviewing the investment activities of Tayside Pension Funds five Fund Managers for the quarter to 30th September, 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) OVERVIEW OF OUTCOMES OF ACTUARIAL VALUATION AT 31ST MARCH, 2020

There was submitted Report No 334-2020 by the Executive Director of Corporate Services updating the Sub-Committee and Board on the preliminary results of the actuarial valuation of Tayside Pension Fund at 31st March, 2020.

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

Xl SOCIALLY RESPONSIBLE INVESTMENT - SIX MONTHLY REPORT

There was submitted Report No 335-2020 by the Executive Director of Corporate Services reviewing the progress by the Fund Managers regarding positive engagement in line with the Policy on Environmental, Social and Corporate Governance approved by the Sub-Committee (Article V of the Minute of Meeting of the Pension Sub-Committee of the Policy and Resources Committee of 24th June, 2019, Report No 236-2019 refers).

The Sub-Committee and Board noted the information contained within the report with regards to the activities of the Fund Managers during the six-month period ended 30th September, 2020.

XIl ANNUAL ASSESSMENT OF INVESTMENT ADVISORY SERVICE

There was submitted Report No 336-2020 by the Executive Director of Corporate Services providing information on the annual assessment of investment advisory service performance as required by the Competition and Markets Authority.

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

XIIl FURTHER ANALYSIS ON THE STRUCTURE OF THE SCOTTISH LOCAL GOVERNMENT PENSION SCHEME

There was submitted Report No 337-2020 by the Executive Director of Corporate Services providing information on the draft procurement specification for the Scheme Advisory Boards (SAB) appointment of an independent consultant to undertake a detailed business case analysis and present an evidence-based comparison of the costs, benefits and risks of the four potential scheme structures that were the subject of the 2018 consultation on structure of the SLGPS and informing the Sub-Committee and Board that the SAB intend to approach all Scottish Funds for financial support to facilitate this.

The Sub-Committee and Board noted the content of the report, and considered the intentions of the SAB in respect of financial assistance in this endeavour.

XIV SCOTTISH GOVERNMENT CONSULTATION RESPONSE - ADDRESSING DISCRIMINATION IN LGPS

There was submitted Report No 338-2020 by the Executive Director of Corporate Services. The report advised the Sub-Committee and Board of the Scottish Public Pensions Agency (SPPA) consultation on the rectification of age discrimination within the Scottish Local Government Pension Scheme.

The Sub-Committee and Board noted the content of the joint response prepared by the National Specialist Pensions Groups (Scottish Pensions Liaison Group and the Investment and Governance Group).

XV PRESENTATION

David Barber, Ian Fishwick and Jeremy Podger from Fidelity International gave a short presentation to the Sub-Committee and Board.

After Mr Barber, Mr Fishwick and Mr Podger 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.