Pension Sub-committee And Pension Board - 17/03/2025
At a JOINT MEETING of the PENSION SUB-COMMITTEE of the CITY GOVERNANCE COMMITTEE AND THE PENSION BOARD held remotely on 17th March, 2025.
At a JOINT MEETING of the PENSION SUB-COMMITTEE of the CITY GOVERNANCE COMMITTEE AND THE PENSION BOARD held remotely on 17th March, 2025.
APPENDIX
Present:-
PENSION SUB-COMMITTEE
BAILIE
Willie SAWERS
COUNCILLORS
Ken LYNN
Steven ROME
Dorothy McHUGH
PENSION BOARD
Bill DUFF
George RAMSAY
Arthur NICOLL
Stewart DONALDSON
Kenny DICK
Bailie Willie SAWERS, Convener in the Chair.
I DECLARATION OF INTEREST AND APOLOGIES
No declarations of interest were made.
The Sub-Committee and Board noted apologies had been received from Bailie Kevin Keenan.
II MINUTE OF PREVIOUS MEETING
The minute of meeting of 9th December, 2024 was submitted and approved.
III APPOINTMENT OF CHAIRPERSON OF PENSION BOARD
There was submitted Agenda Note AN13-2025 advising the Sub-Committee and Board that in accordance with the Public Service Pensions Act 2013, the Sub-Committee were asked to seek nominations for the post of Chair of the Pension Board for the period of 12 months. The post of Chair of the Pension Board was subject to annual change.
The Sub-Committee and Board agreed that George Ramsay be Chair of the Pension Board for this period.
IV TAYSIDE PENSION FUNDS RISK REGISTER
There was submitted Report No 93-2025 by the Executive Director of Corporate Services seeking approval for the Quarterly Risk Register for Tayside Pension Fund.
The Sub-Committee and Board:-
(i) approved the Quarterly Risk Register for Tayside Pension Fund, noting that the undernoted changes for the previous quarter:-
Item 3 - Funding Liquidity. The risk that funds would be insufficient to meet liabilities as they fall due was considered to have reduced reflecting the significant level of cash currently available through the Funds segregated mandates and property portfolio in relation to the value of benefits that require to be paid out to members each month. The likelihood had reduced from low (2) to very low (1) resulting in revised overall risk scoring of 4 (previously 8).
Item 7 - Funding Investment. The risk that employer contributions would rise significantly due to poor/negative investment returns was considered to have reduced reflecting the recent performance on Funds investments. Since the previous actuarial valuation was undertaken as at March, 2023 quarterly results had shown positive trends although this would continue to be monitored closely ahead of the next actuarial valuation at March, 2026. The likelihood had reduced from medium (3) to low (2) resulting in a revised overall risk scoring of 10 (previously 15).
V PENSION ADMINISTRATION PERFORMANCE - QUARTERLY UPDATE TO 30TH DECEMBER, 2024
There was submitted Report No 94-2025 by the Executive Director of Corporate Services providing information on the recent quarters operational performance in relation to Pension Administration and other general developments in this area over the above period.
The Sub-Committee and Board:-
(i) noted the content of the report.
VI TAYSIDE PENSION FUND - AUDIT SCOTLAND ANNUAL AUDIT PLAN 2024/2025
There was submitted Report No 95-2025 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 2024/2025.
The Sub-Committee and Board:-
(i) noted the content of the report by Audit Scotland at Appendix A to the report; and
(ii) agreed to provide Audit Scotland with confirmation of any instances of actual, suspected or alleged fraud, as a requirement of the revised International Standard on Accounting (ISA) 240.
VII INTERNAL AUDIT RISK ASSESSMENT AND AUDIT PLAN 2025/2026
There was submitted Report No 96-2025 by the Executive Director of Corporate Services setting out the risk assessment undertaken by Pricewaterhouse Coopers (PwC) and details their internal audit plans for Tayside Pension Fund for 2025/2026.
The Sub-Committee and Board:-
(i) agreed to review and approve the Internal Audit Plan by Pricewaterhouse Coopers (PwC) as detailed in Appendix A to the report and noted that the outcome of these audits would be reported to the Sub-Committee at a future date.
VIII TAYSIDE PENSION FUND INTERNAL AUDIT REPORTS - THIRD PARTY MANAGEMENT REVIEW
There was submitted Report No 97-2025 by the Executive Director of Corporate Services submitting audit reports prepared by the Funds Internal Auditor, Pricewaterhouse Coopers (PwC).
The Sub-Committee and Board:-
(i) noted the content of the report on the audit review undertaken, and approved the management response.
IX TREASURY POLICY STATEMENT 2025/2026
There was submitted Report No 98-2025 by the Executive Director of Corporate Services revising the Funds Treasury Policy Statement which was intended to govern all treasury activities carried out by Tayside Pension Fund.
The Sub-Committee and Board:-
(i) approved the policies and procedures laid out in the appended Treasury Policy Statement 2025/2026, noting that the Treasury Policy Statement must be reviewed annually, and that there were no changes.
X TREASURY MANAGEMENT STRATEGY 2025/2026
There was submitted Report No 99-2025 by the Executive Director of Corporate Services reviewing the Treasury Management Strategy for Tayside Pension Fund.
The Sub-Committee and Board:-
(i) agreed to review the Treasury Management Strategy for Tayside Pension Fund.
XI PENSION ADMINISTRATION STRATEGY
There was submitted Report No 100-2025 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 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:-
(i) agreed to approve the strategy contained within, noting that there were no changes.
XII TAYSIDE PENSION FUND COMMUNICATION POLICY
There was submitted Report No 101-2025 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:-
(i) approved the Communications Policy which had been reviewed and updated in conjunction with the Funds Administration Strategy, noting that the Communications Policy must be reviewed annually, and that there were no changes.
XIII THE PENSIONS REGULATOR - GENERAL CODE UPDATE
There was submitted Agenda Note AN14-2025 advising the Sub-Committee and Board that the External Auditors Annual Report on the Tayside Pension Find Accounts 2023/2024 had previously been considered by the Pension Sub-Committee and Board (Article VI of the Minute of the Meeting of Pension Sub-Committee and Pension Board 23rd September, 2024, Report 273-2024 refers). The action plan to this report noted the Pension Regulators General Code of Practice was introduced on 28th March, 2024 and it was agreed a review of the code requirements would be undertaken during the year. It was confirmed that ISIO had been commissioned to undertake this review on behalf of the Fund. This review was underway and the outcome would be presented to the Sub-Committee and Board in a report at a later date.
The Sub-Committee and Board:-
(i) agreed to note this item.
XIV TAYSIDE PENSION FUND BUSINESS PLAN 2025/2026
There was submitted Report No 102-2025 by the Executive Director of Corporate Services introducing the annual Business Plan for the Tayside Pension Fund.
The Sub-Committee and Board:-
(i) noted the information within the report and approved the 2025/2026 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.
XV TAYSIDE PENSION FUND
(a) TAYSIDE PENSION FUND PERFORMANCE SUMMARY
There was submitted Report No 103-2025 by the Executive Director of Corporate Services reviewing investment performance of the Funds investment managers for the quarter to 31st December, 2024. The report compared investment performance of the Fund with the Funds specific benchmarks which consist of various stock and security market indices.
The Sub-Committee and Board:-
(i) 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 SUMMARIES OF INVESTMENTS AND TRANSACTIONS 1ST OCTOBER, 2024 - 31ST DECEMBER, 2024
There was submitted Report No 104-2025 by the Executive Director of Corporate Services reviewing the investment activities of Tayside Pension Funds five Fund Managers for the quarter to 31st December, 2024 and summarising the transactions of each Fund Manager and showing the market values of the Pension Fund.
The Sub-Committee and Board:-
(i) noted the information contained therein with regard to the performance of the Tayside Main Fund and their Fund Managers.
(c) SECURITIES LENDING 6 MONTH ACTIVITY TO 31ST DECEMBER, 2024
There was submitted Report No 105-2025 by the Executive Director of Corporate Services presenting an update on Securities Lending activity for the period ended 31st December, 2024.
The Sub-Committee and Board:-
(i) noted the content of the report.
(d) QUARTERLY FUNDING UPDATE AS AT 31ST DECEMBER, 2024
There was submitted Report No 106-2025 by the Executive Director of Corporate Services reviewing the current funding level of the Fund as assessed by the Fund Actuary.
The Sub-Committee and Board:-
(i) noted the report by the Fund Actuary.
XVI INVESTMENT STRATEGY IMPLEMENTATION UPDATE
A verbal update was given to the Sub-Committee and Board on the Investment Strategy Implementation Update by the Funds Investment Consultant.
The Sub-Committee and Board:-
(i) noted the content of the update.
XVII ANNUAL PERFORMANCE REVIEW TO 31ST DECEMBER, 2024
There was submitted Report No 107-2025 by the Executive Director of Corporate Services, considering the Isio report Annual Review of Investment Performance 2024 which had been completed in February 2025.
The Sub-Committee and Board:-
(i) noted the content of the Isio report (Appendix 1 to the report).
XVIII PRESENTATION
Joe Moroney and Maria Vanegas from Apollo gave a short presentation to the Sub-Committee and Board.
After Mr Moroney and Ms Vanegas 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.
At a JOINT MEETING of the PENSION SUB-COMMITTEE of the CITY GOVERNANCE COMMITTEE AND THE PENSION BOARD held remotely on 17th March, 2025.
At a JOINT MEETING of the PENSION SUB-COMMITTEE of the CITY GOVERNANCE COMMITTEE AND THE PENSION BOARD held remotely on 17th March, 2025.
APPENDIX
Present:-
PENSION SUB-COMMITTEE
BAILIE
|
Willie SAWERS |
COUNCILLORS
|
Ken LYNN |
Steven ROME |
Dorothy McHUGH |
PENSION BOARD
|
Bill DUFF |
George RAMSAY |
Arthur NICOLL |
|
Stewart DONALDSON |
|
Kenny DICK |
Bailie Willie SAWERS, Convener in the Chair.
I DECLARATION OF INTEREST AND APOLOGIES
No declarations of interest were made.
The Sub-Committee and Board noted apologies had been received from Bailie Kevin Keenan.
II MINUTE OF PREVIOUS MEETING
The minute of meeting of 9th December, 2024 was submitted and approved.
III APPOINTMENT OF CHAIRPERSON OF PENSION BOARD
There was submitted Agenda Note AN13-2025 advising the Sub-Committee and Board that in accordance with the Public Service Pensions Act 2013, the Sub-Committee were asked to seek nominations for the post of Chair of the Pension Board for the period of 12 months. The post of Chair of the Pension Board was subject to annual change.
The Sub-Committee and Board agreed that George Ramsay be Chair of the Pension Board for this period.
IV TAYSIDE PENSION FUNDS RISK REGISTER
There was submitted Report No 93-2025 by the Executive Director of Corporate Services seeking approval for the Quarterly Risk Register for Tayside Pension Fund.
The Sub-Committee and Board:-
(i) approved the Quarterly Risk Register for Tayside Pension Fund, noting that the undernoted changes for the previous quarter:-
Item 3 - Funding Liquidity. The risk that funds would be insufficient to meet liabilities as they fall due was considered to have reduced reflecting the significant level of cash currently available through the Funds segregated mandates and property portfolio in relation to the value of benefits that require to be paid out to members each month. The likelihood had reduced from low (2) to very low (1) resulting in revised overall risk scoring of 4 (previously 8).
Item 7 - Funding Investment. The risk that employer contributions would rise significantly due to poor/negative investment returns was considered to have reduced reflecting the recent performance on Funds investments. Since the previous actuarial valuation was undertaken as at March, 2023 quarterly results had shown positive trends although this would continue to be monitored closely ahead of the next actuarial valuation at March, 2026. The likelihood had reduced from medium (3) to low (2) resulting in a revised overall risk scoring of 10 (previously 15).
V PENSION ADMINISTRATION PERFORMANCE - QUARTERLY UPDATE TO 30TH DECEMBER, 2024
There was submitted Report No 94-2025 by the Executive Director of Corporate Services providing information on the recent quarters operational performance in relation to Pension Administration and other general developments in this area over the above period.
The Sub-Committee and Board:-
(i) noted the content of the report.
VI TAYSIDE PENSION FUND - AUDIT SCOTLAND ANNUAL AUDIT PLAN 2024/2025
There was submitted Report No 95-2025 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 2024/2025.
The Sub-Committee and Board:-
(i) noted the content of the report by Audit Scotland at Appendix A to the report; and
(ii) agreed to provide Audit Scotland with confirmation of any instances of actual, suspected or alleged fraud, as a requirement of the revised International Standard on Accounting (ISA) 240.
VII INTERNAL AUDIT RISK ASSESSMENT AND AUDIT PLAN 2025/2026
There was submitted Report No 96-2025 by the Executive Director of Corporate Services setting out the risk assessment undertaken by Pricewaterhouse Coopers (PwC) and details their internal audit plans for Tayside Pension Fund for 2025/2026.
The Sub-Committee and Board:-
(i) agreed to review and approve the Internal Audit Plan by Pricewaterhouse Coopers (PwC) as detailed in Appendix A to the report and noted that the outcome of these audits would be reported to the Sub-Committee at a future date.
VIII TAYSIDE PENSION FUND INTERNAL AUDIT REPORTS - THIRD PARTY MANAGEMENT REVIEW
There was submitted Report No 97-2025 by the Executive Director of Corporate Services submitting audit reports prepared by the Funds Internal Auditor, Pricewaterhouse Coopers (PwC).
The Sub-Committee and Board:-
(i) noted the content of the report on the audit review undertaken, and approved the management response.
IX TREASURY POLICY STATEMENT 2025/2026
There was submitted Report No 98-2025 by the Executive Director of Corporate Services revising the Funds Treasury Policy Statement which was intended to govern all treasury activities carried out by Tayside Pension Fund.
The Sub-Committee and Board:-
(i) approved the policies and procedures laid out in the appended Treasury Policy Statement 2025/2026, noting that the Treasury Policy Statement must be reviewed annually, and that there were no changes.
X TREASURY MANAGEMENT STRATEGY 2025/2026
There was submitted Report No 99-2025 by the Executive Director of Corporate Services reviewing the Treasury Management Strategy for Tayside Pension Fund.
The Sub-Committee and Board:-
(i) agreed to review the Treasury Management Strategy for Tayside Pension Fund.
XI PENSION ADMINISTRATION STRATEGY
There was submitted Report No 100-2025 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 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:-
(i) agreed to approve the strategy contained within, noting that there were no changes.
XII TAYSIDE PENSION FUND COMMUNICATION POLICY
There was submitted Report No 101-2025 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:-
(i) approved the Communications Policy which had been reviewed and updated in conjunction with the Funds Administration Strategy, noting that the Communications Policy must be reviewed annually, and that there were no changes.
XIII THE PENSIONS REGULATOR - GENERAL CODE UPDATE
There was submitted Agenda Note AN14-2025 advising the Sub-Committee and Board that the External Auditors Annual Report on the Tayside Pension Find Accounts 2023/2024 had previously been considered by the Pension Sub-Committee and Board (Article VI of the Minute of the Meeting of Pension Sub-Committee and Pension Board 23rd September, 2024, Report 273-2024 refers). The action plan to this report noted the Pension Regulators General Code of Practice was introduced on 28th March, 2024 and it was agreed a review of the code requirements would be undertaken during the year. It was confirmed that ISIO had been commissioned to undertake this review on behalf of the Fund. This review was underway and the outcome would be presented to the Sub-Committee and Board in a report at a later date.
The Sub-Committee and Board:-
(i) agreed to note this item.
XIV TAYSIDE PENSION FUND BUSINESS PLAN 2025/2026
There was submitted Report No 102-2025 by the Executive Director of Corporate Services introducing the annual Business Plan for the Tayside Pension Fund.
The Sub-Committee and Board:-
(i) noted the information within the report and approved the 2025/2026 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.
XV TAYSIDE PENSION FUND
(a) TAYSIDE PENSION FUND PERFORMANCE SUMMARY
There was submitted Report No 103-2025 by the Executive Director of Corporate Services reviewing investment performance of the Funds investment managers for the quarter to 31st December, 2024. The report compared investment performance of the Fund with the Funds specific benchmarks which consist of various stock and security market indices.
The Sub-Committee and Board:-
(i) 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 SUMMARIES OF INVESTMENTS AND TRANSACTIONS 1ST OCTOBER, 2024 - 31ST DECEMBER, 2024
There was submitted Report No 104-2025 by the Executive Director of Corporate Services reviewing the investment activities of Tayside Pension Funds five Fund Managers for the quarter to 31st December, 2024 and summarising the transactions of each Fund Manager and showing the market values of the Pension Fund.
The Sub-Committee and Board:-
(i) noted the information contained therein with regard to the performance of the Tayside Main Fund and their Fund Managers.
(c) SECURITIES LENDING 6 MONTH ACTIVITY TO 31ST DECEMBER, 2024
There was submitted Report No 105-2025 by the Executive Director of Corporate Services presenting an update on Securities Lending activity for the period ended 31st December, 2024.
The Sub-Committee and Board:-
(i) noted the content of the report.
(d) QUARTERLY FUNDING UPDATE AS AT 31ST DECEMBER, 2024
There was submitted Report No 106-2025 by the Executive Director of Corporate Services reviewing the current funding level of the Fund as assessed by the Fund Actuary.
The Sub-Committee and Board:-
(i) noted the report by the Fund Actuary.
XVI INVESTMENT STRATEGY IMPLEMENTATION UPDATE
A verbal update was given to the Sub-Committee and Board on the Investment Strategy Implementation Update by the Funds Investment Consultant.
The Sub-Committee and Board:-
(i) noted the content of the update.
XVII ANNUAL PERFORMANCE REVIEW TO 31ST DECEMBER, 2024
There was submitted Report No 107-2025 by the Executive Director of Corporate Services, considering the Isio report Annual Review of Investment Performance 2024 which had been completed in February 2025.
The Sub-Committee and Board:-
(i) noted the content of the Isio report (Appendix 1 to the report).
XVIII PRESENTATION
Joe Moroney and Maria Vanegas from Apollo gave a short presentation to the Sub-Committee and Board.
After Mr Moroney and Ms Vanegas 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.
Dundee City Council
