Agenda and draft minutes

Members are asked to declare any interest and the nature of that interest which they may have in any of the items under consideration at this meeting.

Councillor Graham Lawman declared an interest as his wife was a deferred member of the LGPS.

To confirm the Minutes of the meeting of the Committee held on 28 June 2023.

Councillor Phil Bignell clarified that his wife was an active, not a deferred member of the LGPS.

RESOLVED:

That the minutes of the Investment sub-committee of 28 June 2023, subject to the amendment above, be approved and signed as a correct record.

The Employer Services and Communications Manager presented the Review of Employer Contribution Rates policy which set out the circumstances under which the Fund may review employer contribution rates between triennial valuations. The policy had previously been approved as part of the 2019 Funding Strategy Statement. There were some minor changes and out of date references removed but the substance and effect of the policy had not been changed.

Further to enquiries, the Employer Services and Communications Manager advised that if an employer wanted to review their contributions this would be done in consultation with an actuary. The Head of Pensions added that they did not know of any employers seeking to do this currently.

The Fund would consider requests from employers to review their contribution rates but only where there was a material change in the strength of covenant, if there was a change in the ability of the employer to pay their contributions or where there was a significant restructure which impacted their membership and consequently liabilities.

RESOLVED:

That the Pension Committee approve the Review of Employer Contribution Rates policy.

The Head of Pensions advised that there had been fundamental changes made to the Fund’s training approach following the introduction of LOLA, the LGPS Online Learning Academy provide by Hymans Robertson. All Members of the Committee should have received their invites from Hymans to enable them to undertake their core training. The mandatory modules would need to be completed in 12 months and it was suggested that current issue modules be undertaken in 3 months. Potentially, bespoke training may also be provided.  The training strategy had been approved at the Local Pension Board in June with no changes.

RESOLVED:

That the Pension Committee approve the Northamptonshire Pension Fund Training Strategy.

The Pension Services Financial Manager highlighted the main areas of risk on page 57 of the report, which were Level 3 investments, management overrides of controls and triennial valuation.  The planning materiality for investment related transactions was £48.1 million and non-investment related transactions £12.9 million.

The key milestones were set out on page 65, an interim audit had been undertaken in February, the year end audit is currently underway and weekly meetings are being held with the auditors.

William Howard from Grant Thornton provided a presentation on the Northamptonshire Pension Fund Audit Plan 2022-23. Significant risks were consistent with previous years. The audit fees were set out on page 66 and 67 and had been agreed. William Howard thanked the Finance team for their assistance with the audit.

Councillor Lawman queried the size of the materiality for non-investment related transactions at 10%. William Howard advised that it was the biggest risk and deemed to be an appropriate threshold. This year the percentage had reduced on materiality of transactions compared to previous years.

RESOLVED:

That the Committee note the External Audit Plan 2022-23 and the presentation by Grant Thornton.

The Pension Services Financial Manager presented the Statement of Accounts 2022-23 which had been produced in line with CIPFA guidelines. There were some sections that were yet to be completed, as this information was yet to be provided by third parties. The contributions, benefits and investment income for 2022-23 had increased since prior year.

Paul Wheeler highlighted that there was a reference to the Audit Commission on page 95 and believed that this terminology was now out of date. The Head of Pensions agreed that this should be amended.

With regard to the Internal Dispute Resolution Procedure, the Head of Pensions explained that he was the stage 1 adjudicator and disputes often escalated to stage 2, despite being upheld at stage 1, due to the financial award being deemed inadequate. Financial awards are generally made with reference to Pensions Ombudsman guidance on redress payments.

Councillor Graham Lawman considered that the report was comprehensive but highlighted that it did not mention liabilities. The Head of Pensions noted that the funding levels and liabilities were included in the actuary’s report.

RESOLVED:

That the Pension Committee note the Draft Annual Report and Draft Statement of Accounts of the Pension Fund for the 2022-23 financial year.

The Pension Services Financial Manager drew Members’ attention to the Pension Fund Forward Agenda Plan.

RESOLVED:

That the Northamptonshire Pension Fund Forward Agenda Plan be noted.

The following report(s) contain exempt information as defined in the following paragraph(s) of Part 1, Schedule 12A of Local Government Act 1972.

*DELETE AS APPROPRIATE*

Paragraph 1 – Information relating to any individual.

Paragraph 2 – Information which is likely to reveal the identity of an individual.

Paragraph 3 – Information relating to the financial or business affairs of any particular person (including the authority holding that information).

Paragraph 4 – Information relating to any consultations or negotiations, or contemplated consultations or negotiations, in connection with any labour relations matter arising between the authority or a Minister of the Crown and employees of, or office holders under, the authority.

Paragraph 5 – Information in respect of which a claim to legal professional privilege could be maintained in legal proceedings.

Paragraph 6 – Information which reveals that the authority proposes;

a)    To give under any enactment a notice under or by virtue of which requirements are imposed on a person; or

b)    To make an order or direction under any enactment

Paragraph 7 – Information relating to any action taken or to be taken in connection with the prevention, investigation or prosecution of crime.

Members are reminded that whilst the following item(s) have been marked as exempt, it is for the meeting to decide whether or not to consider each of them in private or in public. In making the decision, members should balance the interests of individuals or the Council itself in having access to the information. In considering their discretion members should also be mindful of the advice of Council Officers.

Should Members decide not to make a decision in public, they are recommended to resolve as follows:

“That under Section 100A of the Local Government Act 1972, the public and press be excluded from the meeting for the following item(s) of business on the grounds that, if the public and press were present, it would be likely that exempt information falling under the provisions of Schedule 12A, Part I, Paragraph(s) XXXXX would be disclosed to them, and that in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.”

RESOLVED:  That Under Section 100A of the Local Government Act 1972, the Local Pension Board agreed that the public be excluded from the meeting for the following items of business on the grounds that if the public were present it would be likely that exempt information under Part 3 of Schedule 12A to the Act would be disclosed to them.