The Pensions and Investment Committee of Powys Council convened on 24 June 2024 to discuss various matters related to the administration and governance of the pension fund, responsible investment, and procurement exercises. Key decisions included the approval of the updated Governance and Compliance Statement, the Wales Pension Partnership (WPP) 2024-27 Business Plan, and the appointment of the preferred supplier for Actuarial Services.

Administration and Governance Report

The Committee reviewed updates from the Scheme Advisory Board (SAB), including responses to the investment reforms consultation by the Department of Levelling Up. Concerns were raised about whether the Welsh Pension Partnership would meet government expectations regarding fund scale. Additionally, guidance was received on managing funding surpluses following the 2022 Valuation results.

The Local Government Pension Scheme (LGPS) updates included the appointment of a new minister and the processing of cases under the McCloud legislation, introduced in October 2023. The Pensions Regulator's Governance and Administration Survey 2022-23 results were discussed, along with the new General Code of Practice, which will be introduced on 27 March 2024. The code emphasises training and cyber security.

The Committee also noted ongoing work to prepare data for the Pensions Dashboard, a single portal for pension savers. The Governance Risk Register was amended to reflect increased risk related to single-person expertise, and the Committee approved these amendments.

Training Needs Analysis

The Pension Fund Manager highlighted the importance of training under the new code of practice. A full training plan for officers, board, and committee members was discussed, and the Committee agreed to complete the training needs analysis form. The benefits of online training were also noted.

Governance and Compliance

The updated Governance and Compliance Statement was presented, with minor grammatical changes. The Committee approved the updated statement.

Wales Pension Partnership (WPP) Update

The Committee received an update on the WPP, including the approval of the WPP Business Plan 2022-2027 by the Joint Governance Committee. The first All Wales Climate Report, covering 2019-2022, was also discussed. The Committee approved the WPP 2024-27 Business Plan.

Responsible Investment

A joint report by the Pension Fund Manager and AON highlighted the progress of the Responsible Investment sub-group. The sub-group focuses on updating the Responsible Investment Policy and completing the taskforce on climate-related financial disclosures (TCFD). The Committee noted the update and agreed to share modelling data and information on Welsh Pension Funds' net zero commitments.

Strategy Implementation

AON representatives provided a summary of the work and decisions undertaken in 2023, including changes to the infrastructure strategy and fixed income portfolio. The Committee noted the successful implementation of these changes.

Performance Monitoring

Emma Perrin from AON presented the quarterly monitoring report and fund performance. The Committee was assured of an overall positive performance and noted the report.

WPP Operator Procurement

The Committee discussed the procurement exercise for the new Wales Pension Partnership Operator contract. The preferred bidder was approved.

Pension Fund Procurement

The Pension Fund Manager explained the procurement exercises undertaken with the Council’s Commercial Services team. The Committee approved the preferred supplier for Actuarial Services.

Business Plan

The Pension Fund Manager presented the Pension Business Plan 2024/25, highlighting objectives and challenges. The Committee approved the publication of the plan.

For more details, you can refer to the Minutes Public Pack 22032024 Pensions and Investment Committee and the Public reports pack 24th-Jun-2024 13.00 Pensions and Investment Committee.