The Pension Fund Panel noted the detail outlined in each of the reports presented to them. The Panel noted that there was a plan to recruit two new pension officers at a lower level and agreed that they should be promoted as they gain experience. The Panel also agreed to note the progress on the transfer of Pension Fund assets to implement the agreed strategic asset allocation.

Administration of the Pension Fund

The Panel discussed the Pension Administration Report presented by Matthew Mott from the West Yorkshire Pension Fund (WYPF). Mr Mott advised that WYPF planned to recruit two new pension officers at a lower level. These officers would then be promoted as they gained experience. Mr Mott acknowledged that there was a trend, seen across all funds, for retirees to be growing in numbers faster than active members. Yvonne Thompson, Interim Head of Finance, Pensions and Treasury at Hounslow Council, advised that this issue was referred to as the fund maturing. She said that this meant the fund was having to use assets to generate income and so it was important to examine where funds were invested to ensure sufficient cash flow in the future.

Councillor Afzaal Kiani asked for more detail on this point:

Can you quantify what the impact is of a reduced number of people paying into a pot but an increasing number of people taking out of a pot, how quickly are we moving towards that point?

Ms Thompson replied:

The funding balance is examined in detail by the actuaries every three years and the resultant assessment of the funding position is used to produce a write up of assets. The whole area is under constant review.

Mr Mott advised that specific numbers of staff were not applied to a particular fund, but work was sent to the relevant team as it came in. He said that WYPF officers had regular dialogue with officers from Hounslow, Barnet and Lincolnshire.

The minutes state that clearing the backlog entirely was unlikely but once the McCloud reforms[^2] had been fully implemented there would be significantly less need for manual input; tasks would typically take around 25% as much time once the software was fully operational.

Capita Cyber Attack

Michael Docherty, Strategic Finance Manager - Pensions & Treasury at Hounslow Council, advised that members had previously been briefed about the cyber-attack on Capita¹ of March 2023. He explained that seventy-two members of Hounslow's pension scheme had had their data accessed in the attack. Mr Docherty said that the Council's Information Governance team had advised that Capita should be instructed to delete the data. This data had originally been due to be held until 2025, but there was no longer any need for it to be held as the current scheme administrators, WYPF, have confirmed they hold it.

General Code of Practice Compliance

Ms Thompson presented the TPR General Code of Practice (GCOP) Review. She advised that reviews were carried out on a quarterly basis and data was constantly examined.

Responding to questions regarding vacant positions on the Pension Fund Board, Hitesh Sharma, Strategic Pensions Manager at Hounslow Council, confirmed that a recruitment drive was ongoing for Pension Board representatives. He added:

The recruitment advert and information remained online, and it is an ongoing process but there has been lack of engagement with this recruitment and alternative approaches may be considered going forward.

Ms Thompson stated that the role of the Pension Board was to ensure compliance with regulations and that all members received compulsory training. Pension Board Chair Neil Mason advised that a governance assessment by an independent third party would add rigour to governance standards. Ms Thompson stated that the Scheme Advisory Board's Focus Group on the General Code of Practice (GCOP) had met that morning. She said that the Group were encouraged by the approach officers had taken in completing the assessment.

Strategic Asset Allocation

Ms Thompson presented the Strategic Asset Allocation (SAA) - Transition Update.

Quarterly Overview and General Matters

Ms Thompson presented the Quarterly Overview and General Matters Report. She advised that the update on the Pension Regulator's General Code of Practice (GCOP) would be removed from quarterly overview reports in future and brought to the Panel as a stand-alone report.

Consultation on Pooling Practice

Ms Thompson advised that the Scheme Advisory Board had emailed the Chair, Councillor Sharma, regarding consultations on changes to pooling practice. She said that a meeting with Chairs and officers was scheduled for 14 October to discuss this.

Draft Annual Report and Accounts of the Hounslow Pension Fund

Michael Docherty presented the Draft Annual Report and Accounts of the Hounslow Pension Fund 2023/24. He drew members’ attention to the salient points.

Draft Annual Business Plan 2024/25

There was no discussion of the Draft Annual Business Plan 2024/25.

Pension Fund Risk Register

There was no discussion of the Pension Fund Risk Register.

Investment Advisor Quarter 1 2024 Report

Karen Shackleton of Apex Group presented the Investment Advisor Quarter 1 2024 Report. She drew members’ attention to the salient points and responded to questions.

Confidential items

The Panel also discussed the Minutes of the Pension Board meeting held on 22 July 2024 and the Investment Advisor Quarter 1 2024 Report in private.