The Local Pension Board reviewed reports from the Pensions Committee, discussed the performance monitoring report for the Bromley Pension Fund, and considered the draft Pensions Administration Strategy. The Board also received an update on the latest Local Government Pension Scheme (LGPS) matters.

Report from the Pensions Committee

The Board reviewed reports previously considered by the Pensions Committee on 14 December 2023. These included updates on pension fund performance, key developments within the Local Government Pension Scheme (LGPS), and an actuarial climate change analysis report from Mercer. A Board Member emphasised the importance of the Pensions Committee having a comprehensive understanding of investment risks, particularly in emerging areas like climate risk.

Performance Monitoring Report 2023/24 to January 2024

The Board examined the Performance Monitoring Report for the 2023/24 financial year up to 31 January 2024. This report provides information to help the Board assess the Bromley Pension Fund's adherence to the Pension Regulator's Code of Practice on Governance and Administration of public service pension schemes. The Board noted the Code of Practice as a guide for good governance, the procedures and policies in place for monitoring Liberata's performance, and Liberata's current performance levels.

Pensions Administration Strategy Report

The draft Pensions Administration Strategy (PAS) was considered by the Board. This strategy outlines the responsibilities and performance standards expected of both the administering authority and scheme employers. The Board noted the draft strategy, which will be subject to consultation with scheme employers before being approved by the Pensions Committee. A discussion took place regarding the challenges of engaging Scheme Members with the Bromley Pensions Scheme and communicating the benefits of joining. The effectiveness of the Charging Schedule for employers who fail to meet their responsibilities was also discussed, with clarification provided that employers would be charged monthly until breaches were resolved, a measure found to be effective.

Verbal Update on Latest LGPS Matters

The Board received an update on recent developments within the Local Government Pension Scheme (LGPS). A discussion ensued regarding delays to the Pensions Dashboards Programme, which aims to provide individuals with secure online access to their pension information. Challenges in accurately matching individuals to their pension data were highlighted, with the government hesitant to use National Insurance numbers due to potential input errors. Reassurance was given that the Local Authority is aligned with Heywood, a major pension service provider, and that membership in The Class Group provides a high degree of quality assurance at a low cost.

Previous Meeting Minutes and Other Business

The minutes of the previous meeting held on 25 October 2023 were agreed. The Board also noted the minutes of the Pensions Committee meeting held on 14 December 2023. During the discussion of these minutes, a Board Member requested further work to identify the proportion of opt-outs from the Bromley Pension Scheme over the past five years across different salary bands.

In other business, the Senior Accountant: Pensions informed the Board that the Pensions Committee meeting scheduled for 23 July 2024 was likely to be moved to September 2024 to align with quarterly reporting. The date for the next Local Pension Board meeting was set for June 2024.