The Pension Board met on Tuesday 20 February 2024 to discuss the draft pension fund report and accounts for 2022/23, the risk strategy, and the pension administration service report. The Board noted that the 2022/23 accounts were still being audited and that the risk management proposals, which incorporate CIPFA guidance, would be formally approved by the Pension Fund Committee.

Draft Pension Fund Report and Accounts 2022/23

The Board was informed that the 2022/23 pension fund accounts were still undergoing their audit by Ernst & Young LLP, with officers hoping for their completion soon. Chris Buss, the Independent Chair, confirmed with officers that the fund's strategy remained unchanged and that updated metrics for recovering deficit contributions would be available.

Risk Strategy

Debbie Drew, Assistant Director of Pension and Treasury Management, introduced the item on risk management, noting it had been suggested by the Board. The Board noted that John Raisin had previously presented a proposal to the Pension Fund Committee in March 2023 to incorporate the CIPFA risk management guidance, which was due for formal approval at their next meeting. Officers would also develop a risk management training plan for Committee and Board members in the new financial year. The risk management proposals considered The Pension Regulator's (TPR) General Code, which was viewed as best practice for the Local Government Pension Scheme (LGPS) rather than a strict requirement, although TPR expected the LGPS to adhere to it.

Pension Administration Service Report

Martin Doyle, Head of the Pension Shared Service, provided an update confirming that data quality scores had improved. The Board acknowledged that London Borough of Waltham Forest (LBWF) had started with a weaker dataset compared to other boroughs. The Pension Shared Service (PSS) is working with Mercer and council officers to ensure future errors are addressed, as improved data quality is expected to contribute to a better actuarial valuation. Officers indicated that a data cleaning project with Mercer was being considered to ensure data accuracy once pension dashboards are implemented. Mr Doyle also highlighted that the PSS had experienced staff retention issues, and officers were reviewing how to become a more competitive employer, including an assessment of grading levels for pay, as the PSS salaries were noted as being the lowest compared to nine other pension administration services.