The Pension Committee of Waltham Forest Council met on Thursday 14 March 2024 to discuss the pension fund's financial performance, risk management, and administrative updates. Key decisions included the approval of the Pension Fund Annual Report and Accounts for 2022/23, the agreement to extend the independent advisor contract, and the approval of the Draft Risk Management Policy.

Funding Update and Current Issues

The committee received an update on current issues affecting the Local Government Pension Scheme (LGPS). It was confirmed that the deadline for the Pensions Dashboard implementation is 31 October 2025, with some delays attributed to software development. The committee also noted that a judicial review concerning the McCloud remedy could potentially lead to changes in benefits, depending on the ruling.

Presentation from the LCIV

Representatives from the London Collective Investment Vehicle (LCIV) presented an update on their approach to addressing underperformance and identifying investment opportunities. The committee noted the LCIV's strategy of engaging with fund managers before divestment in cases involving armed disputes or child labour, emphasising the importance of maintaining diversity within investments. The LCIV also highlighted the need for other London boroughs to agree on any further exclusion funds due to the benefits of economies of scale.

Pension Fund Annual Report and Accounts 2022/23

The committee considered the report of the Assistant Director of Pensions and Treasury Management, Debbie Drew. The committee confirmed that the Scheme Advisory Board (SAB) would provide new guidance to ensure reports are up to date. The committee subsequently approved the Pension Fund Annual Report for 2022/23.

Property Gift Update

Consideration was given to the report of the Interim Strategic Director of Resources, Rob Manning. Ms Drew confirmed that there were no issues with the property gift. The committee noted the report.

Training Update

Ms Drew introduced the report, reminding committee members to complete their training modules. The committee noted the report and appendices, including the agreement to undertake the required training as listed in the Training Policy, and the completion of the Training Needs Assessment form. The training record for the Pension Committee, Pension Board, and Pension Officers was also noted.

Independent Advisor Contract

The committee considered the report on the Independent Advisor Contract. Ms Drew introduced the item. The committee agreed to extend the current Independent Advisor contract until a new appointment is made. Furthermore, the committee agreed to delegate the selection and appointment of the Independent Advisor to the Chair of the Pension Committee, in conjunction with the Strategic Director of Resources and the Pension Officer.

Pension Administration Update

The committee considered the report of the Head of the Pension Shared Service (PSS), Martin Doyle. The committee thanked the PSS for their work on improving data quality. It was confirmed that a third-party ISP would be contracted to assist with data transfer for the national Pension Dashboard project, which had experienced delays due to variations in user names and addresses. Annual data security training will be required. The committee noted the update.

Risk Management

Ms Drew introduced the report, noting that policies and the risk register would be developed in time for the next meeting. The committee agreed the Draft Risk Management Policy.

The Pensions Regulator: General Code of Practice

Mr John Raisin introduced the report, noting that officers were awaiting further guidance from the SAB. The committee confirmed that the code did not materially impact the valuation of the fund. The committee agreed to report to the next committee meeting on how the fund complies with the code or its best practice recommendations and to develop a plan of action to address compliancy.

Pension Fund Performance Update

Ms Drew introduced the report. The committee noted the report.

Investment Strategy Report

Ms Knott-Martin and Mr Vairamis introduced the report, providing an update on the Global Alpha and Sustainable Equity Exclusion funds, noting an improvement in performance in the last quarter. The LCIV had met with fund managers to ensure strong succession plans within risk management. The committee agreed to switch on income from equity mandates and the remaining Darwin accumulation shares. They also agreed to delegate authority to the Pension Officer to make divestments from assets as and when required, using judgement generally in line with the liquidity waterfall set out in appendix 1.