The Dyfed Pension Fund Committee met on Wednesday, 23 September 2026, to discuss the fund's budget, administration, risks, and investments. Key decisions included approving an increase to the payslip variance threshold and noting various reports on the fund's performance and activities.

Budget Monitoring and Cash Position

The committee received an update on the Dyfed Pension Fund's budget and cash position as of 30 June 2026. The report indicated that expenditure was forecast to exceed income by £2.9 million, with total expenditure estimated at £152.8 million and total income at £149.9 million. This was attributed to various underspends in expenditure, such as benefits payable and management expenses, offset by a forecast reduction in investment income. The cash balance held by Carmarthenshire County Council for immediate cash flow requirements was £18.5 million, which was noted as being higher than previously held due to reduced employer contributions. The committee resolved to receive this report.

Pensions Administration Report

An update on the Pensions Administration service was presented, covering regulatory matters such as the McCloud/Sargeant remedy, pension dashboards, equalisation of survivor benefits, and death grants. The report also detailed the breaches register, payslip variances, annual benefit statements, i-Connect implementation, GMP reconciliation, and workflows. A key recommendation was to increase the threshold for pensioner payslip variances from £5 to £20. The committee resolved to note the Pensions Administration Report and approve the proposed increase to the payslip variance threshold.

Breaches Report

The committee received the Breaches Report for the Dyfed Pension Fund. It was noted that since the previous meeting, there had been two instances of late contribution payments, with no long-term implications. The report also reflected the automatic payment of refunds due from May to September 2026. The committee resolved to note the breaches that had occurred.

Risk Register

The committee reviewed the Dyfed Pension Fund's Risk Register, a working document that highlights identified risks related to the fund's functions. The focus for this meeting was on Funding and Investment risks. Of the 13 risks identified, 9 were classified as high or very high when uncontrolled. With existing controls in place, these were reduced to 1 high/very high risk, 9 medium risks, and 3 low/very low risks. The committee resolved to note the risk register report.

Training Plan 2026-2027

The proposed Training Plan for 2026-2027 was presented, outlining the schedule of committee meetings and training events for members and officers. The plan included various training sessions, conferences, and meetings related to pension fund management and investments. The committee resolved to approve the Training Plan for 2026/27.

Wales Pension Partnership (WPP)

Joint Governance Committee (JGC) Update

An update was provided on the Wales Pension Partnership (WPP) Joint Governance Committee meeting held on 15 July 2026. This included information on the risk register, host authority arrangements, and performance monitoring, with Russell Investments in attendance. The WPP's complaints and whistleblowing policies had been updated, and progress on the Investment Management Company (IMCo) was reported, including the signing of the Shareholders' Agreement and the appointment of non-executive directors. The Financial Conduct Authority (FCA) had granted approval to the IMCo, which became operational on 1 September 2026 and was expected to assume investment management responsibilities from 1 October 2026. The committee noted the WPP Business Plan and Quarter 1 performance information, with over 80% of participating fund assets invested through the Pool, and the Dyfed Pension Fund having approximately £1.8 billion invested. Recent performance indicated improvements and positive overall returns. The committee also discussed the need for more detailed reporting on WPP business plans, particularly regarding local investment initiatives, and agreed that more focused reporting would be considered. The committee resolved to note the Joint Governance Committee update.

Responsible Investment Update - 31 March 2026

A Responsible Investment Update, prepared by WPP's Oversight Advisor (Hymans Robertson), was presented. Significant progress was highlighted, including the introduction and implementation of the Fund's Exclusion Policy. This policy, now agreed, complements the Fund's Responsible Investment and Stewardship Policies by providing a framework for investment exclusions. The committee resolved to note the Wales Pension Partnership Responsible Investment Update.

Robeco Engagement Report

The committee received the Robeco Engagement Report for the period 1 January 2026 to 31 March 2026, detailing engagement activities undertaken on the WPP portfolio. During discussions on responsible investment and divestment, members requested further information on the impact and scale of relevant exclusions and divestments. It was agreed that a summary report from advisers on this matter would be circulated or presented at a future meeting. The committee resolved to note the Robeco Engagement Report.

Independent Advisor Performance & Risk Report

The committee received the Independent Advisor and Risk report as at 30 June 2026. This report detailed the investment managers' performance for the quarterly, 12-month, and rolling 3-year periods ending 30 June 2026, alongside the global market background. The committee resolved to note the Independent Investment Adviser Report.

Northern Trust Performance Report

The Northern Trust performance report as at 30 June 2026 was presented, providing performance analysis at both a total fund level and by investment manager since inception. The committee resolved to note this report.

The meeting was held in person and remotely, with Councillor D.E. Williams serving as Chair. The meeting was filmed and may be kept on the Council's internet site as an archived record.