The Pension Board of Lewisham Council met on Tuesday, 24 September 2024, to discuss a range of updates and reports concerning the management and performance of the Pension Fund. Key topics included a general update on fund activities, progress on The Pension Regulator's Code of Practice, and the Board's work programme.

General Update - Part One

The Board received updates on several key areas of the Pension Fund's operations. The Treasury and Investment Manager, Chris Flower, presented the Draft Pension Fund Annual Report for 2023/24, noting that the audit was being conducted by new auditors, KPMG, with sign-off expected between November and December. The report details the Fund's activities, including those of the Pension Investment Committee and the Pension Board, and is due for publication by 1 December 2024.

The procurement process for actuarial, governance, and advisory services has commenced, with tenders due by 4 October 2024 and the new contract expected to start on 1 December 2024.

An update on the Risk Register was provided, noting that it had been reviewed on 19 September 2024. The register, designed by The Pensions Regulator, categorises risks into Red, Amber/Red, Amber/Green, and Green. The ESG risk rating (Al07) was increased due to potential lower investment returns from following higher ESG criteria, while the risk rating for employers not meeting obligations (EM01) was reduced due to improved policies and the transfer of Lewisham Homes staff to the Council. The fraud risk rating (AG09) was also reduced due to satisfactory internal and external audits.

The Annual Business Plan 2024/25 was presented, outlining the work intended for the Pension Investment Committee throughout the year. The Board recommended a review of the report for next year in terms of content, structure, and style.

The Pension Regulator's Code of Practice Report

Chris Flower presented an update on The Pension Regulator's General Code of Practice (GCOP), which came into force on 28 March 2024. Lewisham Pension Fund has purchased a GCOP tool checker from Hymans Robertson, which has highlighted that the council is 95% compliant, with further work needed in specific areas. Dates have been agreed for this work to be completed, and the GCOP tool checker will be available to the Board by the December meeting. The review will provide a gap analysis, and an action plan with timescales will be presented to the Pension Investment Committee on 20 November 2024 and subsequently to the Pension Board in December 2024.

Work Programme

The Board noted the update on the Operational and Strategic items on the Work Programme as at September 2024. Key milestones for the upcoming quarters include the audited Pension Fund Statement of Accounts and the Pension Fund Annual Report in Q4, and the review of the Terms of Reference and Membership of the Board in Q2 of the following year.

Future Meeting Dates

The Board noted the future meeting dates as 10 December 2024, 10 March 2025, and 16 June 2025. Board Members were asked to inform the Treasury and Investment Manager or Governance Officer if they were unable to attend.

Exclusion of Press and Public

It was resolved that the press and public would be excluded from the meeting for Item 11, General Update - Part Two, due to the likely disclosure of exempt information.

Other Matters

• Minutes: The minutes of the meeting held on 11 March 2024 were agreed.
• Declarations of Interest: No interests were declared.
• Breaches Log: The Board was advised there were no breaches to report.
• Action Log: Updates were provided on the action log, with several items to be addressed in future updates or already reported. An action was noted for the Head of Payroll and Pensions to share an email with other Board members regarding responses to questions raised at the March meeting.
• Training Log and Forthcoming Training and Events: An update was provided, and an action was noted for the Treasury and Investment Manager to update a table to record Mark Booker's completion of core modules. Board members were encouraged to inform the Treasury and Investment Manager of any relevant CIPFA events they wished to attend.