The Cumbria Pensions Committee considered several matters relating to the running of the Cumbria Local Government Pension Scheme (LGPS). These included the minutes from the last meeting, the appointment of new independent advisors to the committee, an actuarial valuation, updates on investment activity and administration matters and a report from the Cumbria Local Pension Board. Also included on the agenda were a report on the Border to Coast Pensions Partnership (BCPP), updates on its governance and a review of the Pension Fund Business Plan & Administration Budget.

Pension Review ‘Fit for the Future’ Consultation

This report outlined the recent government announcement in relation to the Fit For The Future consultation on the LGPS.

On Thursday 14 November 2024 the Chancellor presented her Mansion House speech, which set out plans to boost growth of the UK economy.

The report provided details of the consultation, which focussed on the following three areas:

• Reforming the LGPS asset pools by mandating certain minimum standards deemed necessary for an optimal and consistent model in line with international best practice.
• Boosting LGPS investment in their localities and regions in the UK.
• Strengthening the governance of both LGPS AAs and LGPS pools.

It was requested that the Cumbria Pensions Committee delegate to Pam Duke, Director of Resources (Section 151 Officer) in consultation with the Chair of the Committee, to approve and submit the Fund’s response to the consultation by 16 January 2025.

BCPP Joint Committee Minutes

The report included the minutes from the last BCPP Joint Committee meeting held on 26 September 2024, in Leeds. It detailed the questions received from members of the public relating to the BCPP’s approach to climate change and fossil fuels, and the response from the Chair.

Update from Cumbria Local Pensions Board

This report provided an update on the Cumbria LGPS Local Pension Board's (CLPB) meeting on 8 October 2024. The meeting minutes included in the pack covered discussion of topics such as:

• Oversight of Pensions Committee Decisions
• Review of Pensions Administration Matters
• Compliance to the General Code
• Cyber Resilience

The meeting also received an update from John Crowhurst, Operations and Commercial Director at Local Pensions Partnership - Administration (LPPA).

Review of Oversight & Governance Matters

The report pack included an updated copy of the Cumbria LGPS risk register. This noted that the Fund had one risk assessed as “red” associated with information security arrangements and five risks assessed as “amber”, including:

• Pensions administration processes
• Payment of contributions
• Regulatory changes
• Loss of key personnel
• Impact of armed conflicts

The report also included a new conflicts of interest policy. It stated that:

This policy has been written to ensure compliance with the requirements as set out in the Pension Regulator’s General Code of Practice and will be reviewed at least every three years.

Review of Pensions Administration Activity for the Quarter ended 30 September 2024

This report provided an update on pensions administration activity for the three months to 30 September 2024. The report pack included the quarterly performance report from the LPPA. It detailed performance against key performance indicators, satisfaction levels of retiring scheme members, the number of complaints received and a progress report on the implementation of pensions dashboards.

Review of Investment Activity for the Quarter ended 30 September 2024

This report provided an update on the Fund's investment activity for the three months to 30 September 2024. The pack included the minutes from the most recent Investment Sub Group meeting and provided information on the performance of the Fund’s investments over the quarter and against longer term targets. It also provided an update on the completion of the transfer of the Fund’s eligible direct properties to the BCPP UK Real Estate fund. The transfer took place on 1 October 2024.

The report also provided details on the ongoing implementation of the Fund's Investment Strategy and suggested that:

an investment decision in sterling investment grade credit [be taken] to the March Pensions Committee.

Half Year Update of the Pension Fund Business Plan & Administration Budget 2024/25

The Cumbria Pensions Committee were asked to note progress against the Fund’s 2024/25 Business Plan and to note the 2024/25 half year projected outturn position against budget for the Cumbria LGPS, which was a forecast variance of £2.201m as at 30 September 2024.

Pension Review and Budget Update

This report provided an update on the recently announced “Fit For The Future” consultation on the LGPS, and the potential implications for the Cumbria Pension Fund.

As anticipated, the consultation focusses on three key themes: pooling, UK investment and governance.

The report included a summary of the proposals set out in the consultation, and the report pack included the full consultation document.

The Committee were asked to delegate authority to the Director of Resources (Section 151 Officer), Pam Duke, to approve and submit the Cumbria Pension Fund response to the consultation by 16 January 2025.

The report also detailed the recent Government announcement that from 6 April 2027 most unused pension funds and death benefits will be included within the value of a person’s estate for Inheritance Tax purposes.

The Committee were asked to delegate authority to Pam Duke, Director of Resources (Section 151 Officer) to approve and submit the Fund’s response to the inheritance tax consultation by 22 January 2025.

Actuarial Valuation

A representative from Mercer Ltd, the Fund's actuary, gave a presentation on the 2025 Actuarial Valuation of the Fund.

Emerging Issues

The meeting received a general verbal update from the Director of Resources on current emerging issues.