This meeting will likely feature discussions on a number of topics relating to the Durham County Council Pension Fund’s administration and governance, including an update on the national Pensions Dashboard project, which is expected to go live in 2026, and a government consultation on potential future changes to the Local Government Pension Scheme (LGPS).

Pensions Administration Report

A report from the Corporate Director of Resources will provide details on the Pension Fund’s administration. The report will highlight that 27,636 scheme members have registered for the Fund’s online portal, Pensions Online.

The report will also contain an update on performance indicators in key areas of administration. The performance of the Pension Fund in this area was praised by an unnamed expert, who remarked that they were “the best set of KPIs he had seen at any meeting of an LGPS Fund.” The report notes one area in particular that needs further development:

KPI B1 Communication issued with acknowledgement of death of active, deferred, pensioner and dependent Member was at 90.76 percent.

The report explains that this is likely due to requests from bereaved family members to delay communication until after funeral arrangements are made.

The report will conclude by providing information about a new online Employer Hub for the Pension Fund, which is being developed to digitise processes and enhance communication between the Fund and employers. It is anticipated that a small number of employers will begin using the new Hub in 2024.

Regulatory Update

A report from the Corporate Director of Resources will provide details on regulatory developments, both specific to the LGPS, and more general matters of relevance to the Pension Fund. The report will highlight that the Pension Fund had no issues raised in the government’s review of the 2022 LGPS valuations, with all areas of concern highlighted as green.

In relation to the government’s Pensions Review, the report will provide the following update:

further to previous update in this regard, the new Government was moving quickly on pensions reform adding that the new Chancellor had noted that within the review, the LGPS would be within ‘Phase One’ and therefore the issues of further consolidation and investment within the UK would be looked at in short order.

The report will also provide updates in relation to the reporting of climate-related risks and the Taskforce on Climate Related Financial Disclosures (TCFD). The report explains that Border to Coast Pension Partnership (BCPP) - the asset pool used by the Fund - has recently published its second TCFD report, and is actively working to assist its partner Funds to produce their own reports in advance of any mandatory reporting. The report highlights the challenges and uncertainty faced by Funds in relation to the reporting of climate-related risks in private market investments, noting:

Obtaining carbon data for Private Markets is more challenging and BCPP are looking into solutions for these portfolios held in the pool.

The report will provide an update on the McCloud judgement, explaining that the Pension Fund is working with its software suppliers to deliver a system to support the calculation of service records to address the discrimination highlighted in the judgment.

LGPS Consultation - 'LGPS: Fit for the future'

A report from the Corporate Director of Resources will provide details on a government consultation in relation to the future of the LGPS, which was launched in November 2024 following the Mansion House Speech given by the Chancellor. The consultation, which is titled ‘Local Government Pension Scheme (England and Wales): Fit for the future’, closes on January 16 2025.

The report highlights that the consultation:

seeks views on proposals to strengthen the management of LGPS investments in three key areas: (a) Reforming the LGPS asset pools, (b) Boosting LGPS investment in their localities and regions in the UK, and; (c) Strengthening the governance of both LGPS Funds and LGPS pools.

The report notes that the Fund is well placed to address many of the issues raised in the consultation as its asset pool, BCPP, is already authorised and regulated by the Financial Conduct Authority (FCA) and has a private markets programme which can be used to support local and regional investment.

The report concludes by providing a proposed schedule of consultation with stakeholders, which will include a Pension Fund Committee and Local Pension Board meeting on December 17 2024, with the intention of submitting a response to the government consultation by January 16 2025.

Pensions Dashboard Preparation

The Board will receive a verbal update on the Pension Fund’s preparation for the national Pensions Dashboard. The report will explain that the first step in preparation for the Dashboard is to ensure that all scheme member data is of high quality. To this end, the report highlights:

A specific update on the approach that the Fund will follow is included elsewhere on the Board’s agenda.

The report will also highlight that the Local Government Association (LGA) has provided a checklist of factors to consider in preparing for the Dashboard. The Board will likely discuss the challenges faced by the Fund in ensuring that data for former members is up-to-date, with a data improvement project planned for the New Year.

The report will highlight that the Board will receive regular updates on this issue.

Pension Fund Statement of Accounts

The Board will receive a verbal update on the Pension Fund Statement of Accounts, which is on track to be signed off by 30 November 2024. The report will explain that the Fund is up to date with its reporting, with weekly meetings being held with Mazars - the Fund’s External Auditor.