The Pension Board of Croydon Council met on Thursday 11 April 2024 to discuss the Pension Fund's Medium Term Business Plan for 2024-2027, review Key Performance Indicators for the Pensions Administration Team, and receive updates on regulatory changes and training. The Board agreed to the Medium Term Business Plan and noted the performance of the administration team, while also being updated on the implementation of The Pensions Regulator's new General Code of Practice and ongoing training initiatives.

Pension Fund Medium Term Business Plan 2024/27

The Board agreed to the recommended Medium Term Business Plan for the Croydon Pension Fund for the financial years 2024/25 to 2026/27. The plan outlines the Fund's aims and objectives, governance and management structure, and work programme. It also details investment strategies, cash flow projections, resource allocation, and training plans. The Fund's assets are valued at approximately £1.78 billion, and it is currently over 100% funded. The plan anticipates a net income over the period 2024-27, with strategies in place to manage investments, including a commitment to pooling assets into the London Collective Investment Vehicle (London CIV) by March 2025, although challenges remain with transferring illiquid assets. The plan also highlights ongoing governance reviews and the implementation of new regulatory requirements, such as The Pensions Regulator's (TPR) General Code of Practice.

Croydon Pensions Administration Team Key Performance Indicators

The Board noted the Key Performance Indicators (KPIs) for the Croydon Pensions Administration Team for the period December 2023 to February 2024. While most indicators met legal and internal targets, leaver calculations continue to be a challenge, with ongoing efforts to improve resourcing and processes. The team has successfully implemented monthly mortality screening, identifying an average of 2-4 potential death cases per month, and is working on streamlining processes, automation, and improving employer engagement. A new member self-service system is awaiting legal sign-off, with an anticipated launch in the autumn. The Board requested that the team's action plan for leavers be presented at the next meeting.

The Pensions Regulator's New General Code Update

The Board was updated on the implementation of The Pensions Regulator's (TPR) new General Code of Practice, which came into effect on 27 March 2024. This consolidated code replaces previous guidance and applies to all pension schemes. Croydon Council has procured a compliance checker model from Aon to assess the Fund's adherence to the new code. Officers are currently undertaking this assessment, which is a significant task. A training session on the new code for the Pension Board and Committee is scheduled.

Pension Committee Training Update

The Board reviewed the training log for Pension Board members for the 2023/24 year up to 2 April 2024. The training plan for 2024/25, developed with Aon, has been agreed by the Pension Committee. The Board was encouraged to complete online training modules via the Hymans Robertson portal, with plans to schedule in-person sessions to address knowledge gaps. The Equality, Diversity, and Inclusion (EDI) training has been recorded, and presentation slides will be circulated. Members were reminded to inform officers of any training undertaken to ensure accurate record-keeping.

Review of Breaches of the Law

The Board reviewed the Pension Fund's Breaches of the Law log, noting that no new entries had been added since the last meeting. One entry, concerning the failure to publish audited fund accounts for 2019/20, was amended to reflect that the accounts had been agreed by the Audit Committee on 14 March 2024. The formal sign-off of these accounts is pending. The Board was informed that the audit for the 2023/24 accounts is commencing, and a national exercise is underway to address a backlog of outstanding local authority audits.

Croydon Council Pension Fund Data Retention and GDPR

The Board noted the updated documentation relating to UK General Data Protection Regulations (UKGDPR) and the Data Protection Act 2018 (DPA). These documents, including a Full Privacy Notice, Summary Privacy Notice, Personal Data Retention Policy, and a Memorandum of Understanding for Employers, have been reviewed, updated using LGA templates, and published on the Fund's website. The Council, as the administering authority, is required to maintain these to ensure compliance and inform members about how their personal data is collected and used.

Local Government Pension Scheme Advisory Board/The Pensions Regulator Update

The Board received an update on matters being considered by the Local Government Pension Scheme Advisory Board (SAB) and The Pensions Regulator (TPR). Key points included the SAB's ongoing work on the LGPS Gender Pensions Gap, a report on the LGPS and Sharia law, and the progress of the Economic Activity of Public Bodies (Overseas Matters) Bill. Updates were also provided on the DLUHC's consultation on the local audit backlog, TPR's new General Code of Practice, and various other regulatory and policy developments affecting the LGPS, including climate risk reporting and the 'McCloud' remedy.

Cyber Security Update

The Board resolved to exclude the press and public from the discussion on Cyber Security, as it involved the likely disclosure of exempt information relating to financial and business affairs.

Key Decisions Made:

• Agreement to the Medium Term Business Plan 2024/27: The Board formally agreed to the proposed business plan for the Pension Fund.
• Noting of KPIs and Breaches Log: The Board noted the performance indicators of the Pensions Administration Team and the current Breaches of the Law log.
• Review of Training Log: The Board agreed to review the training log for accuracy and to advise officers on any necessary updates.
• Noting of GDPR and Regulatory Updates: The Board noted the updated GDPR documentation and the reports from the SAB and TPR.