Agenda and minutes

None.

Members are invited to declare at this stage of the meeting, any relevant

personal or prejudicial interests in any matter to be considered at this meeting.

None.

To approve the minutes of the previous meeting held on 24 March 2022 as a correct record.

The minutes of the previous meeting held on Thursday 24^th March 2022 were agreed as an accurate record.

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To update the Pension Board on various pensions administration matters

as part of its remit to oversee the administration of the Brent Pension

Fund.

Sawan Shah (Brent Council - Senior Finance Analyst) introduced the report updating the Pension Board on various pension administration matters as part of its remit to oversee the administration of the Brent Pension Fund.

In considering the report, the Board noted:

·                The Pension Administration performance update for the Q4 monitoring period January – March 2022, as detailed within Appendix 1 of the report.

·                That whilst the quarterly average percentage of cases processed on time (95.9%) had been below the Service Level Agreement target (98%) this reflected revised targets agreed with the Fund during the Universal Pension Management (UPM) system migration.

·                The slippage in Helpdesk call performance wait times during the same period which also reflected the migration to the new pension administration system and measures being taken to train additional Helpdesk advisors.

·                The number of complaints remained low with 8 cases received since the last update.

·                The Pension Regulator scores achieved in relation to the accuracy of common and conditional data had improved further since the previous quarter.

John Crowhurst (Operations Director, LPP) then provided the Board with a presentation outlining key business and performance updates within the LPP Quarterly & Annual Brent Pension Fund Administration Report.  Key issues highlighted were as follows:

Referring firstly to progress with the introduction of the new pension system administration system and migration to Universal Pensions Management (UPM) the Board was advised that Phase I of the process had been successfully completed with nine out of 18 LLP clients having ‘gone live’.  The plans for Phase II of the migration had now been agreed for all remaining clients between October – December 22.  This would include Brent, who were due to go live in November 2022.  The new Member Portal ‘Pension Point’ and Employer Portal were now live, with 40,000 members having successfully registered for Pension Point.  Data migration had also been fully reconciled.  In terms of Brent’s migration, LPP were continuing to provide regular monthly updates designed to ensure successful transfer of administrative system as well as further detailed engagement with members and employers in order to support the transition to the new system.

From a casework performance perspective, the Board noted the detailed breakdown provided within the quarterly monitoring update as detailed in Appendix 1 of the report.  This reflected the adjustment in relation to “business as usual” as a result of the ongoing system migration accompanied by a short blackout period, and need for additional staff training and higher numbers of hyper care issues post go-live.

In terms of help desk performance, whilst the slippage in performance was recognised during the current monitoring period the Board noted that as a result of the action taken to recruit and train additional helpdesk advisers and appoint an additional helpdesk training resource it had been possible to improve performance with average wait times in June at approx.5 minutes (recognised as the lowest since the beginning of the new pension system migration process) and response times to web form enquiries at approx. 24-48 hours.  It was,  ...  view the full minutes text for item 5.

This is the Chair’s Annual Report to the Board for 2021/22. It provides a summary of the work carried out by the Council’s Pension Board during the 2021/22 municipal year.

David Ewart (Chair – Brent Pension Board) presented a report which provided a summary of the work carried out by the Council’s Pension Board during the 2021/22 municipal year.

The Board welcomed the report and as with no comments or issues raised it was RESOLVED to note the report.

To present the updated Risk Register for the Brent Pension Fund

Pensions Administration Service.

Flora Osiyemi (Head of Finance) presented a report updating the Board on the Risk Register for the Brent Pension Fund Pensions Administration Service.

In considering the report, the Board noted the following:

·                No new risks had been added to the Register since the previous update in March 2022.

·                The changes made to the Risk Register, as detailed within section 3.6 and Appendix 1 of the report.  The key changes identified included:

Ø   Item 5.6 (Transfer of LPP Administration System) being updated to reflect Phase II of the migration and Brent’s “go live” date with members having considered the impact of this process as part of the Pension Administration Update.

Ø   Item 6.4 (Year End Return) the risk had been changed from a low to a medium - low risk with the likelihood also having changed from 2 to 4 due to the number of outstanding returns, although as noted as part of the Pension Administration Update the current number of outstanding returns had reduced and now stood at three rather than 11;

Ø   Item 9.2 (Investments in Russia, Belarus and Ukraine) the likelihood of the risk materialising had been changed from 10 to 2 given the limited exposure of the Fund to holdings in these areas.

The Board also received and noted the Risk Strategy for the Fund, attached at Appendix 2 of the report.

The Board welcomed the report and as no further issues were raised it was RESOLVED to note the report including the key changes set out in section 3.6 of the report.

The purpose of this report is to update the committee on recent developments within the Local Government Pension Scheme (LGPS) regulatory environment and any recent consultations issued which would have a significant impact on the Fund.

The Board received a report providing an update on recent developments within the Local Government Pension Scheme (LGPS) regulatory environment and any recent consultations issued which would have a significant impact on the Fund.

In considering the report the Board noted the following updates:

·                In March 2022, the Council had received a letter (attached in Appendix 1 of the agenda pack) from the Head of Local Government Pensions at the Department for Levelling Up, Housing and Communities (DLUHC) setting out their recommendations on how administering authorities should take the McCloud remedy into account in the 2022 triennial valuation.  The guidance provided had been subject to review with Brent’s Fund Actuaries who had commented that it was in line with expectations and therefore not expected to create any delay in the valuation process.

·                The discussions between Prudential and the Head of Pensions at the Local Government Association regarding the ongoing operational difficulties being experienced by administering authorities in relation to the Prudential performance along with the action being taken to address the situation, on which further details had been provided in Appendix 2 of the report.

·                The publication of the LGPS England and Wales Annual Report for 2021.

·                The publication of the Government Actuary's Department (GAD) report on the 2016 scheme valuation which calculated the cost cap of the scheme. The report concluded that the costs of the scheme had remained below the target costs and as a result no action had been required in relation to any breach of the cost cap corridor and thus no benefits adjustment had been issued.

In terms of issues raised, members were advised that the increase in management charges identified within the LGPS Annual Report had been driven primarily by a rise in investment management charges with administration and governance costs remaining broadly stable.

The Board welcomed the report and as no further issues raised it was RESOLVED to note the recent developments in the LGPS, as detailed within the report.

This report presents a review of the Pension Board’s terms of reference and conflicts of interest policy.

Rubia Jahlil (Finance Analyst) introduced a report detailing the outcome a review of the Pension Board’s Terms of Reference and Conflicts of Interest Policy.

In considering the outcome of the review and current Terms of Reference and Conflicts of Interest Policy, the Board supported the view that these both remained fit for purpose.  It was noted that as part of the Board’s role in ensuring the Brent’s Pension Fund continued to be managed and administered effectively and in compliance with necessary regulations they would continue to receive regular updates on the issues being considered by Brent’s Pension Fund Sub Committee, including the updated Investment Strategy.

Members welcomed the report and with no further issues raised, it was RESOLVED that the Board approve the current Terms of Reference and Conflicts of Interest policy with no changes identified for consideration.

To receive the Brent Pension Fund Q1 2022 Investment Monitoring

Report.

The Board received an update on the Brent Pension Fund Q1 2022 Investment Monitoring Report.  It was reported that the report had been considered in detail by the Brent Pension Fund Sub Committee on 27 June 2022.

Members welcomed the report and with no further issues raised, it was RESOLVED to note the Q1 Investment Monitoring Report.

The purpose of this report is to outline the business plan for the Fund for

the next 12-18 months prepared by the Fund’s investment advisors,

Hymans Robertson.

The Board received a report outlining the business plan for the Fund for the next 12-18 months prepared by the Fund’s investment advisors, Hymans Robertson.  It was reported that the report had been considered in detail by the Brent Pension Fund Sub Committee on 27 June 2022.

Members welcomed the report and with no further issues raised, it was RESOLVED to note the report and endorse the contents of the Pension Fund Business Plan.

This report presents an update on progress against the Fund’s net zero

transition roadmap.

The Board received a report providing an update on progress against the Fund’s net zero transition roadmap. It was reported that the report had been considered in detail by the Brent Pension Fund Sub Committee on 27 June 2022.

Members welcomed the report and with no further issues raised, it was RESOLVED to note the update provided update and ongoing work and progress being made on the Net Zero Transition Roadmap as detailed within Appendix 1 of the report

This report presents the draft pension fund annual accounts for the year

ended 31 March 2022.

The Board received a report presenting the draft pension fund annual accounts for the year ended 31 March 2022. It was reported that the report had been considered in detail by the Brent Pension Fund Sub Committee on 27 June 2022.

In considering the report the Board thanked officers for their work in successfully meeting the Fund’s year-end accounts deadline ahead of the statutory schedule and noted the strong financial position of Brent’s Pension Fund, with the value of investments having increased to £1,128m during 2021/22 (compared to £1,032m 2020/21).  In response to a query regarding the final accounts, the Board was advised that these were now in the process of being audited prior to final sign off, with a further update to be provided once this had been completed.

Members welcomed the report and as no further issues were raised it was RESOLVED to note and endorse the Pension Fund Year End Accounts 2021/22.

The purpose of this report is to update the committee on the 2022

Pension Fund Valuation.

The Board received a report updating the committee on the 2022 Pension Fund Valuation.  It was reported that the report had been considered in detail by the Brent Pension Fund Sub Committee on 27 June 2022.

Members welcomed the report and with no further comments or issues raised, it was RESOLVED to note the report and progress on the Valuation process.

Notice of items to be raised under this heading must be given in writing to the Head of Executive and Member Services or her representative before the meeting in accordance with Standing Order 60.

None.

The press and public will be excluded from the remainder of the meeting

as the reports to be considered contain the following category of exempt

information as specified in Paragraph 3, Schedule 12 A of the Local

Government Act 1972, namely:

“Information relating to the financial or business affairs of any particular

person (including the authority holding that information)”

At this stage in proceedings the Board RESOLVED that the press and public will be excluded from the remainder of the meeting as the reports and appendices to be considered contained the following category of exempt information as specified in Paragraph 3, Schedule 12A of the Local Government Access to Information Act 1972, namely:

“Information relating to the financial or business affairs of any particular person (including the Authority holding that information).”

Having passed the above resolution the live webcast was ended at this stage of the meeting.

To receive a report from the Director of Finance providing an update on

recent developments regarding the Brent Pension Fund Investments

held within the London CIV (LCIV).

The Board received a report, which provided the latest update on recent developments regarding the Brent Pension Fund Investments held within the London CIV (LCIV).  It was reported that the report had been considered in detail by the Brent Pension Fund Sub Committee on 27 June 2022.  The update included (as detailed in Appendix 1) the data, performance of Funds that Brent had invested via London CIV as well as the LCIV quarterly investment review which included Brent’s investments in the LCIV Infrastructure fund along with valuation and performance data for the underlying portfolio investments and an update on pipeline investments (as detailed in Appendix 2 of the report).  As a final update members’ attention was drawn to the general updates provided by the London CIV (as set out in Appendix 3) in relation to investment, fund launches and fund monitoring and operational controls.

Having considered the update provided, the Sub Committee RESOLVED to note the reports and updates provided by London CIV.