Agenda item

To receive the Chair’s Annual Report for 2024-25 providing an update on the work carried out by the Board during the year.

David Ewart (as Chair) introduced the Annual Report to the Pension Board, providing an update on the Board's work during 2024-25.

In introducing the report, the Chair highlighted the work of the Board as it related firstly to the review of investment activity and secondly to the performance of the pension administration function with additional roles in relation to risk management and the use of other discretionary powers.  In terms of the review of investment activities, it was recognised whilst this had taken up a  smaller part of the Board’s time, given the remit of the Pension Fund Sub Committee in this respect, members had continued to receive regular investment updates and been in general agreement with the action being taken by the Sub Committee including the move to the revised asset allocation, socially responsible investment and the steps towards low carbon investment as well as collective engagement on wider environmental, social and governance (ESG) issues in terms of the Fund’s investments with members mindful of their duty to effectively scrutinise the investment activity of the fund.

In terms of Pension Administration, the Board had taken the lead in scrutinising the performance of the Fund’s pensions administration partner Local Pensions Partnership Administration (LPPA), with the Board continuing to monitor those areas identified as not meeting SLA targets as well as general levels of performance and a focus on some of the most sensitive activity such as dealing with retirement from active membership and death in service, the level of service to Fund members and the quality of data held, although the need to maintain ongoing and continuous improvements had been recognised.

Whilst 2024-25 year had been a busy year and the Board remained aware of the areas for improvement highlighted it was also felt to have been an encouraging year for the Fund, despite the increasing risks and pressures identified, with the funding level continuing to improve and investment returns remaining strong, on an absolute basis, although slightly underperforming relative to the Fund’s benchmark and a slow but general improvement in the performance of the pension administration function (with some areas of challenges remaining).

In concluding the presentation of the Annual Report, the Chair also took the opportunity to thank all the Board members and supporting officers for their efforts and ongoing support, with members also taking the opportunity to formally thank the Chair for this role in conducting and managing the Board meetings.

Following the update provided by the Chair members were invited to raise any comments with the following issues highlighted:

·            In raising the ongoing absence of an employer’s representative position on the Board, members sought details on progress in filling the position. Sawan Shah (Head of Finance Pensions and Housing Companies) responded that having undertaken an unsuccessful recruitment process at the start of 2025 (given the low level of engagement received) officers were now exploring options to promote better interest in the position in advance of a further recruitment process being undertaken following the school summer holiday period on which members were advised the Board would continue to be updated on progress.

Having thanked the Chair and officers for their work, the Board RESOLVED to note and endorse the Annual Report.