Issue - meetings

Report by the Director of Finance and Support Services.

The Board is asked to note report.

11.1     The Board received a report by the Director of Finance and Support Services (copy appended to the signed minutes) which was introduced by Vickie Hampshire, Finance Manager. The report focussed on the impact on COVID-19 on the fund, on investments, any experience in relation to death rates, the impact on cash flow and the response and experience of the administration team. It also referred to risk mitigation options. The were three surveys that the Scheme Advisory Board put out for funds in April and May, the results are on the Scheme Advisory Board’s website and there was press reporting on those. 

11.2     Comments and questions were invited from the Board and included a query on whether the re-risking strategy in place to deal with a deteriorating funding position. It was noted that there was not a trigger for automatically re-risking but there was a trigger for considering that action and that stood at 95% funded.  At no point did the fund get below that point, the lowest point was 97% and it was now up to valuation levels again

11.3     Resolved – that the Board noted the report.

Report by the Director of Finance and Support Services.

The Committee is asked to note the report and agree the short term risk management approach for employers as set out in paragraph 10.

19.1     The Committee considered a report by the Director of Finance and Support Services (copy appended to the signed minutes).

19.2     The Chairman reported that an appendix had been included for context which contained exempt information.  The Committee were asked if they would like to discuss the appendix before making a resolution on the report; or if they were happy to discuss the appendix separately during the Part II section of the meeting.  The Committee agreed that the discussion could be held during the Part II section of the meeting.

19.3     Katharine Eberhart introduced the report which outlined the approach to Covid-19 risks and the impacts on fund assets.  A graph within the report showed what the impact on funding would have been had de-risking exercises not been undertaken.  Work was being undertaken to consider the risks for individual employers during the pandemic.  It was reported that one employer may be leaving the scheme due to insolvency.

19.4     The Committee made comments including those that follow.

•     Sought clarity on the number of employer exits that were reported and asked if the figures were normal.  – Steven Law confirmed that the numbers were normal and a reflection of the contract situations for employers in the fund such as academies with cleaning contracts.  This would be common for the fund as academisation and related outsourcing continues.

•     Queried of the contribution rates for these short term contractors were appropriate for the associated risks.  – Steven Law confirmed that the risks were managed via comparatively higher contribution rates or were secured under pass through arrangements.

19.5     Resolved – that the Committee notes the report and agrees the short term risk management approach.

The Committee discussed the Part II appendix during the Part II section of the meeting and noted the approaches that had been taken for individual employers.