Agenda and minutes

Members and officers must declare any pecuniary or personal interest, or any potential conflicts of interest in any business on the agenda. They should also make declarations at any stage such an interest becomes apparent during the meeting. Consideration should be given to leaving the meeting if the nature of the interest warrants it. If in doubt, contact Democratic Services before the meeting.

1.1        None declared.

To confirm the part I minutes of the meeting of the Board held on 9 February 2024.

2.1        Resolved – That the minutes of the meeting of the Board held on 9 February 2024 be approved as a correct record and signed by the Chairman.

The Board is asked to note the confirmed Part I minutes from the meeting of the Pensions Committee on 29 January 2024 and the agenda from the meeting of the Pensions Committee on 26 April 2024.

3.1        The Board considered the confirmed part I minutes from the 29 January 2024 Pensions Committee meeting and the Agenda from the 26 April 2024 Pensions Committee meeting (copies appended to the signed minutes).

3.2        Resolved – That the minutes and agenda be noted.

Report by the Chairman of the Pension Advisory Board.

The Board is asked to note the updates to the Business Plans of the Board and of the Pensions Committee.

4.1        The Board received a report by the Chairman of the Pension Advisory Board (copy appended to the signed minutes).

4.2        The Chairman introduced the report recognising that this is the first meeting of the year and that core business activities are on-track. The Plan is simpler than the Pensions Committee’s Business Plan but they are consistent with each other in terms of objectives and it was recognised that there may be some areas where the Board can assist/support with the Pensions Committee objectives, for example in relation to communication. The Board has commented previously on communication issues and therefore could be asked for comment on this area of activity.

4.3        The Chairman explained that the risks set out for the Pensions Committee are relevant to the Board, specifically PEN17 around training. This is not considered to be a “red” risk for the Board, but the Chairman reminded and encouraged all members of the Board to complete the new LGPS Online Learning Academy (LOLA) training modules.

4.4        Rachel Wood introduced the Pensions Committee Business Plan, attached as Appendix B to the signed minutes. It was noted that the Committee held a strategy session in February 2024 which discussed implementation of funding, investment and administration strategies alongside risks and future actions. Key areas of focus were drawn out within the Plan, and defined as pooling arrangements, administration and preparing for the valuation year. The Plan has been developed as evolving as it is recognised that priorities are not limited to a 12 month period. The full risk register is included. When the Pensions Committee met in April 2024 it recognised the risks around sufficiency of resources, which is being worked on at the moment.

4.5        The Board made comments including those that follow.

·         That the changes in key officers at West Sussex County Council (Chief Executive and s151 officer) could result in changes being made to governance arrangements and a lack of continuity in terms of knowledge. The Chairman confirmed that he expects systems and controls to be maintained however going into the valuation year knowledge, skills, training and working relationships will be particularly important for both the Committee and the Board.

·         Raised a question about the Scheme Advisory Board’s legal advice in relation to whether the LGPS is Sharia Law compliant. This could have potentially far-reaching implications and will be an on-going issue if choices need to be built into schemes in future. The Chairman confirmed that the Board will need to be conversant with what is determined and recognised that there are complicated considerations to be taken into account. However personal interests should not impact on fund investments.

·         Errors to the information shown in PEN7 and PEN17 to be corrected.

4.6        Resolved – That the Board note the updates to the Business Plans of the Board and the Pensions Committee.

The Board is asked to consider the Administration Report from the 26 April 2024 Pensions Committee by the Director of Finance and Support Services.

5.1        The Board received a report by the Director of Finance and Support Services (copy appended to the signed minutes).

5.2        Rachel Wood introduced the report stating that the past five years, since moving over to Hampshire Pension Services, has been a positive experience with KPIs and expectations being met. There is strength in the core administration procedures which is needed when changes occur. There remains a keenness to encourage members to use the pension portal for information and queries and this will continue to be promoted and communicated.

5.3        The Board made comments including those that follow.

·         Asked about improvements to employer performance. It was explained that the next report will highlight the improvements and identify any issues as it will reflect end of year performance in relation to data and financial submissions. It was acknowledged that engagement with employers is more transparent than in the past.

·         Academies remain the challenging cohort of employers from a data perspective, including where a payroll function has been outsourced. It is important from a Fund perspective that the employer continues to fulfil their obligations to provide timely and accurate data – even if an outsourced payroll provider has been appointed.

·         The scale of the remedial work relating to Teachers Excess Service was queried. A list of affected employers has been compiled but the scope of the impact is to be determined. The issue has materialised due to the McCloud Remedy in relation to the Teachers’ Pension Scheme rules.

·         The options in relation to preserved refunds was explored including whether a member can receive the refund as a benefit on the scheme, transfer out of the scheme or a refund can be forced after a period of four years. It was confirmed that there are only small amounts refundable within the exercise being undertaken.

·         Confirmed that there have been no breaches notified and that the wording in the report would be clarified for future reporting.

·         A distinction was made in relation to the annual audit activity between work on the Hampshire Pension Services administration activities and those which related to West Sussex Pension Team functions only.

·         Wording errors on page 65 of the report would be corrected for future reporting.

5.4        Resolved – That the Board notes the report.

Report by Director of Finance and Support Services.

The Board is asked note the updates on Communication Deliverables.

6.1        The Board received a report by the Director of Finance and Support Services (copy appended to the signed minutes).

6.2        Vickie Hampshire introduced the report explaining that a communication delivery partner has been appointed with an objective of increasing communication around the Pension Fund. There would be targeted communication to particular demographic groups of members, for example part-time female officers.

6.3        The Board made comments including those that follow.

·         There are two versions of the Newsletter issued – for those who receive pension in advance and those who receive in arrears.

·         Newsletters can be requested in hard-copy format, and this is mainly done by pensioners of the scheme.

·         The version of the Newsletter included in the papers is taken from the website which complies with all accessibility guidance and standards. The Admin Team develop an alternative version for hard copy printing.

·         The Board commented on the useful information contained within the employers Newsletter, particularly around the importance of cyber security.

·         The Annual Benefits Statements for deferred members has been drafted and is ready to be issued.

·         Confirmed that the Pensions Team would be working with the appointed communications delivery partner (Clay10) to benefit from ongoing knowledge and skills sharing to support the team’s continuous improvement.

6.4           Resolved – That the Board notes the report and up-dates in Appendix A.

Report by the Chairman of the Pension Advisory Board.

The Board is asked to note the current issues relating to Scheme Regulations and Governance.

7.1        The Board received a report by the Chairman of the Pension Advisory Board (copy appended to the signed minutes).

7.2        The Chairman introduced the report explaining that it includes any regulatory or guidance updates. The recent CIPFA guidance on preparing the annual report is not mandatory but officers need to have “regard” to the guidance when preparing the annual accounts. There has been no consultation on the guidance. The Team is using a checklist issued by Hymans Robertson to highlight any areas of non-compliance.

7.3        Resolved – That the Board notes the current issues relating to Scheme Regulations and Governance.

Report by Director of Finance and Support Services.

The Board is asked to note the register of policy documents and provide feedback on the policies presented at the meeting.

8.1        The Board received a report by the Director of Finance and Support Services (copy appended to the signed minutes).

8.2        Vickie Hampshire introduced the report, highlighting the Treasury Management Strategy which was agreed at the Pension Committee in April 2024 and the review of the Privacy Notice. Members were asked to consider the list of policy documents at Appendix A.

8.3        Resolved – That the Board notes the register of policy documents and the policy documents presented to the meeting in respect of their compliance with regulations and guidance.

The next meeting of the Board will be held at 9.30 am on Friday 26 July 2024.

9.1        The Board noted that its next scheduled meeting would take place on Friday 26 July 2024 at 9.30 a.m. at County hall, Chichester.

The Board is asked to consider in respect of the following item(s) whether the public, including the press, should be excluded from the meeting on the grounds of exemption under Part I of Schedule 12A of the Local Government Act 1972, as indicated below, and because, in all the circumstances of the case, the public interest in maintaining the exemption of that information outweighs the public interest in disclosing the information.

Exempt: paragraph 3, financial or business affairs of any person (including the authority).

Resolved – That under Section 100(4) of the Local Government Act 1972, the public be excluded from the meeting for the following item of business on the grounds that it involves the likely disclosure of exempt information as defined in Part I, of Schedule 12A, of the Act by virtue of the paragraph set out below and that, in all the circumstances of the case, the public interest in maintaining the exemption of that information outweighs the public interest in disclosing the information.

Exempt: Paragraph 3, financial or business affairs of another person (including the authority).

To confirm the part II minutes of the meeting of the Board held on 9 February 2024.

The Board agreed the Part II minutes of the 9 February 2024 meeting and they were signed by the Chairman.

The Board is asked to note the confirmed Part II minutes from the meeting of the Pensions Committee on 29 January 2024 (yellow paper).

The Board noted the contents of Part II minutes from the 29 January 2024 Pensions Committee meeting.

The Board is asked to consider the following report which went to the Pensions Committee on 26 April 2024.

Report by the Director of Finance and Support Services attached for members of the Board only (yellow paper).

The Board considered the report by the Director of Finance and Support Services from the 26 April 2024 Pensions Committee (copy appended to the signed minutes).

The Board noted the report.