Agenda item

Report by Director of Finance and Support Services.

The Board is asked to note the register of Policy Documents and provide feedback on the policy documents presented at the meeting in respect of their compliance with regulations and guidance.

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

10.2     Vickie Hampshire introduced the report and explained that it was a responsibility of the Board to check policy compliance.  The included Annual Report had seen changes since consideration at the Pensions Committee, but nothing with regard to compliance.

10.3     The Board made comments on the Annual report including those that follow.

·      Queried the fall in active member percentage between 2002 and 2022 and if this was linked to outsourcing.  – Vickie Hampshire explained that outsourced members would be transferred into the fund via a Transfer of Undertakings (Protection of Employment) (TUPE) and so this would not have impacted active numbers.

·      Sought clarity on the risk that ceased employers posed to the fund.  – Vickie Hampshire explained that the actuary prepared cessation reports when an employer left the fund to calculate the exit position and plan accordingly.  Rachel Wood added that employers were pooled when their outsource contract ended to consider their liabilities together.

·      Queried the partially met action regarding cashflow forecasts for the Annual Report.  – Vickie Hampshire explained that cashflows were not published and therefore the requirement was only partially met.  Rachel Wood added that officers gave consideration to cashflow and liquidity requirements; but day to day cashflow was not forecasted.  The Board queried if the cashflow activity that was undertaken would meet the ‘must’ requirement.  Rachel Wood explained that this was not a discipline undertaken by officers to see how the cashflow work could be interpreted by the standards.  Vickie Hampshire resolved to look into how contributions and benefit forecasting could be considered in the report next year.

·      Questioned why there was an admitted body with zero employer contributions.  – Vickie Hampshire explained that the body was on a cessation path.

10.4     Rachel Wood introduced the Funding Strategy Statement explained that the statement had been to the July Pensions Committee and would soon be sent to employers in a draft format.  The actuary would then add valuation results before a final version was signed off.  It was considered that the current guidance for this was the CIPFA 2016 version.

10.5     The Board queried salary growth assumptions and the impact of inflation.  – Rachel Wood confirmed that the actuary looked at a long-term view and the impact on cashflow.

10.6     Resolved – That the Board notes the register of policy documents and the compliance of the Annual Report and the Funding Strategy Statement.