Pension Board - Tuesday 21 July 2020, 10:30am - Feedback Tab

Pension Board
Tuesday, 21st July 2020 at 10:30am

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FRI it will go morning everyone I just need to read our term a short statement about just to set out the process that some that we can go through the small named SOCA morning and welcome to the pension Board meeting I noticed that John Jones and I'll be chairing this meeting

I appreciate that the meeting is being recorded and will be available to view via the Council's website by tomorrow morning thank you all for participating in this meeting under these new circumstances it is important that these four meetings resume as the Council must continue to demonstrate transparency and openness in its decision making and include scrutiny as part and parcel of Councils operations for and on behalf of the residents of Tower Hamlets

the following government advice to avoid all but essential travel to practice social distancing this will be a virtual meeting during the meeting attended clearer occurs with the transmission which cannot be resolved within a reasonable period of time then the meeting will be closed and the remaining business will be deferred to a subsequent meeting of the Board on a date to be determined I notified by way of the publication of the agenda on the Council's website everyone where the participating or listening in including board members officers and registered speakers are expecting this meeting from remote locations

now please could everybody ensure that their mobile phones are switched off or on silent mode

members and officers will be speaking at various points during the meeting and those speaking may switch their cameras on a that points but I would ask that with the exception of myself as Chair at all other times you keep your microphone switched off the system and enable this will help to minimise any background noise and interference and to ensure the connection remains a stable as possible any Members and officers wish to raise a point or question they should use the meeting check facility access by the team's tool bar signified by the Cup conversation I can't and simply type speak and I will come to you in the order I receive requests

please do not use your microphones until I invite you to do so

can I please ask the members and guests to introduce themselves when they speak for the first time at the meeting her we will now go through the agenda

turning to apologies for absence David can you please advise the board whether any policies have been received

thank you

and then can members declare whether they have any disclosable pecuniary interests and indicate which I II or title of the report to which it refers and state whether their interest of personal or prejudicial nature to other Redick declarations of interest

I'm hearing

that one there

I think that's None David yeah thank you

so now turn to the to the main agenda I have been asked if we can take item 4 point 6 earlier in the agenda so what I suggested it which is still with the minutes and insert a full point 6 so that colleagues from Highlands tend to present their information and then move on

so turning to item three unrestricted minutes which is page 7 to 12 of your agenda papers

I just take these page by page if anyone's got any questions or wishes to raise anything please do so so page 7

Page 8

I did to submit a written report to the Committee after our last meeting which was circulated page 9

Page 10 and page 11

can we agree those minutes

yes I think that's agreed there thank you so turning to item 4 point 6 Marine would you like to introduce this place

yet

couple of weeks ago the police and the wards and went they tell I sent an e-mail allowance interesting the knowledge and skills assessments which Hymans Robertson Haddin who came together and the Committee well down remember that town about two years ago paid or received a plant air which was in accordance with the see far Renoir knowledge and skills framework to this is Sam actually also based on the principles of the knowledge and skills framework for what it has done this time around is to and looking to

what more what will you call more user defined a kind of way which is the training and go through speak to members see what exact and trying to define the training requirements on a person by person basis and and each member of the boards were given a link to an both through and their answer those questions there are four to seven questions in all we had five members of the board and who participated and to members of the Committee who participated in the assessment and in addition to the US to the Tower Hamlets there were other LGPS some funds across the country who also participated how what's the sad assessments exhaust is not only to determining where we are as a committee terms of training but I saw to help every member of the Committee add to have an opportunity to ask for an additional trading and how where they are and if you collect a couple of up earlier on when I joined I also circulated the individual assessments what documents to find out for Members of the Committee if there were any particular areas that that

Tralee on seeks assessment also follows on from the requirements of benefit to many of you are aware that some four years ago we had to register ourselves it all up and just under the requirement of referred to as them profession now and imposters

I have a lot of what was required on that that was to demonstrate that term as a committee the Pensions Committee and the borders well had their climate's understood as an an knowledge that was required of professional and investors were not at the stage of the high private sector for cease who now have specific requirements in terms of knowledge and in terms of skills but I think we are getting towards that direction

and if it you also rotten as well as the Pensions regulator and the Fire now that specifically we now need to start to demonstrate at the some and evidence the kind of training that receive as a board and as a committee what this assessment has done is go through say the same principles in the secret framework so the Committee was adventures legislation governance adminstration becoming an audit sadness procurements relationship management investment performance at national markets and product knowledge eternal mezzos standards and practices or her role I think fell how let Sam had thought he those demonstrated that we are quite open

and the font around six out of eight infants and the board outwards for 68 point 5 1 and the Committee awaits for hit tonight 20 overs further only to members of the Committee participated what we saw a so provide source is an opportunity to benchmark performance against other LGPS funds as they like them determinate I I said earlier group needs and training if you look closely and towards the end of that report says the looks say about the next steps so pieces giving us the opportunity to determine what find the training members of the Board of it for me to require we thought Ted and plan now for the next 18 months to 24 months which will cover these areas and in addition until we'll be talking about the the way the trading format will be surveyor and looking at you know I sized chunks so that people can go on line of Webby nice attended training and welcome that possibly and use in parts of the committee time and probably first of a sort of every Neetzan 15 20 minutes Lukács of other Softex for this quite a loss in that a might look at you know like him 1 Lyoness as for they spot a lot behind each and every one of them so what we have neither planned of sunset samba taking us right down to December 20 21 an hour and too fast you Andrew forced through the actions of reports and the first results thank you chip right thank you

I got some some requests for equipment for some questions but I cannot say to say to say two things before I throw the same Furcal thanks to everyone who completed this five old members did it so I see that has a big positive so thank you for that and also I think is a really useful initiative and I am very supportive of this approach in any way that we can get board members and committee members to to end to engage with trade relevant training of things really key OK so I've got some a chunk raise ousted be conspicuous so John over to you

thank you John just as fast people to mute because I'm going to be a private conversation all do not report and I was very distracting and we've all done it

but if people can just double-check because mooted yet again John I'm the risk of shooting myself in the foot here but I'm pretty sure I did do this survey of dumb least warm pension survey and a slap Riserva haven't and I appreciate especially to committee members are busy but two out of is it 8 or I'm not sure how many I'm not criticising committee members over this but you know what action has the Chair taken to make sure this doesn't happen again make be obviously that be from

I would have told colleagues would support me on this bops him need to feed back to the pension Committee that bear in mind the startle problems of involvement by Councillors in Inner foamed but this this can't happen in future surveys now can I just come in yeah I mean I don't think this has been to the Committee I think it probably going is it going next next week Mirim yet to taste chaired bay not used yet to be presented the result of his yet

about the across the city but just to pick that up John and I will but then in the note that some I prepare and I think you and I both have long memories I think we've raised this issue before and we about member training in the past so unless a good point the David you wanted to raise something

you then yeah I'm just turning my mute of Chair and 2 on a thank you Chair yes I would support I have that last question but I've got more in that we've been monitoring attendance as well as a participation in training and both combined the statistic is with only two out of seven that 75 percent didn't participate in the training at tests or evaluation we're shown a small point but associated if two out of seven out I would like to have seen what that is nationally whether it's a good comparatives 27 percent participated then were shown secondly as sex out of 18 I make a joint 5 because the 5th of us has got exactly the same number of points to start the secondly chair our thirdly I C on page 1 hundred and 2 of the report the suggested training plan obviously dealing with trying to work through the report and speak but there are six areas Chair and re should be noting those in our workplan and training plan for the next year and embedding the messages that are in those six areas from Hymans

I think aren't all they all these covered in the in the main report Ave in the schedule Mariam I got that right LES their their own cage fight bicycle outpace 84 of the 83 of the and report this it a listing that 3 point 4

the areas covered are yeah so that's a so page 83 or so on page 80 for this it but the time table isn't there with the licence

so OK David

what what just to mention that slit suggested training programme is really based on what people have asked for initially honestly we'll we'll do always have additional what as a band in among to try and focus or where people have specifically asked for training and areas where the the the the results have shown that we do our bit a weakness we do from time to time forward you know the algae and I know conferences will have be the ones run by CYC farm with you have Yano both one which only ability to members of the boy that tended registered for last in a couple of weeks ago and so we do have the opportunity for all different other training is justice in particle last looked at the assessment and has taken into consideration specific areas that people have for a requested training for

can I just throw out to the Board Members were how would you like training to be delivered you prefer it as part of a board meeting or linked with the the Pensions Committee for separately so I think as one of the issues Miriam and I were discussing outside the meeting in order to take this forward so any views on that are welcome

it's good to take a pause and reflect on all the messages we've got new legislation out the training feedback that Miriam says people self reflect it's good to have a point otherwise it's continually helpful and important but random so it's good to have a point in the year that you're reflect on all the messages getting OK

can he thought John or in any views on this yet owing perhaps like a range of things like beer like a basket having a 15 minute top-line briefing at start of a board meeting about new fields new issues that might be useful not work again haven't shown training with the Committee and the board that works or your training for us to go on punch visits to our fund managers obviously I will bang the drum for

LAP people participated in and lack events actually as as horrible as cover is and as much as I prefer face-to-face meetings the YOS in teams whatever as a means of trying to organise a training

wow people having to travel anywhere

or for 45 minutes no a virtual training programme might work for us yeah yeah suddenly face-to-face meetings yeah I mean I agree with everything you've said there John actually I quite like the idea of training as part of a board meeting when when when everyone's here and joint training and would not done any visits to fund managers

however I'm not that that were lessons I go the last year but I'm no I don't think they censored on the Commission meeting and genders figures agendas that since suggests that right something that could look at Avis tend to be felt more of a pensions' Committee will ban the board what you could do that perhaps the London C iv either go and visit them open them over as between the C iv covers four different and investments funds that the forever they way they and pension fund investing so it's almost like one still to kill for the x-ray

hello

I keep losing connection here so if I disappear that's the reason for it I said the three types so far

is there any more any more comments or any questions further on the training from anyone

I'm not seeing anything here can your hand went up a while back it was that a mistake a wasn't a stake I was just under say that I'm I'm new to date it was them OK I did it from here so that we can get the echoing the pipe or I thank you price patience so can we agree that the report then and to move on to the next item yes yes thank you

very much so thanks to colleagues for empowerment as well

Maryam you want to say something

he has gone up and I wonder whether paid she at the Board would love its share of light can pilot still say anything on the report itself

yeah OK yes pull your hair yet just if you could do a break from just a brief background to it for the proposals that I would be helpful thank you may think Miriam Carter all pretty comprehensively anyway she explained a lot of the-mail stones have been what you know from a TPOs requirements for pension Boards going down to method you'll TPS patient twenty-first-century trustee lots of these measures approach then to get knowledge understanding requirements much hot higher and agenda for Committees named agenda for patient boats I just take one of the the points about you've been placed 6 0 18 on that table a we had it done to two decimal places so that's that's the reason why so I do apologise as it has actively snow aim to try for 10th that topless there it must why was there in six I just had a couple believe couple points I think the Tories were returned nurses him on the basis of informed decision making an informed scrutiny which is why we are trying to help here it's Committees the pension Board's him not to change in terms of decisions by the what were the injustice on recording that training I think in the comment David made in regards to reflection is right you know that that's that's was set alight as that I think you're Faintree in it happens it happens it happens in actually worse was to engage where we're trying to get to from him somebody caught boys just in terms of of your sails aim for the patient or schools where it was strong as she boasted noted page committee scores were were lower than expected a can importantly with the engagement of obviously discussed the get rid levels for the Committee well law that lower than the NE many other Committees that we had a there was no lack of of chasing from Madame to get into a complete that score I just finish off very quickly on the on the chairing the next steps million were seen near a grass to the training that we're looking to offer a looking to do small 10 50 minute videos on lots of topics are an idea would be that pitches Matier pension Board members could logging

to see you are having a discussion on environmental social governance you look and before that meeting and get 50 men upThe or some of the key issues that can happen on those topics and have our own pension and a station or in TPR on MacLeod when we're going to try and Bisley bow that so that you could look what and get the information that no shot beat says we rather than setting the after no half where some discussion information is very hot tin lots and lots of that disaster we that we've retired Knightstone OK Lumley thank you very much are there any questions or comments

I think I'd I don't see anything happening here so I'll thanks very much indeed for that and I look forward to engaging in this training them going forward thank you thank you Chair facts about from IQ OK so we just move on to the agenda again I think when the next item is for 1 on page 13 which is the pensions' idling quarterly update and reading this paper yesterday this of system positive messages in here about clearing backlogs but Mirim would you like to say a few words by way of introduction

thank you very much there will be some reports to the quarterly updates about the membership about issues and things out coupled and within the LGPS as well as sound excel funds itself and it's it's quite some as a report that encompasses quite so much and so tries lunches forcible skippered shots and the membership in 3 point 1 you'd say that tent as we have been progressively increasing in on them the shape however something that and is also quite evidence is our pensioners

is also increasing

in them Marchant

in had adopted membership and by active will mean those who are still thing contributions that increased by 132 to 7 thousand 252 I think across north London France were probably a bit higher than most intensive US size

if Members are those what left but had not yet pensioners but they'd have not transferred their benefit that as also increased a pensioner sizes increased in in the quote sound by 30 aids the number one decided his are generally people who are in the scheme for some reason or the other you know we we we still have a bit of information the right I need to follow up with them they haven't asked those whether the one should keep its with us are the ones who need it

tends to be or as a result of various things I which we either have to investigate or in some cases you have the old whizzing way perhaps an employer led the Council to structures given us apparel number that's true that if the same person haven't you to bear numbers and we've got first them and that's the one area that Sam if we further down in the other agenda item in the remediation plan is one area to really look at and contact those people to ask them why and what they intend to do about the simple idea we want to have them in a different category

and we also have an the Angel June number of and said bodies who of active members so we do have some employers within the scheme who are employers watch they no longer have active members until Stone the courts of those energy kids and the band had only one than by anyway they and was as a result of him complex services who have been outsourcing their kitchen and 30 name said the ceased to schools themselves you know an outsourcing that that service B J earlier John mentions about improvements are we have seen significant improvement in this quarter COVID-19 having to stay thing but that's actually has got a peasant paucity parts on the level of work

that the that the team has received on his given us the opportunity to try and clear some about backlogs and reduced the number of enquiries number of work coming in on a daily basis we are still getting and what coming in Ida ultimate of automatically from their employer or from the post and and e-mails and start a volume has reduced really opaquely conference to meet 90 so within the quarter that he and team has been able to clear down tasks outstanding to 269 and them there's a varied number of different Tostee would seem the table in a regard transfers tasks relating to transfers in where Tusk relating to transfers out into quotes some people before the make a decision on the One find out how much attention is what if we were to move it to either not a private scheme or perhaps they want you bet son of the local government scheme when they leaving an opt-out as one area which has continuously with hard in substantial numbers and it is very worrying and it's something I hope the Board will perhaps want to speak to the trade union members or trade unions in the Council to encourage

people especially those on low income workers to join the scheme the Council in June between June and then July August and ditch and back on the three year stitching dates for eternal mess anomaly every new member of staff as at March Carney and road but as the government has said once in three years you authorise everybody else who had not Joe what I'd opted out over not in the skin and he churches number those members of staff automatically opted out and a lot of this of people walking schools a lot of these people while no income earners and the evil so any reason some of them say the canal afforded some of them have seen reasons you know like all it's against religion and what majority of them continue to say that they cannot afford to be in the scheme and we continuously have them or itself and jammed the expected that's and Philip thousand next quarter another surge of opt-out of whether a pregnancy so free schools are than Trust had the staging date at the end of June and and immediately the staff got wind of the fact that they were good cheap how their staging date at the end of June we started getting enquiries asking what out when he had not even got the data so this is quite and a key issue in terms of getting people to join the scheme from

deterred from

I can hear some noise in the background

but David has wants to ask a question so David ridge height pitching

yes

thanks Chair Maryam may have been going to mention this because just quite finish this section however just the bigger picture really commendable the reduction overall in tasks outstanding I'd like you to met mentioned just refunds that remained static little bit quirk going against quirky going against the trend of significant reductions that's about giving people money back so it's very

current but

my big question really is in that table that task type table do some of the tasks have government or regulator timescales so

the table tells us about job done was it done within the required timescale is my question Chair OK yeah if you recall that of the boy recalled licence at Camber I presented to you the CIPFA and Pence's adds mean and reports which was Ali to spell out what the meme on requirements up and the large I also growth the Agri-Food Strategy which I said was they were expiring he be at the moment and we'd not been able to reports in that way because the system has not been set up to do that however pleased to tell you that as at yesterday we list to live New Walk flows which are work in the past 7 months with our and software provider at a huge cost to which will now enable lost to do those two reports this task in that manner so we will burn for award hopefully by the end of September will have enough cases while we have now will be from yesterday will be running two systems really so we still how to finish everything we have recorded in the old way and new tasks from yesterday would begin to be recorded in the new format and which will cut shop that support influx or what they've been doing is they've been able to set up the system now for us so that the the time frame will be what CIPFA has said I was the clear objectives are spelled out for them was will meet again to capture so they had really seen the programmes now to capture those as statistics so hopefully in the next six months will have enough cases but had whatever it is we've got

at the end of September will report to you in all format Whistley to finish everything that we've got in their existing format and so those skew of his beat there's no way we could report in the CIPFA format the way the system had been set up thank you Chair that explains but can I just ask a codicil does not mean the three to six months that will see this task of the CIPFA Standard embedded in the action plan to to be discussed later

I wrote from from next September there will be turntables are the same would have the old tables of will have little bit tables so to be newts us from yesterday the system went live we had a me thin and lug was subsequently since the support the team had a number of training sessions on all of this both from a dignifying total if you look in a remediation plan actually some of that is now being picked up and that this is one of it we had a total of 35 walk flows which are either different processes been released we had them tallow them 18 relaxes and inertia when the when I stopped at this Brodeck's I asked for why that you go to the system let me know how many letters and wing over the years of accumulated 429 letters and 99 percent of them were dug that or did not follow the regulation so we stream like all of that now for eating release now as at yesterday we were looking to see some the next few weeks the Seaford need any more new standard letters and I'll bet you that more to tell you anything you shall love you thank you thanks to her before John did you want to come in now you signalled

yes please John I mean I'm

official report now what we've just got to start as we got to the when we talk about all the outstanding tasks in the rest of the papers on on other issues so I just wanted to pause on here just because I still expected questions and given up me Justina that discussions we've had a previous meetings

will tell you how to start the interested in Merrion obviously one of these prizes of Covid is I've seen in a pensions' press that an actor he's Tump think is going to make any significant your dearly deaths as tragic as they are not going to make any difference to the overall funding of DB schemes under Swindon is at as are applied to to Amit and second question is among the concerned that

when services are outsourced back no we do lose people from the fund and again this relates to work with the trade unions to try to encourage staff touchy joined the phones and this was an ISDA somebody responsible appreciate everybody's very busy as somebody responsible in terms Council for promoting joining the Fund willing to go to team meetings to discuss it all you're workshops and is somebody there who's a job description basically says try to encourage people to join the Fund

that's a good point

thank you I'll go to the first western first at yes cold night at sea and Wortley spilled Local government Pensions scheme and public services bison said all like the private sector on how kind of had that shields a little bit from COVID-19 entrance of the benefits of the Local government Finance they both so we as Tower Hamlets have been fortunate in the sense that a lot of our membership and not made up all say higher education that's been one area that has been very very affected higher education universities let me know people employers who are linked to the leisure area that much of them those that errors that so far as it affected the scheme Advisory Board in or Hodson monitoring the had a lot of service in John and to find out about our cashflow positions what's going on if we have any way in a good go any concerns Ellie an important line thing I did a let at Old Man Bell at all employers and without the was for a period of time and noticed on the Council's intranet as well and we have been talking to land open to the action

and in terms of and if you look at the Committee papers we do have a policy going next week own contribution deferral it's been something that's been talked about widely both specifically for local guy for Tower Hamlets I have not had any employer who has signifies a behalf gold and cash flow who do no one who but other Local government cause is jointly own have stepped in a local currencies have certain to help that to him and particularly for the out of the press but it's not a an employer who is only peculiar only for Tower Hamlets in addition to that of the PSNI would got scalded Knighton affected investments were communities on board the actuary has been working behind the scenes itself

I commissioned reports answered work to review all employers to help them they're currently doing some work to examine all those who perhaps the contract near the ending when still two days a lot of work that's been done to look at all of this Annual people to tax another thing that we've been doing is with the Committee's got down the agenda he still cut a funding posts air COVID-19 obviously had lovely funding results

onward and 2 percent and at the end of for 20 19 salvation though we have done on this commission a report to the accurate to see what the and funding results will have been in March and in June and as at 19 to June are fond results as actually gone back and

some of it has been due to the equity protection that the fund had in place that has helped and also the bounce-back of equities and it turns off employers have continuously monitor train I have got all my staff and to keep the ears of ground if they so just as nihilist it'll find out anything that I was late contribution thing for that anything that could possibly signified that the employer isn't trouble will Beale onto bed

OK so the check-in or fight are all communicating when members to join or fortunately I don't have that kind of result of the Roman busily 6 thousand members of staff to look after a fund of over 7 thousand access another 7 thousand of defined another 7 8 thousand pensioners but it is something that it's in the new structure if you look at the new structure with a posting their for communications officer these are the kind of things that I hope in future that communications of satonge but at the end of the day there is a lot it's really not the font and responsibility it is the response which had been employers to let with the Met that employees know that this is available to them are what we need to make sure is that we are we have this Chinese was in place yes it were invited at the font join and any you employers meeting which we do occasionally some schools to ask us but it's not really about joining it's more about talking to the staff about their pensions and stuff like that and what it really something that the Council as an employer should be taken up Antonino in various forms of work needs it's something done in union also helped out by talking to their members and shin with them the benefits of the LGPS

House could point to start John this I cover the points John you still signalling here on my screen

he's gone right that's fine too fine nubbly thank you

she we catch me carry on their mirror image to the rest of the paper and principled out any any any any key issues we spend some time on the performance monitoring the other any other issues that you want you to highlight yeah won't into high lads obviously the preparation for my cloud now

we are not confined to just the narrow on that report on page 16 they should be 20 20 not two or two and we've seen spots the governments and updates as the optical there's an updated version of this paper with is going to the current which went to the Committee and in their we've got a project plan of what works what we want to send you in in a spot of the groundwater to prepare ourselves for for McLeod and and support of your earlier customs about their employers and of stay for those who were public the one non-public will companies and we had a corporate insolvency and governments governance at 20 20 which Kings effect and the scheme Advisory Board is utterly consulting legally he does have now a lot of implications for how the can chase out employers were companies for their contributions we have the supreme court ruling which and happened then the last few months and in a key Sam Beare no benefit statement which were in the process of doing the deferred members are already got there and by now we had that despite lasted and were currently working on the active members as we speak which we hope to be able to meet the threat was the wall ghost

deadlines are legislated deadline are one thing that we want so trying to work to resolve was the problem we have about was ahead of the past whereby and then the slow by the age of 63 have not been able to get statements or the summer of working with a software provider and showed us what needed to be amended on the system and that's now been done we expect were walking towards 100 percent and this should be shown off the unopened staple active members subjects to where we have issues with data that the employer has given us obviously reliant all the data that employers who White was another to do at this part of the work they future I'm I'm conscious task about I connect briefly Miriam and I would be spoke about this this this is a very important initiatives that were

committed and bodies can upload infant data automatically when I just talk about that briefly and get this Chair so Erdal about a cluster of two years ago the font and eat purchase the servant soft a list of additional software I'll forget unpaid for it's about the years earlier by we started his little fighting months ago but since then the take up has not been great and the whole idea of that software to help the front he still to validate at least have a forceful says validation of data so employ exist were soup sign of ward logging Oplot peril dates up so in there would be such as the levers everybody that could contribute to infamy and contributions on for that month including any changes you know just your usual parable data opener that on the system the system automatically comes up with validation Elise Sage's discrete checks says that you know your data that is not the same for a format and stuff like that at the end the immense that data our applauded it automatically open of populates our pension system now so far very very few employers have joined the were working on a system on a process whereby my staff other once or date seen all of his records for the employers and it's actually an incorrect it's acted legislated new long employers should be giving us theme for me are to be of not giving us information not ask you know asking for information from them and doing it for them and the Council is that unfortunately one of our biggest culprits which runs find a way to get the council to you to sign up to this system and start uploading the data and themselves each long because it gives us the opportunity not only to validate that data what you review the data so that when we get to use the data for the down the line will have clean data

I am not sure we just keep an eye out for any any further questions from any money I dunno for and then or an eco you've got any questions Jana David and I you've raised points already

have got one I'm form for Kevin overdue

I wanted to start thank you very much charge units have come in at the end and now asked maybe if the Board were prepared to acknowledge in somewhere in the minutes the huge amount of additional work done by Merriman tend to get us into a better place it was mentioned by under the book earlier you you know what situation the pensions administration function has been in

and you look at those stats there I mean that quite warming to me on us say in terms of an improvement so gosh you don't have to do this but I'd like the outfall to ask for their consideration if they wouldn't mind just minute in something about or at least that we're pleased with the direction of travel as you know we've got to get in place the additional staff and partner mediation and will top later but at least at this point may be some acknowledgement chef thank you know are very happy to do that I'm in John's already signalled to to agree

and I mean David use the words any commendable reduction in backlogs and and outside the meeting yesterday is one of the first things I picked up an I did discuss this with mere him so I think we'd definitely we'll put something into the minutes and air you wanted to say something yes I actually like Surrey I agree with what Kevin's said and I can see from the state there that how much it has improved and I think also the idea of externals like

I know that we're I'm the Association on with their actually authored by believe their loading and I think there's a very good idea to get them involved and loading that are also cuts down on time and if it and you know the responsibilities shared then said the records are updated quickly and you get what you're after is clean data inside the system rather than I think that was an issue beforehand so many things all over the place where he started

a bit of a rush to

there I think we'd all agree with those well-paid but thank you that is all all agree with that point then the welcome that so are there any other points we need to anybody wishes to raise

what can we here I just agreed a report with their own and make a no in the minutes about the under use day bits worse the commendable reduction in the backlogs I think that some that's a good way of expressing it

his words not mine

I disagree with that so rank the need fear and all comments any more comments they will move on or I lovely with thank you very much Miriam for that update

so I took 4 point 2 is the final accounts Audit Plan which were asked to note I was just going to suggest we note it this unless anybody wishes to ask anything

if not if we could just agree this

right I'm not seeing anything here Miriam and calving yes right who's gonna go first came to nothing during first let let mean go first and of John le as this when that tension of the voice of the fact that Kevin of he will also be presenting this report to the Audit Committee later on today or

I remember that this is also going to the Audit Committee the Council's Audit Committee as well

I welcome the fact that the deadline for their council is now been moved to for the audit is now been moved to September so we hope that 10 by November we'll to begin the draft accounts 18 19 audits is still ongoing

I can write Kevin you wanted to add something of I did so I wasn't gonna say what Miriam said the half of it so yes I'm taking this to the already committed to not have got the responsibility of pool surrounding entire external process you'll be aware that we have significant challenges rounds finalising our accounts

and pension fund accounts as well so we have and the people in on it to say is that we've not finalise the 18 19

for audit which is troubling me

and in relation to general funds were not now mean it's not pension bunch responsibility but it is part of the overall piece that we've not finalise the accounts for 18 19 so I just wanted to flag that although this is that the plan forgetting 19 20 down and Miriam's made huge strides and but this still blood work that she has to do we've got somebody in to help Maryam which is a start they've got to get up to speed so I am more worried about 18 19 that's really wanted to convey that the 19 20 s Miriam's here now and not in 20 if all things being equal we wouldn't be concerned about but she's got the impact of 18 19 not being as it should be and there are some challenges from previous year as well so it was important the board understood that we've got we've got challenges round are old of our pension Fund accounts John other steps the point and I come as a source Kurban OK as as it stands today are there any issues rating 19 for previous years are likely to impact on the pension fund accounts

up-to-date information from the General Fund all-day yeah from our young or perhaps out I wasn't IPL player but you the Bristol our Council outstanding from previous years either any financial issues that the auditors are looking at that may impact on the on the financial position of the pension fund accounts it's my question or is it related to other areas of the council's activity I don't anticipate that it will impact on the overall position it or not proceed as the things that have got to be done balances we've got to prove how hoops that we got to jump through because the Audit isn't without doubt remember that this several ditches on new to the Council ating night it was their first year

older and I'm not blaming them for this this is a statement of fact that

the Commissioner has actually come down on it as an expected a tougher raging in previous years because of some of the things that have happened to report it and public section that you're all aware of and that they given the Councillor hard around through than they would normally have done as it was their first year that isn't to say that they're not valid questions things we have to do but thought what we would have normally expected but it's understood

I don't anticipate but we will of course keep you abreast of anything coming up that we think whatever material impact

but it needs it needs support to be away bubbling thank you very much Miriam you signals

who saw a previous signal are progressing us their attract right colour to say this open are there any questions for Maria Miller Kevin from all members and if not we can I'm not seeing anything so let's come we just note the report then please and will also be updated at future meetings right thank you very much

so moving on to item 4 point 3 which is the year review the risk register obsolete since our last meeting we the risks facing everybody that changed enormously with COVID so mirror image like just to give us a brief update on

the changes and the register as it stands

I will brief but to other LAs still continue to oversee considered us the number the Llanmaes all have been put through apart from the every quest to evidence and all the one thing green and some still working on that they there has been a number of new risks added and I must say notes that it seems that PDFs attached to your meeting report only has one of them one of the risk I'm not sure but I'll go through them as this space

and the new risks added at the last meeting the Committee asked that town the making we Secrets of civil Newliston added under with don't bat LU also asked that an Briscoe by with a marketed as red be put together in in those sections which as that also be action says quite clear evidence which was I invite nurture Ambala which are going the new risks are that were relating to COVID-19 which I spoke about earlier on the admin side as well as on the governance side and the pension Board and the Committee is very much aware of all of that and a lot of mitigating factors of been own have been put in place and some of which have already discussed

earlier in the in the very early on the regulator issued a reporter bowties to all sentient funds asking that as a result of covert that it should be focused activity should really be for post on pigskin members retirement processes buried Mance and things like that just because there was initial thoughts that you know services would be hampered people might not be able to work and what I think we've done pretty well here at Tower Hamlets in the sense that the Council has been proactive senior management have also been proactive in trying to make sure that we had all the I'll see at paraphilia required before the working from home quite successfully so that transition on has not been as dramatic obviously as the still members of staff who as a result of their own preference or working in the office as we speak

although this has added a adjusted was around and the impact of the cost of in play in impacting and commencing MacLeod in the trial of valuation they scheme Advisory Board as well as that of working together and there was a directive issued to all LGPS funds of the needs to make an adjustment former club for the possible cost of MacLeod and evaluation and funding strategies statements were draft or were which was and the drug of fatal the boards and to the committing of them back and subsequently after Kobe lighting early the BoJ

saw the final version in 2 we have made adjustments for possible cost of implementing MacLeod obviously no one knows the exact amount bought the Holly strategy statements and valuation as old as need some adjustment for that but we have included that in the end we scratched as a possible risk as was the we don't know exactly how much will be where the working on the next few months to gather on the dates of the number of them office again number of semen as affected and what the cost will be and possessing applicability of the pins are and I'm all of that technicalities going through the report itself

the risk register itself

so take for example for governance and we still have the objectors they funds objectives and the legal responsibilities not me mad that still that has not been any change in in all of that farther down the line you would see for governance the newest and that is denying

I must apologise even do all three documents well plaudits on the MoD Gov system he seems like we've only picked up one here so what they were the three of them once in investment and the admin bods they cover paper has picked up the changes in the any new his thing asserting and added what I could just to circulate that and she your separately after this meeting as he looks like the peak day the systems on it sent we missed one of them to date but there were three of them as I checked again with learning there were three on about of system and 3 stretching of repeat years span

but said he wanted picked up one here

thank you thank you just before I throw open to questions time just ask about some in paragraph 4 point 1 on page Cher 43 this reference to the wrist around side the scans and and data protection I mean 2 July to say something about what the council is doing in that respect I know there's been some national publicity around side the scans meticulous and then I'm assuming that there's been no evidence of anything within charmless

microphones offer think Marian

and yet not that we have been made aware about some of this has come from the regulator as well and in the press

you may have seen in the press lately aware of

they seem to observe some of this other

there's been a lot of press around the fact that you know people working from home there's a possibility said that that could happen not every member of staff has got the council not to follow because is working towards the end moving everybody it's obviously six-line Windows 10 and issue laptops and as part of the flexible working what could be 19 as affected that and so that we see something that the regulator themselves have who forward the other thing has been the the that would be nice to watch out for is the rise in the number of Miskin members asking to transfer

their pension to private schemes so we have had an a few enquiries and it's been happening or last year's and and one and a half at possibly 2 years where you have them you know this private sector firms taxis can members asking them but we have got now is from the regulator is a checklists which were now require to use and I do get myself to get the scheme member to sign against Act and checklist does to as confirmation that the of don't we are supposed to do are legally obliged to do what we cannot do is to prevent a skin member from transferring that potential OK thank you very much rights culture and Christians from are among the risk register any comments anybody wish to make

a John over cheered just on that this new homes officer help to appoint in future restructure gan one of them their roles should be a think disco get the message out and the role of these thieves at their servant police officers can be ripped off of their pensions there no guilty respect many of our

members let us can be fair gang for these fees no DARD endorse those comments by John I think can press will perhaps a bit later on when we were in private we looking at the new structures we could just explore some of this illicit bit more detail but the principal light thinks absolutely right right Miriam you're Bakhtiar I think yes just a comment on that unfortunately the colours asking Melba if it meets all the a regulatory requirement not to we can explain to them and in surprised how this how good the courts this fence up and convincing to Sim members and further down the line another then results in fact majority of them miss out but we cannot take responsibility for that was the government a couple of years ago did put that in place freed-up transfer you're anxious that we can do and what we tried to do now is to make sure that we do everything we are legally obliged to do or through the checklist what we don't do St investigate the converse with them that is their responsibility for kind lovely thank you are to understand that right John you're still signalling as that from previously it is holders not this OK no Miram signalling that she's gone right other are there any other questions or Miriam I think I said this before the return leg reviewing the risk registers I think is important but he is an important task for us so we are pleased to to hear what Miron said and and that some of the issues that colleagues been raising so can we now agree dish recalled end them now the report and agree the recommendations and we move on is that a great

assuming is agreed thank you item 4 point 4 on page 49 is the fun cashflow issue a mirror just want to say a few words by way background on this space

thank you can very brief all eight men forecasts is the appendix to the report so that saw an estimated Küchler off the and some fund and with looking at them as open 5 million as open file 1 5 million

positive positive position and at the end of this financial year however

in future years as the next year or the year after Assembly at the moment are showing a deficit what I have done here is to present to the Committee and to approve 20 million cashable down we during the 19 29 did us for betting million draw down and them you can see the interviews quite a lot of this because he end up with a position of 3 million pound the we use 10 million of that cash

the were expected to fund that not by divesting but by using some of the cash from the process from the equity protection and which the company which the funds at Grange and in March the protection expired and to out the month of March and so this recommendation would be to use some of that now to secure the next few years

thank you

luckily thanks very much just just one before throw the should just one question for me with the fun going cashflow negative presumably in the future that was start to impact on the investment strategy won't it in terms of how to generate income streams for two paper future patience

yes really and when the could see a signal papers presented to the Committee when befitting million was requested Bazar Planning place and the plumbers' to use dividends far I see no who beat 19 has meant that that policy is not applicable at this particular time and factor Wilson had his cash available as men back to him we didn't need to exercise that policy and most companies like you know have not been paint evidence and during this period so that doesn't seem a reasonable option to exercise but we have that policy which the Committee agreed in November as the options going forward for yes when we get to a point and in the future yes we could start we might need to look at your eyes or some trying to stage to happen in the next 3 4 years the reason is that we earn enact open scheme non Clough like the private sector so will still have that stream yes the stream of income we get as an contributions my long as shrilly cover everything fully that would be out as our membership against to age which teas and

I will always to have that income coming in so just be more of a top position and caring not refund you very much indeed and he questions for Miriam please

I'm not seeing anything coming up so we're asked to but just to note the report because of the report so can we do that place and move on thank you for not tries to floor 5 which is the thoughts and work land going forward and the because we're introduces but just before colleagues raise anything I could pick up an issue we spoke about separately which was a report on monitoring investment costs that we need to build into the work programme spirit Son anyway Miriam over she overdue now

yes

what

all of the quality of its inception of his sword and resign to always reliable flat at least once a year to everyone said way back in 2 thousand and 15 are we have a dung that passed a bigger Scully several stone that will try to end his business said Tamil solutions so what we do now have is fight Road when you don't you pay which the actual plan documents itself Jim certified

yes

Holmwood 55 onwards 1

that flow of Phil got this current and packed his are currently son and an insect him back what the sheer Elgar earlier mentioned I now have an updated version it is a live document which I can't senior PSNI of date either when their things coming up in the news or regulation changes of things I pick up that need to come into the meeting is constantly updated but the costs are managements which the Chair has as mentioned earlier is and as now gone in to the copy that will be presented in September so we also have now is incorporated that training with discourse earlier so that we can pick up with whatever shape or form and trading will be

I the full blown or as the bright Eyes sniffy going through some of the bite-size chaired sessions that high month may have them who think I may have recorded and then playing that recording during the meeting as and when but that should be in bed one other thing we've got is really be of the performance of counselling performance and contractual serviceable minders and to the front

so that will be reviewed all our various of our contracts I which the front has and then looking at them I that the entries and it's and supply of that one thing to note is that town he November we had then been regulation that came off and the board of the Pensions Committee actually we said and updated the objectives for both the independent adviser and investment adviser

include others did ask some span that agenda items like the LGPS updates some other things that will be coming across next meeting will be a few policies lasts until the end to end in March we had a few number of strategy document represented testing a few markers words were been doing in the last few months is to review all our policy document soon had a blue cheese vary sledger stoutly coming at the PSNI admits strategy and and then going forward the still things like the communications strategy to look at the idea idea people says to review going forward

while on this topic becoming the there is a need to look at the governance review and I wonder whether the permit see at this point would once a formal governance Review perhaps weights and lychee it when a lot of the remediation is begin isn't isn't place

really a lot of things that your governance review will cover how we've been doing in the last few months the when you look tax all the policy documents at the last meeting that is the kind of high level things that the governance review will be to me got more policies come in again and like I suddenly at the communications started the idea of P and suffers at a few left to be done and I'm already working on them so it's really something that 10 maybe like pick up on the next nation and to have a plan for making the next one now it's McGill 18 months to nous now haven't gotten unsullied

my son

just on that last point actually at this very interesting about the government's review and across my mind recently I don't anyone's got any sorts about this but my senses summat is something that we should build into the work programme

and this is really a question of timing I think given all the other pressures that Mariano colleagues are under at the moment but I'm just interested in views is anyone got any particular thoughts about that

it should be desperate considering a bit more detail when we meet next

and I'm not seeing anything crop up on the screen

what are we sure suggesting that we deal with it to the next Board meeting that some reasonable Mirim

yes and then we can look at up we can look at this or that the practicalities of this presumably with the to procure somebody to do it would we yes he gay indicated OK OK

Roy on that note that any questions for Maria many comments on the work programme

I believe it's over to you the yes Chair I have one Miriam and really it's about the

the need for regular reports which this well calibrates but to have the rhythm of Planning years identified now that may be in the workplan and you may point to them as a result of this question but as you end one year and begin another and I'm particularly looking at pace 78 and March

21 I would expect to see under March 21 some strategic reports setting the year to come in context our particularly we've had in the past I think when we discuss work plans the pension strategy all and I know this is a period raw different annual actuarial reports and that cycle so what what I'm I'm pointing out here is the need to see as you enter a year reports which set the context of that year in the workplan thank you Chair right

I understand the point of making Marian any thoughts about that

that side I'll make the amendments

yeah

OK we need to say that thank you right thank you on that no convey the greenish yeah I think we've agreed for moving on then thank you very much for that will forfeit six-week addressed we dealt with already so I think that takes us into exclusion of the press of the public so over to David I don't like Date night this is quite know what we now do in order to

make that happen

perhaps not right

they made

was not there as he is in it for we can't carry on until we are we sure I'm sorry very

I note the alchemy you get thank you

I came

I can can you hear me

right

right so Tim we agreed to exclude the press and the public as somebody second then please yes Chair second delight OK thank you write David I think we're agreed now

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Pension Board - Tuesday 21 July 2020, 10:30am - Feedback Tab - Tower Hamlets Council webcasts

Pension BoardTuesday, 21st July 2020 at 10:30am