The Pension Board met on Tuesday 20 February 2024, with a focus on reviewing the draft pension fund report and accounts for 2022/23 and discussing the council's risk strategy. The meeting also addressed improvements in pension administration services, including data quality and staff retention.

Draft Pension Fund Report and Accounts 2022/23

Officers informed the Board that the 2022/23 pension fund accounts were still undergoing auditing by Ernst Young, with an expectation that this would be completed soon. Independent Chair Chris Buss sought confirmation from officers that the fund's investment strategy remained unchanged and that updated metrics for recovering deficit contributions would be available.

Risk Strategy

Debbie Drew, Assistant Director of Pension and Treasury Management, introduced the discussion on risk management, noting it was a suggestion from the Board for the Pension Fund Committee to consider. The Board was informed that a proposal to incorporate the CIPFA risk management guidance, initially presented by John Raisin in March 2023, would be formally approved at the Pension Fund Committee's next meeting. A training plan on risk management for both Committee and Board members is to be developed for the new financial year. The risk management proposals also considered The Pension Regulator's (TPR) General Code, which, while not a strict requirement for the Local Government Pension Scheme (LGPS), is considered best practice and is expected to be followed by LGPS funds.

Pension Administration Service Report

Martin Doyle, Head of the Pension Shared Service (PSS), provided an update on the administration services. He confirmed that data quality scores had improved, acknowledging that the London Borough of Waltham Forest (LBWF) had started with a weaker dataset compared to other boroughs. The PSS, in conjunction with Mercer and council officers, is working to address any future errors. An improved data quality is expected to contribute to a more favourable valuation from the actuaries. Officers are considering a data cleaning project with Mercer to ensure accuracy, particularly in anticipation of the implementation of pension dashboards. The PSS has also faced challenges with staff retention, prompting a review of how to become a more competitive employer. This includes an examination of grading levels for pay, as the PSS has noted having the lowest salaries when compared to nine other pension administration services.

Other Business

Due to a lack of quorum, the meeting proceeded to review and note items submitted to the Pension Fund Committee, rather than making formal decisions. Several items, including the Pension Board action tracker, training needs assessments, and the LGPS update, were deferred to the next meeting. The minutes of the previous meeting were also deferred. The exclusion of press and public was noted as unnecessary as no members of the press or public were present. The meeting closed at 3:02 pm.