The Pension Board of Bath and North East Somerset Council convened on Wednesday, 12 June 2024, to discuss several key issues, including the approval of the Investment Strategy Statement, updates on administrative performance, and a review of the pension increase project.

Investment Strategy Statement

The board approved the Investment Strategy Statement, which outlines the council's approach to managing pension fund investments. The statement includes a detailed analysis of asset allocation, risk management, and responsible investment principles. Councillors debated the merits of increasing allocations to sustainable investments, with some arguing that it aligns with the council's commitment to environmental sustainability, while others raised concerns about potential financial returns. Ultimately, the decision was made to adopt the strategy as proposed.

Administrative Performance Report

The Administrative Performance Report was reviewed, highlighting key performance indicators and service levels. The report noted improvements in processing times for pension benefits and a reduction in outstanding cases. However, some board members expressed concerns about the ongoing challenges in managing the workload, as detailed in the Appendix 1 Admin SLA Workload report. The board agreed to monitor the situation closely and consider additional resources if necessary.

Pension Increase Project Update

An update on the pension increase project was provided, as outlined in Appendix 3 - Pension increase project update June 2024. The project aims to ensure that pension increases are implemented accurately and timely. The board discussed the progress made so far and the challenges encountered, such as data discrepancies and system limitations. It was noted that further work is needed to address these issues, and a follow-up report will be presented at the next meeting.

Governance Update

The Governance Update provided an overview of recent regulatory changes and their implications for the pension fund. The update included a review of the Appendix 1 - Pension Board Workplan 2024, which outlines the board's priorities for the coming year. Key areas of focus include compliance with new regulations, enhancing member communications, and improving governance practices. The board endorsed the workplan and committed to regular reviews to ensure progress.

Risk Register

The board reviewed the Risk Register and Risk Summary, which identify and assess the key risks facing the pension fund. The discussion highlighted several high-priority risks, including market volatility, regulatory compliance, and cyber security threats. The board agreed on the importance of proactive risk management and requested regular updates on mitigation measures.

Technical and Compliance Update

The Technical and Compliance Update provided insights into recent technical developments and compliance issues affecting the pension fund. The update included a review of the Appendix 1- Regulatory update, which summarises recent changes in pension regulations and their impact on the fund's operations. The board discussed the need for ongoing training and development to ensure compliance with evolving regulatory requirements.

The meeting concluded with a commitment to continue monitoring these issues and to reconvene for further discussions as necessary.