The Pensions Committee and Board of Haringey Council met on Tuesday 5th March 2024 to discuss the revised Pension Administration Strategy, the Fund's risk register, and updates on the LGPS and LAPFF. The committee agreed to proceed with a statutory consultation on the revised Administration Strategy and to commission a governance review by the Fund's Independent Advisor.

Pension Administration Strategy

The committee reviewed a draft of the Pension Fund's revised Administration Strategy, which aims to ensure both the Administering Authority and participating scheme employers understand and fulfil their roles and responsibilities. Councillor John Bevan sought reassurance on the key performance indicator (KPI) deadlines, noting they were tighter than current ones. Jamie Abbott, Pensions Manager, explained that these tighter deadlines were intended to improve the member experience by allowing them to receive pension information more quickly. John Raisin, an advisor, commended the report, highlighting that the strategy's success relies on a positive and collaborative partnership between the administering authority and scheme employers. Tim Mpofu, Head of Pensions and Treasury, confirmed that improving the member experience was a key objective and that CIPFA benchmarking would assess the fund's performance against other participating funds. Councillor Matt White inquired about the existing KPIs, and Jamie Abbott committed to providing detailed figures after the meeting. He noted that overall KPI performance was currently good, in the high 80s to low 90s, and that the new CIPFA KPIs were tighter and included new metrics.

Decision: The Pensions Committee and Board recommended agreeing to a statutory consultation on the revised Pensions Administration Strategy and noted that a revised strategy would be presented after the consultation concluded.

Haringey Pension Fund Risk Register

Jamie Abbott presented an update on the Pension Fund's risk register, focusing on administrative-related risks. Councillor Dr. Thayahlan Iyngkaran suggested adding an indicator to the risk register to show the movement of individual risks, which Tim Mpofu agreed to consider. Councillor Matt White requested further details on the risk associated with the delay in the publication of accounts. Tim Mpofu clarified that while the Council had published draft accounts, the external audit was not yet complete. He explained that this was a national issue due to resourcing challenges faced by external auditors, and that the government was working on solutions. He assured the committee that officers had completed the necessary work for the 2021-2022 accounts and that a new external auditing firm would commence work from the start of the new financial year, focusing on opening balances from prior years.

Decision: The Pensions Committee and Board was requested to note and provide comments on the Fund's risk register, with a focus on administrative-related risks.

LGPS Update - The New Pensions Regulator Code

Tim Mpofu presented an update on The Pensions Regulator's (TPR) new General Code of Practice, published on 10 January 2024. John Raisin explained that the extent to which the code was more applicable to Haringey's combined committee and board structure was not definitive, but that TPR had authority over the board's functions, giving them some influence. Tim Mpofu recommended that the committee agree to commission the Fund's Independent Advisor to undertake a governance review. This review would assess the Fund's current compliance arrangements against the General Code and provide recommendations. John Raisin added that the review was expected to be completed by early September.

Decision: The Pensions Committee and Board recommended noting the Independent Advisor's report on The Pensions Regulator: General Code of Practice and agreeing to commission the Independent Advisor to undertake a Governance Review of the Fund's governance arrangements.

LAPFF Update Report

Tim Mpofu presented an update on the Local Authority Pension Fund Forum's (LAPFF) engagement and voting activities. Councillor Matt White asked how the report could be improved to better evidence and track the positive outcomes of LAPFF's engagement efforts. Tim Mpofu explained that it was difficult to evidence individual outcomes as the full impact of engagement activities could take years to materialise, citing the example of oil and gas companies now publishing climate transition reports after years of LAPFF engagement. He noted that tracking such outcomes would require significant resources. Councillor Dr. Iyngkaran inquired if voting records over the year on LAPFF recommendations could be provided, and Tim Mpofu agreed to investigate this.

Decision: The Pensions Committee and Board was requested to note the content of the report.

Quarterly Investment Performance

Tim Mpofu presented the update on the Pension Fund's performance for the quarter ended 31 December 2023. He confirmed that approximately 77% of assets were invested through the London Collective Investment Vehicle (LCIV), with around 20% invested in funds managed directly by the pooling company. He explained that even though the LCIV did not directly manage the Fund's passive investment portfolio, a monitoring arrangement was in place, hence those assets were considered pooled. He also noted that the committee's recent decision to allocate to the London CIV Buy and Maintain Fund would increase the assets directly managed by the LCIV.

Decision: The Pensions Committee and Board was recommended to note the information provided regarding the Fund's investment performance and activity for the quarter ended 31 December 2023.

Forward Plan

Tim Mpofu presented the paper outlining the key priorities for the Pensions Committee and Board over the coming months. John Raisin provided an overview of the proposed governance review, which would cover governance arrangements, scheme management, pensions administration, and the appointment of consultants. Councillor John Bevan raised concerns about the team's existing capacity and resourcing, which John Raisin confirmed would be part of the governance review's scope.

Decision: The Pensions Committee and Board was recommended to note the progress made towards the agreed key priorities, specifically in relation to the investment strategy review, responsible investment policy, and fund governance review, and to identify additional matters and training requirements for inclusion in the forward plan.

Deputation from Tottenham and Haringey Palestine Action Group

Representatives from the Tottenham and Haringey Palestine Action Group attended the meeting to urge the committee to divest from companies involved in the conflict in the Middle East. Councillor Ahmed Mahbub, Chair, informed the group that the committee had sought advice from officers and appointed advisors, including raising enquiries with investment managers and meeting as a group to understand the current investment position and potential actions. He also noted that planned work as part of the investment strategy review would further develop the Fund's responsible investment approach. A comprehensive response to their specific questions would be provided in due course. Councillor Bevan stated that the Pension Fund required all its appointed investment managers to be signatories of the United Nations Principles of Responsible Investment (UNPRI) and to consider climate-related and other issues. Keith Brown noted that excluding specific companies from index-based investments would be costly and difficult to justify given the Fund's priority of providing pensions. Councillor Dr. Iyngkaran emphasised the fiduciary responsibility to pension fund members and looked forward to engaging with the action group on policy development, acknowledging that these processes take time.