The Pension Committee of Sutton Council met on 25 June 2024 to discuss various matters related to the administration and performance of the pension fund. Key decisions included the approval of the business plan and budget for 2024-25, and updates on pension administration strategy, performance, and projects. The committee also reviewed governance and risk issues, and investment performance up to 31 March 2024.

Pension Fund Business Plan and Budget

The committee approved the business plan for 2024-27 and the budget for 2024-25. Members inquired about the date of the dashboard and the steps taken to explore options for potential suppliers. Officers explained that all Local Government Pension Schemes (LGPS) face similar challenges and that they would use LGPS national frameworks to procure systems providers. The committee also discussed the software provider's potential improvements during the procurement process and the monitoring of training by Pension Board and Pension Committee members.

Pension Administration Strategy Update

The committee noted the update on the Pension Administration Strategy. Officers highlighted the need for continuous improvement and transparency with service providers.

Pension Administration Performance Update

The committee reviewed the Pension Administration Performance and noted previous challenges related to unfilled positions and long-term sickness within the pensions administration team. Officers confirmed that recruitment had been undertaken and that structural changes were made to reduce reliance on key individuals. Members discussed the impact of workload pressure on team morale and the steps taken to engage more successfully with employers.

Pension Administration Projects Update

The committee received an update on Pension Administration Projects. Officers confirmed that work was being carried out to correct data entry errors and improve scheme-specific data. The committee also inquired about the existence of a sharia scheme within Additional Voluntary Contributions, and officers committed to providing more information at a future meeting.

Governance and Risk Update

The committee discussed the Governance and Risk Update. Members inquired about the consequences for employers not entering into insurance and facing financial difficulty. Officers explained that the fund would bear risk across all employers in the short term but would offer greater flexibility for repayment in the long term. The committee also discussed the risk of cyber attacks and the importance of ensuring providers adhere to the fund's cyber policy.

Work Programme Update

The committee noted the updated Work Programme and the appointment of Aoifinn Devitt as the Chief Investment Officer at LCIV.

Investment and Manager Performance to 31 March 2024

The committee reviewed the Investment and Manager Performance up to 31 March 2024. Members discussed the underperformance of the fund's property allocation and the challenges facing markets. Representatives from Mercers explained the high benchmark for Invesco and the high trading costs associated with property investments. The committee also noted that the La Salle fund was winding up and that the remaining value would be returned within the next year.