The Board noted all of the reports presented to it.

Government proposals for the LGPS

The Board received an update on the Autumn Budget 2024 and the Chancellor's landmark pensions review. The Board noted the Government's proposal to remove the distinction between discretionary and non-discretionary pension schemes so that all death benefits and unused defined contribution pension pots will form part of the deceased member's estate for inheritance tax purposes. The Government also announced the introduction of the Investment Rule which aims to reduce public debt. The Board was advised that the Government would be consulting on the technical aspects of how the inheritance tax will be applied, and that the new debt rule could increase scrutiny on the health of the scheme.

Investments in Defence Companies

The Board noted the report regarding investment in defence companies. The report explained that the Fund is facing pressure to divest from companies which manufacture weapons or components used in their manufacture, or which provide services or technologies which support their manufacture and use. The pressure comes from individuals and organisations concerned about the use of weapons in conflict zones, particularly Gaza. The report explained that the law allows the fund to make investment decisions based on non-financial considerations, but that they must be able to show that doing so does not risk financial detriment to the scheme and that a majority of members would support their decision.

Minutes of Working Parties

The Board noted the minutes of the Investment Monitoring Working Party, the Governance & Risk Working Party and the Responsible Investment Working Party. The IMWP discussed the performance of the Fund's investments and noted that some portfolios were underperforming. The GRWP discussed the annual internal audit report, the Pensions Dashboard, the risk register and the risk policy. The RIWP discussed the SSGA Sustainable Stewardship Service and climate scenario analysis. It also discussed the report by Redington on the Fund's investments in defence companies.

Catalyst Fund

The Board noted the report on the Catalyst Fund. The Catalyst Fund is a local investment fund that supports development and refurbishment projects in the Merseyside area. The report provided an update on the Fund's investments, including its investments in Mersey Heat, Royal Albert Dock, Legacie, X-Docks Widnes and Foresight NW Regional Fund.

Cyber Security Policy

The Board reviewed and noted a draft cyber security policy, which it was advised was being developed to ensure that the Fund meets its obligations in relation to data protection and cyber risk.

Pension Administration Monitoring Report

The Board noted the Pension Administration Monitoring Report. The report provided information on the key performance indicators for the administration team, and noted that the team was working on a project plan to connect to the Pensions Dashboard. The Dashboard will allow scheme members to see all of their pension information in one place.