The Dyfed Pension Fund Committee met on Monday 23 June 2A025 to approve the Audit Plan for 2025 and a revised Wales Pension Partnership (WPP) Business Plan for 2025-2028. The committee also received updates on the fund's budgetary position, pensions administration, and responsible investment activities.

Audit Plan 2025

The committee unanimously approved the Audit Plan 2025, presented by Jason Blewitt from Audit Wales. The plan outlines the statutory responsibilities of the external auditor, the audit work to be undertaken, the estimated audit fee, and the audit team's key dates and planned outputs.

Dyfed Pension Fund Pension Board Report

The committee received the Pension Board report, presented by its Chair, John Jones. The report provided an update on items discussed at the Pension Board meeting on 15 May 2025, including budget monitoring, the budget for 2025/26, pensions administration, updated risk register, and policy statements. Issues such as the approach to voting against management on Say to Pay and progress with local investment initiatives were noted and will be discussed further at a future meeting.

Final Budgetary and Cash Position as at 31 March 2025

The committee received the final budgetary position for 2024-25, which showed an overspend of £5.1 million compared to the budget. Expenditure was overspent by £9.2 million, primarily due to higher than budgeted lump sum retirement benefits and transfers out of the scheme. Income exceeded the budget by £4.1 million, with contributions and transfers in being higher than anticipated. The report also detailed the fund's cash position, which stood at £7.8 million as at 31 March 2025.

Pensions Administration Report

An update on Pensions Administration was received, covering regulatory matters such as McCloud/Sargeant and Pension Dashboards, the breaches register, i-Connect, GMP reconciliation, and workflows. The committee noted the work being done to assist Pembrokeshire College, Coleg Ceredigion, and Coleg Sir Gar with i-connect. Clarification was sought on the position relating to the Mid and West Wales Fire and Rescue Service and Dyfed Powys Police using the facility, with confirmation that assistance would be provided as soon as current workloads permitted. A presentation on the Pension Dashboard will be given at a future meeting.

Dyfed Pension Fund Policies

The committee was requested to approve several new policies to assist in complying with the new code of practice from The Pensions Regulator (TPR). These policies included: Recovery of Overpayment, Death Grant, Anti-Fraud and Corruption, Equality and Diversity, Privacy Notice, Conflict of Interest, and Risk Management. The committee unanimously approved these policies. A Cyber Security Policy will be reported at a future meeting.

Breaches Report

The committee received the Breaches Report, prepared in accordance with Section 70 of the Pension Act 2004 and the Dyfed Pension Fund Breaches Policy. The report detailed instances where employee/employer contributions had not been received on time. The committee noted the report.

Risk Register

The committee received the Risk Register, which details identified risks relating to the Dyfed Pension Fund's functions. The report included an assessment of potential impact, probability, and risk rating, along with control measures to mitigate these risks. The focus for this meeting was on Governance and Regulatory risks (G1-G8), and it was confirmed that there had been no changes to these risks since the previous meeting. The committee noted the report.

Training Plan

An update on the Training Plan for 2025-2026 was received, detailing the schedule of committee meetings and training events for members and officers. The committee noted the plan.

Carbon Intensity Analysis as at 31 March 2025

The committee received an update on the fund's carbon footprint. The Weighted Average Carbon Intensity (WACI) for the fund's equity portfolio had reduced by 10.7% in the year to 31 March 2025, representing a reduction of 13.9% per annum since September 2020. The committee noted this update.

Wales Pension Partnership Responsible Investment Update

The committee received the Wales Pension Partnership's (WPP) Responsible Investments update report as at 31 March 2025. The report detailed recent Responsible Investments activity and information on the Global Growth, Sustainable Active Equity, and Global Credit Sub-Funds. A query was raised regarding Robeco's plans to engage with organisations operating in Palestinian territories, and the Treasury and Pension Investments Manager stated that a full list of engagements from the last quarter would be provided. The committee received the update report.

Wales Pension Partnership (WPP) Business Plan 2025-2028

The committee received for consideration the revised WPP Business Plan for the period 2025-2028. The plan outlines the WPP's priorities, business objectives, policies, financial budget, and investment and performance objectives over the next three years. The revised plan incorporates design and enabling costs for Project Snowdon, which relates to WPP's proposals agreed with the UK Government following the Fit for the Future consultation. The committee unanimously approved the revised WPP Business Plan for 2025-28.

Implementation of the Wales Pension Partnership (WPP) Fit for the Future Business Case

The committee received a report seeking agreement to progress the implementation of the WPP Fit for the Future Business Case, which had been approved by the Government. The report detailed the WPP's proposal to establish a standalone Financial Conduct Authority (FCA) authorised investment management company (IM Co) and move all WPP assets into its management. The committee unanimously resolved to agree to the progression of the business case and to submit the report to the County Council for approval.

Exclusion of the Public

Pursuant to the Local Government Act 1972, the public were excluded from the meeting during the consideration of the following items as the reports contained exempt information.

Independent Advisor Performance & Risk Report to 31 March 2025

Following the application of the public interest test, the committee resolved to consider this matter in private. The committee received the Independent Investment Adviser Performance & Risk Report, which provided information on investment managers' performance for the quarterly, 12-month, and rolling 3-year periods ending 31 March 2025. The report also included the global market background and issues for the committee to consider. The committee noted the report.

Northern Trust Performance Report to 31 March 2025

Following the application of the public interest test, the committee resolved to consider this matter in private. The committee considered the Northern Trust Performance report for the Dyfed Pension Fund as at 31 March 2025, which provided performance analysis at a total fund level and by investment manager for the periods since inception. The committee noted the report.