Agendas, reports and minutes

Pensions Committee and Board

Date: Wednesday, 23 September 2020

Agenda: Read the Agenda

A joint meeting of the Pensions Committee and Pension Board will take place REMOTELY on Wednesday 23 September 2020 at 10.30 a.m.
 
You are invited to attend the meeting and a note of the business to be considered is attached.
 
Webcast Notice: This meeting will be filmed and broadcast over the internet on the Highland Council website and will be archived and available for viewing for 12 months thereafter.
 
Yours faithfully
 
Stewart Fraser
Head of Corporate Governance 
 
BUSINESS 
 
1. Apologies for Absence
    Leisgeulan
 
2. Declarations of Interest
    Foillseachaidhean Com-pàirt
 
Members are asked to consider whether they have an interest to declare in relation to any item on the agenda for this meeting.   Any Member making a declaration of interest should indicate whether it is a financial or non-financial interest and include some information on the nature of the interest.   Advice may be sought from Officers prior to the meeting taking place.
 
3. Legal Implication on using Highland Council Pension Fund for Highland Council Capital Projects
    Buaidh Laghail a thaobh a bhith a’ cleachdadh Maoin Peinnsein Chomhairle na Gàidhealtachd airson Phròiseactan Calpa Chomhairle na Gàidhealtachd
 
The Head of Corporate Finance and Commercialism will give a verbal report.
 
4. Internal Audit
    In-Sgrùdadh
 
4a Highland Council Pension Fund Internal Audit Annual Report 2019/20
     Aithisg In-Sgrùdaidh Maoin Peinnsein Chomhairle na Gàidhealtachd 2019/20
 
There is circulated Report No. PC/1/20 by the Corporate Audit Manager.
 
The Committee is invited to note the contents of the report, the audit opinion provided and to raise any relevant points with the Corporate Audit Manager. PP.1-6
 
4b Highland Council Pension Fund Internal Audit Annual Plan 2020/21
     Plana In-Sgrùdaidh Bliadhnail Maoin Peinnsein Chomhairle na Gàidhealtachd 2020/21
 
There is circulated Report No. PC/2/20 by the Corporate Audit Manager.
 
The Committee is invited to approve the 2020/21 Audit Plan.
 
5. Governance Policy Statement 2020/21
    Poileasaidh Riaghlaidh 2020/21
 
There is circulated Report No. PC/3/20 by the Head of Corporate Finance & Commercialism.
 
The Committee is asked to approve the Highland Council Pension Fund Governance Policy Statement.
 
6. Service Plan 2020/21
    Plana Seirbheis 2020/21
 
There is circulated Report No. PC/4/20 by the Head of Corporate Finance and Commercialism.
 
The Committee is invited to approve the following:-
 
i.  the Pension Fund Service Plan 2020/21; and
ii. the Pension Fund Budget for 2020/21.
 
7. Pension Fund Contributions and Administration 
    Tabhartasan agus Rianachd Maoin Peinnsein
 
There is circulated Report No. PC/5/20 by the Head of Corporate Finance and Commercialism.
 
The Committee is invited to consider the details of the report. PP.38-43
 
8. Training Policy and Training Plan 2020/21
     Poileasaidh Trèanaidh agus Plana Trèanaidh 2019/20
 
There is circulated Report No. PC/6/20 by the Head of Corporate Finance & Commercialism.
 
Members are asked to consider the report and:-
 
i.   note the assessment and training resources provided by The Pensions Regulator and the requirement for newly appointed Board and Committee members to complete induction training (section 6 and section 8 of the report);
ii.  note the adoption of the CIPFA Local Pensions Boards Technical Knowledge and Skills framework (section 7 of the report), including the self-assessment matrix and the guide for local pension boards issued by CIPFA (section 9 and Appendix 2 of the report);
iii. note the training delivered to date on pension fund matters (Appendix 3 to the report);
iv.  agree the training policy and programme for 2020/21 set out within the report (section 11 of the report); and
v.   note that details of individual attendance at Pensions Committee, Investment Committee and training will be reported in the Pension Fund Annual Report and Annual Accounts 2020/21.                                                                         (section 12 of the report). PP.44-62
 
9.  Highland Council Pension Fund: Monitoring of Retirements
     Maoin Peinnsein Chomhairle na Gàidhealtachd: Sgrùdadh Cluaineis
 
There is circulated Report No. PC/7/20 by the Head of Corporate Finance & Commercialism.
 
The Committee is asked to consider the details of the retirements as outlined in the appendices to the report.
 
10. Risk Management Update 
      Fios às Ùr mu Rianachd Chunnairt
 
There is circulated Report No. PC/8/20 by the Head of Corporate Finance and Commercialism.
 
Members are asked to:-
 
i.   note the updated risk register extract and compliance with the Pension Fund Regulator requirements; and
ii.  consider whether any additional risks need to be added to the register.
 
11. External Annual Audit
      Sgrùdadh Bliadhnail on Taobh A-muigh
 
11a External Annual Audit Report to Members of the Pensions Committee and the Controller of Audit
       Aithisg In-sgrùdaidh Bhliadhnail on Taobh A-muigh do Bhuill de Chomataidh nam Peinnsean agus Rianadair an Sgrùdaidh
 
There is circulated Report No. PC/9/20 by the External Auditor, Grant Thornton.
 
The Committee is invited to note the report.
 
11b Letter of Representation 2019/20
       Litir Riochdachaidh 2019/20
 
There is circulated (Report No. PC/10/20) a copy of the annual audit letter of representation 2019/20.
 
The Committee is asked to agree that the letter be signed on behalf of the Highland Council.
 
11c Audited Accounts 2019/20
       Cunntasan Sgrùdaichte 2019/20
 
The Audited Statement of Accounts (Report No. PC/11/20) for the financial year 2019/20 are available for viewing at the following weblink:-
 

https://www.highland.gov.uk/downloads/file/22881/audited_accounts_april_2019_to_march_2020

 
The Head of Corporate Finance & Commercialism will respond to any matters arising.
 
The Committee is invited to approve the accounts.
 
12. Actuarial Update
 
There is circulated Report No. PC/12/20 by the Fund’s Actuary, Hymans Robertson. 
 
Mr Rob Bilton from Hymans will provide an update on the current challenges for the Fund which will include:-
 
• a brief on the McCloud consultation including an estimate of the potential immediate and future costs for the Fund and employers based on the remedy outlined in the consultation;
• an update on the Scottish Cost Management valuation for 2017 and how it may impact employer and member contributions for the Fund; and 
• a brief on the Goodwin ruling regarding equality of survivor benefits in same sex marriages, again including the funding implications for the Fund. PP.103-113
 
13. Investment Sub Committee: Minutes of Meeting
      Fo-chomataidh Tasgaidh: Geàrr-chunntas na Coinneimh
 
The Minutes of meeting of the Investment Sub-Committee held on 6 September, 29 November 2019 are circulated for information and 13 March 2020 are circulated for confirmation.