pensions board - london borough of hillingdon · members spoke about the upcoming auto enrolment...

Sian Kunert Finance - Pension Fund T.01895 556578 [email protected] www.hillingdon.gov.uk London Borough of Hillingdon, 4W/01, Civic Centre, High Street, Uxbridge, UB8 1UW

Pensions Board Date: TUESDAY 30TH APRIL 2019 Time: 3.00 PM Venue: COMMITTEE ROOM 4a - CIVIC CENTRE, HIGH STREET,

UXBRIDGE UB8 1UW Employer Representatives Zak Muneer Hayley Seabrook Employee Representatives Roger Hackett Tony Noakes

Contact: Olivia Richards Tel: 01895 277459 Email: [email protected]

Terms of Reference of the Pensions Board is as follows:

(i) The Pensions Board will be chaired by a member chosen by the group (ii) The frequency of the Pensions Board will be determined by the Board. (iii) Reports to the Board will either reflect decisions taken by Pensions Committee or

be reports for noting already seen by Pensions Committee. (iv) The role of the Board will be to assist London Borough of Hillingdon Administering

Authority as Scheme Manager: to secure compliance with the LGPS regulations and any other legislation relating to the governance and administration of the LGPS;

(v) To secure compliance with requirements imposed in relation to the LGPS by the Pensions Regulator; and in such other matters as the LGPS regulations may specify.

(vi) To secure the effective and efficient governance and administration of the LGPS for the London Borough of Hillingdon Pension Fund.

(vii) To provide the Scheme Manager with such information as it requires to ensure that any member of the Pension Board or person to be appointed to the Pension Board does not have a conflict of interest. (NB: Being a member of the LGPS is not seen as a conflict of interest.)

Agenda PART I

1. Apologies for absence

2. Election of temporary chairman for the meeting (representation rotated)

3. Declarations of Interest and any Conflicts of Interest

4. Minutes of meeting held 8 February 2019

5. Exclusion of Press and Public

To confirm the items of business marked Part I will be considered in public and that

items marked Part II will be considered in private

6. Training and discussion item – Reporting Breaches of Law

7. Administration update

8. Specifics of the LGPS – 85 year rule and 50/50 scheme

9. Training Policy and Training Needs

10. Risk Management Policy

11. tPR Checklist review & focus on C – Conflicts of Interest and D – Publishing

Information

12. Work programme 2019

PART II

13. Review of Pension Committee Reports

Members of the board are asked to bring their copy of the Pensions Committee agenda of 20 March 2019 to the meeting

Minutes

PENSIONS BOARD

8 February 2019

Meeting held at Committee Room 7 - Civic Centre, High Street, Uxbridge UB8 1UW

Employer Representatives:

Zak Muneer and Hayley Seabrook Employee Representatives: Roger Hackett and Tony Noakes

Apology for Absence: None

Also Present: Daniel Kanaris (AON Hewitt)

LBH Officers Present: Sian Kunert (Head of Pensions Treasury and Statutory Accounts), Tunde Adekoya (Pension Fund Accountant), Olivia Richards (Pensions Admin)

ELECTION OF TEMPORARY CHAIR (Agenda Item 2) Hayley Seabrook was elected to chair this meeting. The chair will rotate throughout the year with equal distribution of employer and employee representatives.

DECLARATIONS OF INTEREST AND ANY CONFLICTS OF INTEREST (Agenda Item 3)

No conflicts of interest were declared.

MINUTES OF THE MEETING HELD ON 21 JANUARY 2019 (Agenda Item 4)

Agreed as an accurate record.

EXCLUSION OF PRESS AND PUBLIC (Agenda Item 5) That Agenda Item 12 be considered in private for the reasons stated on the agenda.

TRAINING AND DISCUSSION ITEM – CYBER SECURITY (Agenda

Item 6) Board members received a training item on cyber security to understand what possible ways that Hillingdon and SCC may incur issues with possible attacks and also what defenses are in place to protect and prevent. The training covered the growth in cyber crime, threats to Pension

schemes, consequences of cyber security theft, a review of the pensions regulator guidance in managing this threat and actions the fund should be looking into. Hillingdon retains all responsibility for the pension fund so it is imperative that the policies in place are up to date and sufficient. Members discussed various scenarios of which further requests for information were made. Members have initially requested for a further detailed mapping of the LGPS cyber footprint. Discussion over whether Hillingdon’s liability insurance includes in relation to cyber security risk – SK to follow up with Insurance. It was suggested the ICT team could present a training and information item on our incident response procedure detailing information such as the structure, time scales and written policies at either the next or following meeting. It was suggested a comparison is completed of Hillingdon’s cyber resilience solution framework to Aon’s cyber resilience solution framework to see if any areas not covered. Board discussed that they would like to see assurance that all appropriate safeguards and plans are in place, that roles and responsibilities are clear, and what will happen if an attack or breach happens. Various discussions took place including ISO2700 accreditation, data mapping as well as other contractors and employers security of data. It was suggested the fund have wording ready in case a breach were to take place to ensure prompt action. Board members agreed this is a large area and developments be brought to future boards with further information as it is collated. Board made a recommendation that improvements are made to the Councils risk register to increase the existing scope in the detail to Pensions Committee. Steps to progress assurance in this area to be added to the work program.

SK SK

ADMINISTRATION UPDATE (Agenda Item 7) Board members discussed the extra recruitment of 9 new members of staff at SCC, this includes 4 new hubs designated for specific teams within to improve efficiency .This is at no further cost to LBH as built into existing costs. Members discussed the results from the data score and were generally happy that they sounded realistic and as expected. 79% for common data was considered relatively low however it was expected this was likely to be due to out of date addresses for a number of deferred members where known incorrect addresses are removed. 79% for scheme specific data seemed relatively high and it was hoped this was as a result of the data quality improvement made over the course of the SCC contract. Hillingdon have asked SCC regarding the options available for tracing missing members and also the implicated costs involved due to GDPR regulations. Additional resources have been approved to fund data cleanse on a trail run of the triennial valuation data

prior to the valuation transfer in July to ensure data is correct. Members discussed the importance to improve data of the fund but agreed it would take time and prioritization was important, to firstly ensure the correct pensions are being paid, that the valuation results are as correct as possible. Status 2 files where members have left but the pension position is undecided is being reviewed. Board were happy to acknowledge where we are now and the trajectory of improvement from there. Board requested to review the Data improvement plan when in a format that can be tracked for improvement. Members spoke about the upcoming auto enrolment process as well as take up on mypensions online

TPR CHECKLIST – FOCUS A – Reporting and B – Knowledge and Understanding (Agenda Item 8) Members discussed the report provided on reporting and knowledge compliance areas within the pensions regulator checklist. There was a marked improvement in attendance on courses with the revised board structure. Members thanked officers for providing suitable training. The provision of bite size training at the start of Pensions committee added value and continuous training is needed. Existing Board members have now completed the training analysis which will allow Officers to access members’ knowledge and provide training to best meet needs. New Board member Tony Noakes will be sent the learning needs analysis to complete.

SK

GOVERNANCE WITHIN POOLING – London CIV (Agenda item 9)

Members were updated on the governance arrangements for the London CIV, the pooled investment vehicle of which the fund is a member and a shareholder. This paper was for information and to set the scene as governance of the pool itself will be come a bigger focus on the fund n the coming years. The members were informed that the London CIV is scrutinized by a number of external oversight organization including the FCA. Statutory guidance which has recently been updated by the MHCLG reiterates the intention for all LGPS funds to be managed by the pension pools in the long term. Hillingdon’s current investment is 55% through the London CIV. The London CIV employs fund managers who are able to access wider markets and diversify our investment, as a result this detaches us from the open market. Investments are long term and the returns are good. The pool carries out due diligence requirements of the sub funds Hillingdon pension fund can invest; the LCIV also manage and monitor the funds on our behalf. Board discussed the difficulties with illiquid over liquid investments in the short term transitioning to the pool. There was a discussion on other approaches to governance and set up within the other LGPS pools across the country.

It was confirmed Cllr Corthorne was the Hillingdon shareholder representative with the LCIV.

STATUTORY REPORTING REQUIREMENTS AND COMMUNICATION (Agenda item 10) Members had requested for an information item regarding the statutory reporting and communication that the authority needs to provide. Members discussed the longevity of the scheme and how to attract more people to LGPS. Auto enrollment was mentioned as this is done on a triennial basis. Members discussed the uptake of 50:50 scheme and whether the fund should do more to increase people to access. Members were advised that when people do opt out of the scheme the 50:50 scheme information is provided to ensure members are aware of this option. Officers advised those who are leaving the scheme are not generally those that 50:50 scheme was introduced to help for example the lower earners of younger employees. Members discussed the benefits of newsletters and suggested online content is much more relevant today. The idea of snapshot information in a “did you know” style may be helpful in increasing knowledge of the benefits of being in the LGPS.

WORK PROGRAMME 2018/19 (Agenda Item 11)

The Board discussed work flow items in the upcoming work plan. As discussion took place on the future publication of the Annual Pensions Board Report Roger requested the report a summary of the work plan in attrition to work completed and assurance over the prior 12 months. This should give Pensions Committee a better view as to what Pensions Board's priorities are and areas Board will be focusing on.

REVIEW OF PENSION COMMITTEE REPORTS (Agenda Item 12)

This item was discussed as a Part II item without the press or public present as the information under discussion contained confidential or exempt information as defined by law in the Local Government (Access to Information) Act 1985. This was because it discussed ‘information relating to the financial or business affairs of any particular person (including the authority holding that information)’ (paragraph 3 of the schedule to the Act).

The Board was provided with the agenda for the last Pensions Committee which took place on 21 January 2019.

The Board noted the reports and decisions made at Pensions Committee that papers were clear. Roger, Zak and Hayley were all in attendance at the Pensions Committee.

The meeting, which commenced at 3.00 pm, closed at 4.54 pm.

These are the minutes of the above meeting.

Pensions Administration Report Item 7

Committee Local Pensions Board

Contact Officers Sian Kunert, Finance Papers with this report Pensions Increase letter

SCC Project Update report REASON FOR ITEM To inform the Pension Board of administration developments and recent Communications with scheme members and scheme employers. . INFORMATION Resourcing SCC have continued to expand the team to better support the contract. A new Lead Pensions Manager has now been in place for 6 weeks and making changes to the delivery of the service and ensuring sufficient resources in place. A sharper focus has been incorporated into teams to deal with more complex areas and give teams more ownership. A new starter is joining by June to fill a vacancy on the technical side after the expert moved to the Local Government Association. An additional resource will also be added to this area and once the team is in place there will be a bigger focus on communication and education with employers. Attached is the pension increase letter that recently went out to all pensioners; officers have agreed once the new team is in place all communications will come via the Hillingdon team in advance of publication so we can better influence the communication with members. Self Service membership update As at 31 March 2019 there were 3,844 scheme members registered for the online member self service portal “mypensiononline”. Table below shows breakdown of registered members by category. Sign up to mypensiononline Membership Category

Total Membership Numbers

Registered online for Self service

Active 9050 2,689 Deferred 9,620 767 Pensioners 6,878 388

All figures as at 31 March 2019

Data Cleansing

Data cleansing is taking place across 4 strands.

1. Year End returns – Hillingdon Council file has been sent through and a few minor data items have bene resolved. Schools and admitted bodies are currently returning data and have until 30 April to complete.

2. GMP reconciliation is on track 3. Undecided leaver files are in the process of being resolved now the contract has

been awarded to JLT. 4. Errors resulting from the dry run of the Valuation data extra report are now in

process with a new member of staff clearing these items An update has been provided in the attached project newsletter. Work is now in progress for the valuation in April 2019. I-connect, a new software solution is being worked on by SCC with the aim of rolling out in September which will improve data from monthly updates and ownership of data with the employers. Valuation update Officers met with Hymans in January who will be completing the triennial valuation based on assets and liabilities of the fund employers at 31 March 2019. The fund have agreed with to 3 modelling projects to ensure the assumptions are specific to the fund. Hymans will carry out salary increase assumption modelling, modelling on expected future investment return – “the discount rate”, and Pre-retirement demographics. A draft of the Funding strategy statement will be taken to Pensions Committee in July and Hymans will also provide training at this meeting on valuation methodology and assumptions. The first cut of data from SCC will be passed to Hymans by 31 July. Employer results will be completed by the end of September and employers will be invited to a results day where Hymans will explain the methodology and speak to employers about their new rates. Pensions Committee will be presented with the valuation results in its October meeting and a period of challenge will open for employers on their rates and the funding strategy statement. The valuation will be signed off in January with final full fund valuation report coming to Pension Committee in March. Contribution rates will come into effect for the Council and a number of other employers from April 2020 and schools from September 2020. Report of Breach to Pensions Regulator The fund were made aware of a failure to pay a pensioner on time. The case was only picked up when the member contacted SCC to ask when her pension entitlements would begin where SCC then actioned the pension into payment. This was due to a failing by Capita for not implementing the regulations correctly as the administrator for the fund. The case is now going through an IDRP process and the fund have self reported the failure to the Pensions Regulator. As a result of this breach the fund have carried out investigations to see if any other member is in the same situation. A number of cases have been identified where there is no evidence of contact being made with the member and the list is now with SCC

to contact the members or resolve by contacting the member that they have a pension entitlement.

London Borough of Hillingdon (LB Hillingdon) Pension Fund Annual update for pensioners April 2019

Pensions Increase (Review) Order 2019

The government has announced that the rate of increase to apply to public service pensions, including the Local Government Pension Scheme (LGPS) and any pension payable under the Teachers’ (Compensation for Redundancy and Premature Retirement) Regulations is 2.4%.

The increase is based on the Consumer Prices Index over the 12 month period ending in September 2018 and is effective from 8 April 2019. As the increase is applied from 8 April, you will receive a proportion of the full monthly increase in your April payment.

Your pension will be increased from 8 April 2019 if you:

are aged 55 or over, or are receiving a spouse’s, beneficiary’s or child’s pension, or retired on health grounds and qualify for pensions increase

If you do not fall into one of these groups, your pension will still attract the increase, but it will not be applied until your 55th birthday.

In certain circumstances your LB Hillingdon pension will not increase by the full 2.4%.

1. If you reached your State Pension Age before 6 April 2016 and your pension includes any Guaranteed Minimum Pension that was accrued before 6 April 1988, this element of your pension will not increase. The increase on this part of your pension will be paid with your state pension.

2. If your pension ‘began’ after 23 April 2018 a smaller, part-year increase will apply. Your pension ‘began’ the day after the end of the period of scheme membership in which the pension was built up. If you are a retired employee, your pension ‘began’ the day after your scheme membership ended. If you are in receipt of a dependant’s pension, your pension ‘began’ on the day after the last day of scheme membership of your late partner or parent.

The full 2.4% increase will apply to any benefits built up in the career average revalued earnings scheme (benefits built up after 31 March 2014, unless you were a councillor).

Income tax form P60

Your income tax form P60 for the 2018/19 tax year is enclosed with this update.

Pension Payments

LB Hillingdon pensions are paid on the 15th of the month (Or the last working day before the 15th). A payslip will be issued to you each March and April. Your April 2019 payslip is included with this update. In other months, a payslip will only be issued if your net pension payment varies by more than £5.00 when compared with the previous month’s payment.

Your pension and income tax

If appropriate, income tax is deducted from your pension in accordance with instructions from HM Revenue and Customs (HMRC). If you have a tax query you should contact HMRC directly:

Pay As You Earn, H.M. Revenue and Customs, BX9 1AS Telephone: 0300 200 3300

You should quote the Pensions tax reference of 120/FA74972 and your payroll reference number and National Insurance number, which are shown at the top of your pay advice slips.

My Pension Portal – Secure online access to your pension record

I am pleased to let you know that we have launched a member portal, giving you secure access to your pension record online. As a pensioner member, you can use My Pension portal to:

View the details from your payslips and P60 online Update your contact details – home address, telephone number and email address

To register for the portal, please phone the Helpdesk on 0300 200 1034. You will need to answer security questions and provide a contact email address in order to start the registration process. Further information and links to complete your registration will be emailed to you after you have contacted the helpdesk by phone.

Changing your address and bank / building society details

If you have not registered for the member portal then any changes of address must be made in writing. ALL changes of bank account must be made in writing. In order to maintain the timely payment of your pension, please provide all changes of bank/building society details as soon as possible IN WRITING to the Pensions team. Please include your payroll reference number in any correspondence.

Your data

In order to administer the LGPS and ensure any pensions in payment continue to be paid at the correct level, it is essential that we hold accurate data about scheme members. This data will be shared with certain outside agencies in order to comply with statutory responsibilities:

LGPS National Insurance Database All LGPS funds in England and Wales participate in a data sharing project in order to comply with legal requirements contained in the scheme regulations. The database is hosted at the South Yorkshire Pensions Authority, an LGPS Pension Fund, and for each member the database includes the member’s national insurance number, a code to identify which LGPS pension fund the member’s record is held in, the status of that record and the date of the last status change.

National Fraud Initiative and existence checking Please note that key pension data that you have provided as a recipient of a Council pension may be provided to bodies responsible for auditing and administering public funds to prevent and detect fraud. We will also carry out existence checking to verify continued entitlement to pension payments.

Contact details for Pension Services

Address:

Pension Services, Surrey County Council, Room 218 County Hall Penrhyn Road, Kingston upon Thames, KT1 2DN

Phone: 0300 200 1031 Email: [email protected]

APRIL. 2019 , VOL. 01

THE PROJECTHIGHLIGHTS

A L L Y O U R P E N S I O N P R O J E C T U P D A T E S I N O N E

P L A C E

WELCOME TO OURNEWSLETTERF I R S T E D I T I O N

We would like to introduce you to our first edition of theOrbis Pension Project newsletter. We understand howimportant it is to communicate with you, especially duringimportant times such as these, so what better way to keepyou updated than a monthly newsletter? This newsletter will provide you with a detailed update onthe current Program of Work all in one place, every month.It will include updates on the projects such as backlogclearance/prevention, the Guaranteed Minimum Pension(GMP), data cleansing and more. It will also provide updateson annual events such as Annual Benefit Statement (ABS) toensure you have full sight on how plans are progressing. We know it's important to work in collaboration with you aspart of our partnership and we aim to further increase thiswith you over the next few months. It's an exciting periodwe will be entering as part of the digital transformation andwe want to deliver this together.

A W E L C O M E M E S S A G E

F R O M O U R I N T E R I M

H E A D O F P E N S I O N S

A N I N T R O D U C T I O N T O

T H E P R O J E C T S T E A M

P R O J E C T U P D A T E S &

U P C O M I N G M I L E S T O N E S

IN THIS ISSUE:

"It is an exciting time to join

the Pension Services team

and I’ve been impressed with

the commitment of the team

to customer service."

A WORD FROMOUR HEAD OFPENSIONSW R I T T E N B Y A N D R E W M A R S O N

“Welcome to the first Orbis Pension ServicesNewsletter! We hope that you find it interesting andhelpful. Your feedback will help us produce asuccessful Newsletter which is informative andrelevant so please do tell us any comments you have. It is an exciting time to join the Pension Services teamand I’ve been impressed with the commitment of theteam to customer service. In the short term, thefocus is on delivering the key projects of GMPreconciliation, annual benefit statements and thevaluation. In the medium term, we are movingtowards our Strategic goals to provide you with a bestin class service by: • investing in the skills of the team, creatingexcellence in the people who serve you• cleaning data so we can deliver your needs withconfidence and assurance• building process automation so the team canfocus on your needs and to improve response times• providing digital platforms for you to easilycommunicate and transact with us We will involve you in our plans and keep youupdated with news of progress. In the meantime,please don’t hesitate to get in touch with me or ourclient relationship manager Wendy if you want to findout more.”

THE PROJECTTEAMW H O I S L E A D I N G T H E P R O J E C T S ?

We have a number of projects ongoing and below youwill find a breakdown of the team members workingon these. As the Support & Development ManagerTom Lewis will act as a Program Manager for theoverall works taking place. Tom Lewis - Support and Development Manager- Data Cleansing & valuation- EOY/ABS production Mark Spiller - Project Manager- Backlog clearance and prevention- System review- Automation Amy Wallace - Project Manager (from April 22nd)- GMP Reconciliation- i-Connect Kelly Sedgeman and Chloe Painter - ProjectSupport All projects and communications will be supported byour Project Support Officers.

BACKLOG CLEARANCE & PREVENTIONWe are pleased to announce the contract hasnow been agreed with JLT who will be our chosensupplier to work with the service on clearing thelegacy backlogs. We will be sending controlled batches to JLT eachmonth (approximately 2000 per month across allfunds) for their team to process in line with ourservice process requirements. JLT have agreed aspart of the contract to a 100% completion rate,which includes the production and sending ofletters to members, using the templates weprovide. To ensure we keep you regularly updated amonthly report will be sent to you with thisnewsletter, outlining what work has beenundertaken in that period. Next milestone(s)The creation of first backlog batch to be sent tobe sent to JLT: estimated 15th April I-CONNECTThis is still very much on our radar and testinghas now come to a close. We are now in aposition to work on producing a solid businesscase that will be suitable to use for agreementwith the relevant people, both here in Orbis andfor your fund. The best time we will be lookingfor implementation to begin is approximatelySeptember. We will be able to provide a moredetailed timeline and plan in the coming weeksand agree this in collaboration with yourselves. Next milestone(s)- Undertake necessary process mapping April2019- Produce business case May 2019

PROJECT UPDATESW H A T ' S T H E C U R R E N T S T A T E O F

P L A Y ?

GMPGMPJLT are now 71% of the way through collating allmember queries and discrepancies and are ontrack to finish this area of work by the end ofApril 2019. Queries that JLT can't answer arehave been distributed to the Administrationteam and Fund representatives for investigation.Thank you for your support in getting theseresponses back so quickly, we have sent allresponses to JLT for processing. Once the membership reconciliation iscompleted, we will be able to accuratelyunderstand any impact on the Fund liabilities. The plan is to reach that point in September2019, once HMRC provide final data. JLT have provided us with assurances that thereconciliation work will be completed by theagreed dates outlined above and in September2019, the Fund will have a clear understandingof the liability amounts, which will lead to adecision needed to be made regarding theapproach to over/under payments. Next milestone(s)- Member data collation ends April 30th 2019- JLT to undertake final analysis as per the HMRCguidelines in May 2019 to provide liabilityfigures.

DATA CLEANSING & VALUATIONThe data cleanse is in full swing and goodprogress is being made on clearing the criticalerrors. Many of the errors lie with missing payfigures from undecided or unknown leavers,which I know is being worked on collaborativelybetween yourselves and our Technical Team.Thank you for all your hard work so far, we'reconfident that together we can clear the criticalerrors in time for valuation where required. I can also confirm we have now filled thepositions that will support the data cleanse workfor your fund right up to the valuation deadlineand beyond, to remove some of those amberwarning errors which will go towards improvingthe overall data quality we hold on our systemsfor your fund. The current situation of the errorsand warnings of the fund data held in ouradministration system can be seen in theattachment included in the email.

PROJECT UPDATESW H A T ' S T H E C U R R E N T S T A T E O F

P L A Y ?

SYSTEMS REVIEW & PROCESS IMPROVEMENTAs part of the digital transformation road mapwe are commencing a discovery period to reviewour current system and, understand if it meetsthe requirements of all our key stakeholders. Wehave appointed a Business Analyst who willengage with a range of stakeholders includingfund managers, finance colleagues, membersand the administration service to obtain a fullunderstanding of those requirements. Our Business Analyst will be with us for the next12 – 15 weeks and in that time will be able tocollate all the relevant information that willallow us to determine the next steps in supportof our digital transformation plans. Next milestone(s)- Requirements to be gathered between April toJuly

EOY, ABS & PENSIONS INCREASE We are in that season again and with it being a valuation year it's more important than ever that we getresponses from all the employers for the end of year. We have committed to a deadline of 30th April2019 for the submission of accurate end of year data. Experience means we have contingency until endof May but this is for truly exceptional cases only and has not been publicised. We will take stock ofwhere we are with returns in mid April and work with you to do all we can to obtain the end of yearreturns we need. The Pension Increase has now been applied and for all members.

Rule of 85 & 50/50 Scheme Item 8 Committee Local Pensions Board

Contact Officers Sebviro Carvalho Papers with this report

REASON FOR ITEM To provide the Pensions Board with a synopsis of what the Rule of 85 means and eligibility criteria plus updates on the 50/50 Option and Auto enrolment uptake. . INFORMATION Rule of 85 The “Rule of 85” is a calculation to determine eligibility for the member - age plus LGPS membership (in whole years) when added together had to equal at least 85 to have the option of electing to draw their pension benefits before the retirement age. To have Rule of 85 protection you must have been a member of the LGPS on 30 November 2006. The "Rule of 85" only dictates the earliest date an employee may retire without suffering a reduction to their pension benefits as some or all of the benefits could be protected from an early payment reduction. The only occasion where this protection does not automatically apply is if a member voluntarily chooses draw their pension on or after age 55 and before age 60. As per the discretional powers conferred upon the administering authority by the Rule of 85 regulation, London Borough of Hillingdon has resolved not to consider use of this provision of waiving the Actuarial Reduction. Hence, any member who voluntarily elects to draw their pension on or after age of 55 and before age 60 will consequently incur the appropriate reduction in benefits as prescribed by the regulation. For full details, please visit - https://www.lgpsmember.org/more/eightyfive.php Auto Re-enrolment – 1st April 2019 Under the Pensions Act 2008, every employer in the UK must put certain staff into a workplace pension scheme and contribute towards it. This known as 'automatic enrolment'. This exercise is undertaken every three years by all LGPS administering authorities and employers bound by the Act.

The Auto Re-enrolment date for LB Hillingdon was 1st April 2019. To date 232 employees have been enrolled into the scheme from 1st April as part of the auto-enrolment exercise and a letter was sent out to every member on 11th March 2019 confirming their enrolment. Consequently, 48 people have opted out of the fund after their auto-enrolment and provided the relevant opt out forms for processing. 50-50 Scheme Option – Contribution Flexibility The LGPS offers the flexibity to pay half normal contribution rate and build up half the normal pension whilst retaining full life and ill-health cover. This is called the 50/50 section of the LGPS, it is designed to help members stay in the scheme, building up valuable pensions benefits, during times of financial hardship. When joining the LGPS individuals will automatically be put into the main section of the LGPS where they pay the normal contribution rate in return for normal pension build up. Individuals can then elect in writing to move to the 50/50 section. Once an election is made the individual starts paying reduced contributions from the next available pay period. The 50/50 section is designed to be a short-term option, each employer is required re-enrol 50/50 members back into the main section of the scheme approximately every three years on a re-enrolment date. Individuals can elect to retrun to themain scheme at any time. There are currently 32 employees in the 50/50 scheme and have all being informed via various communication methods of their auto enrolment into the main scheme as per the Auto Enrolment regulations, unless they provide a 50/50 election form from 1st April 2019.

Training Policy and Training Needs Item 9

Contact Officers Sian Kunert

Papers with this report Revised Training policy

SUMMARY This report provides an update on training and development of Local Pension Board members in line with the Training Policy approved by Pensions Committee in December 2015. A revised version of the Pensions Fund Training Policy is brought to Pensions board in advance of approval at Pensions Committee in July 2019. The Pension Fund Training Policy is designed to aid Pension Committee, local Pension Board members and senior officers in performing individual roles ensuring the fund is managed by individuals with the appropriate levels of Knowledge and Skills.

INFORMATION The Training policy was adopted in December 2015 and due for a refresh which is attached with this paper. In addition to the policy, a training register is maintained to log training received by Pension Committee members, Local Pension Board members and Officers to record and track knowledge and skills. There is a statutory requirement for Local Pensions Board members to undertake training to seek to develop a sound level of knowledge and understanding. Local Pensions Board members were invited to complete or update the Knowledge and Skills learning needs analysis to identify training gaps to enable officers to ensure the correct training items. All Pensions Board members have completed their training needs analysis. There are a number of Training needs identified across the Pensions Board members. Areas where 2 or more members have self-scored and item at 1 or 2 out of 5 are highlighted below:

Area of knowelde or skill Number of board

members with training need

1 – Pensions legislation

An appreciation of LGPS discretions and how the formulation of the discretionary policies impacts on the pension fund, employers and local taxpayers. 2

Knowledge of the role of the Scheme Advisory Board and how it interacts with other bodies in the governance structure. 2

An awareness of the role and statutory responsibilities of the treasurer and monitoring officer 2

Knowledge of the Myners principles and associated CIPFA and SOLACE guidance. 3

An understanding of how breaches in law are reported. 3

3 – Pensions administration

Knowledge of how discretionary powers operate. 3

4 – Pensions accounting and auditing standards

An understanding of the Accounts and Audit Regulations and legislative requirements relating to internal controls and proper accounting practice. 2

An understanding of the role of both internal and external audit in the governance and assurance process. 2

An understanding of the role played by third party assurance providers. 2

5 – Pensions services procurement and relationship management

An understanding of the background to current public procurement policy and procedures, and of the values and scope of public procurement and the roles of key decision‐makers and organisations. 2

An understanding of how the pension fund monitors and manages the performance of their outsourced providers. 2

6 – Investment performance and risk management

An awareness of the Myners principles of performance management and the approach adopted by the administering authority. 3

7 – Financial markets and products knowledge

An understanding of the limits placed by regulation on the investment activities of local government pension funds. 2

An understanding of how the pension fund interacts with the taxation system in the UK and overseas in relation to investments. 3

8 – Actuarial methods, standards and practices

A general understanding of the role of the fund actuary. 2

Knowledge of the valuation process, including developing the funding strategy in conjunction with the fund actuary, and inter‐valuation monitoring. 2

A broad understanding of the implications of including new employers into the fund and of the cessation of existing employers. 2

A general understanding of the relevant considerations in relation to outsourcings and bulk transfers. 2

A general understanding of the importance of the employer covenant and the relative strengths of the covenant across the fund employers. 3

Utilising the training needs analysis and training plan adopted by committee in December 2015, officers have invited members of Pensions Committee and Pensions Board to relevant courses, seminars and workshops that will complement and enhance their existing knowledge. Pension Board Members Training Update Subsequent to the last training update paper brought to Pensions Board in June 2017. Members have undergone various training programmes both internally and externally on issues such as the Legislative framework and structure of LGPS, key governance requirements and investment strategy issues in relation to asset pooling.

Board members regularly attend spring and autumn pension board member seminars run by Barnett Waddingham and CIPFA to keep abreast of issues facing the LGPS. New members to the board attended an introduction to the LGPS full day course in September 2018 for a full overview of the scheme. An in-house information sessions have been provided by KMPG at Pension Committee meetings throughout the year which Pension Board members also attended. Sessions include an overview Hillingdon Pension Fund asset allocation and manager structure to support the future direction and proposed changes to strategy and asset allocation, Roles and responsibilities within the Pension fund and new regulation, training on infrastructure and a session on Inflation and how it effects the pension fund. In addition to external courses and training sessions provided at the start of Pensions Committee, Pension Board members received specific training on Cyber security in February 2019. Future training Future training will be provided through pension Board meetings with the support of AON Hewitt the fund governance adviser and other guest presenters to align with members training needs. Information on future external training opportunities will be fed back to members as they are identified as an ongoing commitment to ensure their skills and knowledge required to administer the fund are up to date. As a result of the training needs analysis review above, training areas for prioritisation at future meetings will cover Discretionary powers, Myners principles overview and taxation. In addition training will be provided on the actuarial process and assumptions at the July Pensions Committee which members are invited to attend.

Pension Fund Risk Management Policy Item 10

Contact Officers Sian Kunert Papers with this report Revised Risk management policy

REASON FOR ITEM A Risk Management Policy for the Pension Fund first came to Pensions board to review in June 2016 and was approved at Pensions Committee on 15 June 2016. This policy has now been revised, for Board review in advance of Pensions Committee in July for approval. Information The Risk Management Policy sets out the aims and objectives of the Administering Authority in relation to the management of risk; explains the regulatory context in within which the policy has been developed; and sets out the Pension Fund risk management process. The risk register has been established as an integral tool to management decisions with review and discussion every quarter. The register in its current form began in 2016 with Eight key risks. Two further risks have since been added on the specific issues of Climate Change and Cyber Security to reflect the changing importance and risk to the fund on these areas. Other risks have been added and later removed when of less significance such as the risk of the introduction of MIFID II legislation. Whilst there are many more risks which could be identified for the Fund, those identified are the most significant and those which are actively managed. While the fund has undergone changed in membership of both the pensions board and pensions committee there has remained consistency in some members. All members of both the committee and the board have knowledge and skills gaps identified and attended a number of training sessions as outlined in the training update report. Pensions Board have helped with the monitoring of risks and expansion of areas focused on the risk register including widening the risk focus on climate change.

1 Approved June 2016Revised April 2019

London Borough of Hillingdon Pension Fund

Risk Management Policy


London Borough of Hillingdon Pension Fund Risk Management Policy Introduction

This is the Risk Management Policy of the London Borough of Hillingdon Pension Fund ("the Fund"), part of the Local Government Pension Scheme ("LGPS") managed and administered by London Borough of Hillingdon ("the Administering Authority"). The Risk Management Policy details the risk management strategy for the Fund, including:

the risk philosophy for the management of the Fund, and in particular attitudes to, and appetite for, risk how risk management is implemented risk management responsibilities the procedures that are adopted in the Fund's risk management process the key internal controls operated by the Administering Authority and other parties responsible for the

management of the Fund.

The Administering Authority recognises that effective risk management is an essential element of good governance in the LGPS. By identifying and managing risks through an effective policy and risk management strategy, the Administering Authority can:

demonstrate best practice in governance improve financial management minimise the risk and effect of adverse conditions identify and maximise opportunities that might arise minimise threats.

The Administering Authority adopts best practice risk management, which supports a structured and focused approach to managing risks, and ensures risk management is an integral part in the governance of the Fund at a strategic and operational level. To whom this Policy Applies

This Risk Management Policy applies to all members of the Pension Committee and the local Pension Board, including both scheme member and employer representatives. It also applies to senior officers involved in the management of the Fund.

Less senior officers involved in the daily management of the Fund are also integral to managing risk for the Fund, and will be required to have appropriate understanding of risk management relating to their roles, which will be determined and managed by the Deputy Director Strategic FinanceHead of Pensions Treasury and Statutory Accounts.

Advisers and suppliers to the Fund are also expected to be aware of this Policy, and assist officers, Committee members and Board members as required, in meeting the objectives of this Policy. Aims and Objectives

In relation to understanding and monitoring risk, the Administering Authority aims to:

integrate risk management into the culture and day-to-day activities of the Fund raise awareness of the need for risk management by all those connected with the management of the

Fund (including advisers, employers and other partners) anticipate and respond positively to change minimise the probability of negative outcomes for the Fund and its stakeholders establish and maintain a robust framework and procedures for identification, analysis, assessment and

management of risk, and the reporting and recording of events, based on best practice


ensure consistent application of the risk management methodology across all Fund activities, including projects and partnerships.

To assist in achieving these objectives in the management of the Fund, the Administering Authority will aim to comply with:

the CIPFA Managing Risk publication and the Pensions Act 2004 and the Pensions Regulator's Code of Practice for Public Service Pension

Schemes as they relate to managing risk. Risk Management Philosophy

The Administering Authority recognises that it is not possible or even desirable to eliminate all risks. Accepting and actively managing risk is therefore a key part of the risk management strategy for the Fund. A key determinant in selecting the action to be taken in relation to any risk will be its potential impact on the Fund’s objectives in light of the Administering Authority's risk appetite, particularly in relation to investment matters. Equally important is striking a balance between the cost of risk control actions against the possible effect of the risk occurring.

In managing risk, the Administering Authority will:

ensure that there is a proper balance between risk taking and the opportunities to be gained adopt a system that will enable the Fund to anticipate and respond positively to change minimise loss and damage to the Fund and to other stakeholders who are dependent on the benefits

and services provided make sure that any new areas of activity (new investment strategies, joint-working, framework

agreements etc.), are only undertaken if the risks they present are fully understood and taken into account in making decisions.

The Administering Authority also recognises that risk management is not an end in itself; nor will it remove risk from the Fund or the Administering Authority. However it is a sound management technique that is an essential part of the Administering Authority's stewardship of the Fund. The benefits of a sound risk management approach include better decision-making, improved performance and delivery of services, more effective use of resources and the protection of reputation.

CIPFA and The Pensions Regulator's Requirements

CIPFA Managing Risk Publication

CIPFA has published technical guidance on managing risk in the LGPS. The publication explores how risk manifests itself across the broad spectrum of activity that constitutes LGPS financial management and administration, and how, by using established risk management techniques, those risks can be identified, analysed and managed effectively.

The publication also considers how to approach risk in the LGPS in the context of the role of the administering authority as part of a wider local authority and how the approach to risk might be communicated to other stakeholders.

The Pension Regulator's Code of Practice

The Public Service Pensions Act 2013 added the following provision to the Pensions Act 2004 relating to the requirement to have internal controls in public service pension schemes.

“249B Requirement for internal controls: public service pension schemes

(1) The scheme manager of a public service pension scheme must establish and operate internal controls which are adequate for the purpose of securing that the scheme is administered and managed—

(a) in accordance with the scheme rules, and


(b) in accordance with the requirements of the law.

(2) Nothing in this section affects any other obligations of the scheme manager to establish or operate internal controls, whether imposed by or by virtue of any enactment, the scheme rules or otherwise.

(3) In this section, “enactment” and “internal controls” have the same meanings as in section 249A.”

Section 90A of the Pensions Act 2004 requires the Pensions Regulator to issue a code of practice relating to internal controls. The Pensions Regulator has issued such a code in which they encourage scheme managers (i.e. administering authorities in the LGPS) to employ a risk based approach to assessing the adequacy of their internal controls and to ensure that sufficient time and attention is spent on identifying, evaluating and managing risks and developing and monitoring appropriate controls.

The Pensions Regulator’s code of practice guidance on internal controls requires scheme managers to carry out a risk assessment and produce a risk register which should be reviewed regularly. The risk assessment should begin by:

setting the objectives of the scheme determining the various functions and activities carried out in the running of the scheme, and identifying the main risks associated with those objectives, functions and activities.

The code of practice goes on to say that schemes should consider the likelihood of risks arising and the effect if they do arise when determining the order of priority for managing risks, and focus on those areas where the impact and likelihood of a risk materialising is high. Schemes should then consider what internal controls are appropriate to mitigate the main risks they have identified and how best to monitor them. The code of practice includes the following examples as issues which schemes should consider when designing internal controls to manage risks:

how the control is to be implemented and the skills of the person performing the control the level of reliance that can be placed on information technology solutions where processes are

automated whether a control is capable of preventing future recurrence or merely detecting an event that has

already happened the frequency and timeliness of a control process how the control will ensure that data is managed securely, and the process for flagging errors or control failures, and approval and authorisation controls.

The code states that risk assessment is a continual process and should take account of a changing environment and new and emerging risks. It further states that an effective risk assessment process will provide a mechanism to detect weaknesses at an early stage and that schemes should periodically review the adequacy of internal controls in:

mitigating risks supporting longer-term strategic aims, for example relating to investments identifying success (or otherwise) in achieving agreed objectives, and providing a framework against which compliance with the scheme regulations and legislation can be

monitored.

Under section 13 of the Pensions Act 2004, the Pensions Regulator can issue an improvement notice (i.e. a notice requiring steps to be taken to rectify a situation) where it is considered that the requirements relating to internal controls are not being adhered to.

Application to the London Borough of Hillingdon Pension Fund

The Administering Authority adopts the principles contained in CIPFA's Managing Risk in the LGPS document and the Pension Regulator’s code of practice in relation to the Fund. This Risk Policy highlights how the Administering Authority strives to achieve those principles through use of risk management processes and internal controls incorporating regular monitoring and reporting.


Responsibility

The Administering Authority must be satisfied that risks are appropriately managed. For this purpose, the Deputy Director Strategic FinanceHead of Pensions Treasury and Statutory Accounts is the designated individual for ensuring the process outlined below is carried out, subject to the oversight of the Pension Committee.

However, it is the responsibility of each individual covered by this Policy to identify any potential risks for the Fund and ensure that they are fed into the risk management process. The London Borough of Hillingdon Pension Fund Risk Management Process

The Administering Authority's risk management process is in line with that recommended by CIPFA and is a continuous approach which systematically looks at risks surrounding the Fund’s past, present and future activities. The main processes involved in risk management are identified in the figure below and detailed in the following sections:

1. Risk Identification

The risk identification process is both a proactive and reactive one: looking forward i.e. horizon scanning for potential risks, and looking back, by learning lessons from reviewing how previous decisions and existing processes have manifested in risks to the organisation.

Risks are identified by a number of means including, but not limited to:

formal risk assessment exercises managed by the Pension Committee performance measurement against agreed objectives findings of internal and external audit and other adviser reports feedback from the local Pension Board, employers and other stakeholders informal meetings of senior officers or other staff involved in the management of the Fund liaison with other organisations, regional and national associations, professional groups, etc.

Once identified, risks will be documented on the Fund's risk register, which is the primary control document for the subsequent analysis, control and monitoring of those risks.


2. Risk Analysis & Evaluation

Once potential risks have been identified, the next stage of the process is to analyse and profile each risk. Risks will be assessed by considering the likelihood of the risk occurring and the impact if it does occur, with the score for likelihood multiplied by the score for impact to determine the current overall risk rating, as illustrated in the table below.

Risk rating Risk rating Risk rating Risk rating

LIK

EL

IHO

OD

Very High (A) This week

A4 A3 A2 A1

High (B) This month

B4 B3 B2 B1

Significant (C) This year

C4 C3 C2 C1

Medium (D) Next year

D4 D3 D2 D1

Low (E) Next 5 years

E4 E3 E2 E1

Very Low (F) Next 10 years

F4 F3 F2 F1

Small (4) Medium (3) Large (2) Very Large (1)

IMPACT: Financial or Reputation

up to £500k

Between £500k and £10m

Between £10m and £50m

Over £50m

Minor complaint, no media interest

One off local media interest

Adverse national media interest or sustained local

interest

Ministerial intervention,

public inquiry, remembered for

years

When considering the risk rating, the Administering Authority will have regard to the existing controls in place and these will be summarised on the risk register.

3. Risk Response

The Deputy Director Strategic FinanceHead of Pensions Treasury and Statutory Accounts will review the extent to which the identified risks are covered by existing internal controls and determine whether any further action is required to control the risk, including reducing the likelihood of a risk event occurring or reducing the severity of the consequences should it occur. Before any such action can be taken, Pension Committee approval may be required where appropriate officer delegations are not in place. The result of any change to the internal controls could result in any of the following:

Tolerate – the exposure of a risk may be tolerable without any further action being taken; this is partially driven by the Administering Authority's risk 'appetite' in relation to the Pension Fund;

Treat – action is taken to constrain the risk to an acceptable level; Terminate – some risks will only be treatable, or containable to acceptable levels, by terminating

the activity; Transfer - for example, transferring the risk to another party either by insurance or through a

contractual arrangement.

The Fund's risk register details all further action in relation to a risk and the owner for that action. The Fund has a cautious risk appetite, particularly in relation to investment, reflecting the Fund's preference for safe delivery options that have a low degree of residual risk with a strong control framework in place for investment operations. The Fund will take risks that have been carefully considered and where controls have been implemented to reduce the likelihood of a risk materialising or the impact if one did materialise. This means that the Fund puts processes and systems in place that ensure achievement of planned outcomes,


although controls would not be put in place where the cost of these exceeds the value of the expected benefits. 4. Risk Monitoring & Review

Risk monitoring is the final part of the risk management cycle and will be the responsibility of the Pension Committee. In monitoring risk management activity, the Committee will consider whether:

the risk controls taken achieved the desired outcomes the procedures adopted and information gathered for undertaking the risk assessment were appropriate greater knowledge of the risk and potential outcomes would have improved the decision-making

process in relation to that risk there are any lessons to be learned for the future assessment and management of risks.

5. Risk Reporting Progress in managing risks will be monitored and recorded on the risk register. The risk register, including any changes to the internal controls, will be provided on an annual basis to the Pension Committee.

The Pension Committee will be provided with updates on a quarterly basis in relation to any changes to risks and any newly identified risks.

As a matter of course, the local Pension Board will be provided with the same information as is provided to the Pension Committee and they will be able to provide comment and input to the management of risks.

In order to identify whether the objectives of this policy are being met, the Administering Authority will review the delivery of the requirements of this Policy on an annual basis taking into consideration any feedback from the local Pension Board. The risks identified are of significant importance to the Pension Fund. Where a risk is identified that could be of significance to the Council it would be included in either the Finance Group Register or the Corporate Risk Register. Key risks to the effective delivery of this Policy The key risks to the delivery of this Policy are outlined below. The Pension Committee will monitor these and other key risks and consider how to respond to them.

Risk management becomes mechanistic, is not embodied into the day to day management of the Fund and consequently the objectives of the Policy are not delivered

Changes in Pension Committee and/or local Pension Board membership and/or senior officers mean key risks are not identified due to lack of knowledge

Insufficient resources are available to satisfactorily assess or take appropriate action in relation to identified risks

Risks are incorrectly assessed due to a lack of knowledge or understanding, leading to inappropriate levels of risk being taken without proper controls

Lack of engagement or awareness of external factors means key risks are not identified. Conflicts of interest or other factors lead to a failure to identify or assess risks appropriately

Costs All costs related to this Risk Policy are met directly by the Fund. Approval, Review and Consultation This Risk Policy was approved at the London Borough of Hillingdon Pension Committee meeting on 15 June 2016 and amended in April 2019. It will be formally reviewed and updated at least every three years or sooner if the risk management arrangements or other matters included within it merit reconsideration.


Further Information

If you require further information about anything in or related to this Risk Policy, please contact:

Sian Kunert; Chief AccountantHead of Pensions Treasury and Statutory Accounts; London Borough of Hillingdon

Civic Centre; High Street; Uxbridge; Middlesex; UB8 1UW Email: [email protected]

Further information on the London Borough of Hillingdon Pension Fund can be found @: https://www.hillingdon.gov.uk/pensions

tPR Checklist – Conflicts of Interest and Publishing Item 11 Committee Local Pension Board Officer Reporting Sian Kunert, Finance Papers with report Summary Dashboard of compliance

tPR checklist toolkit details SUMMARY This report is to show compliance in relation to items C – Conflicts of Interest and D –Publishing Information of the tPR checklist regarding governance of the fund as last updated in October 2017. RECOMMENDATIONS: That the Pension Board note the update SUPPORTING INFORMATION At the Local Pensions Board in April 2016 and October 2017 the Board discussed and reviewed the Pensions Regulator. The checklist was carried out to measure how the fund was performing on its governance and management of the scheme in relation to the Pensions Regulator requirements to identify any gaps for improvement. At the initial review in April 2016 the fund met the majority of the requirements but there were a number of non complaint and partially complaint issues where progress was being made. There were significant improvements in October 2017. As part of a rolling review to update completion and compliance a review has been carried out on the sections C – Conflicts of Interest and D – Publishing Information. In the October 2017 review of all areas in the checklist the fund saw improved compliance on 29 items, with 17 partially compliant items outstanding and no non compliant items remaining. Within sections C and D there were 2 areas of partial compliance. Officers have updated the comments and compliance on these two sections as part of this paper. In the review there were no changes in compliance however item C7 on conflicts of interest was amended to partially complete from fully complete until a conflicts of interest register is published on the pension board webpages. Attached to this report is the movement on these two areas across the 3 review periods. Along with the detail supporting the reasons for the compliance achievement for sections C&D.

Review of tPR checklist sections C and D

Completed Completed Completed Compliant Compliant Compliant

Conflicts of Interest

Apr-16 Oct-17 Apr-19 Apr-16 Oct-17 Apr-19

C1 Fully completed Fully completed Fully completed Fully compliant Fully compliant Fully compliant





C6 In progress In progress In progress Non-compliant Partially compliant Partially compliant

C7 Fully completed Fully completed In progress Non-compliant Partially compliant Partially compliant





Publishing Information

Apr-16 Oct-17 Apr-19 Apr-16 Oct-17 Apr-19

D1 Fully completed Fully completed Fully completed Fully compliant Fully compliant Fully compliant




C - Conflicts of interest

Legal Requirements

No. TPR Requirement London Borough of Hillingdon Approach / Evidence Frequency of Review Last Review Date Check completed Compliant Action

C1 Does the Fund have a conflict of interest policy and procedure, which include identifying, monitoring and managing potential conflicts of interest?

The Council has received advice that it does not need a separate policy as these areas are covered under the Council's Code of Conduct. The PB members are effectively co-opted members of the council, and so all had to complete declarations before they started under the Council's requirements.

It is noted that it would therefore be difficult to create a Fund specific policy, but Conflicts are raised and discussed as an agenda item at each meeting.

Related party forms are completed as part of the annual accounts purposes.

Annual 11/04/2019 Fully completed Fully compliant

C2 Do pension board members have a clear understanding of their role, the circumstances in which they may have a conflict of interest and how to manage potential conflicts?

All Pension Board members have made declarations of interest as required. A list of related parties was provided to support any delarations at the meeting held in February 2019.

This is also a standing agenda item so that potential conflicts can be identified, discussed and managed.

Ongoing (opportunity at each meeting)

11/04/2019 Fully completed Fully compliant

C3 Have all Pension Board members provided appropriate information for the Administering Authority to determine whether a conflict exists (on appointment and from time to time)?

PB members have provided declarations prior to appointment and in meetings they have the opportunity to make declarations - this is recorded in the minutes of each meeting.

Ongoing (opportunity at each meeting)


C4 Does the appointment process for pension board members require disclosure of interests and responsibilities which could become conflicts of interest?

This is part of appointment process - this information is requested on application. A list of related parties has also been provided to all board members for early identifiaction of interests.

Ongoing (as members appointed)


C5 Is the conflicts policy regularly reviewed? The Council's Code of Conduct is annually reviewed Annual 01/05/2018 Fully completed Fully compliant

C6 Does the Fund have a conflicts register and it is circulated for ongoing review and published?

The Fund does not have a formal register.

The Fund publishes the meeting minutes so a record of the disclosured interests can be found through the meeting records on the website, however it is noted that this could be made more explicit via a Fund conflicts register - this will be considered.

The pensions board webpage can be updated to include this

Annual To be actioned - comment updated 17/04/19

In progress Partially compliant

C7 Is appropriate information included in the register?

The Council register includes all interests including corporate hospitality. This could be used to develop a register for the Fund.

n/a To be actioned - comment updated 17/04/19

In progress Partially compliant Consider including all recommended items on the register if/when created for the Fund

C8 Is there a standing item on the agenda for declaring conflicts of interest?

At the beginning of each meeting there is an agenda item to allow the declaration and consideration of any conflicts

Ongoing (each meeting) 17/04/2019 Fully completed Fully compliant

C9 Do those involved know how to report a conflict of interest?

This is set out in the council policy and there is an opportunity at each meeting to raise potential conflicts.

Ongoing (each meeting) 17/04/2019 Fully completed Fully compliant

C10 Is the number of employer and member representatives on the board in line with legal requirements?

Yes. There are 2 employer and 2 member representatives. Ongoing 17/04/2019 Fully completed Fully compliant

C11 Is the board made up of the appropriate mix of representatives in order to minimise potential conflicts?

The membership is 50% Employer representation and 50% member representation. The employer representives reflect the Council as primary employer and an admitted and scheduled body representative to represent other employers in the scheme. There are no elected members on the board avoiding a political steer on the board.

There are interviews to select both member and employer representatives based on experience

Ongoing 17/04/2019 Fully completed Fully compliant

Scheme regulations must include provision requiring the pension board to include employer representatives and member representatives in equal numbers.

The Public Service Pensions Act 2013 sets out the legal requirements for scheme managers and pension boards for conflicts of interest.

In relation to the pension board, scheme regulations must include provision requiring the scheme manager to be satisfied:

· that a person to be appointed as a member of the pension board does not have a conflict of interest and

· from time to time, that none of the members of the pension board has a conflict of interest.

Scheme regulations must require each member or proposed member of a pension board to provide the scheme manager with such information as the scheme manager reasonably requires for the purposes of meeting the requirements referred to above.

D - Publishing information about schemes

Legal Requirements

No. TPR Requirement London Borough of Hillingdon Approach / EvidenceFrequency of Review

Last Review Date

Check completed

Compliant Action

D1 Does the Administering Authority publish information about the pension board?

Website lists the PB members and who the PB is supported by. Agendas and minutes are published as is a copy of the terms of reference. This is kept up to date, changed are common. https://www.hillingdon.gov.uk/article/29807/Local-Pensions-Board

Ongoing (when changes occur)


D2 Does the Administering Authority publish other useful related information about the pension board?

Yes see above Ongoing (when changes occur)


D3 Is all the information about the Pension Board kept up-to-date?

The website is up to date - Last changes made in February 2019 for staff changesThe site will be updated each May (when elected employer representatives may change)

Ongoing (when changes occur)

17/04/2019 Fully completed Fully compliant Update in May if any changes to employer representatives. Otherwise as above

D4 Does the Administering Authority publish information about pension board business?

All agendas and minutes are available on the pension board pages

Ongoing (relating to each meeting)


The scheme manager for a public service scheme must publish information about the pension board for the scheme(s) and keep that information up-to-date.

The information must include:

· who the members of the pension board are

· representation on the board of members of the scheme(s), and

· the matters falling within the pension board’s responsibility

WORK PROGRAMME 2019 Item 12 Committee Local Pension Board Officer Reporting Sian Kunert, Finance Papers with report None

REASON FOR ITEM This report is to enable the Pension Board to review meeting dates and forward plans. The Board will be asked for suggestions for items to be discussed at future meetings. OPTIONS AVAILABLE TO THE BOARD

1. Make suggestions for future working practices and/or reviews and priorities. INFORMATION

1. Pension Board was set up from 1 January 2015, with the first meeting in July 2016. At its meeting 2 November 2017, Council agreed to structural changes of the Board to improve the overall effectiveness of the Board.

2. Dates for future Pension Committee meetings are outlined below to consider

timing of future meetings

Meetings Specific topics

17 July 2019 Training on the Triennial Actuarial Valuation

Accounts and Annual Report sign off Approve Training policy and Risk

Management Policy Training plan Investment update and manager review

30 October 2019 Training on Voting and Engagement Valuation update and Funding Strategy

Statement Approve revised Administration

Strategy Investment update and manager review

29 January 2020 Training TBC Investment update and manager review

25 March 2020 Training TBC Investment Strategy Statement update Valuation report and results and

Funding Strategy Statement Investment update and manager review

3. Planned dates for future meetings and potential topics to review

Meetings Specific topics

30 April 2019 Training – Reporting Breaches of Law Specifics of the LGPS – 85 year rule

and uptake of 50/50 scheme Training plan Training policy update Risk Management Policy Actuarial Valuation timeline and steps.

Update on data improvement tPR Checklist review & focus on C –

Conflicts of Interesting and D – Publishing Information

Governance - Pensions Committee

4 September 2019 Training – Discretionary Powers Administration Strategy Review tPR Checklist review & focus E –

managing risk and internal control and H – Providing information to members and others

Update on Cyber Security controls in place and data mapping to identify risk areas

Governance - Pensions Committee including accounts and audit

TBC November 2019 Training – Taxation in Pensions and

Myners principes Draft annual report from Board to

Pensions Committee tPR Checklist review & focus I -

Internal Dispute Resolution, J – Reporting Breaches of the Law and K – Scheme Advisory Board


TBC February 2020 Training TBC Funding Strategy Statement review

tPR Checklist review & focus on A – Reporting and B – Knowledge and Understanding


TBC April 2020 Training TBC Communication Policy Review tPR Checklist review & focus on C –

Conflicts of Interesting and D – Publishing Information


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