8 Governance, Policy and Training PDF 324 KB
Additional documents:
Minutes:
The item was introduced by Martin Griffiths, who explained there had been updated advice received from central government. However there had been no updates on investments in Russia, and an ongoing issue on whether or not the LGPS would be allowed to make prepayments of contributions instead of making regular monthly payments. The LGPS had received legal advice that this would be an acceptable course of action. Mandatory scheme payment deadlines had been extended.
New statutory guidance had been published in relation to severance
payments, although it would be down to individual employers to
decide what they wanted to do and inform the Fund what action they
would take.
Martin Griffiths said there had been issues
relating to the pensions dashboard, with many public sector schemes
indicating they would be unlikely to meet the deadline to roll it
out by 2023. It was likely to be delayed until 2024
instead.
Members were told ‘stronger nudge’
guidance had been issued, in respect of when pensioners may wish to
receive their benefits.
Regarding the governance update, Martin Griffiths said it was not felt that any changes needed to be made to the voting and stewardship policies. An amendment had been made to the communication policy and this was set out in the report appendices. Martin Griffiths also informed members that the Fund had launched a new website and reminded the Board about the launch of the self-service platform. Martin Griffiths said the Investment Strategy Statement had been reviewed by Hymans Robertson before going to the Investment Sub Committee. Members’ attention was drawn to the training schedule, particularly as the next session was planned for 18 July.
Alan Kidner asked for clarification on the Ukraine conflict and how
this impacted on investments into Russian assets. Victoria Moffett
said Russian markets were currently closed, meaning it was not
possible to withdraw money from the Russian funds but also there
was no value to those assets. She added there was only a very small
proportion of the Fund’s assets had been invested into
Russia. However Fund managers were
choosing not to vote on what to do with Russian assets.
Jeff Carruthers noted the threshold for scheme payments had been
frozen at £40,000 until 2026, but there was potential for
this to be affected by inflation. He asked if this would have an
impact on the Fund’s workload, and if there was staffing
capacity to meet this. Vicky Jenks said the Fund was proactively
looking at members who were getting close to the £40,000
threshold and send information out to them, as there was a
requirement to issue pension savings statements to members who had
exceeded the threshold. The number reaching the threshold had been
increasing for some time.
Regarding the communications policy, Alan Kidner said he had
noticed some typos. He also asked for the report to clarify what
was meant by the term ‘deliverables’. Martin Griffiths said
corrections would be made to the final policy document, and asked
for members to contact ...
view the full minutes text for item 8