Victoria Moffett (Lead Commissioner – Pensions and Investment) introduced the report which provided updated governance information relating to Warwickshire Pension Fund’s forward plan, risk monitoring, training, and policy. She highlighted the changes that had been made to risk ratings including the key high-risk areas of climate change, cyber security, and long-term market risk. She advised that, at the recent quarterly risk meeting, there had been discussion of the effect on the Fund’s cashflow of the recent 10.1% CPI rise which could potentially lead to higher pension payments. There had also been discussion of the risks arising from increased costs of living which could increase the likelihood of attempted scams targeted at pensioners.
Victoria Moffett reported that the results of the Hymans Robertson ‘Knowledge and Skills Assessment’ had been released. Take up of the Assessment by Warwickshire Pension Fund was lower than levels for pension funds elsewhere. She stated that councillors’ feedback would be welcomed to ensure that the Training Programme could be as effective as possible.
Councillor Gifford stated that it was sensible to maintain an awareness of long-term market risk. However, he highlighted the economic pressures that had been experienced in recent years; the Fund had continued to perform well during this period, demonstrating that the investment policy was working effectively.
Councillor Millar highlighted the intersectionality of cyber security and the increased risk of scams targeted at pensioners. She welcomed the enhanced focus on these areas.
In response to the Chair, members agreed to approve the recommendations of the report.
That the Pension Fund Investment Sub-Committee:
1. Notes the items contained within the Governance Paper, and
2. Approves the new Risk Policy.