Agenda item

The Committee is asked to note the recommendations of the Pension Board in respect of the Review of Pension Fund Governance arrangements.

The Committee received an introduction to the report from Mary Lambe, AON Hewitt. The Chair read out a list of amendments to the recommendations which would be sent to officers following the meeting. The Chair requested that the recommendations, AON Hewitt’s recommendations of special interest, the Pension Board’s recommendations and the recommendations of the Chair of the Pension Board be added to the Action plan for progression.

It was noted that hard copies of agendas would be charged to the Pension Fund.

RESOLVED:

1.       The Committee has considered the recommendations set out here, expressing its concern as to how officers are coping with service delivery for the Fund in the context of resource challenges detailed by Aon Hewitt.

1.1   To appoint and non-Council employer voting representative to the Pension Committee.

1.2 To create an explicit policy on voting rights at the Committee that shall include enfranchising the second pensioner representative and the trade union representative whilst seeking advice on the merits and demerits of increasing the number of council members on the Committee so as to broaden experience of the Fund's activity across the council, this matter to be settled by council by April 2022.

1.3 That the Committee be provided with external advice by March 2022 on creating an appropriate governance distance from the authority including consideration of the South Yorkshire Pensions Authority.

1.4 That the Committee seeks an urgent external review of service delivery with suggestions on how to progress enhancement of service delivery to be enacted by March 2022.

1.5 That the following recommendations arising from the AON Hewitt governance report be progressed with the following deadlines:

a.     Reports to committee be provided from March 2022 on the budget of the administration of the Fund and impact of changes in resources and the impact of increases in workload, as well as considering succession planning,

b.     That the chair on behalf of the Committee write by the end of the year to the Chief Whips of current party groups to draw attention to the report's concerns about lack of continuity on the Committee and the Board and that the outgoing chair write in similar vein after the May 2022 municipal elections.

c.     Any new Committee members will be given timely induction training to ensure that they can constructively contribute to the management of the Fund as soon as possible and that such induction training requirements subject to Monitoring Officer advice on the legality of such obligation are clearly set out in the Fund's Policy and that this is explained and facilitated for all new members on joining the Committee or the Board.   

d.     Note that the Chair of the Committee shall be a representative on the LCIV stakeholder board and will now report back on a regular basis with information from the CIV.

e.     That CIV relationship structures in line with Aon Hewitt's 2019 report shall be proposed for inclusion in the Council's constitution a report being expected by the Committee on this matter by March 2022.

f.       An investigation be made into the reasons for late papers coming to the Committee and Board and a report be made to Committee by March 2022 on the processes that lead to papers being produced, their efficacy and legality, including the role of pre-agenda meetings.

g.     That an external provider with expertise in LGPS matters is secured to draft a conflicts of interest policy for the Committee and the Board to be agreed by the Committee by March 2022.

h.     That the Committee will carry out a check on how the Fund complies with the recommendations Good Governance Review and where work will be required to ensure compliance by March 2023.

i.       That the Committee is provided with an evaluation against the new TPR Code's requirements in due course and will address areas of partial compliance and non-compliance in a timely manner.

j.       That the Committee will require a report on the updated CIPFA Code of Practice and Framework for Committees and Officers and action taken thereto.

k.     Breaches of the Law policy to be updated by September 2022.

l.       That the Committee receive a report on compliance with the Aon Hewitt report on publication of the Fund's policies and documents by September 2023.

m.   That the Committee are concerned to learn that "Officers are being required to address Council business which is impacting on their ability to progress with Fund activity" reflecting the importance of recommendation 1.15

2.       That the Committee asked for summons to meetings to be made in a timely fashion and that hard copies of papers be provided in a convenient fashion to those who request them.