Agenda and draft minutes

To receive any apologies for absence.

Apologies were noted from Councillors Rob Mocatta and Jonathan Glen and from co-opted Members Arron Hedges, Amelia Nirmal and Councillor Judith Smyth.

The Chairman welcomed Councillor Derek Mellor, in attendance as the Conservative Substitute and Councillor Simon Letts, in attendance as the substitute employer representative.

All Members who believe they have a Disclosable Pecuniary Interest in any matter to be considered at the meeting must declare that interest and, having regard to Part 3 Paragraph 1.5 of the County Council's Members’ Code of Conduct, leave the meeting while the matter is discussed, save for exercising any right to speak in accordance with Paragraph 1.6 of the Code.  Furthermore all Members with a Personal Interest in a matter being considered at the meeting should consider, having regard to Part 5, Paragraph 4 of the Code, whether such interest should be declared, and having regard to Part 5, Paragraph 5 of the Code, consider whether it is appropriate to leave the meeting while the matter is discussed, save for exercising any right to speak in accordance with the Code.

Members were mindful that where they believed they had a Disclosable Pecuniary Interest in any matter considered at the meeting they must declare that interest at the time of the relevant debate and, having regard to the circumstances described in Part 3, Paragraph 1.5 of the County Council's Members' Code of Conduct, leave the meeting while the matter was discussed, save for exercising any right to speak in accordance with Paragraph 1.6 of the Code. Furthermore Members were mindful that where they believed they had a Personal Interest in a matter being considered at the meeting they considered whether such interest should be declared, and having regard to Part 5, Paragraph 5 of the Code, considered whether it was appropriate to leave the meeting whilst the matter was discussed, save for exercising any right to speak in accordance with the Code.

To confirm the public minutes of the meeting held on 25 February 2025.

The minutes of the previous meeting on 25 February 2025 were agreed as a true record and signed by the Chairman.

To receive any deputations notified under Standing Order 12.

No deputations were received by the Panel and Board on this occasion.

To receive any announcements the Chairman may wish to make.

The Chairman made Members aware that Councillor Paul Taylor was no longer appointed to the Panel and Board as the HIOWLGA Employer Representative and HIOWLGA were seeking a new nominee. It was also noted that Councillor Dominic Hiscock had resigned from the County Council and therefore was no longer a Member of the Panel and Board.

The Pension Fund Panel and Board noted their thanks to the Deputy Chief Executive and Director of Corporate Operations for his contributions, guidance and support to the Pension Fund Panel and Board, ahead of his retirement at the end of the month.

To receive the draft minutes of the Responsible Investment Sub-Committee held on 7 March 2025.

The Chairman called for a variation to the agenda to take item 7 before item 6, to provide additional context to the draft minutes of the Responsible Investment Sub-Committee.

RESOLVED:

The Pension Fund Panel and Board received and noted the draft minutes.

To consider a report of the Deputy Chief Executive and Director of Corporate Operations outlining recommendations agreed by the Panel and Board’s Responsible Investment Sub-Committee on the stewardship of the Pension Fund’s investments in relation to investment in controversial weapons and tobacco companies.

The Panel and Board considered a report of the Deputy Chief Executive and Director of Corporate Operations outlining recommendations agreed by the Panel and Board’s Responsible Investment Sub-Committee on the stewardship of the Pension Fund’s investments in relation to investment in controversial weapons and tobacco companies

It was heard that Acadian was a quantitative investment manager and that they could implement a decision for the Pension Fund to prohibit investment in controversial weapons and tobacco, which had been recommended by the RI Sub-Committee at their meeting. In response to Members questions it was confirmed that this would not constitute a policy decision by the Panel and Board, but an opportunity to prevent exposure to risk through quantitative investment approaches.

It was heard that the definition of controversial weapons used by Acadian would meet the recognised industry standards outlined in widespread bans or restrictions by international agreements.

Members expressed an interest in receiving more information on the definitions of controversial weapons in widespread bans or restrictions by international agreements, that the will be captured in the Pension Fund Panel policy, as part of the work planned during the next municipal year.

RESOLVED:

·         That the Panel and Board agree to instruct Acadian to add an exclusion for the categories of controversial weapons shown in Table 1.

·         That the Panel and Board agree to instruct Acadian to add an exclusion for tobacco producing companies.

To receive a report from the Deputy Chief Executive and Director of Corporate Operations providing an overview of the internal audit activity completed in accordance with the approved audit plan (2024-25).

The Panel and Board received a report from the Deputy Chief Executive and Director of Corporate Operations providing an overview of the internal audit activity completed in accordance with the approved audit plan 2024-25.

It was heard that one of the four planned audits had been completed, with full assurance and no concerns identified, and the remaining three reports were currently work in progress and expected to be delivered within timescales outlined in the plan. It was further noted that there were no outstanding management actions from previous audits.

RESOLVED:

That the Pension Fund Panel and Board note:

·         the progress of internal audit work for the period ending 28 February

2025, and

·         the Service’s progress with implementing agreed, management actions

arising from previous audit reviews.

To receive a report from the Deputy Chief Executive and Director of Corporate Operations presenting the internal audit plan for 2024-25.

The Panel and Board received a report from the Deputy Chief Executive and Director of Corporate Operations, presenting the internal audit plan for 2025-26.

It was heard that, from April 2025, global internal audit standards would be replacing the previously used public sector internal audit standards and the necessary work had been completed to allow a seamless transfer to the new requirements, with an external quality assessment planned later in the year to provide assurance of the transition.

It was further heard that 100 audit days would be provided to meeting the audit plan, which was consistent with the previous year.

In response to Members questions it was confirmed that an audit of cyber security would be undertaken in Q4, to allow sufficient time for any management actions from the review during Q4 of 2024/25 to be completed and addressed. It was further noted that the annual training session on Cyber Security had been scheduled for the Pension Fund Panel and Board.

RESOLVED:

That the Pension Fund Panel and Board approve the Internal Audit Plan for 2025-26.

That in relation to the following items the press and public be excluded from the meeting, as it is likely, in view of the nature of the business to be transacted or the nature of proceedings, that if a member of the public were present during the items there would be disclosure to them of exempt information within Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972, and further that in all circumstances of the case, the public interest in maintaining the exempt information outweighs the public interest in disclosing the information, for the reasons set out in the report.

RESOLVED:

That the press and public be excluded from the meeting during the following items of business, as it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the public were present during these items there would be disclosure to them of exempt information within Paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972, and further that in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, for the reasons set out in the reports. 

To confirm the exempt minutes of the meeting held on 25 February 2025.

The exempt minutes of the Pension Fund Panel and Board held on 25 February 2025 were agreed as a true record and signed by the Chairman.

To receive an exempt report of the Deputy Chief Executive and Director of Corporate Operations providing a review of custody services since the last report, in March 2024.

The Panel and Board received an exempt report of the Deputy Chief Executive and Director of Corporate Operations providing a review of custody services since the last report, in March 2024. [Summary of an exempt minute]

To consider the exempt report of the Deputy Chief Executive and Director of Corporate Operations updating the Panel and Board on the Pension Fund’s investments since the last meeting.

The Panel and Board considered an exempt report of the Deputy Chief Executive and Director of Corporate Operations updating the Panel and Board on the Pension Fund’s investments since the last meeting. [Summary of an exempt minute]

To consider the exempt report of the Deputy Chief Executive and Director of Corporate Operations updating the Pension Fund Panel and Board on the progress of the alternative investments portfolio.

The Panel and Board considered an exempt report of the Deputy Chief Executive and Director of Corporate Operations updating the Pension Fund Panel and Board on the progress of the alternative investment portfolio. [Summary of an exempt minute]