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The decisions as the council's minutes record them. A plain-language summary follows once it has been written.
RESOLVED that the minutes of the meeting of the Committee held on the 11th November 2024 be signed as a correct record.
RESOLVED that the Dyfed Pension Fund Pension Board Report for the Meeting held on 8th January 2025 be received.
RESOLVED that the Dyfed Pension Fund Budget Monitoring and Cash Position Report as at 31st December 2024 be received.
RESOLVED that the Dyfed Pension Fund Budget for 2025-26 be approved.
RESOLVED that the Pension Administration Report in relation to the Dyfed Pension Fund be noted.
RESOLVED that the Dyfed Pension Fund’s Policies as set out in the report be approved.
RESOLVED that the Dyfed Pension Fund’s Business Plan for the period 2025-28 be approved.
RESOLVED that the Breaches Report in relation to the Dyfed Pension Fund be noted.
RESOLVED that the risk register report be noted.
RESOLVED that the Training Plan for 2024/25 be noted.
RESOLVED that the Training Plan for 2025/26 be approved.
RESOLVED that the update report be received.
RESOLVED that the update report be received.
RESOLVED that: 14.1 the update from the WPP JGC meeting held on the 12th March 2025 be noted. 14.2 the WPP Business Plan 2025-2028 be approved.
RESOLVED to note the WPP’s submission to government on the LGPS: Fit for the Future consultation.
There were no apologies for absence.
Councillor Minute Number Nature of Interest P. Warlow All Items Member of the Dyfed Pension Fund. Wife also a member of the Pension Fund. D. Thomas All Items Member of the Dyfed Pension Fund. Wife also a member of the Pension Fund. E. Williams All Items Member of the Dyfed Pension Fund.
Decision as recorded
RESOLVED that the minutes of the meeting of the Committee held on the 11th November 2024 be signed as a correct record.
UNANIMOUSLY RESOLVED that the minutes of the meeting of the Committee held on the 11th November 2024 be signed as a correct record.
Decision as recorded
RESOLVED that the Dyfed Pension Fund Pension Board Report for the Meeting held on 8th January 2025 be received.
The Committee received the Pension Board report presented by the Chair of the Dyfed Pension Fund Pension Board providing an update of the items discussed at the Board meeting held on 8th January 2025. UNANIMOUSLY RESOLVED that the Dyfed Pension Fund Pension Board Report for the Meeting held on 8th January 2025 be received.
Decision as recorded
RESOLVED that the Dyfed Pension Fund Budget Monitoring and Cash Position Report as at 31st December 2024 be received.
The Committee received the Dyfed Pension Fund Budget Monitoring and Cash Position report which provided an update on the latest budgetary and cash position in respect of the 2024/25 financial year. It was noted that the current position, as at 31st December 2024, was a projected overspend compared to budget of £2m. It was reported that expenditure was projected to be overspent by £6.9m. Pensions payable was forecast to be overspent by £178k, lump sum retirement benefits by £3.5m and payments to and account of leavers by £4.1m. Management expenses were forecast to be underspent by £836k. At budget setting an allowance of 0.5% was built in for the increase in pensioner membership, the actual increase to December 2024 was slightly higher. It was noted that payments in relation to lump sum retirement benefits and payments to and account of leavers had been higher than anticipated, these payments depend on the number of retirements and leavers throughout the year which cannot be anticipated at budget setting. The draft budget for 2025-2026 therefore included a budget increase for this expenditure. In relation to fees, costs to December 2024 were slightly lower than had been anticipated at budget setting. In terms of income, contributions were forecast to be £2.4m more than budgeted which was mostly attributable to more augmentation income from employers being forecast than anticipated at budget setting. Transfers in were forecast to exceed budget by £5m as income to date had been higher than anticipated, and investment income was forecast to be below budget by £2.5m. Overall, total expenditure was estimated at £140.5m and total income estimated at £138.5m which resulted in a negative variance against budget of £2m. It was asked what assumptions had been made in relation to calculating the difference in commutation lump sum versus budget. The Pension Investment Officer advised that they had analysed the data and trends for the last 2-3 years resulting in a budget of £20m for lump sums which was considered sufficient. UNANIMOUSLY RESOLVED that the Dyfed Pension Fund Budget Monitoring and Cash Position Report as at 31st December 2024 be received.
Decision as recorded
RESOLVED that the Dyfed Pension Fund Budget for 2025-26 be approved.
The Committee considered the Dyfed Pension Fund Budget for 2025-26 and noted that the expenditure budget had been set at £147.3m and the income budget at £147.3m, resulting in a zero net budget thereby providing the Fund with flexibility to utilise investment income based on budgetary requirements. With regard to expenditure levels, the Committee noted that benefits payable had been estimated to be £127.5m which included provision for a 1.7% pensions’ increase, based on the September 2024 CPI, together with a 1.65% increase in pensioner and deferred members. In addition, an increase in budget of £8.1m had also been allocated for lump sum retirement benefits and payments to and account of leavers. Management expenses had been estimated at £12m, of which £9.2m had been budgeted for investment manager fees. It was noted that contributions were estimated at £112.2m comprising employer contributions of £82m and employee contributions of £30.2m. An additional 3% had also been factored in for pay awards and increments for the year. It was further noted that investment income was estimated at £26.6m to maintain a net zero budget so the fund was not holding onto surplus cash that could be invested. From 1 April 2025 income generated from the WPP Global Credit Fund would be distributed as cash to the Fund instead of being reinvested. In reference to the 3% pay awards / increments budgeted for, the Pension Investment officer advised that this was a prudent estimate based on the last few years and was in line with the Council budget. UNANIMOUSLY RESOLVED that the Dyfed Pension Fund Budget for 2025-26 be approved.
Decision as recorded
RESOLVED that the Pension Administration Report in relation to the Dyfed Pension Fund be noted.
The Committee received a report providing an update on Pensions Administration. The report included updates on the activities within the Pensions Administration service and included regulatory matters, breaches register, i-Connect, GMP reconciliation and workflows. In response to disappointment expressed by the lack of progress made with Dyfed Powys Police, the Head of Financial Services advised that ultimately it was a matter for the employer to work through and if the work was on their priority list. Circumstances such as current payroll software could be an contributing factor. UNANIMOUSLY RESOLVED that the Pension Administration Report in relation to the Dyfed Pension Fund be noted.
Decision as recorded
RESOLVED that the Dyfed Pension Fund’s Policies as set out in the report be approved.
The Committee considered a report and attached policies. It was noted that during 2024 The Pensions Regulator (TPR) published a new code of practice for pension schemes. The new General Code of Practice replaced Code of Practice 14 for public service pension schemes and brought together ten previous TPR codes into one. The code set out a ‘single set of clear, consistent expectations on scheme governance and administration’ to give guidance to governing bodies such as pension committees and pension boards. To assist in compliance with the new code the Committee were requested to approve the following: · Knowledge and Skills Policy · Administration Strategy · Communications Policy · Personal Data Retention Policy · Voluntary Scheme Pays Policy · Compliments and Complaints Policy · Breaches Policy UNANIMOUSLY RESOLVED that the Dyfed Pension Fund’s Policies as set out in the report be approved.
Decision as recorded
RESOLVED that the Dyfed Pension Fund’s Business Plan for the period 2025-28 be approved.
The Committee received for consideration the Dyfed Pension Fund Business Plan for the period 2025-2028 the purpose of which was to: · Provide information about the Fund and how it was run. · Explain the background and governance structure of the Fund. · Outline the principal responsibilities of the Fund. · Introduce the Fund’s key documents. · Highlight the Fund’s investment strategy including strategic asset allocation. · Provide key statistics for the Fund. · Outline the financial budget for the next year. · Outline the priorities and business objectives of the Fund over the next three year. In reference to the Core Principle ‘’Responsible Investment: We believe in responsible and ethical investing. Our investment strategy incorporates environmental, social, and governance (ESG) considerations to promote sustainability and positive impact’’, it was stated that possibly some investments did not align with this principle. In support of the petition received earlier from For Solidarity with Palestine Pembrokeshire it was asked if consideration could be given to divesting investment out of Israel. The Treasury & Pension Investments Manager advised that discussions are ongoing and that further information would be provided to the Committee in due course. The Chair confirmed that he had received the petition from For Solidarity with Palestine Pembrokeshire earlier in the morning and apologised for not having mentioned it at the start of the meeting as he’d intended to. UNANIMOUSLY RESOLVED that the Dyfed Pension Fund’s Business Plan for the period 2025-28 be approved.
Decision as recorded
RESOLVED that the Breaches Report in relation to the Dyfed Pension Fund be noted.
The Committee received for consideration the Breaches Report in relation to the Dyfed Pension Fund which had been prepared in accordance with Section 70 of the Pension Act 2004, Code of Practice no 14 and the Dyfed Pension Fund Breaches Policy. The Committee’s attention was referred to the list of breaches appended to the report which detailed one instance where contributions had not been received on time. There were no long-term implications associated with this breach. It was also noted that the report had been updated to reflect the automatic payment of refunds due for the period November 2024 to March 2025. UNANIMOUSLY RESOLVED that the Breaches Report in relation to the Dyfed Pension Fund be noted.
Decision as recorded
RESOLVED that the risk register report be noted.
The Committee received for consideration the Risk Register which detailed the risks identified in relation to the functions of the Dyfed Pension Fund. The Committee was advised that the focus of the risk register review for this meeting was the Operational risks. It was noted that there were 17 risks referenced on the register and that since the previous meeting a new risk (017 – Cyber Security) had been added to the register. UNANIMOUSLY RESOLVED that the risk register report be noted.
Decision as recorded
RESOLVED that the Training Plan for 2024/25 be noted.
The Committee received for consideration an update on the 2024/25 Training Plan which detailed the schedule of committee meetings, and training events for members and officers of the Dyfed Pension Fund, together with the proposed plan. UNANIMOUSLY RESOLVED that the Training Plan for 2024/25 be noted.
Decision as recorded
RESOLVED that the Training Plan for 2025/26 be approved.
The Committee received for consideration the 2025/26 Training Plan which detailed the schedule of committee meetings, and training events for members and officers of the Dyfed Pension Fund, together with the proposed 2025-2026 plan. UNANIMOUSLY RESOLVED that the Training Plan for 2025/26 be approved.
Decision as recorded
RESOLVED that the update report be received.
The Committee received the WPP’s Responsible Investments September 2024 update report detailing recent Responsible Investments activity together with information on the following Sub-Funds in which the Dyfed Pension Fund had invested: · Global Growth · Sustainable Active Equity · Global Credit In addition to the above, the update also provided a Stewardship Summary together with the relevant appendices numbered 1-4 within the report. The report had been prepared by WPP’s Oversight Advisor (Hyman Robertson) in conjunction with WPP. In response to a query regarding the ‘flat line progress’ showing on the bar graph, the Treasury & Pension Investments Manager confirmed that limited progress had been made during this period but work was continuing and that the figures in the December report showed an improvement. UNANIMOUSLY RESOLVED that the update report be received.
Decision as recorded
RESOLVED that the update report be received.
The Committee received the WPP’s Responsible Investments December 2024 update report detailing recent Responsible Investments activity together with information on the following Sub-Funds in which the Dyfed Pension Fund had invested: · Global Growth · Sustainable Active Equity · Global Credit In addition to the above, the update also provided a Stewardship Summary together with the relevant appendices numbered 1-4 within the report. The report had been prepared by WPP’s Oversight Advisor (Hyman Robertson) in conjunction with WPP. UNANIMOUSLY RESOLVED that the update report be received.
Decision as recorded
RESOLVED that: 14.1 the update from the WPP JGC meeting held on the 12th March 2025 be noted. 14.2 the WPP Business Plan 2025-2028 be approved.
The Committee considered the Wales Pension Partnership (WPP) Joint Governance Committee (JGC) Update and Business Plan. The reports provided the Committee with an update from the WPP JGC meeting held on the 12th March 2025 and included: • Summary of agenda items and discussions • WPP Business Plan 2024-2025 Q3 Review (April – December 2024) • WPP Training Plan 2025-26 • WPP Business Plan 2025-2028 (for approval during this meeting) • Operator update • WPP Performance Summary Q4 2024 • WPP Global Private Credit – Vintage 1 & 11 Update It was noted that the WPP Business Plan has been drafted in line with Section 6 of the Inter Authority Agreement and its purpose is to: • Explain the background and governance structure of the WPP • Outline the priorities and objectives of the WPP over the next three years • Introduce the WPP’s policies and plans • Outline the financial budget for the relevant Business Plan period • Summarise the WPP’s Investments & Performance Objectives UNANIMOUSLY RESOLVED that: 14.1 the update from the WPP JGC meeting held on the 12th March 2025 be noted. 14.2 the WPP Business Plan 2025-2028 be approved.
Decision as recorded
RESOLVED to note the WPP’s submission to government on the LGPS: Fit for the Future consultation.
The Committee considered the WPP’s submission to government on the LGPS: Fit for the Future consultation. As part of the LGPS: Fit for the Future consultation, published 14 November 2024, pools had been asked to submit a proposal, in addition to the consultation response, setting out how they would deliver the proposed pooling model and complete the transfer of all assets, including legacy assets. It was noted that a WPP project group (Project Snowdon) had been set up comprising of S151 officers / practitioners of all eight authorities and representatives from WPP’s appointed service providers (Hymans Robertson, Waystone, Russell Investments and Burges Salmon) to review and develop the proposal. WPP officers also had several meetings with HMT and MHCLG in relation to the future of WPP and how it intended to meet the Government’s objectives. The draft proposal had been submitted to government within the timescale. This submission set out the compelling business case for the WPP to retain a stand-alone investment pool for Wales and proceed with building the additional proposed new Government requirements for the pool operating model. This delivered across the range of objectives that the Government had set out in its ambitions for the progress of the LGPS, and specifically the LGPS in Wales. WPP proposed to establish a stand-alone Financial Conduct Authority (“FCA”) authorised investment management company (“IM Co”) in line with Government criteria and to move all WPP assets into IM Co management in line with the timescales outlined. The submission demonstrated the objective evaluation of plans against the Government’s identified criteria (Benefits of Scale, Resilience, Value for Money, Viability against timeline) and how this was optimal compared with other options. In response to a query regarding where the new company would likely be based, the Director of Corporate Services advised that no decision had been made but that Cardiff City centre may be an appropriate location so that it would attract the desired skill set required to run the new company. UNANIMOUSLY RESOLVED to note the WPP’s submission to government on the LGPS: Fit for the Future consultation.
(NOTE: Following conclusion of this item, the Committee adjourned for a 15 minute comfort break) UNANIMOUSLY RESOLVED, pursuant to the Local Government Act 1972, as amended by the Local Government (Access to Information) (Variation) (Wales) Order 2007, that the public be excluded from the meeting during consideration of the following items as the reports contained exempt information as defined in paragraph 14 of Part 4 of Schedule 12A to the Act.
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