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The decisions as the council's minutes record them. A plain-language summary follows once it has been written.
AGREED that the minutes of the meeting for the Pension Board held on the 8th January 2025 be confirmed as a correct record.
AGREED that the Budget Monitoring report and cash position as at 31st December, 2024 be noted.
AGREED that the Dyfed Pension Fund Budget for 2025-26 be noted.
AGREED that the Pension Administration Report in relation to the Dyfed Pension Fund be noted.
AGREED the Dyfed Pension Fund’s Policies as set out in the report be noted.
AGREED that the Business Plan 2025 – 2028 be noted.
AGREED that the Breaches Report in relation to the Dyfed Pension Fund be noted.
AGREED that the risk register report be noted and that the Audit Wales report on the Councils Cyber Security Arrangements be included onto the Pension Board agenda in the Autumn.
AGREED that the Training Plan for 2024-2025 and 2025-2026 be noted.
AGREED that the WPP Responsible Investments Updates for quarters ending 30th September 2024 and 31st December 2024 be noted.
AGREED that the update from the WPP JGC meeting held on the 12th March 2025 and the WPP Business Plan 2025-2028 be noted.
AGREED that the WPP’s submission to government on the LGPS: Fit for the Future consultation be noted.
AGREED that the minutes of the meeting of the Dyfed Pension Fund Committee held on the 26th March 2025 be noted.
AGREED that the report be noted.
AGREED to note the Pension Board Workplan for 2025.
AGREED to note the Pension Board Action Log.
There were no apologies for absence.
There were no declarations of personal interest.
Decision as recorded
AGREED that the minutes of the meeting for the Pension Board held on the 8th January 2025 be confirmed as a correct record.
AGREED that the minutes of the meeting for the Pension Board held on the 8th January 2025 be confirmed as a correct record.
The Board received, for consideration and comment, the reports considered by the Dyfed Pension Fund Committee on the 26th March 2025, as referred to in minutes 4.1- 4.13 below.
The Board received a report from the Independent Chair, providing an update from the Pension Board meeting on 8th January, 2025, which was noted at the Pension Committee meeting on 26th March 2025, items discussed included:- • Budget Monitoring • Pensions Administration • Annual Report and Accounts 2023-24 • Pension Committee response to Pension Board resolution in respect of the Bute Group of Companies • Updates in relation to the Wales Pension Partnership • Investment Performance Further details of the discussions which took place at the Pension Board meeting were included in the Independent Chair’s report which was appended to the report.
Decision as recorded
AGREED that the Budget Monitoring report and cash position as at 31st December, 2024 be noted.
The Board considered the Dyfed Pension Fund Budget Monitoring report which provided an update on the latest budgetary position as at 31st December 2024. The Board was informed of an overspend compared to budget of £2m and that the cash position as at 31st December, 2024 reported that the expenditure was projected to be overspent by £6.9m. Pensions payable was forecasted to be overspent by £178k, lump sum retirement benefits by £3.5m and payments to and account of leavers by £4.1m In terms of Income, contributions were forecasted to be £2.4m more than budgeted which was mostly attributable to more augmentation income from employers being forecast than was 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 Therefore, overall, total expenditure was estimated at £140.5m and total income estimated at £138.5m resulting in a negative variance against budget of £2m. The following queries were raised in relation to the report:- · In response to a query raised regarding the additional numbers of staff who had left the fund, the Pension Investment Officer explained that whilst he did not have the number of staff who had left to hand it was likely due to more people retiring and opting for the lump sum as there was more interest to be gained by receiving it as a lump sum. The Treasury & Pension Investments Manager added that it was difficult to forecast as it was attributed to the amount of pension and the length of services which would be taken into account. · It was observed that Blackrock fees were lower than anticipated, an explanation was sought. The Pension Investment Officer explained that the fees for 2023/24 and 2024/25 were broadly in line and the budget for 2025/26 had been reduced to reflect this. · In reference to the investment income, it was asked if interest earned on cash balances was shown under investment income? The Pension Investment Officer stated that the Pension Fund earns interest based on its cash balances held within the Council’s treasury management function and this is shown under investment income. For future clarification, this would be included within the comments. AGREED that the Budget Monitoring report and cash position as at 31st December, 2024 be noted.
Decision as recorded
AGREED that the Dyfed Pension Fund Budget for 2025-26 be noted.
The Board considered the Dyfed Pension Fund Budget for 2025-26. It was noted that the cash related expenditure for 2025-26 had been set at £147.3m, resulting in a net budget of £0 which provided 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 highlighted 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. AGREED that the Dyfed Pension Fund Budget for 2025-26 be noted.
Decision as recorded
AGREED that the Pension Administration Report in relation to the Dyfed Pension Fund be noted.
The Board received a report providing an update on Pensions Administration. The Head of Financial Services provided an update on the activities within the Pensions Administration service which included regulatory matters, new employer, breaches register, i-Connect, GMP reconciliation and workflows. In response to a query about phase 2 testing, the Head of Financial Services confirmed that while the work was on schedule, there was still additional work yet to be completed by the software provider. In light of the deadline of 30th September, it was suggested that it would be beneficial include the ‘next steps’ in the next report to be presented to the Board, July 2025. AGREED that the Pension Administration Report in relation to the Dyfed Pension Fund be noted.
Decision as recorded
AGREED the Dyfed Pension Fund’s Policies as set out in the report be noted.
The Board 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 A question was raised regarding whether the Policy Scheme Pay was new. The Head of Financial Services clarified that the Scheme had been in place for some time and would be utilised when a tax liability occurs. AGREED the Dyfed Pension Fund’s Policies as set out in the report be noted.
Decision as recorded
AGREED that the Business Plan 2025 – 2028 be noted.
The Board 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 response to a query regarding ‘Fit for the Future’, the Treasury & Pension Investments Manager clarified that the Fit for the Future consultation was specifically related to investments of the 8 pension funds in Wales which included Dyfed. The strategic asset allocation, administration and policies remained with the administrative authority which was Carmarthenshire County Council. The majority of the priorities outlined in the Business Plan were specific to the Dyfed Pension Fund. AGREED that the Business Plan 2025 – 2028 be noted.
Decision as recorded
AGREED that the Breaches Report in relation to the Dyfed Pension Fund be noted.
The Board received for consideration the Breaches Report in relation to the Dyfed Pension Fund. It was noted that Section 70 of the Pension Act 2004 sets out the legal duty to report breaches of the law. In the Code of Practice No. 14, published by the Pensions Regulator in April 2015, paragraphs 241 to 275 provided guidance on reporting these breaches. 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. AGREED that the Breaches Report in relation to the Dyfed Pension Fund be noted.
Decision as recorded
AGREED that the risk register report be noted and that the Audit Wales report on the Councils Cyber Security Arrangements be included onto the Pension Board agenda in the Autumn.
The Board received for consideration the Risk Register which detailed the risks identified in relation to the functions of the Dyfed Pension Fund. The Board 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 (O17 –Cyber Security) had been added to the register. Reference was made to risk number O5 “Inability to keep service going due to loss of main office, computer system, or staff”, it was asked if this tied into additional new risk? The Head of Financial Services clarified that O5 was primarily attributed to a loss of Council buildings due to fire or flood. However, this had been adapted due to the new way of working since covid to cover the remote working and software providers hosting servers remotely. Furthermore, as an administrative host for the Pension Fund, Carmarthenshire County Council has duly included the risk factors within the Risk Register. The Board was informed that Audit Wales was currently conducting an assessment to gain a comprehensive understanding of cyber risk, including mitigation strategies and preparedness within the Council. It was reported that Audit Wales would present the outcome report to the Governance & Audit Committee later this year. It was suggested that it would be advantageous for both the Pension Committee and Pension Board to also have the opportunity to review the report. AGREED that the risk register report be noted and that the Audit Wales report on the Councils Cyber Security Arrangements be included onto the Pension Board agenda in the Autumn.
Decision as recorded
AGREED that the Training Plan for 2024-2025 and 2025-2026 be noted.
The Board received a report which included the schedule of Committee meetings and training events for members and officers of the Dyfed Pension Fund for 2024-2025 and 2025-2026. AGREED that the Training Plan for 2024-2025 and 2025-2026 be noted.
Decision as recorded
AGREED that the WPP Responsible Investments Updates for quarters ending 30th September 2024 and 31st December 2024 be noted.
The Wales Pension Partnership (WPP) Responsible Investment (RI) Updates for quarters ending 30th September 2024 and 31st December 2024. The update reports 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. AGREED that the WPP Responsible Investments Updates for quarters ending 30th September 2024 and 31st December 2024 be noted.
Decision as recorded
AGREED that the update from the WPP JGC meeting held on the 12th March 2025 and the WPP Business Plan 2025-2028 be noted.
The Board received the Wales Pension Partnership (WPP) Joint Governance Committee (JGC) Update and Business Plan. The reports provided the Board 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 had 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 AGREED that the update from the WPP JGC meeting held on the 12th March 2025 and the WPP Business Plan 2025-2028 be noted.
Decision as recorded
AGREED that the WPP’s submission to government on the LGPS: Fit for the Future consultation be noted.
The Board received 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 highlighted 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. It was reported that 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. AGREED that the WPP’s submission to government on the LGPS: Fit for the Future consultation be noted.
Decision as recorded
AGREED that the minutes of the meeting of the Dyfed Pension Fund Committee held on the 26th March 2025 be noted.
AGREED that the minutes of the meeting of the Dyfed Pension Fund Committee held on the 26th March 2025 be noted.
Decision as recorded
AGREED that the report be noted.
The Board received the Pension Board Budget Monitoring report as at 31st March 2025. Total actual expenditure incurred was £20.8k. It was reported that the expenditure for the year was below budget by £3.4k. AGREED that the report be noted.
Decision as recorded
AGREED to note the Pension Board Workplan for 2025.
The Board considered the Pension Board Work plan for 2025 which outlined the work of the Pension Board throughout 2025 and the items to be presented at each meeting AGREED to note the Pension Board Workplan for 2025.
UNANIMOUSLY AGREED, 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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