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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 22nd May 2026 be confirmed as a correct record.
AGREED that the report be noted.
AGREED that the Dyfed Pension Fund Pension Board Report, 22nd May 2026 be noted.
AGREED that the report be noted.
AGREED that the Pension Administration Report in relation to the Dyfed Pension Fund be noted.
AGREED that the Breaches Report in relation to the Dyfed Pension Fund be noted.
Agreed that the risk register report be noted subject to the comments noted above.
AGREED that the Dyfed Pension Fund Training Plan for the period 2026-27 be noted.
AGREED that Carbon Intensity Analysis report in relation to the Dyfed Pension Fund be noted.
AGREED that the update report be noted.
AGREED that the Rebalance Proposal in relation to the Dyfed Pension Fund be noted.
AGREED that the Strategic Asset Allocation (SAA) Review report be noted.
AGREED that the report be received.
AGREED that the Pension Board Work Plan for 2026 be approved.
AGREED that the Pension Board Action Log be noted and that completed / historic actions be removed from future updates.
There were no apologies for absence.
There were no declarations of personal interest made at the meeting.
Decision as recorded
AGREED that the minutes of the meeting for the Pension Board held on the 22nd May 2026 be confirmed as a correct record.
The Union Member Representative asked for an update regarding social partnership which was mentioned in the workflow document but not in the minutes of the meeting (details were not recorded as the item was considered in exempt session). The Director of Corporate Services, in response to the request for an update regarding the application of Social Partnership legislation, informed that HR had advised that the guidance related primarily to relationships and partnership working within Wales and that, as the Pension Fund was governed from London, there was no direct legislative requirement. It was noted that trade union representation was already provided through membership of the Pension Board and Joint Governance Committee. Further concern was raised that representation at an all-Wales level was limited to a single trade union representative despite three recognised unions. The Director of Corporate Services reiterated that the current arrangements complied with requirements but that he welcomed ongoing engagement and dialogue with trade union representatives at any time. The Chair noted the offer by the Director of Corporate Services for further discussion outside the meeting. AGREED that the minutes of the meeting for the Pension Board held on the 22nd May 2026 be confirmed as a correct record.
The Board received, for consideration and comment, the reports considered by the Dyfed Pension Fund Committee on the 17th June 2026, as referred to in minutes 4.1 – 4.10 below.
Decision as recorded
AGREED that the report be noted.
The Board considered the Dyfed Pension Fund Budget Audit Plan which set out the proposed scope, materiality levels, timescales, fee, and audit team. Audit Wales confirmed their responsibility to issue a report on the financial statements, including an opinion on their truth and fairness and whether the statements had been properly prepared. AGREED that the report be noted.
Decision as recorded
AGREED that the Dyfed Pension Fund Pension Board Report, 22nd May 2026 be noted.
The Board received a report from the Independent Chair, providing an update from the Pension Board meeting on 22nd May 2026, which was noted at the Pension Committee meeting on 17th June 2026. The items discussed at the Pension Board meeting included the: - WPP Inter Authority Agreement - Funding Strategy Statement - Discretionary Notional Investment Strategy - Budget Monitoring - Pensions Administration - Risk Register - Investment Performance AGREED that the Dyfed Pension Fund Pension Board Report, 22nd May 2026 be noted.
Decision as recorded
AGREED that the report be noted.
The Board received the final Dyfed Pension Fund Budgetary position as at 31 March 2026. It was noted that the fund recorded an underspend compared to budget of £8.5 million. Expenditure was underspent by £1.3 million, primarily due to management fees being £3.6 million below budget, largely as a result of lower fees on the Wales Pension Partnership following the Global Growth Fund restructure. Lump sum retirement benefits were £538,000 below budget, while lump sum death benefits and payments to and on account of leavers exceeded budget by a combined £2.8 million. The budgets for these items were increased for 2026-27 in response. Income exceeded budget by £7.1 million, with investment income £4.7 million above budget and transfers in from other pension funds £3.1 million above budget. Contributions were slightly below budget by £700,000. Total expenditure amounted to £145.9 million and total income to £154.4 million. The cash position as at 31 March 2026 showed £12.6 million held by Carmarthenshire County Council on behalf of the Fund to meet immediate cash flow requirements. In response to a question regarding the fund’s cash balance, officers advised that cash flow was managed through the Authority’s Treasury Management function and that the Fund received the average investment return achieved by the treasury team. It was explained that additional cash was currently being held to support the transition to reduced employer contribution rates following the actuarial valuation and to ensure adequate liquidity as investment management arrangements transferred to the Wales Pension Partnership Investment Management Company. Members were advised that the Fund was maturing, with pension payments increasing relative to contribution income, resulting in a cash flow deficit position and the need for a more prudent approach to cash management. A question was also raised regarding the increase in lump sum death benefits. Officers advised that the figures fluctuated significantly from year to year and that the current increase appeared to be a one-off spike rather than an emerging trend. AGREED that the report 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 report included updates on regulatory matters, the McCloud/Sargeant case, pension dashboards, equalisation of survivor benefits, death grants, the breaches register, new employers, i-Connect, GMP reconciliation, and workflows. In response to a query regarding progress on the Pensions Dashboard and the absence of a confirmed go-live date from the Pensions Regulator, officers advised that larger employers had been connected first and that the regulator was continuing to work through smaller employers before confirming a national go-live date. It was noted that the Fund had resourced the data requirements for the dashboard, although the level of future member enquiries remained uncertain. Concerns were also raised regarding the resource implications of the pensions equalisation exercise. Officers advised that the impact was currently being assessed, but a significant amount of manual recalculation work was anticipated and additional resources would likely be required. The Board noted the ongoing need to ensure sufficient staffing capacity to meet increasing legislative and administrative demands. AGREED that the Pension Administration Report in relation to the Dyfed Pension Fund 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. The Committee noted that, in accordance with Section 70 of the Pension Act 2004 and the Dyfed Pension Fund Breaches Policy (approved in March 2025), breaches of the law were required to be reported to the Pensions Regulator when relevant legal duties were not complied with and the failure was likely to be of material significance Since the previous Pension meeting, there had been three cases where contributions were received late. It was reported that there were no long-term implications associated with these breaches. Additionally, the report was updated to reflect that automatic payment of refunds due for March and April 2026 had been processed. 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 subject to the comments noted above.
The Board was advised that the Risk Register was a working document that highlighted all the risks identified in relation to the functions of the Dyfed Pension Fund. It was advised that the risk register was regularly monitored and reviewed to ensure risks had been identified and assessed. It was reported that there had been no changes since the previous committee meeting. It was noted that the Risk Register had been reviewed since the previous Pension Committee meeting and that there had been no changes. Risks continued to be split into three sections, with the focus for this meeting on Governance and Regulatory risks. A summary of the eight Governance and Regulatory risks was provided. The table showed that, if left uncontrolled, four risks would have been classified as high or very high, and four as medium. With controls in place, none of the risks were considered high or very high; four were classified as medium and four as low or very low. It was confirmed that none of the controlled risks were considered to be high or very high risk. The Board highlighted the importance of training, knowledge and skills in light of forthcoming regulatory changes and noted that the risk register would require further review to reflect these developments. A query was raised regarding the omission of the Pension Board from the governance section of the risk register. It was agreed that, as a statutory oversight and control body, reference to the Pension Board should be incorporated within the governance controls. An update was provided on cyber security risks. The Board was advised that the Authority was exploring cyber insurance options, which could provide both financial protection and specialist support in responding to cyber incidents. It was noted that the Pension Fund would benefit from any enhanced cyber resilience arrangements adopted by the Council. Discussion also took place regarding cyber security arrangements within the investment management company (IMCO). Officers advised that IMCO was responsible for its own cyber security controls and that assurance work was being undertaken through the completion and review of a cyber security questionnaire. Members emphasised the importance of reflecting this risk within the register due to the significance of the assets managed on the Fund’s behalf. A question was also raised regarding the risks associated with artificial intelligence. It was noted that AI-related risks would primarily be considered within existing cyber security and fraud risk categories. Agreed that the risk register report be noted subject to the comments noted above.
Decision as recorded
AGREED that the Dyfed Pension Fund Training Plan for the period 2026-27 be noted.
The Board received the Dyfed Pension Fund Training Plan for the period 2026-2027 detailing meetings, training events and the members and officers anticipated to attend the events. The Board was advised to notify officers if they wished to attend the Investment Summit in Birmingham or the Annual Conference in Bournemouth. It was also noted that the format of the report would be reviewed and updated in future. AGREED that the Dyfed Pension Fund Training Plan for the period 2026-27 be noted.
Decision as recorded
AGREED that Carbon Intensity Analysis report in relation to the Dyfed Pension Fund be noted.
The Board received an update on the Fund’s Equity Carbon Intensity position. It was highlighted that the Dyfed Pension Fund's equity portfolio's Weighted Average Carbon Intensity (WACI) was reported to have reduced by 18.7% in the year ending 31 March 2026. Since the baseline set in September 2020, the WACI had decreased by an average of 10.6% per annum. The Board welcomed the significant progress made in reducing the Fund's carbon footprint and discussed how this achievement could be communicated more widely. It was noted that updates would continue to be provided through meetings and the fund's annual report, and it was suggested that information could also be shared on the website to increase public awareness. In response to a query whether reductions in carbon emissions would eventually reach a minimum level, the Board was advised that while further reductions were expected, future progress may be more gradual as the most significant impacts had already been achieved. The Board highlighted the importance of promoting the fund's progress more broadly, including through trade unions, and it was confirmed that the information was already publicly available and that such promotion would be welcomed. AGREED that Carbon Intensity Analysis report in relation to the Dyfed Pension Fund be noted.
Decision as recorded
AGREED that the update report be noted.
The Board received an update on the Wales Pension Partnership (WPP) Joint Governance Committee meeting held on 10th March 2026. The Board received several reports, including a summary update, a review of the Business Plan for Q3 (covering April to December 2025), an Operator Update, the WPP Performance Summary for Q4 (October to December 2025), and a presentation on WPP Global Private Credit. Additionally, the Board was presented with the Responsible Investment (RI) Update for the quarter ending 31 December 2025. This update, prepared by WPP’s Oversight Advisor (Hymans Robertson) in conjunction with WPP, detailed recent RI activities and provided information on the following Sub-Funds in which the Dyfed Pension Fund was invested: Global Growth, Sustainable Active Equity, and Global Credit. The Director of Corporate Services provided a comprehensive update on the progress of the Wales Pension Partnership and the establishment of the Investment Management Company (IMCo). It was reported that the Financial Conduct Authority (FCA) had issued a "minded to approve" notification, enabling the eight pension fund authorities to sign the Shareholders' Agreement and progress the final stages of authorisation. Regulatory capital of £10 million had been provided by the participating authorities, the Articles of Association had been approved, and full FCA authorisation was expected within the coming weeks. Subject to approval, IMCo was expected to become fully operational from September 2026, with assets transferring on a phased basis. It was noted that the implementation timetable was several months behind the original target due primarily to the FCA approval process, although the project remained on track. Members were advised that the inaugural meeting of the Shareholders' Board was scheduled for September and that IMCo would assume responsibility for investment management activities moving forward. In response to questions, the Board was advised that the existing Pension Committee and Pension Board governance arrangements would remain unchanged under the current legislation, although their focus and responsibilities may evolve as IMCo became operational. The Board was also informed that future reporting arrangements would change, with IMCo representatives expected to present investment performance reports. It was further noted that legislation required the appointment of an independent person and a senior Head of Pensions role, both of which were being progressed. It was also noted that IMCo would place increased emphasis on identifying and managing local investment opportunities across the participating funds. AGREED that the update report be noted.
The Board noted that the minutes of the Dyfed Pension Fund Pension Committee meeting held on 17th June 2026.
The Board received, for consideration and comment, the reports considered by the Dyfed Pension Fund Committee on the 14th July 2026, as referred to in minutes 5.1 – 5.3 below.
Decision as recorded
AGREED that the Rebalance Proposal in relation to the Dyfed Pension Fund be noted.
The Board received, for consideration the Rebalance Proposal Report. The Board noted that the Fund had been overweight in equities compared to the Strategic Asset Allocation (SAA). As of 31 March 2026, the actual allocation to equities stood at 68.8%, while the strategic target was 60%. Although this was within the SAA's tolerance range of plus or minus 10%, an increase in equity valuations led to an estimated actual allocation of 70.9% by 30 June 2026, which slightly exceeded the agreed range. It was noted that the rebalance was also expected to increase the actual allocation to Credit, remaining within the SAA tolerance range, and to provide additional cash income. This additional income was considered beneficial in light of the recent reduction in employer contributions to the Fund. The Board sought clarification on the level of risk reduction achieved, the rationale for holding cash, and the future use of those funds. Officers advised that the cash holding was temporary and would be used to meet forthcoming investment commitments, while continuing to generate interest income until required. It was further noted that future asset allocation decisions would be guided by the revised Strategic Asset Allocation and implemented by the Investment Manager. Questions were also raised regarding the allocation to global credit rather than other asset classes. It was explained that global credit provided a readily available and relatively stable investment option, generated income to support the fund’s cashflow requirements, and remained within the permitted allocation tolerance range. The discussion also highlighted that further detail on the fund’s longer-term return and risk profile would be considered under the subsequent Strategic Asset Allocation agenda item. It was noted that the Pension Committee had approved the proposal but had deferred implementation pending consideration by the Board. AGREED that the Rebalance Proposal in relation to the Dyfed Pension Fund be noted.
Decision as recorded
AGREED that the Strategic Asset Allocation (SAA) Review report be noted.
The Board received for consideration the Strategic Asset Allocation (SAA) Review report. The review was based on Mercer’s Capital Market Assumptions as of 31 March 2026 and the Fund’s liabilities as at 31 March 2025, as provided by the actuary. The funding position reflected the 31 March 2025 Actuarial Valuation. It was noted that the Committee had recommended adopting Option B for the SAA. Under Option B, the following changes were agreed: • The equity allocation was reduced from 60.0% to 57.5%. • The property allocation was reduced from 15.0% to 13.0%. • The allocation to other alternatives was reduced from 5.0% to 4.0%. • A new allocation of 5.0% to gilts and 0.5% to cash was introduced. • Allocations to corporate bonds, infrastructure, and private debt remained unchanged. These changes were funded by reducing allocations to equities, property, and other alternatives. The Board discussed the proposed strategic asset allocation and noted that the recommended option would deliver a broadly similar level of expected returns while reducing overall risk and improving cash flow management. The Director of Corporate Services explained that the increase in index-linked investments provided greater stability and that only a limited reduction in equities was being proposed at this stage to avoid unnecessary transition costs and allow for a managed move into the Wales Pension Partnership arrangements. The Board sought clarification on the length of the proposed investment in index-linked gilts and it was advised that the revised asset allocation was expected to remain in place for at least three years, subject to future actuarial reviews and market conditions. The Board also discussed the current 10% tolerance levels and noted that a future review may consider reducing these to 8% to align more closely with the strategic asset allocation, although it was considered too early to implement such a change during the current transition period. In response to questions regarding benchmarking against other pension funds, officers advised that comparisons formed part of Mercer’s assessment and confirmed that the asset allocation remained within the range adopted by other authorities. It was noted that the fund maintained a relatively higher equity allocation than some, reflecting its funding position and risk appetite, and that Mercer was satisfied that the proposed strategy remained appropriate. AGREED that the Strategic Asset Allocation (SAA) Review report be noted.
The Board noted that the minutes of the Dyfed Pension Fund Pension Committee meeting held on 14th July 2026
Decision as recorded
AGREED that the report be received.
The Board received the Pension Board Budget Monitoring report for the period 1 April to 30 June 2026 and noted that actual expenditure of £6,000 had been incurred by 30 June 2026. It was reported that expenditure was forecast to exceed the budget for the year; however, previous underspends on training and travel-related costs could offset the projected overspend AGREED that the report be received.
Decision as recorded
AGREED that the Pension Board Work Plan for 2026 be approved.
The Board considered the Pension Board Work Plan for 2026 which outlined the work of the Pension Board throughout 2026 and the items to be presented at each meeting. The Work Plan will be reviewed at each Board meeting and revised as necessary. In response to a query regarding the inclusion of a review of Board effectiveness within the Work Plan, the Board was advised that the review was intended to be incorporated into the 2027 Work Plan. AGREED that the Pension Board Work Plan for 2026 be approved.
Decision as recorded
AGREED that the Pension Board Action Log be noted and that completed / historic actions be removed from future updates.
The Board considered the Pension Board Action Log which included details of actions and updates presented at previous meetings. The Action Log is reviewed at each Board meeting and updated as necessary. AGREED that the Pension Board Action Log be noted and that completed / historic actions be removed from future updates.
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.
Councillors must say when they have a personal link to something being discussed, such as a job, a property or a family member. A prejudicial interest is one strong enough that the councillor usually leaves the room and takes no part.
Declarations are read from the minutes once they are published.
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