Wrthi'n llwytho
Does dim crynodeb o'r cyfarfod hwn eto. Caiff un ei ysgrifennu pan fydd y cyngor yn cyhoeddi'r cofnodion. Mae'r agenda a'r papurau isod.
1.1 The Chair welcomed all to the meeting. 1.2 There were no apologies for absence.
2.1 The following interested were declared: · Councillor Horlor declared a personal interest as he was a contributor to the Fund. · Councillor Williams declared a personal interest as both himself and his wife were both in receipt of a pension and contributors to the Fund. · Councillor Yeowell declared a personal interest due to his father and two other family members being in receipt of a pension as well as being a contributor to the fund himself.
3.1 The minutes dated 15th December 2026 were confirmed as an accurate record.
4.1 The Local Pension Board draft minutes were noted.
5.1 The Committee received a report presenting the draft Audit Wales Pension Fund Audit Plan for the 2025/26 financial year. Members were advised that, as administering authority, the Council was required to produce a standalone Pension Fund Annual Report and Accounts, which were subject to external audit by Audit Wales. The report was presented annually to support the Committee’s governance and oversight responsibilities. 5.2 The Head of Pensions outlined the scope of the planned audit work, including the assessment of key financial statements, review of internal controls, identification of audit risks, materiality thresholds and the proposed timetable for completing the audit and reporting the outcome to Committee. Members were advised that the audit approach was consistent with previous years and reflected Audit Wales’ national methodology for LGPS audits. 5.3 Zibby from Audit Wales attended the meeting and provided further assurance regarding the planned audit approach, confirming that initial planning and interim testing work had commenced in advance of year‑end to support timely completion of the audit process. 5.4 Following questions by the Committee, the Head of Pensions and Audit Wales confirmed the following points: · Audit materiality had been set at £44.5m, representing 1% of the Fund’s gross assets as reported in the prior year’s accounts, consistent with the approach adopted in recent years. · A lower materiality threshold of £10,000 would apply to related‑party disclosures, reflecting the sensitivity of such information. · The sole significant audit risk identified was management override of controls, which was a standard risk applied across all Audit Wales public sector audits. · Key areas of audit focus included valuation of investment assets, actuarial valuation of pension liabilities and enhanced disclosure requirements arising from the transition of the Wales Pension Partnership into an FCA‑regulated investment management company. · The overall audit timetable broadly mirrored previous years, with interim work underway and final audit reporting anticipated later in 2026. · The audited Pension Fund Annual Report and Accounts would be reported back to the Committee for approval ahead of the statutory publication deadline of 1 December 2026.
6.1 The Committee received a report providing an update on the administration of the Pension Fund. The Pension Manager advised that the report was intended to provide assurance regarding service performance, regulatory compliance and progress with key projects, particularly in the context of ongoing national pensions reform. 6.2 Members were provided with an overview of membership trends, performance of core administration activities, development of online services and progress with nationally mandated initiatives, including the Pensions Dashboard and the McCloud remedy. 6.3 It was highlighted that continued investment in systems and processes remained essential to maintain compliance and service resilience. 6.4 Following questions by the Committee, the Pension Manager confirmed the following points: • Fund membership continued to increase and registration to the My Pensions Online system had grown steadily during the reporting period. • Further targeted communications were planned to encourage greater member engagement with online services. • The Fund had successfully connected to the Pensions Dashboard by the statutory deadline, including submission of data for all Additional Voluntary Contribution (AVC) providers. • The Fund was fully compliant with dashboard requirements and was awaiting confirmation from the Pensions Regulator regarding the public launch of the service. • The revised Pensions Administration Standards Association data matching convention had been implemented following an upgrade to the administration system. • A formal matching criteria policy was being developed and would be reported to the Local Pension Board and Committee at a future meeting. • McCloud remedy work was progressing, with all pensioner and dependant records assessed and recalculations scheduled for implementation, subject to final regulatory and software updates. 6.5 The Pensions Committee noted the report.
7.1 The Committee received a report presenting the revised Funding Strategy Statement (FSS), together with the updated Cessation Policy and Contribution Review Policy, following completion of the 2025 triennial actuarial valuation. Members were advised that the FSS was a key statutory document required under LGPS regulations and set out the Fund’s long‑term approach to funding pension liabilities. 7.2 The Head of Pensions outlined the valuation process, including engagement with the Fund’s actuary, consideration of actuarial assumptions and dialogue with scheme employers regarding contribution rates. Members were advised that the revised policies responded to regulatory changes and employer feedback received during the consultation process. 7.3 Barry Dodds, from the Fund Actuary, Hyman Robertson, attended the meeting and provided professional actuarial assurance, confirming that the proposed assumptions and methodologies were appropriate and consistent with current best practice. 7.4 Following questions by the Committee, Head of Pensions and the Fund Actuary Representative confirmed the following points: · The FSS balanced the objectives of affordability for employers, stability of contribution rates and appropriate prudence. · Actuarial assumptions reflected updated advice on longevity, investment return expectations and prudence. · Employer contribution rates had been set following extensive consultation with scheme employers and their advisers. · The updated Cessation Policy reflected regulatory changes allowing administering authorities to consider surplus repayments when employers exited the scheme. · The Contribution Review Policy set out the limited circumstances under which employer contribution rates could be reviewed between triennial valuations. · Feedback received during the consultation process had been considered and, where appropriate, reflected in the final documents. 7.5 The Pension Committee: I. Noted the update provided and considered the revised FSS, together with the accompanying policies set out in the appendices; and II. Approved the policy documents in accordance with the LGPS Regulations 2013 for publication to the Fund’s website with effect from 1st April 2026.
8.1 The Committee received a report responding to a petition presented to Council concerning ethical investment and divestment, together with related motions passed by other local authorities participating in the Pension Fund. Officers advised that the report had been brought to enable the Committee to consider the petition within the context of its fiduciary responsibilities and existing responsible investment framework. 8.2 Members were advised of recent developments at Wales Pension Partnership level, including the approval of a formal exclusions’ framework designed to provide a consistent and transparent basis for assessing investments against breaches of international law and human rights considerations. 8.3 The proposed approach to stakeholder engagement and communication, subject to finalisation of supporting technical information was outlined. 8.4 Following questions by the Committee, Officers confirmed the following points: · The exclusions framework provided a clear mechanism for assessing potential investment exclusions. · The Fund’s primary fiduciary duty remained to act in the best long term financial interests of members and employers. · Engagement with campaign groups would be undertaken within the parameters of the approved framework. · A consolidated written response would be prepared once outstanding information had been received. 8.5 The Pension Committee discussed the recent Torfaen County Borough Council petition and agreed its response.
9.1 The Committee received a report presenting the transitional business plan and budget for the Wales Pension Partnership Investment Management Company for the 2026/27 financial year. Members were advised that the new company would operate as an FCA‑regulated entity and that the proposed plan covered an initial transitional year. 9.2 The Head of Pensions outlined the rationale for the proposed budget, including the need to accelerate recruitment and establish dedicated governance, regulatory and operational functions to ensure compliance and effective delivery from commencement of trading. 9.3 Members were reminded that approval of the business plan constituted a reserved matter requiring formal approval by each administering authority. Following questions by the Committee, the Head of Pensions confirmed the following points: · The business plan covered a single‑year transitional period. · Costs associated with the company were funded by the Pension Fund and did not impact the Council’s revenue budget. · Ongoing monitoring arrangements would be in place, with progress reports brought back to Committee. 9.4 The Pension Committee approved the 2026/27 Wales Pension Partnership Investment Management Company’s transitionary Business Plan and corresponding budget.
10.1 The Committee received a report setting out the Pension Fund Budget for 2026/27. The Investment Officer advised that the budget covered all aspects of Fund activity, including administration, governance, advisory services and investment management. 10.2 Members were advised of key assumptions underpinning the budget, including membership levels, contribution income, pension payments and investment management costs. Particular reference was made to the Fund’s projected move into a negative cash‑flow position and the associated cash management arrangements. 10.3 Following questions by the Committee, Officers confirmed the following points: • The Pension Fund operated independently of the Council’s revenue budget and did not rely on Council reserves. • A robust cash management strategy and adequate liquidity arrangements were in place. • Increased management costs reflected higher asset values and increased exposure to private market investments. 10.4 The Pensions Committee note the contents of this report and approved the Pension Fund budget for 2026/27
11.1 The Committee received a report presenting the Greater Gwent (Torfaen) Pension Fund Business Plan for the period 2026–2029. Officers advised that the development of a forward business plan was considered good practice within the Local Government Pension Scheme and supported the Committee in fulfilling its governance, fiduciary and oversight responsibilities. 11.2 Members were advised that the business plan articulated the Fund’s strategic objectives, statutory responsibilities and priority change activities across all areas of Fund activity, including administration, governance, communications, investment oversight and regulatory compliance. The plan had been developed to align with the Fund’s budget, risk management framework, training programme and policy suite, and reflected the anticipated impact of emerging reforms, including the Fit for the Future agenda. 11.3 The Investment Officer confirmed that the business plan would provide the framework for monitoring progress and performance over the medium term, with delivery tracked through regular reporting to the Committee and the Local Pension Board. The plan was designed to remain flexible to allow updates in response to legislative change or revised Fund priorities. 11.4 Following questions by the Committee, Officers confirmed the following points: • Actions carried forward from the previous business plan had been incorporated where work remained ongoing. • Delivery of the plan would be supported by existing staffing arrangements and specialist external advisers where required. • Progress against the plan would be monitored through routine reporting to the Committee and Local Pension Board. • The business plan would be reviewed and amended as necessary to reflect regulatory change or material developments. 11.5 The Pensions Committee approved the Pension Fund Business Plan 2026-2029.
12.1 The Committee received the quarterly investment performance report for the period ending 31 December 2025. The Investment Officer provided an overview of Fund performance, asset allocation and progress with implementation of the agreed investment strategy. Members were advised that the Fund had delivered a positive absolute return for the quarter and had marginally outperformed its benchmark, with performance predominantly driven by equity markets and supported by contributions from other asset classes. 12.2 The Independent Investment Adviser provided a detailed and contextual market commentary, placing the Fund’s performance within the broader macro‑economic and geopolitical environment. Members were advised that market conditions during the quarter and into early 2026 had been characterised by heightened volatility, driven by geopolitical tensions in the Middle East, inflationary pressures linked to energy prices and uncertainty regarding interest rate trajectories. 12.3 The Independent Investment Adviser further advised that diversification across asset classes remained central to the Fund’s long‑term strategy and that the gradual increase in exposure to assets providing more contractual, inflation‑linked cashflows was expected to support longer‑term resilience, particularly as the Fund moved towards a projected negative cashflow position. 12.4 Following questions by the Committee, Officers and the Independent Investment Adviser confirmed the following points: • The Fund delivered a positive return for the quarter and marginally outperformed its benchmark. • Market volatility reflected geopolitical uncertainty and renewed inflationary pressures, particularly related to energy markets. • Traditional safe‑haven assets had not performed as expected during recent market stress. • The Fund’s diversified strategic asset allocation remained appropriate for long‑term investment objectives. • Currency exposure and inflation sensitivity continued to be monitored within the governance framework. • Increasing exposure to income‑generating assets would support future cashflow requirements. 12.5 The Pensions Committee noted the investment performance that had taken place during quarter four of 2025.
13.1 The Committee received a report providing an update on recent activity within the Wales Pension Partnership (WPP), including outcomes from Joint Governance Committee meetings and progress with transition arrangements associated with the establishment of the WPP Investment Management Company. 13.2 Members were advised that the host authority business plan for 2026/27 reflected a transitional period, during which responsibilities were progressively transferring from the host authority model to the new FCA‑regulated investment management company. The report also outlined continued client‑side responsibilities, including governance oversight and responsible investment coordination. 13.3 The Head of Pensions confirmed that the host authority business plan had been approved by the Joint Governance Committee and now required formal approval from each participating administering authority. 13.4 Following questions by the Committee, Officers confirmed the following points: • The host authority business plan reflected a narrower and transitional role. • Oversight, governance and responsible investment coordination would remain client‑side functions. • Further clarification of long‑term arrangements would be developed as the new company matured operationally. 13.5 The Pension Committee: I. noted the content of this report as well as the respective appendices and raised any questions as appropriate; and II. approved the 2026/27 WPP Business Plan.
14.1 The Committee received a report providing an update on Member training and development activity. The Pension Manager advised that ongoing training was an essential component of effective governance and supported Members in discharging their fiduciary and regulatory responsibilities. 14.2 Members were advised of completed training during the year and proposed enhancements to future learning provision, including the introduction of an updated online learning platform designed to support a range of learning styles. The Pension Manager emphasised the increasing importance of Member training in light of forthcoming regulatory change. 14.3 Following questions by the Committee, Officers confirmed the following points: • A revised online learning platform would be introduced to support more flexible access to training. • Further training opportunities would be brought forward during the year as regulatory requirements evolved. 14.4 The Pensions Committee noted the annual training programme included in appendix 2 and considered whether any specific training areas or topics should be included.
15.1 The next meeting would be held on 15 June 2026. 15.2 The Committee, formally recorded their thanks to the Head of Pensions for his work and contribution during his tenure with the authority. Members acknowledged the professionalism, expertise and support provided to the Committee during a period of significant regulatory change and development within the Pension Fund, and wished him well in his future role.
Rhaid i gynghorwyr ddweud pan fydd ganddyn nhw gysylltiad personol â rhywbeth sy'n cael ei drafod, fel swydd, eiddo neu aelod o'r teulu. Mae buddiant sy'n rhagfarnu yn ddigon cryf i'r cynghorydd adael yr ystafell fel arfer a pheidio â chymryd rhan.
Caiff datganiadau eu darllen o'r cofnodion unwaith y byddan nhw wedi'u cyhoeddi.
Yn rhestru cynghorwyr presennol y cyngor yn unig. Nid yw aelodau cyfetholedig, swyddogion a chyn-gynghorwyr yn cael eu dangos.