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. There were no apologies noted.
The following declarations were made: · Mr. Campbell declared a personal interest due to being in receipt of a pension from the Greater Gwent Pension Fund. · Mr. Harford declared a personal interest due to being in receipt of a pension from the Greater Gwent Pension Fund. · Mr. Harford declared a personal interest due to his sister being a contributor to the fund. · Ms. Hayden declared a personal interest due to her Mother being in receipt of a pension. · Ms. Hayden declared a personal interest as herself and her sister were contributors to the fund. · Ms. Morley declared a personal interest due to being in receipt of a pension from the Greater Gwent Pension Fund. · Ms. Morley declared a personal interest due to being a contributor to the fund. · Mr. Reese declared a personal interest due to being in receipt of a pension from the Greater Gwent Pension Fund. · Ms. Waters declared a personal interest as her brother was in receipt of a pension from the Greater Gwent Pension Fund. · Ms. Waters declared a personal interest as she was a contributor to the fund. · Mrs. Wellington declared a personal interest as she was in receipt of a pension. · Mrs. Wellington declared a personal interest as her daughter was a contributor to the fund. · Mr. Wright declared a personal interest as himself and his wife were in receipt of a pension. · Mr. Wright declared a personal interest as his daughter was a contributor to the fund.
3.1 Minor amendments were identified in relation to Member designation and representation type. 3.2 The minutes and notes were approved or noted, subject to minor amendments.
4.1 That the minutes were approved or noted, subject to minor amendments.
5.1 The draft minutes of the Pension Committee were noted.
6.1 Officers gave an update on the action sheet. 6.2 The action sheet was noted.
7.1 The Board received a report presenting the draft Audit Wales Pension Fund Audit Plan for the 2025/26 financial year. Members of the Board were advised by the Pensions Manager that the administering authority was required to prepare a standalone Pension Fund Annual Report and Accounts, subject to external audit, and that the Audit Plan sets out the approach, scope and timetable for that work. 7.2 It was outlined to the Board that the Plan detailed the key audit risks, the materiality thresholds to be applied and the areas of focus for the audit. Particular emphasis was placed on the valuation of investment assets and actuarial liabilities, both of which involved significant assumptions and judgements. Members of the Board were also advised that additional disclosures relating to the transition to the Wales Pension Partnership Investment Management Company would form part of the audit process. 7.3 An Audit Wales representative confirmed that the approach remained consistent with previous years, with initial planning and interim work already underway ahead of the year‑end audit. 7.4 Following questions by the Board, Officers and Audit Wales confirmed the following points: • No new or unique audit risks had been identified for the Fund. • Management override remained a standard audit risk. • The audit would focus on investment valuations, actuarial assumptions, and WPP-related disclosures. • The previous audit outcome had been positive with no material issues. 7.5 The Local Pension Board noted the 2025/2026 Audit Plan produced by Audit Wales.
8.1 The Board received a detailed administration report, presented by the Pension Manager, setting out performance against workload volumes, key performance indicators and service delivery over the previous year. Members of the Board were advised that overall volumes of work remained broadly consistent compared to the previous year, and that performance against a number of indicators had improved, although some areas such as transfers and refunds remained below target. 8.2 An update was provided on staffing changes within the Benefits team, including promotion, internal restructuring and the recruitment of new staff. These changes had temporarily impacted productivity, as experienced staff were required to provide training and support, but structured training plans were in place to address this and improve long‑term resilience and performance. 8.3 The report also included updates on key projects and regulatory developments, including My Pension Online, the Pensions Dashboard, consultation responses, McCloud remedy work and the Fund’s ongoing data improvement plan. The Board were advised that these areas remained key priorities in ensuring the Fund’s compliance with regulatory requirements and improving member experience. 8.4 Following questions by the Board, Officers confirmed the following points: • Performance impacts were temporary and linked to staffing changes and training requirements. • My Pension Online registrations had increased, with further engagement planned. • The Fund had successfully connected to the Pensions Dashboard and was fully compliant. • A dashboard matching criteria policy was in development and would be reported to the Board. • McCloud work was progressing, with recalculations scheduled to be implemented. • Consultation responses were developed collaboratively on an All‑Wales basis. • Interim management arrangements were in place following the departure of the Head of Pensions. Responsibilities were shared across senior officers, recruitment was underway, and governance oversight would remain robust during the interim period. • Data quality continued to be monitored and improved through the formal data improvement plan. 8.5 The Local Pension Board noted the report
9.1 The Board received the draft Local Pension Board Annual Report for consideration. It was advised that the report summarised the Board’s activity over the previous year, including its role in supporting the administering authority in maintaining effective governance, compliance and administration of the Pension Fund. 9.2 It was highlighted that the report had been expanded to better reflect the increasing complexity of the regulatory environment and the range of governance and oversight activity undertaken by the Board during the year. It was confirmed that, following approval, the report would form part of the Pension Fund Annual Report. 9.3 Following questions by the Board, Officers confirmed the following points: • The report provided an accurate reflection of the Board’s work and responsibilities. 9.4 The Local Pension Board: 1. considered the report and commented as appropriate; and 2. approved the inclusion of the Local Pension Board annual report in the Fund’s annual report and accounts for 2025/26
10.1 The Board received the quarterly update of the Pension Fund Risk Register presented by the Investment Officer. It was advised that the presentation of risk reporting had been enhanced through the introduction of new “snapshot” and “look‑through” documents, providing both high‑level and detailed views of risk exposure. 10.2 Members were advised that risks were now categorised under a revised framework aligned to best practice, and that the register included updated commentary, scoring and mitigation measures. A thematic review of funding and employer covenant risks was also presented, reflecting the results of the recent actuarial valuation and the Fund’s improved funding position. 10.3 0.3 Officers confirmed that no material changes had been made to the Fund’s top risks during the reporting period, although some risks related to funding & employer covenant received risk score reductions because of improved funding levels and continued strong investment performance. 10.4 Following questions by the Board, Officers confirmed the following points: • No significant changes had been made to the top 10 risks. • Risk scores relating to funding had reduced due to improved funding levels. • The Fund’s funding level had increased significantly. • Officer commentary had been updated where appropriate. • The Pension Fund Accountant role was fulfilled internally. 10.5 The Local Pension Board noted the contents of this report and provided comments as appropriate.
11.1 The Board received a revised draft Risk Management Policy, following a comprehensive review of the Fund’s risk management framework. Members of the Board were advised that the review formed part of the Pension Fund Business Plan and was intended to ensure alignment with LGPS best practice and the Pensions Regulator’s General Code. 11.2 The Investment Officer outlined that the revised policy reflected enhancements already implemented, including the introduction of a Risk Appetite Statement, updated scoring methodology, improved reporting arrangements and greater recognition of key risk indicators. The revisions were described as an evolution of the existing policy, ensuring that the documented approach accurately reflected current practice. 11.3 Members of the Board were advised that the Board’s role was to review and provide feedback on the draft prior to its submission to the Pensions Committee for formal approval. 11.4 Following questions by the Board, Officers confirmed the following points: • Terminology within the policy would be standardised for consistency. • References to governance structures would be clarified. • The scope of the policy would be refined to reflect appropriate stakeholders. • Potential overlap between policy risks and risk register risks would be reviewed. • 11.5 The Local Pension Board noted the contents of this report and provided feedback on the revised (draft) Risk Management Policy available within the appendix.
12.1 The Board received the Pension Fund Budget for 2026/27, which had been approved by the Pensions Committee. The Pensions Manager advised that the budget covered all aspects of Fund activity, including administration, investment management and governance costs, and had been prepared using updated actuarial assumptions following the valuation. 12.2 Members of the Board were informed that the Fund was projected to move into a negative cashflow position, reflecting its maturity, increasing pension payments and reduced employer contributions following improved funding levels. It was emphasised that this was an expected development and consistent with the profile of maturing LGPS funds. 12.3 A detailed explanation of the Fund’s cash management approach was provided, advising that while investment income was largely being reinvested, sufficient liquidity existed within the portfolio to meet cashflow requirements. It was also noted that the Fund would undertake a review of its cash management strategy to develop a more formal and sophisticated approach going forward. 12.4 Following questions by the Board, Officers confirmed the following points: • The negative cashflow position was expected and reflected Fund maturity. • Investment income remained strong but was largely reinvested rather than taken as cash. • Liquidity could be accessed within approximately four working days. • Cash could be generated through disinvestment or by adjusting income distribution. • The Fund remained well‑funded and financially secure. • A more formal cash management strategy would be developed during the year. 12.5 The Local Pension Board note the contents of the report.
13.1 The Board received the Pension Fund Business Plan for the period 2026–2029, as approved by the Pensions Committee. Members of the Board were advised that the business plan formed a key component of the Fund’s governance framework, setting out strategic priorities, statutory responsibilities and planned activity across all areas of Fund operations. 13.2 Officers outlined that the plan covered administration, governance, communications, investment oversight and regulatory compliance, and had been developed in line with the Fund’s risk framework, training strategy and budget. Particular reference was made to alignment with emerging LGPS regulatory developments, including the Fit for the Future agenda. 13.3 Members of the Board were advised that the business plan would be used as the primary mechanism for monitoring delivery over the period, with progress reported regularly to both the Pensions Committee and Local Pension Board. The plan would remain under review and be updated as required to reflect legislative or operational changes. 13.4 Following questions by the Board, Officers confirmed the following points: • Actions from previous plans had been carried forward where required. • Progress would be monitored through regular reporting to the Board and Committee. • The plan would be updated to reflect changes in legislation and Fund priorities. • Delivery would be supported through existing staffing and adviser arrangements. 13.5 The Local Pension Board noted and commented on the Fund Business Plan 2026-2029.
14.1 The Board received an update on progress with the establishment of the Wales Pension Partnership Investment Management Company from the Investment Officer. Members of the Board were advised that work was ongoing to finalise governance arrangements, staffing structures and regulatory approvals required for the company to become fully operational. 14.2 Officers outlined progress made to date, including agreement on key governance documents and the development of operational capacity. Members were advised that the timing of full implementation remained dependent on regulatory approvals, including those from the Financial Conduct Authority. 14.3 It was highlighted that, as the transition progressed, further clarity would be provided regarding operational arrangements, including the approach to investment advice, local investment objectives and ongoing Member engagement. 14.4 Following questions by the Board, Officers confirmed the following points: • Staffing levels had increased to support early operational requirements. • Governance documentation had been agreed across participating authorities. • Further work was required in areas including local investment opportunities and advisory arrangements. • Pensioner representation within the governance structure remained under development. • Concerns regarding pensionerr voice and engagement would be raised through WPP governance forums. 14.5 The Local Pension Board noted the contents of the report.
15.1 The Board received an update from the Investment Officer on Wales Pension Partnership activity, including progress on pooling arrangements and the development of a new Responsible Investment (RI) policy. Members of the Board were advised that the policy introduced an exclusions framework designed to provide a consistent approach to investment decisions across participating funds. 15.2 Officers outlined that the exclusions framework would apply defined criteria to determine where investments may be restricted, including considerations relating to international law and responsible investment principles. Members were advised that implementation of the policy would be linked to the operational readiness of the Investment Management Company. 15.3 It was also noted that further development work was ongoing to refine definitions, ensure consistency across funds and establish appropriate governance arrangements for ongoing monitoring. 15.4 Following questions by the Board, Officers confirmed the following points: • The exclusions framework would be supported by clear quantitative and qualitative criteria. • Definitions within the policy would be further refined where required. • Additional work was needed to ensure consistency of approach across participating funds. • Implementation would be phased and subject to governance oversight. • Further clarity would be provided as the Investment Management Company became fully operational. 15.5 The Local Pension Board noted the content of this report as well as the respective appendices and raised any questions as appropriate.
16.1 The Board received an update on Member training and development from the Pension Manager. Officers advised that maintaining an appropriate level of knowledge and understanding remained a key requirement under the Pensions Regulator’s Code of Practice and was essential to enable Members to effectively fulfil their roles. 16.2 Members of the Board were advised of planned enhancements to the LOLA training platform, including improvements to accessibility and usability. The proposed training programme would also reflect current and emerging regulatory developments to ensure continued compliance. 16.3 Following questions by the Board, Officers confirmed the following points: • A new version of the LOLA platform would be introduced. • Training materials would be updated to reflect regulatory changes. • Group training sessions could be arranged where appropriate. • A National Knowledge Assessment would be undertaken. • Members of the Board were encouraged to actively engage with training. 16.4 Members of the Local Pension: · Noted the training log appended to this report and ensure this reflects training activity during the period · Commented on the proposed annual training programme (appendix 2) for 2026/27 and request any further training or development that may be required during the year ahead
17.1 The next meeting of the Local Pension Board would be held on 29 July 2026.
18.1 The exclusion of the press and public from the meeting was agreed as presentations and meeting papers are not for publication because in accordance with paragraphs 12 and 14 of part 4 of Schedule 12a of the Local Government Act 1972 (as amended by the Access to Information Variation Order Wales 2007), it contains information about a particular individual and information relating to the financial and business affairs of particular persons including the Council and in all the circumstances of the case the public interest in maintaining the exemptions outweighs the public interest in disclosing the information.
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Caiff datganiadau eu darllen o'r cofnodion unwaith y byddan nhw wedi'u cyhoeddi.
Dyw'r cyngor ddim wedi cofnodi presenoldeb ar gyfer y cyfarfod hwn.
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