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The decisions as the council's minutes record them. A plain-language summary follows once it has been written.
It was resolved that these risks be incorporated into the existing risk register framework and updated documents be shared with the Board via email, for them to go to the Pensions and Investment Committee as a proposal.
RESOLVED that in accordance with Section 106 [8] Local Government Pension Scheme [LGPS] Regulations 2013 the Board goes into the confidential agenda with the public and press being excluded as some of the information may relate to financial or business affairs of a particular person or organisation.
No apologies for absence were received.
The Chair declared a personal interest, having been appointed as a shareholder-nominated Non-Executive Director of the Wales Pension Partnership (WPP) Investment Management Company (IMCO). No further declarations were made.
The minutes of the previous meeting were reviewed. A minor amendment was noted regarding the description of the Chair’s role. The minutes were approved as a true and accurate record, subject to amendment.
It was noted that agenda items would address any outstanding issues arising from the previous meeting. No additional matters were raised.
The Board considered the minutes of the Pensions & Investment Committee meetings held on 5 December 2025 and the 24th February. • The Fund’s funding position had improved to above 100%, enabling a slightly less cautious investment approach with potential for greater returns. However, to provide stability, the surplus buffer had been increased from 105% to 110%. • Governance reforms under the “Fit for the Future” programme were progressing, including approval of key legal agreements supporting the establishment of the IMCO.
The Chair provided a detailed verbal update including: • Confirmation of appointment as a Non-Executive Director of the WPP IMCO. • Explanation of a potential conflict of interest, requiring resignation as Pensions Board Chair with effect from 31 May 2026. • Notification that IMCO had not yet begun full operational activity, pending FCA authorisation. • Attendance at numerous sector events and forums: • LGC Seminar, Carden Park – March • DG Publishing Pooling Symposium, The Belfry – April • Wales Pension Board Chairs Meeting, Cardiff – 29 April • LGPS North Conference, York – May • Scheme Advisory Board Session for Board Chairs (including meeting with the two new Heads of Local Government Pensions at MHCLG) – May • Update on national developments, including: • MHCLG was not proposing significant additional legislation, but was focused on overseeing the implementation of reforms introduced over the previous 18 months. • By the end of June 2026, regulations would be issued covering pooling, fund investments and governance, alongside a Government response to the Fit for the Future consultation. Further guidance on pooling, investment strategy statements and governance was expected by June 2026. • The Board was advised that, by the end of September 2026, all LGPS assets must be held and managed by the asset pool, unless this was not reasonably practicable. • A deadline of December 2026 was highlighted for key governance appointments, including the designation of a Fund Senior Officer and the appointment of an Independent Person to the Committee. It was noted that the Senior Officer role carried significant responsibility and that future remuneration should be considered. The introduction of the Independent Person role was expected to create recruitment challenges across Welsh funds. • It was expected in the guidance that an Independent Board Chair could potentially also act as the Independent Person, • The Board noted that triennial independent governance reviews would be required, aligned with valuation cycles but undertaken in alternate years, creating additional workload pressures. • In relation to pooling and investments, it was reported that administering authorities would be required to delegate implementation of investment strategy to the asset pool and to take principal investment advice from the pool. • It was acknowledged that the asset pool was not yet in a position to fully deliver this advisory role and that this would take time to establish. • The Board further noted that all fund assets would ultimately be controlled and managed by the relevant asset pool, subject to minimum standards including FCA authorisation. The requirement for an FCA-authorised Investment Management Company (IMCo) for Wales was reiterated; however, delays in obtaining FCA approval had created a temporary period of uncertainty. • The Chair advised that this delay had allowed continuation in post to facilitate the current meeting, but confirmed that, subject to developments, this would be their final meeting as Chair. The Chair expressed gratitude for the opportunity to serve and for the support of Board Members, Committee Members and officers. Concerns & Queries Raised Responses Received Members expressed appreciation for the Chair’s service and congratulated him on his appointment. The Board noted the report.
The Pension Fund Manager reported: • The Pension Schemes Act 2026 had received Royal Assent. • Key regulatory developments included: • Introduction of a statutory LGPS Senior Officer role. Therefore, the constitution would need to be revisited. • Requirement for an independent person on the Pensions & Investment Committee, resulting in Governance Compliance Statement and Terms of Reference needing review. • The expectation is that both of the above changes would need to be in place within 6 months of the regulations being laid. • Independent Governance Review was due and needed to be completed by 31st March 2028. • 2.3 - Phase 1 of the Access and Fairness reform had been implemented. • The change was considered sufficiently significant to trigger disclosure requirements. Accordingly, scheme members were required to be notified of the regulatory changes within a three-month statutory timeframe, following the implementation of the regulations on 1 April. • 2.4 – high-level changes were required to administration processes. Existing procedures were reviewed and updated to incorporate the new regulatory requirements. • It was noted that the changes did not apply retrospectively in all cases but were specific to new cases. As a result, the administration team was required to understand and apply both current and new regulations, which differed across various tranches of scheme membership. • This added complexity to member communications, and it was acknowledged that significant communication activity would be required in the forthcoming weeks. 2.5 McCloud Remedy • The Board was advised that the Government’s expectation was for the McCloud remedy to be completed by the end of August, aligned with the production of Annual Benefit Statements. It was noted that this remained a significant programme of work, with further detail on progress to be provided in the confidential session. • A business case had previously been approved by the Pensions and Investment Committee to secure additional resources, including the establishment of a dedicated McCloud project team. Two full-time officers had already been allocated to this work, with arrangements in place to backfill their substantive roles and utilise third-party support where appropriate. • The use of digital tools, including AI applications, had been introduced to improve efficiency, with one tool reducing calculation time by approximately 30–40%, particularly in relation to final pay calculations. • While progress continued towards the August deadline, it was acknowledged that there remained a risk of non-completion. In such circumstances, this would likely constitute a breach requiring notification to the regulator, who would expect evidence of progress made and plans to address any outstanding work. • The Board noted that updates on progress would be provided regularly. 3 LGPS England & Wales Scheme Advisory Board • The Board was informed that recent changes to complaints handling and data requirements had been introduced, and processes would be updated accordingly. • An update from the Scheme Advisory Board was noted, with further guidance anticipated on the matters highlighted. • It was confirmed that the Fund had connected to the Pensions Dashboard within the required timescales (by the end of October 2025) and work had since progressed on improving data quality. A review of the existing data quality plan was to be undertaken to ensure compliance with dashboard requirements. It was noted that the full operational impact on the administration team would not be known until the dashboard became fully operational. • The Board was advised that regulatory guidance, including documentation and factsheets on impersonation fraud, had been issued to support implementation. • Section 5 of the report summarised the key risks and implications, including regulatory compliance, operational, data, and member outcomes risks. Governance and administration implications were also highlighted, including the need to review governance arrangements and ensure staff were appropriately trained to manage the increased complexity. Concerns & Queries Raised Responses Received Members raised concerns regarding workload pressures and team resilience. Officers confirmed additional staffing and resources had been secured, KPIs and workloads were being closely monitored and the team was prepared for a challenging period but was building resilience and capacity. It was noted that this could be revisited under the risk register item. The Board noted the report.
• The Board was advised that the Regulator’s new Code, introduced in 2024, continued to be embedded. Documents and processes had been strengthened, and work had progressed on information handling, including establishing clearer standards and improving access to evidence and documentation. • Further areas of the Code, including the governing body section, were under review, with particular focus on Board structure and activity. Regular meetings were held between the officer, Governance Officer and Pensions Administration Manager to monitor progress and support knowledge sharing across the team. • A high-level overview indicated that, overall, compliance was largely within the “green” range of the red-amber-green assessment. It was acknowledged that full compliance in all areas was not always achievable; however, appropriate processes were in place to maintain a strong position and address any areas of amber or red where necessary. • The Board noted that, overall, the Fund was in a good position in terms of governance and compliance with the Code. No queries were raised. The Board noted the report.
• The Board considered the WPP Business Plan (from page 107), which set out priorities for the next 12 months. It was noted that this represented a transitional period as arrangements moved from the current WPP structure to the new Investment Management Company (IMCo), requiring a review of priorities and ways of working. • The Business Plan had been approved by the Joint Governance Committee in March and subsequently by the Pensions and Investment Committee. It outlined the focus of WPP from a governance and client perspective during this transition, including the development of relationships and operational governance structures. A governance diagram was included to illustrate how the new arrangements would operate once established, with the Joint Governance Committee continuing in its existing role. • It was noted that, while the current plan covered 12 months, a longer-term business plan from IMCo was expected by April of the following year. • In discussion, it was highlighted that WPP’s priorities for the year were to establish the company, secure regulatory approval, appoint personnel, and transition assets, while maintaining continuity. It was also noted that the Welsh pool was in a different position to some English pools, which were focused on onboarding additional funds and rationalising investment mandates. The Board noted that a longer-term plan (circa five years) was anticipated once the company was established. 3. Governance and Oversight • The Board was advised that a revised WPP Responsible Investment Policy had been approved by the Joint Governance Committee in March and was included within the meeting pack for information. The policy had been expanded to incorporate an exclusions framework in relation to investment decisions, with further detail available within the document. Concerns & Queries Raised Responses Received Members raised questions regarding governance complexity and training requirements. Officers confirmed a training officer had been appointed. Training would be enhanced and structured in line with future requirements and that training would become a statutory requirement for Board and Committee members. The Board noted the report.
• No new breaches had been recorded. • Board noted the report.
Decision as recorded
It was resolved that these risks be incorporated into the existing risk register framework and updated documents be shared with the Board via email, for them to go to the Pensions and Investment Committee as a proposal.
The Pension Fund Manager identified three emerging risks: • Transition and operational risk relating to IMCO implementation. • The Board was advised that, as part of onboarding to the Investment Management Company, new custodian arrangements were being established. This required coordination between the Fund, the Investment Management Company, Russell Investments and the Custodian • It was noted that the increased complexity and number of parties introduced additional operational considerations, particularly in relation to the movement of assets and oversight arrangements. While regular meetings were in place to manage this, it was considered important to ensure robust processes and assurances were established to mitigate potential risks. • The risk was considered to be primarily operational and governance-related. The Board discussed its appropriate classification within the risk register, noting that it may align with existing pooling or investment risks, or alternatively be recorded as a distinct governance risk. It was agreed that this would be reviewed and reflected appropriately within the risk register. • Recruitment and retention (key person risk). • It was noted that there had been increased movement of officers between funds and pools, which introduced associated risks, including potential over-reliance on key personnel and challenges in maintaining service delivery. • The Board considered that these risks aligned with existing governance risks relating to capacity and delivery against regulatory requirements. It was agreed that the risk could be incorporated within the relevant existing entry in the risk register, subject to review. • Risks arising from the implementation of new regulations. • It was noted that implementation of new regulations could align with existing governance risk 0008. The appropriate positioning within the risk register would be reviewed, with a view to incorporating this within the relevant existing risk entry if suitable. It was resolved that these risks be incorporated into the existing risk register framework and updated documents be shared with the Board via email, for them to go to the Pensions and Investment Committee as a proposal.
The Pension Fund Manager reported: • The Board noted that the valuation had previously been approved by Committee and published and was presented for information at this meeting. • At a high level, the results were very positive. The Fund had reported a surplus of approximately £30 million, achieving a funding level of 103.4%, an improvement from just under 100% at the previous valuation. This position enabled increased flexibility in investment and liability management. • As a result, the overall employer contribution rate had reduced by 4.9% to 16.5%, with the majority of employers now fully funded or in surplus positions. In addition, greater prudence had been incorporated into the funding approach, strengthening risk management. • It was noted that, following these outcomes, further work would be required to review and update the Employer Policy to reflect the varying funding positions of participating employers. • The reduction in the overall employer contribution rate to 16.5% (from 21.3%) was welcomed, noting the positive impact on the Council’s current and future budget position. • The Board’s attention was drawn to two key updates within the valuation report. Firstly, enhanced climate scenario modelling had been included, illustrating the potential impact of different risk trajectories on the Fund’s liabilities. Secondly, the report incorporated, for the first time, a high-level analysis of the gender pensions gap. • It was noted that this remained an area of increasing national focus, and further scrutiny was anticipated. Overall, these additions provided valuable insight alongside the detailed information contained within the report. The Board noted the report.
Dates of the future Board meetings were noted.
Decision as recorded
RESOLVED that in accordance with Section 106 [8] Local Government Pension Scheme [LGPS] Regulations 2013 the Board goes into the confidential agenda with the public and press being excluded as some of the information may relate to financial or business affairs of a particular person or organisation.
RESOLVED that in accordance with Section 106 [8] Local Government Pension Scheme [LGPS] Regulations 2013 the Board goes into the confidential agenda with the public and press being excluded as some of the information may relate to financial or business affairs of a particular person or organisation.
The Board received an update on the WPP IM Co.
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