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There is no summary of this meeting yet. One is written once the council publishes the minutes. The agenda and papers are below.
1.1 The Chair welcomed all to the meeting. 1.2 There were no apologies for absence.
2.1 The following declarations of interest were received: · Councillor Horlor declared a personal interest as a contributor to the Fund; · Councillor Williams declared a personal interest as both himself and his wife were contributors to and in receipt of pensions from the Fund; · Councillor Yeowell declared a personal interest as a contributor to the Fund and due to family members being in receipt of pensions.
3.1 The minutes of the Special Pensions Committee held on 23 February 2026 were confirmed as a true and accurate record.
4.1 The minutes of the Pensions Committee meeting held on 30 March 2026 were confirmed as a true and accurate record.
5.1 The Committee received the draft minutes of the Local Pension Board meeting held on 28 April 2026. 5.2 The Pensions Committee noted the minutes.
6.1 The Committee received a report presenting responses to Audit Wales’ annual Enquiries of Management questionnaire, forming part of the external audit process for the Pension Fund Annual Report and Accounts. 6.2 Members were advised that the document set out how the Fund and those charged with governance addressed key areas including financial reporting arrangements, internal control frameworks, risk management and compliance with legislative and regulatory requirements. 6.3 The Pension Manager confirmed that the responses were broadly consistent with those approved in the previous year, with only minor updates made to reflect current valuation figures, governance arrangements and operational changes. 6.4 Members noted that the Enquiries of Management formed an important element of audit assurance and demonstrated the robustness of the Fund’s governance framework. 6.5 Pensions Committee approved the responses provided to Audit Wales’s Enquiries of Management.
7.1 The Committee received a detailed report providing an update on administration performance, regulatory compliance and ongoing project delivery within the Pension Fund. 7.2 The Pension Manager provided a comprehensive overview of membership activity, reporting continued growth in utilisation of the My Pension Online platform. It was noted that targeted engagement campaigns had successfully increased registrations, contributing to improved member self-service access and reduced administrative burden. 7.3 Members were advised that significant progress had been made in relation to the McCloud remedy, with recalculations now underway and initial backdated payments having been made. The project remained complex and resource-intensive, however progress to date was considered positive and in line with expectations. 7.4 An update was provided on data quality, confirming that the Fund continued to maintain high levels of accuracy in both common and scheme-specific data. A Data Improvement Plan had been implemented to address minor discrepancies and ensure continued compliance with Pensions Regulator requirements. 7.5 Officers outlined recent legislative developments impacting the Fund, including the LGPS Miscellaneous Amendments Regulations 2026 and the Fit for the Future reforms. Members were advised that these reforms would introduce enhanced governance requirements, including: • The appointment of an Independent Person; • New knowledge and understanding obligations; • Expanded conflict of interest provisions; • Updated expectations around investment strategy and pooling arrangements. 7.6 Following questions by the Committee, Officers confirmed the following points: • Growth in My Pension Online registrations had been driven by targeted communications and would continue to be monitored and supported; • Members were required to actively register on the updated platform due to system design and data protection constraints; • Data quality performance remained strong, with a continued focus on achieving full completeness; • The Pensions Regulator required continuous improvement rather than fixed benchmarks; • Work to implement the Independent Person role would commence shortly, aligned with forthcoming statutory guidance; • The administration function comprised approximately 30 staff, including temporary resources supporting delivery of regulatory projects such as McCloud. 7.7 Pension Committee noted the content of this report.
8.1 The Committee received the quarterly Risk Register update, including enhancements to reporting format and presentation. 8.2 Members were advised that the revised structure provided greater transparency through the introduction of ‘snapshot’ and ‘look-through’ reporting, enabling clearer identification of the Fund’s key risks and associated mitigation measures. 8.3 It was noted that no material changes had been made to the top 10 risks during the reporting period, although narrative updates had been included to reflect current circumstances. 8.4 A thematic review of funding and employer covenant risks had been undertaken, with some reductions in risk scores reflecting improvements in the Fund’s funding position following the latest valuation. 8.5 Following questions by the Committee, Officers confirmed the following points: • The revised format was intended to support improved governance and oversight; • Risk scores remained stable, reflecting consistent control measures; • Further updates would be expected in future reports, particularly in relation to emerging risks associated with pooling and regulatory reform. 8.6 Pensions Committee noted the contents of this report and provided comments as appropriate.
9.1 The Committee received a report presenting the revised Risk Management Policy following a comprehensive review of the Fund’s risk framework. 9.2 Members were advised that the revised policy reflected updated best practice guidance and incorporated improvements to risk identification, evaluation, monitoring and reporting processes. 9.3 The updated policy included: • Revised aims and objectives aligned to governance responsibilities; • A clearly defined risk management framework; • Updated scoring methodologies and evaluation criteria; • Enhanced reporting mechanisms, including integration with the quarterly risk reporting cycle. 9.4 Following questions by the Committee, Officers confirmed the following points: · The policy would be published as a formal governance document; · Consideration would be given to linking the Risk Appetite Statement within the policy framework; · The policy would remain subject to ongoing review to reflect regulatory developments and operational changes. Pensions Committee: I. Noted the contents of this report and the accompanying appendix; II. raised any comments or questions as appropriate; and III. Approved the revised Risk Management Policy
10.1 The Committee received the quarterly investment performance report for the period ending 31 March 2026. 10.2 The Investment Officer provided a detailed overview of Fund performance, advising that the Fund had delivered a negative return of -1.08% and had underperformed its benchmark during the quarter. This was attributed primarily to increased market volatility driven by geopolitical developments and inflationary pressures. 10.3 Members were advised that: · Equity markets had experienced a broad decline following escalation of conflict in the Middle East; · Fixed income returns remained subdued due to uncertainty regarding interest rate trajectories; · Diversified multi-asset strategies had provided positive contributions; · Progress continued in rebalancing the Fund towards its strategic asset allocation, including increased investment in real estate and private markets. 10.4 It was emphasised that, despite short-term volatility, the Fund’s longer-term performance remained strong and continued to exceed actuarial assumptions. 10.5 The Committee received information from both the Fund’s Independent Advisers, providing detailed macroeconomic and market context. The following key points were highlighted: · Global market conditions were characterised by heightened volatility, driven by geopolitical tensions, inflationary pressures and shifting interest rate expectations; · Equity market performance continued to be supported by strong growth in US technology and artificial intelligence (AI) sectors; · Markets were experiencing increased divergence and rotation across regions and asset classes, with capital reallocating to different sectors in response to changing conditions; · The Fund’s diversified portfolio structure enabled participation in these rotations, reducing reliance on any single market or sector; · Approximately 60% of the Fund’s assets were invested in non-sterling currencies, resulting in inherent currency exposure relative to sterling-denominated liabilities; · Sterling movements during the quarter had positively impacted reported asset values, although currency volatility remained a material risk; · Currency hedging strategies were available but could be costly and complex, requiring careful consideration within the overall investment strategy; · The historic relationship between asset classes had shifted, with higher interest rates leading to increased correlations and reduced diversification benefits between bonds and equities; · Rising bond yields were placing downward pressure on asset classes such as fixed income and real estate, requiring careful monitoring of duration risk; · Structural investment themes including energy security, defence, resilience and AI were becoming increasingly significant drivers of long-term strategy; · Many investments now exhibited “dual-use” characteristics, particularly in areas such as technology and infrastructure, creating new considerations for ESG and responsible investment policies; · Continued diversification, disciplined rebalancing and long-term strategic positioning remained essential to managing risk and delivering sustainable returns. 10.6 Following questions by the Committee, Officers and Advisers confirmed the following points: • Currency risk would be considered further as part of the upcoming investment strategy review; • The Fund’s private market investments were progressing as expected, with early performance impacted by typical “J-curve” characteristics; • Cash levels had temporarily increased due to investment timing but were expected to normalise; • A full review of the Strategic Asset Allocation would be undertaken with the Wales Pension Partnership Investment Management Company; • Broader economic developments would continue to inform investment decision-making and governance oversight. 10.7 Pensions Committee noted the investment performance that has taken place during quarter one of 2026.
11.1 The Committee received a report outlining Member training activity and the proposed training programme for 2026/27. 11.2 Members were advised of enhancements to the LGPS Online Learning Academy (LOLA), including updated content and improved accessibility, supporting compliance with new knowledge and understanding requirements. It was noted that a national knowledge assessment would be introduced later in the year to support regulatory compliance and governance assurance. 11.3 The Pensions Committee noted the training programme and encouraged continued engagement with training opportunities.
12.1 The date of the next meeting was due to take place on 22nd of September 2026.
13.1 The Committee agreed the exclusion of the press and public from the meeting 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.
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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