Hampshire County Council
Councillors:
78
Wards:
76
Committees:
49
Meetings (2025):
165
Meetings (2024):
156
Meeting
Hampshire Pension Fund Panel and Board - Hampshire
Meeting Times
Scheduled Time
Start:
Friday, 19th July 2024
10:00 AM
Friday, 19th July 2024
10:00 AM
End:
Friday, 19th July 2024
2:00 PM
Friday, 19th July 2024
2:00 PM
Meeting Status
Status:
Confirmed
Confirmed
Date:
19 Jul 2024
19 Jul 2024
Location:
Ashburton Hall - HCC
Ashburton Hall - HCC
Meeting Attendees
Co-opted Deputy
Councillor Simon Letts
Employer Representative - Southampton City Council
Apologies
Co-opted Member
Councillor Judith Smyth
Employer Representative - Portsmouth City Council
Present, as expected
Co-opted Member
Councillor Paul Taylor
Employer Representative - HIOWLGA
Absent
Co-opted Member
Phillip Reynolds
Scheme Member Representative - Pensioner Representative
Present, as expected
Co-opted Deputy
Paul Barber
Scheme Member Representative - Substitute
Not required
Co-opted Member
Arron Hedges
Scheme Member Representative - Active
Present, as expected
Co-opted Member
Simon Walker
Scheme Member Representative - Deferred
Present, as expected
Monitor
Carolan Dobson
Independent Adviser
Copy docmts only
Co-opted Member
Amelia Nirmal
Employer Representative - Other Employer
Present, as expected
Committee Member
Councillor Dominic Hiscock
Present, as expected
Agenda
1
Apologies for Absence
To receive any apologies for absence.
Minutes
Apologies for absence were received from Councillor Andrew Joy.
Mr Paul Barber was in attendance as an observer.
Mr Paul Barber was in attendance as an observer.
2
Declarations of Interest
All Members who believe they have a Disclosable Pecuniary Interest in any matter to be considered at the meeting must declare that interest and, having regard to Part 3 Paragraph 1.5 of the County Council's Members’ Code of Conduct, leave the meeting while the matter is discussed, save for exercising any right to speak in accordance with Paragraph 1.6 of the Code. Furthermore all Members with a Personal Interest in a matter being considered at the meeting should consider, having regard to Part 5, Paragraph 4 of the Code, whether such interest should be declared, and having regard to Part 5, Paragraph 5 of the Code, consider whether it is appropriate to leave the meeting while the matter is discussed, save for exercising any right to speak in accordance with the Code.
Minutes
Members were mindful that where they believed they had a Disclosable Pecuniary Interest in any matter considered at the meeting they must declare that interest at the time of the relevant debate and, having regard to the circumstances described in Part 3, Paragraph 1.5 of the County Council's Members' Code of Conduct, leave the meeting while the matter was discussed, save for exercising any right to speak in accordance with Paragraph 1.6 of the Code. Furthermore Members were mindful that where they believed they had a Personal Interest in a matter being considered at the meeting they considered whether such interest should be declared, and having regard to Part 5, Paragraph 5 of the Code, considered whether it was appropriate to leave the meeting whilst the matter was discussed, save for exercising any right to speak in accordance with the Code.
No declarations were made.
No declarations were made.
3
Confirmation of Minutes (Public)
To confirm the public minutes of the previous meeting held on 30 May 2024.
Attachments:
- Document Minutes , 30/05/2024 Hampshire Pension Fund Panel and Board 11 Jul 2024
Minutes
The minutes of the previous meeting on 30 May 2024 were agreed as a true record and signed by the Chairman.
4
Deputations
To receive any deputations notified under Standing Order 12.
Minutes
No deputations were received by the Panel and Board on this occasion.
5
Chairman's Announcements
To receive any announcements the Chairman may wish to make
Minutes
The Chairman made Members aware that the contract currently held by Waystone was being re-tendered, with the expectation that the tender process would be concluded by the end of August and the outcome reported to the next meeting.
6
Appointments to the RI Sub-Committee
To consider a report from the Director of Corporate Operations asking the Panel and Board to agree appointments of members and deputies to the Responsible Investment sub-committee.
Attachments:
- Document Responsible Investment sub-committee appointments 11 Jul 2024
Minutes
The Panel and Board considered a report from the Director of Corporate Operations asking the Panel and Board to agree appointments of members and deputies to the Responsible Investment sub-committee.
RESOLVED:
That Cllrs Kemp-Gee, Thacker, Glen, Hiscock and Smyth and Mr Reynolds were appointed to the Responsible Investment Sub-Committee, with Cllrs Mocatta, Harrison, Letts and Mr Walker appointed as substitute members.
RESOLVED:
That Cllrs Kemp-Gee, Thacker, Glen, Hiscock and Smyth and Mr Reynolds were appointed to the Responsible Investment Sub-Committee, with Cllrs Mocatta, Harrison, Letts and Mr Walker appointed as substitute members.
7
ACCESS Joint Committee minutes 4 March 2024 (Public)
To receive the public minutes of the ACCESS Joint Committee held on 4 March 2024.
Attachments:
- Document ACCESS - PUBLIC minutes 11 Jul 2024
- Document ACCESS 4 March 2024 11 Jul 2024
Minutes
The Panel and Board received and noted the public minutes of the ACCESS Joint Committee on 4 March 2024.
8
Governance: Annual Report and Accounts
To consider a report of the Deputy Chief Executive and Director of Corporate Operations introducing the 2023/24 draft Pension Fund annual report and annual highlights document.
Attachments:
- Document PFPB Annual Report 11 Jul 2024
- Document Annex 1 draft Annual Report 23-24 11 Jul 2024
- Document Annex 2 draft Hampshire Pension Fund Highlights 23-24 11 Jul 2024
Minutes
The Panel and Board considered a report of the Deputy Chief Executive and Director of Corporate Operations introducing the 2023/24 draft Pension Fund annual report and annual highlights document.
Members heard that new guidance had been issued at the end of March 2024, outlining changes required to the format of annual reports. It was noted that officers had responded to the guidance and made the required changes within the short timeframe allowed.
It was noted that, in order to comply with the new guidance, the order and volume of information within the report had increased significantly, therefore officers had produced a separate one page summary of the key messages of the annual report, to enable it to be more accessible to stakeholders. This highlights document will be published on the Pension Fund’s website alongside the annual report.
It was reported that, as at 31 March 2024, the value of the Pension Fund had increased to £10bn, which was its highest year-end value to date. The Fund’s investments produced a 9% absolute return in the 12 months to 31 March 2024, which represents the Fund outperforming the market, although below the target set as a result of market conditions in year.
Officers informed the Panel and Board that the report was being presented in draft, as the accounts were subject to external audit, which was being undertaken at the time of the meeting.
Members identified the report did not include all training which had been undertaken during the year, with this to be added before the final publication.
In response to Members questions it was heard that:
· The final report would be published once the external auditors had completed their work, with a draft of the report to be published on the Pension Fund website by the end of July 2024 subject to any further amendments.
· ACCESS had undertaken a recent peer review of governance arrangements, with a report to be taken to the next meeting of the ACCESS Joint Committee in September 2024.
· It was noted that reliance upon and confidence which comes from the experience of the Chairman and Vice Chairman of the Panel was significant, with suggestion that Members’ skills and experience should be considered within the risk register for the Pension Fund, particularly considering forthcoming County elections in 2025. The Chairman, who was also the Chairman of the ACCESS Joint Committee, noted that the joint committee operated collectively, and the membership was politically diverse and had a strong collective knowledge and skill base.
· The delay in completion of external audit was a national issue, which central government was seeking to address.
· Members questioned the cost of investment management, reflecting that the cost per member was higher than national average. It was heard that the investment cost benchmarking, as reported to the previous meeting of the Panel and Board, demonstrated that the cost of investment management funds was more favourable than peers, due to the class of the investments within the portfolio. It was suggested that this be made clearer within the report, for transparency to members.
· Officers at Hampshire were working closely with the ACCESS Pool to support the investment strategy.
· The fiduciary duty of the Panel and Board was its primary responsibility; however, consideration would be given to the Government’s suggestion that 10% of the fund be invested in infrastructure within the UK, providing it didn’t conflict with the fiduciary duty.
Members noted the number of positive messages contained throughout the report and acknowledged and offered thanks to officers for the work they had undertaken and for the presentation of the report, which had been formatted by Hampshire County Council’s internal design team.
RESOLVED:
· That the Panel and Board reviews the contents of the draft annual report for 2023/24 and approves its publication.
· That the Panel and Board reviews the contents of the draft annual highlights document for 2023/24 and approves its publication.
· That the Deputy Chief Executive and Director of Corporate Operations is authorised to make any necessary minor amendments to the annual report and annual highlights document prior to publication as detailed in paragraphs 13 to 15.
· That the Panel and Board notes the remainder of this report, including the statement of compliance with the new annual report guidance issued by the Department for Levelling Up, Housing and Communities.
Members heard that new guidance had been issued at the end of March 2024, outlining changes required to the format of annual reports. It was noted that officers had responded to the guidance and made the required changes within the short timeframe allowed.
It was noted that, in order to comply with the new guidance, the order and volume of information within the report had increased significantly, therefore officers had produced a separate one page summary of the key messages of the annual report, to enable it to be more accessible to stakeholders. This highlights document will be published on the Pension Fund’s website alongside the annual report.
It was reported that, as at 31 March 2024, the value of the Pension Fund had increased to £10bn, which was its highest year-end value to date. The Fund’s investments produced a 9% absolute return in the 12 months to 31 March 2024, which represents the Fund outperforming the market, although below the target set as a result of market conditions in year.
Officers informed the Panel and Board that the report was being presented in draft, as the accounts were subject to external audit, which was being undertaken at the time of the meeting.
Members identified the report did not include all training which had been undertaken during the year, with this to be added before the final publication.
In response to Members questions it was heard that:
· The final report would be published once the external auditors had completed their work, with a draft of the report to be published on the Pension Fund website by the end of July 2024 subject to any further amendments.
· ACCESS had undertaken a recent peer review of governance arrangements, with a report to be taken to the next meeting of the ACCESS Joint Committee in September 2024.
· It was noted that reliance upon and confidence which comes from the experience of the Chairman and Vice Chairman of the Panel was significant, with suggestion that Members’ skills and experience should be considered within the risk register for the Pension Fund, particularly considering forthcoming County elections in 2025. The Chairman, who was also the Chairman of the ACCESS Joint Committee, noted that the joint committee operated collectively, and the membership was politically diverse and had a strong collective knowledge and skill base.
· The delay in completion of external audit was a national issue, which central government was seeking to address.
· Members questioned the cost of investment management, reflecting that the cost per member was higher than national average. It was heard that the investment cost benchmarking, as reported to the previous meeting of the Panel and Board, demonstrated that the cost of investment management funds was more favourable than peers, due to the class of the investments within the portfolio. It was suggested that this be made clearer within the report, for transparency to members.
· Officers at Hampshire were working closely with the ACCESS Pool to support the investment strategy.
· The fiduciary duty of the Panel and Board was its primary responsibility; however, consideration would be given to the Government’s suggestion that 10% of the fund be invested in infrastructure within the UK, providing it didn’t conflict with the fiduciary duty.
Members noted the number of positive messages contained throughout the report and acknowledged and offered thanks to officers for the work they had undertaken and for the presentation of the report, which had been formatted by Hampshire County Council’s internal design team.
RESOLVED:
· That the Panel and Board reviews the contents of the draft annual report for 2023/24 and approves its publication.
· That the Panel and Board reviews the contents of the draft annual highlights document for 2023/24 and approves its publication.
· That the Deputy Chief Executive and Director of Corporate Operations is authorised to make any necessary minor amendments to the annual report and annual highlights document prior to publication as detailed in paragraphs 13 to 15.
· That the Panel and Board notes the remainder of this report, including the statement of compliance with the new annual report guidance issued by the Department for Levelling Up, Housing and Communities.
9
Investment: Cash Outturn report
To receive a report from the Director of Corporate Operations updating the Pension Fund Panel and Board on the policy for managing the Hampshire Pension Fund’s cash balance.
Attachments:
- Document Cash 202324 Outturn 11 Jul 2024
Minutes
Members received a report from the Director of Corporate Operations updating the Pension Fund Panel and Board on the policy for managing the Hampshire Pension Fund’s cash balance.
It was noted that all activity had complied with the cash strategy and all necessary statute and guidance and that the cash balance was £79m at the end of 2023/2024.
In response to Members questions it was heard that £40m to £60m would be held in cash by the Fund as a minimum. During the year cash balances rose significantly due to a number of employers making pre-payments of employer contributions, which were then invested within the Fund’s investment manager portfolios.
RESOLVED:
That the outturn report on the Pension Fund’s cash management in 2023/24 be approved.
It was noted that all activity had complied with the cash strategy and all necessary statute and guidance and that the cash balance was £79m at the end of 2023/2024.
In response to Members questions it was heard that £40m to £60m would be held in cash by the Fund as a minimum. During the year cash balances rose significantly due to a number of employers making pre-payments of employer contributions, which were then invested within the Fund’s investment manager portfolios.
RESOLVED:
That the outturn report on the Pension Fund’s cash management in 2023/24 be approved.
10
Governance: Letter from the Minister
To receive a report from the Deputy Chief Executive and Director of Corporate Operations outlining questions received from the previous Minister at the Department of Levelling-up, Housing and Communities (DLUHC) and the current draft response from the Deputy Chief Executive and Director of Corporate Operations.
Attachments:
- Document Letter from the Minister 11 Jul 2024
Minutes
The Panel and Board received a report from the Deputy Chief Executive and Director of Corporate Operations, outlining questions received from the previous Minister at the Department of Levelling-up, Housing and Communities and the current draft response from the Deputy Chief Executive and Director of Corporate Operations.
Members observed that the draft response was well structured with the salient points clearly made.
RESOLVED:
That the report is noted.
Members observed that the draft response was well structured with the salient points clearly made.
RESOLVED:
That the report is noted.
11
Governance: Administration update
To receive a report from the Director of Corporate Operations updating the Panel and Board on administration performance for 2023/24 and developments affecting the pension scheme in the first part of 2024/25.
Attachments:
- Document PFPB Administration update 11 Jul 2024
- Document TPR short compliance report 11 Jul 2024
- Document Annex 2 TPR single code compliance improvement plan 11 Jul 2024
Minutes
Members received a report from the Director of Corporate Operations, updating the Panel and Board on administration performance for 2023/24 and developments affecting the pension scheme in the first part of 2024/25.
It was heard that the team had paused work on the data upload for the McCloud remedy until the Autumn, in line with the McCloud Judgment guidance, but continued to process payments for all leavers on a case by case basis where the guidance applied.
Members noted the positive performance of the pension administration team and commended the meeting of targets across the board.
It was noted that whist the report showed that there had been a significant value of late payments, 90% of the late payments related to one particular employer.
Members were informed that the table at paragraph 13 should state that all coursework was measured against a 30 days, rather than 15.
RESOLVED:
That the Panel and Board note the continuing good performance of the administration team and the information contained in this report.
It was heard that the team had paused work on the data upload for the McCloud remedy until the Autumn, in line with the McCloud Judgment guidance, but continued to process payments for all leavers on a case by case basis where the guidance applied.
Members noted the positive performance of the pension administration team and commended the meeting of targets across the board.
It was noted that whist the report showed that there had been a significant value of late payments, 90% of the late payments related to one particular employer.
Members were informed that the table at paragraph 13 should state that all coursework was measured against a 30 days, rather than 15.
RESOLVED:
That the Panel and Board note the continuing good performance of the administration team and the information contained in this report.
12
Exclusion of the Press and Public
That in relation to the following items the press and public be excluded from the meeting, as it is likely, in view of the nature of the business to be transacted or the nature of proceedings, that if a member of the public were present during the items there would be disclosure to them of exempt information within Paragraph 3 and 5 of Part 1 of Schedule 12A of the Local Government Act 1972, and further that in all circumstances of the case, the public interest in maintaining the exempt information outweighs the public interest in disclosing the information, for the reasons set out in the report.
Minutes
RESOLVED:
That the public be excluded from the meeting during the following items of business, as it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the public were present during these items there would be disclosure to them of exempt information within Paragraphs 3 and 5 of Part 1 of Schedule 12A to the Local Government Act 1972, and further that in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, for the reasons set out in the reports.
That the public be excluded from the meeting during the following items of business, as it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the public were present during these items there would be disclosure to them of exempt information within Paragraphs 3 and 5 of Part 1 of Schedule 12A to the Local Government Act 1972, and further that in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, for the reasons set out in the reports.
13
Confirmation of the Minutes of the Previous Meeting (Exempt)
To confirm the exempt minutes of the meeting held on 30 May 2024.
Attachments:
14
ACCESS Joint Committee minutes 4 March 2024 (Exempt)
To receive the exempt minutes of the ACCESS Joint Committee held on 4 March 2024.
Attachments:
- Document ACCESS - EXEMPT minutes - cover sheet 11 Jul 2024
- Document CCESS 4 March 2024 EXEMPT 11 Jul 2024
15
Governance: Administration update (Confidential Appendix)
To receive a confidential appendix to the Administration update (Item 11 of the agenda).
Attachments:
- Document Annex 1 Cyber Security 11 Jul 2024
16
Governance: Letter from the Minister (Confidential Appendix)
To receive a confidential appendix to the Letter from the Minister (Item 10 of the agenda).
Attachments:
- Document Item 16 Letter from the Minister appendix 11 Jul 2024
- Document Annex 1 Ministers letter - Efficiencies in LGPS Letter 11 Jul 2024
- Document Annex 2 response to the Minister's letter 11 Jul 2024
17
Investment - Investment Update
To consider the exempt report of the Deputy Chief Executive and Director of Corporate Operations updating the Panel and Board on the Pension Fund’s investments since the last meeting of the Pension Fund Panel and Board.
Attachments:
- Document PFPandB investment performance 11 Jul 2024
- Document 2024.07.19 PFPB - Minutes - Exempt 220 29 Aug 2024
Previous Meetings
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