To consider the following reports:

Appendix 1 – Funding Strategy Statement

Appendix 2 - Pension Fund Business Plan 2020-21

The Pension Services Manager introduced the report that detailed a number of Administering Authority policy statements for review as set out on the Panel’s work programme.

The Panel were informed that the purpose of this paper was to identify for the Panel a number of policies for their consideration and review as set out in the work-plan for 2019-20 in order to meet certain Administering Authority statutory requirements set out in the Regulations.

Both appendices had tracked changes highlighting the proposed amendments.  The Funding Strategy Statement had been updated following the 2019  triennial valuation, additions around admitted bodies and pension risks and the exit credit policy.  The Business Plan was the annual update that would have gone to the March 2020 meeting had it not been cancelled due to Covid 19.

Cllr Da Costa asked who authorised the reports on the work programme and who reviewed the documents.  He also formally proposed that the Panel obtain a statement and report on the valuations and liabilities with regard to Covid 19 for issuing to members and attaching to the reports.  He requested that the Business Plan be revised to consider the known changes in cash flow due to deferment and investment issues, and reflect the icvid situation in the Business Plan.

Cllr Da Costa also raised concern that the Governance Flowchart noted did not reflect the actual responsibility and authority levels. With regards to the External Audit he asked that the chart is updated with regard to responsibilities and flows Governance Structure Flowchart.

The Panel were informed that the administering authority were required to update and produce policies in line with regulations and this drove the work programme.  The Pension Board had reviewed the reports ad raised no concerns.  With regards to Covid 19 emergency policies were in place and employers had been contacted; two had come back that there was a risk of a deferral of payments.  The policies regarding this were on the website and regulations stipulated that all payments for this contribution period would have to be made by 31 March 2020.

Richard Tomlinson, LPP, informed that there had been a fall in the markets due to C-19 but there was now a recovery in market value.  The portfolio will be a few percent down.  They may be an issue in property if businesses ask for a rent break or if demand falls. This fund was not as exposed due to a larger percentage in the equity market.  There was less concern from the investment side but more from the contribution side.

Cllr Hilton asked that under section ‘Financial Risks’ paragraph 5.3 why the discounts rates and liability figures had changes and was informed that this had been updated from the actuary after the valuation.

The Chairman said that with regards to the Business Plan he felt that there was no need to update for each potential individual event as there were business continuity policies in place.

Cllr Law said he understood why Cllr Da Costa was asking for a statement but did not feel the Business Plan needed changing in light of the current situation.

The Panel were informed that the Investment Strategy was due in September 2020 and this may be more relevant to Cllr Da Costa’s concerns.  It was noted that the IWG help produce the investment strategy and an investment training session could be provided if required.

Resolved:  That the Panel notes the report and:

i) Subject to any amendments being proposed, approves the policy statements set out in the appendices to the report as continuing to be fit for purpose.

ii) Request that officers produce and publish the approved policy statements on the Berkshire Pension Fund website.

(Cllrs Hilton, Sharpe, Story and Bond voted for the recommendations.  Cllr Da Costa abstained)