Agenda item

Report of the Chamberlain

The Committee considered a report of the Chamberlain reviewing the Risk Register for the Pensions Committee. The Chamberlain introduced the report and presented the Risk Register to Members, advising that it was an amalgamation of the risks overseen by the Local Government Pensions Board and the Financial Investment Board, with a number of risks in common with other committees. The Chamberlain added that amendments had been made to reflect the new governance arrangements.

In response to a question from the Chair regarding the risk of Insufficient Assets, the Chamberlain advised that it had not been necessary to top up the Pension Fund over the last few years, and that the risk would be reassessed following the next valuation of the Fund. The Chamberlain added that the Risk Register was presented on the corporate template, with there being limited scope to amend the format where it did not lend itself to presenting specific Pensions risks. With regards to the risk of Employer Insolvency, the Chamberlain advised that any liability for the City Corporation arising from the insolvency of other bodies would be considered on a case-by-case basis, depending on how that body was funded. In response to questions from Members, the Chamberlain outlined the key elements of the risk on Cybersecurity and advised that a separate Pensions Administration System was in place, which was hosted offsite. The Chamberlain added that there was no specific Cybersecurity Policy for the Pension Fund.

The Chair noted that the Committee were due to consider valuation assumptions and longevity analysis at the next meeting, and sought additional details on this. The Chamberlain advised that the appointment of an independent member and establishment of a small working group to assist with the Actuarial Valuation would be recommended, and that reporting to Committee would depend on when actuary results were received, with these expected in late September.

The Committee then discussed the potential impact of regulatory decisions such as that in respect of McLeod Limited, with the Chamberlain advising that this was a risk for all local government pension schemes, particularly on the administrative side, and that further regulatory guidance on this was anticipated.

The Chair then drew the Committee’s attention to the recommendations, and proposed that the Committee review their Risk Register at each meeting during their first year, adding that there would be a particular need for review following the Triennial Valuation. The Committee agreed to review the Risk Register at each meeting until the next municipal year.

RESOLVED – That the Pensions Committee:

i)              Review the existing risks and actions present on the Pensions Committee’s Risk Register, and confirm that appropriate control measures are in place;

ii)             Confirm that there are no further risks relating to the services overseen by the Pensions Committee; and

iii)           Agree to review the Risk Register at each meeting until the next municipal year.