Agenda item

The purpose of this report is to present to Committee the 3 Year Service Plan and Budget for the period 1 April 2020 to 31 March 2023. 

The Head of Business, Finance and Pensions introduced this report to the Committee. He explained that the Service Plan sets out the Pension Fund’s objectives for the next three years and that the three-year budget supports the objectives and actions arising from the plan including work relating to the investment strategy, risk management and compliance and improvements in the administration of the Fund.

He highlighted the following points to the Committee.

·  To work with Brunel Client Group and Brunel to ensure efficient transition of assets and full consideration of all investment, financial and governance issues.  Ensure Committee and Board kept up to date of progress.

·  The need to understand the impact Covid-19 will have on current staff and how they work, projects and new staffing proposals.

·  To continue the implementation of the IT strategy to achieve a digital step change in service delivery and to mitigate service demand growth.

·  Undertake a structural review of digital IT platform and service delivery.

Shirley Marsh-Hughes asked if there were enough resources in place should the Fund need to outsource any elements of its work.

The Head of Business, Finance and Pensions replied that money has been allocated should the need for outsourcing occur. He added that the current plan was to begin recruiting in July and to appoint two members of staff a month and operate a buddy system to help them once they commence in post.

Councillor John Cato commented that with regard to the tasks listed in Appendix 2a (Administration Strategy) it would be good to have a level of importance to the ones marked as red.

William Liew asked if the Fund would be assessing the impact and subsequent risk of Covid-19 on employers that participate in the scheme.

The Group Manager for Funding, Investment & Risk replied that they would encourage employers to have a dialogue with officers within the Fund to discuss problems. She added that they do monitor them as much as possible.

William Liew asked if the Fund pays into a Pension Protection Fund.

The Group Manager for Funding, Investment & Risk replied that it does not.

Councillor Toby Savage said that he agreed with the earlier comments relating to the RAG rating and would like to understand which reds are worse than others.

The Head of Business, Finance and Pensions replied that the RAG had not been reviewed since May and that the team would work on the document to expand on the information contained within it.

Councillor Paul May asked if the issue of Climate Change would be within the job description of at least one of the new posts that have been mentioned.

The Head of Business, Finance and Pensions replied that they were seeking for one of the posts to be Environmental, Social, and Governance (ESG) / Climate Change specific.

The Committee RESOLVED to approve the 3 Year Service Plan and Budget for 2020-23 for the Avon Pension Fund.