Agenda item

The Governance & Risk Advisor introduced the report to the Committee and highlighted the following areas.

·  The workplan for the Committee for the year ahead is attached as Appendix 1. The purpose of the workplan is to provide members with an indication of their future workload and the associated timetable.

• Hyman’s LGPS Online Learning Academy (LOLA) – The current training schedule for studying the Hymans LOLA modules runs until 31 March 2026.  

• The Pension Regulator’s General Code of Practice – Action Plan: The Fund has reviewed its action plan towards compliance with the TPR GCOP. A few tasks have not been completed and these actions have been carried over to a new 2026 action plan.

Risk Management Review

·  The risk register and framework quarterly review has taken place with the following changes made to risks and scores for this quarter:

·  NR01 – Poor service levels below agreed standards – the likelihood of this risk has been reduced from likely to possible to reflect the fact that the administration is in a much better position, with backlogs reduced, KPIs consistently met and recruitment and retention stable.

·  NR02 – Regulatory changes – the pre mitigant score has been reviewed and the likelihood amended from likely to almost certain. The post mitigant likelihood is also almost certain as although the mitigants are managing the impacts the amount of change still make it likely that member outcomes could be impacted.

·  NR19 – Move to new asset pool – the latest position reflects more certainty now that the move to LPPI has been confirmed, with legal agreements nearly finalised. The likelihood has been reduced from almost certain to likely as the consequences of the impacts identified are now less likely.

·  NR11 – Brunel fails to deliver client objectives – this risk has been reworded to reflect the move to LPPI, although the actual risks remain the same.

Internal Audit’s Annual Review

·  Internal Audit presented their findings and Plan 2026/27 to the Pension Board on 11^th March 2026. The Pension Board meeting report is attached as appendix 6, 6a, 6b & 6c.

Pauline Gordon referred to risk NR10 (Failure to earn investment returns as per Funding Strategy) and asked if a dialogue was in place with employers regarding the potential for the need for contributions to rise.

The Pensions Valuation Advisor replied that this would be looked at over the next quarter and would take into account best practice -v- best value. She added that contributions will be monitored and at this stage were not expected to change.

Shona Jemphrey referred to risk NR06 (Loss of IT, including cyber-attack & loss of power) and asked how this could be improved.

The Governance & Risk Advisor replied that it was still felt that this should remain as the top risk having just moved to the cloud hosting arrangement and the upcoming introduction of the Pensions Dashboard. She added that a Business Continuity Planning Audit has begun and officers would be guided by what, if any, recommendations are made at the conclusion of the audit.

Jackie Peel suggested whether the Committee should have a deeper dive into the cyber risks that could affect the Fund at some point.

Edmund Cannon asked if Hymans were able to offer any modular training regarding hedging or Liability Driven Investment (LDI).

The Governance & Risk Advisor replied that the Hymans modules do not go into that level of detail as not all Funds will have LDI in place.

The Committee RESOLVED to:

i) Note the Committee workplan & training programme

ii) Note the TPR’s General Code of Practice action plan

iii) Note the risk register

iv) Note Internal Audit’s annual review