The Chair welcomed everyone to the meeting.

Apologies had been received from: Stephan van Arendsen and Peter Fieldsend.

Members of the Board are asked to declare any disclosable pecuniary and non-pecuniary interests, in connection with any item(s) on the agenda and state the nature of the interest.

LR declared that she is a governor at Sutton Academy.

To approve the accuracy of the minutes of the meeting held on 10 December 2024, attached.

The minutes of the meeting held on 10 December 2024 were agreed as a correct record.

The Chair asked for his comments regarding the last set of minutes to be put on record as accurate and informative.

Resolved – That the minutes were agreed as an accurate record.

The Head of Pensions Administration introduced the report which provided an overview of the changes affecting the funding framework within the Local Government Pension Scheme (LGPS), following the publication of the Scheme Advisory Board’s (SAB) updated guidance for preparing and maintaining a Funding Strategy Statement (FSS).

It also covered the “Crown Guarantee” issued by the Department of Education (DfE) to underpin the pension obligations of the Further Education Sector, with the objective to strengthen employer covenant and reduce contribution plans for Further Education Bodies.

Risks were discussed, including treatment of funding services and climate change. Also discussed were the new government guarantee for Further Education bodies and colleges.

Resolved – That the report be noted.

The Head of Pensions Risk and Finance introduced a report which provided a copy of the budget report recently taken to Pensions Committee. 

A discussion took place around the approved total budget for 2025/26 of £23.3m, being higher than £22.7m for the current financial year, which was due to staffing costs and the increase in staff.

Resolved – That the report and the best practice requirement for Local Government Pension Scheme (LGPS) funds to set budgets sufficient to fulfil resourcing requirements and meet regulatory requirements be noted.

The Head of Pensions, Risk and Finance introduced the report which provided the treasury management policy statement and the treasury management practices for Merseyside Pension Fund (MPF) for the year 2025/26 recently taken to Pensions Committee.

It was noted that there were no changes to that approved for last year – the policy works effectively and is compliant with treasury management.

Resolved – That the report and implications for Merseyside Pension Fund (MPF) be noted. 

The Director of Pensions introduced a report, which provided Board members with the minutes of the meetings of Working Parties from 19/11/2024 and 19/02/2025.

Resolved – That the minutes of the Working Party meetings be noted.

The Director of Pensions provided an update on pooling arrangements in respect of Merseyside Pension Fund (MPF) and the Northern LGPS. Minutes of the previous Northern LGPS Joint Committee meeting were appended for noting.

Resolved – That the report and the minutes of the Joint Committee meeting be noted.

The Director of Pensions spoke to the report, which provided Merseyside Pension Fund’s (MPF) response to the ‘Fit for the future’ consultation. In addition, as invited in the consultation, the Northern LGPS with its partner administering authorities has prepared a separate proposal setting out how it would deliver the proposed pooling model and complete the transfer of all assets including legacy assets. The proposal was attached at appendix 2, which contained information exempt from publication. The Director of Pensions confirmed that he had met with ministers to discuss the business plan submission that pools have made.  Ministers confirmed that they intend to respond in the near future. 

The Chair referred to question 24 and the response which proposed the payment of a Special Responsibility Allowance to Committee Members. The Chair stressed that it was the knowledge built up over the years that was very valuable and, following discussion, it wase suggested that the Board express support for a Special Responsibility Allowance to be funded by the Merseyside Pension Fund for all members of the Pension Committee who undertake the required training.

The Director of Pensions confirmed that he would also raise the issue of the level of the allowance for the Chair of the Pension Committee as the roles responsibilities had increased considerably. 

Resolved – That

1. the response to Merseyside Pension Fund’s response to the ‘Fit for the future’ consultation be noted.

2. the Northern Local Government Pension Scheme’s proposal to deliver the requirement for the establishment of a Financial Conduct Authority regulated investment manager be noted.

3.  The Board convey to Pensions Committee its support for the payment of a Special Responsibility Allowance (SRA) to, all members of the Pensions Committee who complete and maintain stipulated training requirements and that the Administering Authority consider the level of SRA for representatives of the NLGPS Joint Committee.  Any SRA’s must, in line with Local Government Pension Scheme Regulations,  be funded by the Merseyside Pension Scheme and not the Adminsitering Authority General Fund.

The Head of Pensions Administration  introduced a report which provided the Pension Board with monitoring information on the key performance indicators in respect of work undertaken by the administration team during the period 1 October 2024 to 31 December 2024.

Resolved – That the report and the exempt appendix be noted.

The following items contain exempt information.

RECOMMENDATION: That under section 100 (A) (4) of the Local Government Act 1972, the public be excluded from the meeting during consideration of the following items of business on the grounds that they involve the likely disclosure of exempt information as defined by the relevant paragraphs of Part 1 of Schedule 12A (as amended) to that Act. The Public Interest test has been applied and favours exclusion.

Resolved - That under section 100 (A) (4) of the Local Government Act 1972, the public be excluded from the meeting during consideration of the following items of business on the grounds that they involve the likely disclosure of exempt information as defined by the relevant paragraphs of Part 1 of Schedule 12A (as amended) to that Act. The Public Interest test had been applied and favoured exclusion.

The Director of Pensions introduced the exempt appendix of this report, for Local Pension Board to consider.

A discussion took place regarding gender pay gaps and child leave issues.  Additional Pension Contribution issues were also discussed and the upcoming changes.

Resolved – That the exempt appendix to the report be noted.

The Head of Pensions Administration introduced the exempt appendix of this report, for Local Pension Board to consider. 

Resolved – That the exempt appendix to the report be noted

The Director of Pensions introduced this report which included a copy of Merseyside Pension Fund’s Risk Register for consideration by the Board. The Risk Register included in the agenda did not include the latest changes and a verbal update was provided.

Several risks were discussed.

Resolved - That the changes to the risk register be noted. 

The Chair declared his intention to end his time as Chair on 30 September after Chairing the Pension Board for 10 years.  A new Chair would need to be elected.  The Chair added it has been great chairing this Board with two more meetings left to Chair.

The Board added they will be very sad to see him leave.