Question 1 (b) -Evidence of approval that the officer completing this application has the necessary authorisation to do so.
The authority to complete the Elective Professional Client - Status Assessment form was approved by Cumbria Pensions Committee on 19th September 2017 as agenda item 13. A weblink to the Agenda reports pack for this meeting is provided below:
In paragraph 3.2 of this report it was recommended that Pensions Committee “Agrees that applications from the Administering Authority for opting up to elective professional client status should be made on behalf of the Fund with all current managers promptly in order to ensure it can continue to implement an effective investment strategy.”
Question 2 - Evidence of the scheme of delegation to confirm decisions are delegated to committee or sub- committee with partial delegation to an officer or officers.
The Cumbria Pensions Committee is responsible for carrying out the Council's functions as the delegated decision making body of the Administering Authority for the management of the Cumbria Local Government Pension Scheme which includes its involvement in the Border to Coast Pension Partnership (BCPP) as the Council's approved Pension Pool.
The functions of the Cumbria Pensions Committee and Investment Sub Group are detailed in part 2, section 5, section 15 of the Westmorland and Furness Constitution starting on page 77(of 256), available at:
The delegations to the Director of Resources (Section 151 Officer) are set out in Part 2, Section 6, section 3.11 of the Constitution of Westmorland and Furness Council starting at page 90 (of 256) available at:
Section 2: Expertise, experience and knowledge
Question 1 - Evidence that Members are provided with a written brief on joining the committee.
Members joining the Cumbria Pensions Committee are given specific induction training. A link to the slides from the training session on July 2022 is provided below.
Question 2 - Example of training offered to Members on investment matters in the last 12 months?
Members will always be provided with training in advance of any investment strategy or new tactical investment decision made. As an example, attached below is part of the training programme to complement a review of the Fund’s Investment Strategy. This was provided to Committee in September 2017 to support their subsequent decision making regarding the strategic asset allocation. This included specific investment training on multi asset credit, private rental sector and equity protection.
Pp_Cumbria Investment-strategy-review 31Aug.pdf
We have provided an example of historic training, however due to the copyright and confidentiality aspects of ongoing training, please contact the Fund on [email protected] if you required any further examples of the training that is being provided.
Question 6 - Details of the Members' self-assessment tool with regard to their knowledge of investments
Members of the Cumbria Pensions Committee are required to complete an annual self-assessment of their skills. This self-assessment is based on the CIPFA knowledge and skills framework and considers the areas of knowledge and skills that have been identified as the core technical requirements for those working in public sector pensions:
- pensions legislation and guidance;
- pensions governance;
- funding strategy and actuarial methods;
- pensions administration and communication;
- pensions financial strategy, management, accounting, reporting and auditing standards;
- investment strategy, asset allocation, pooling, performance and risk management;
- financial markets and products; and
- pension services procurement, contract management and relationship management.
A link to a copy of the questionnaire is provided below.
Section 3: Investment history and strategy
Question 2 - Provide a link to the most recent version of the authority’s Investment Strategy Statement.
The Investment Strategy Statement (ISS) of Cumbria LGPS is included within the Fund Policy Document (starting on p.39). A link to this document is provided below.
https://www.cumbriapensionfund.org/media/dtcbfdih/clgps-fund-policy-document.pdf
Section 4: Understanding risks
Question 1 - Details of the authority's risk framework and/or risk management policy in relation to investments
The Fund’s approach to risk management & reporting and its appetite for risk are considered in Section 4.5 of the Fund’s Investment Strategy Statement (please see the link to our ISS in our response to Section 3 Q2 above).
Furthermore, the Fund’s approach to financial risk, demographic risk, regulatory and governance risks are considered in section 6.7 of the Funding Strategy Statement (please see the link to our ISS in our response to at Section 3 Q2 above – section 6.7 starts on page 72).
Both of these statements are driven by the Fund’s Investment Beliefs. All risks are continually monitored by officers and considered at each quarterly Committee meeting.
Both the Investment Strategy Statement and the Funding Strategy Statement are included within the Fund Policy Document.
Question 3 - Copy of the last review of the Fund's risk framework and/or risk management policy.
The Fund’s approach to risk management & reporting and its appetite for risk are reviewed annually with the last review being presented to the Cumbria Pensions Committee in March 2023. Agenda item 10 “Cumbria LGPS Fund Policy Document Annual Review” was considered by the Committee. The Fund Policy Document includes both the Investment Strategy Statement and the Funding Strategy Statement.
A link to the agenda for this meeting is provided below:
Question 4 - Examples of training provided to those directly involved in decision making on risk management, including focussed training on understanding the risks involved with investments.
All training provided to those directly involved in decision making includes a consideration of the risks relevant to the topic being presented.
Attached below is an example of training provided to Committee in September 2017 relating to a review of the Investment Strategy. The full training pack included consideration of investment risks throughout.
Pp_Cumbria Investment-strategy-review 31Aug.pdf
We have provided an example of historic training, however due to the copyright and confidentiality aspects of ongoing training, please contact the Fund on [email protected] if you required any further examples of the training that is being provided.
Question 5 - Details of the Members' self-assessment tool with regard to their understanding of risk management.
Members of the Cumbria Pensions Committee are required to complete an annual self-assessment of their skills. This self-assessment is based on the CIPFA knowledge and skills framework and considers the areas of knowledge and skills that have been identified as the core technical requirements for those working in public sector pensions.
- pensions legislation and guidance;
- pensions governance;
- funding strategy and actuarial methods;
- pensions administration and communication;
- pensions financial strategy, management, accounting, reporting and auditing standards;
- investment strategy, asset allocation, pooling, performance and risk management;
- financial markets and products; and
- pension services procurement, contract management and relationship management.
A link to a copy of the questionnaire is provided below.
Section 5: Support for investment decisions taken by committee/sub-committee of the authority
Question 3 - Details of the succession plan to manage key person risk.
The Senior Manager - Pensions & Financial Services (Deputy Section 151 Officer) has the responsibility to “Ensure that the Cumbria LGPS is impartially, effectively and efficiently operated on behalf of all Scheme members and employers. In the capacity as Deputy Section 151 Officer for Cumbria LGPS deputise for the Section 151 Officer as and when required.”
A link to a copy of the Senior Manager – Pensions & Financial Services (Deputy Section 151 Officer) Job Description is provided below.