Agenda item

Corporate Planning Framework 2025 - 2028

Minutes:

 

The Director introduced the context of the refresh of the Corporate Planning Framework and the Assistant Director – Resources presented the report and sought members’ consideration and approval for the triennial detailed refresh and update of the complete corporate planning framework.  

 

Members asked how and when the Authority planned to engage with stakeholders regarding the Investment Strategy and other decisions. 

 

The Director explained that a questionnaire regarding Responsible Investment and Environmental, Social and Governance matters in relation to SYPA’s investments had been developed by an independent market research company and would start to be circulated to all scheme members, active, deferred and pensioners, on a phased basis from 19 February 2025. The Director explained that an independent market researcher was being used to ensure the questions held no bias in favour of the Authority and because they had the technology and expertise to analyse the responses thoroughly and effectively. A report on the results will be presented to the Authority when ready and the Director agreed to circulate a blank version of the survey to all members following the meeting for reference. 

 

The Director explained that a different strategy was required to consult with employers as they have different priorities to scheme members regarding the Investment Strategy. It was explained that engagement was on going and in progress and that close communication between SYPA and employers would continue through to the finalisation of the valuation of the fund in December 2025. 

 

Members queried whether the action to develop and deliver an Environmental Sustainability plan referred to a new or existing plan and asked for further information on the indicators for success in responsible investment (the trend in level of carbon emissions and in the ESG score from equity portfolios compared to benchmark indices) as noted in the Investment Strategy. 

 

The Assistant Director – Resources stated that the Environmental Sustainability plan was a new plan, yet to be started, regarding how SYPA operate as an organisation. It was explained that the Net Zero goals related to investments only and that this plan would look at metrics to measure sustainability of SYPA as an organisation. 

 

The Assistant Director – Investment Strategy explained that indicators for Responsible Investment were covered in quarterly reports including information regarding the investments held by Border to Coast Pensions Partnership and the metrics regarding carbon emissions and carbon intensity. It was explained there was a formalised scoring mechanism to gauge the ESG score which shows absolute performance and performance in relation to benchmark indices along with tracking of progress. 

 

Members noted the action to implement the outcomes arising from the Government’s Fit for the Future consultation and asked if SYPA had adequate resources to cope with the potential workload. 

 

The Director explained that the workload and the pressure on SYPA would depend on how the Government resolves to enforce implementation of the changes. It was explained that a legal mandate to force changes would add pressure but that a more likely outcome would the continuing development of products and opportunities in line with the changes giving funds the opportunity to evolve with less pressure on resources. It was also explained that any pressure from the Government would be more aimed at the pooling companies than administering authorities. The Chair added that implications of the outcomes were a primary concern throughout the industry but noted that SYPA was in a stronger position than many as its governance and investment plans were already aligned with the proposed changes. 

 

Members noted the aim in the Pension Administration section of the plan to clear the remaining backlogs of casework by the end of 2025 and asked if this goal was realistic. Members also noted the Data Quality Improvement Plan and the action to ensure the administration software system was kept up to date and questioned how the systems would be kept updated and asked whether Artificial Intelligence (AI) could assist with the actions. 

 

The Director explained that 62% or the backlogs had already been cleared and that officers remained confident they would be cleared by the end of 2025. The Assistant Director – Resources explained that the Data Quality Improvement Plan would focus on data supplied by employers and ensuring that it is accurate. It was noted that good contract management with the software supplier was necessary along with internal ICT and Systems teams working closely with the Administration team to ensure the software system was continually developed and its functionality used to the optimum. It was stated that introducing AI to assist with these actions was a possibility but that security remained the priority and that the benefits would be weighed against the risks when next reviewing the ICT Strategy. 

 

Members drew attention to the gender pensions gap as mentioned in the strategy and asked for a summary of any actions taken on the issue. 

 

The Assistant Director – Resources explained that industry bodies were analysing the issue and that it was a developing area of concern but no actions had yet been taken. The Director added that while the gap could be measured and seen, SYPA was very limited in what it could do due to legacy legislation and societal trends. It was explained that this issue would be monitored, and developments noted but that the Authority could do little in isolation and that continuing societal change and better education around pensions would eventually lead to changes in the gender pensions gap. 

 

Members drew attention to the part of the report that noted that there were significant risks for the Authority as SYPA was a unique institution which could make it a target in any consolidation debates and asked officers for further detail on the risks. 

 

The Director clarified that there were risks and these were noted in the Corporate Risk Register but that equally the SYPA model might be how wider consolidation could occur. It was explained that the Senior Management Team had met with Government Officials to explain how the Authority works and the challenges and benefits of such a model. 

 

The Assistant Director - Resources presented the People Strategy. Members queried whether the budget for Health, Safety and Wellbeing was sufficient given the size of the workforce. The Assistant Director – Resources explained that the budget was kept under review but that calculations had been based on previous years and it was believed to be adequate.  

 

Members noted that SYPA has 66% female staff but that only 50% of the top earners were female. 

 

The Assistant Director – Resources acknowledged the difference and explained that the gender pay gap is closely monitored and published yearly but that work is ongoing to address the issue including group coaching for female staff and promoting internally where possible to naturally redress the balance.  

 

Members acknowledged the need to recruit more black, Asian and minority ethnicities to more accurately represent the diversity in South Yorkshire and of scheme members. 

 

The Assistant Director – Resources agreed and explained there were developments in progress to alter the recruitment procedure including using an external recruitment provider to reach a wider range of potential candidates and plans to look at targeted recruitment. It was explained that SYPA works with North Yorkshire Council when recruiting for senior posts which helps with reaching a more diverse pool of potential candidates. 

 

The Chair suggested SYPA and the pensions industry at large target students at schools and colleges to present the benefits of working in the industry and assist in gaining a more representative workforce. 

 

Members reflected on the membership of the Authority and that it could be more diverse and representative of scheme members. The Director explained that SYPA supported inclusivity and diversity and that this was thoroughly expressed to the South Yorkshire Councils when asking for Authority appointees. It was explained that the Authority was limited to membership of elected members from the South Yorkshire Councils and therefore more work needed to be done to encourage people from diverse backgrounds to stand for election and remove barriers to them doing so. 

 

RESOLVED: Members 

a. Approved the Corporate Strategy 2025 – 2028 at Appendix A and 

b. Approved the supporting strategies 2025 – 2028 at Appendices B to D. 

 

Supporting documents: