There are 8 Funds in Wales, covering 22 Local Authorities. (An Appendix accompanies this piece, below, so you can see which Councils are with which Funds.) They also cover a range of other public service workers.
They are all ultimately governed by a committee of elected councillors. (Do not get confused with Pension Boards, that have a kind of Scrutiny function, but no ability to intervene in the investment decisions of the Committees.)
Between them they are managing assets of over £24 billion.
There are moves underway to effectively merge the management of all Eight funds by the Wales Pension Partnership. (WPP)
These comments and questions are a work in progress which I am sharing now, given the mounting interest and dissatisfaction with the lack of progress made in moving towards more ethical investments and in particular Fossil Fuel companies and companies complicit in the Israeli genocide in Gaza.
The governance of the fund. 8 Local Councils are responsible for 22 councils. Very few have any representation on the relevant Pension Committees. So, for example, Members of the Dyfed Fund in Ceredigion and Pembrokeshire have no Councillors on the committee. All the decisions are made by THREE Carmarthenshire Councillors. This is the smallest number in Wales.
Over recent months there have been growing demands to disinvest speedily and totally from any funds that in some way are implicated in the Israeli genocide. But the problem is that Councils can only express opinions. They cannot tell Pension Committees what to do. (And quite a few Councils in Wales have expressed opinions – both over fossil fuels and, now, Gaza with little effect so far).
The key to this deadlock is to change the membership of the Pension Committees and to robustly challenge the “advice” they receive from an extraordinary array of “experts” and “advisers”. Carmarthenshire should be the number one target for this because it’s probably the least democratic in Wales and because it is the administering authority, not just for Dyfed, but for the Wales Pension Partnership. (Probably no coincidence)
At the meeting of the Council on July 23rd I submitted a question to the Leader – Cllr Darren Price. Due to his absence I received a Written answer effectively confirming that members of the Pension Committee can be changed by the political parties that they come from.
QUESTION BY MR BOB CLAY TO COUNCILLOR DARREN PRICE, LEADER OF THE COUNCIL:
How are the three members of the Dyfed Pension Fund Committee appointed?
The appointment of members to the Dyfed Pension Fund is made by the County Council, following nominations from the political groups.
On September 10th – for the next Council Meeting (which I understand Cllr Price will attend) I am submitting another Question:
Pursuant to his written reply to myself after the last Meeting of the County Council, will he now explain how the political group that he is Leader of – Plaid Cymru – decide which two members of that group will be nominated for appointment by the Council.
Hopefully this will finally result in ALL Plaid councillors having to face up to what is going on – and that they have the means to change it. (And it would also be very helpful if the Labour Party ensured that their one councillor on the committee played a far more robust role.)
If any Committee members feel conflicted between their genuine horror at what is going on in Gaza and elsewhere and the advice that they are given by the frightening array of “experts” that they are confronted with, then their final resort is the Council’s Monitoring Officer – and that’s the Carmarthenshire Monitoring Officer who, I am told, also performs this service for all 8 members of Wales Pension Partnership.
With all due respect, Monitoring Officers have no particular qualifications to perform this role. And the disingenuous nature of the whole thing is illustrated by the simple question as to what would happen if any of Monitoring Officers from the other Local Authorities happened to disagree with the opinion of their Carmarthenshire colleague.
As an exercise in assisting sleep people should read through the Annual Reports and the “Agenda Packs” of each of the 8 Wales LGPS funds. They are masterpieces of obfuscation and mystification. So many words that so few will understand. There is an old adage that economics is not a science but a black art.
In that way of thinking what we are dealing with verges on witchcraft.
Pension Funds can dispose of any assets that they wish to provided that they replace them with investments that are as reliable. Are there really not enough genuinely ethical investments available?
Buried away in all the Reports and recommendations there are various bits that give the game away. For example, Robeco, who are engaged to cover all the issues relating to ethical investment, clearly take the position that “engagement” is preferable to “divestment”. In one almost comical section of a report they explain that their “engagement” has been conducted by telephone calls. But this debate has gone on for decades. I can remember when we were all being told that engagement was the best way to deal with the murderous racist Apartheid regime in South Africa. Ultimately it is a POLITICAL decision for the Councillors to make.
And, for now, here are some questions to work on, listed in a somewhat random order:
How many Dyfed members are in Ceredigion and Pembrokeshire. Do they actually outnumber Carmarthenshire? (nb. “Members” fall into 3 categories: 1) Employees 2) Deferred beneficiaries i.e those who are no longer employees but who are not yet of pensionable age. 3) Those receiving a pension from the fund.
The Funds receive payments from current employees and employers. They pay out benefits to those retiring.
The benefits are defined. Actuaries regularly assess whether the Fund are able to fulfil these obligations.
So, it must be the case that sometimes the Fund is “full”. What happens to the surplus?
And is it really necessary to keep such huge sums of investments to fill the gap between the funds income and expenditure each year?
What savings to the Pension Fund will accrue from the new arrangements with the WPP?
And the same question for the 7 other funds.
Why is there such a large variation between the different Fund Memberships and their Assets?
For example, Clwd has around 3,000 more members than Dyfed but seems to rub along with around £1billion less assets.
What are the total costs in salaries, fees, commissions and so on for each of the 8 funds and for the WPP ?
I think it will be an excessively large cost.
How many officers, advisers, administrators and so on are “assisting” each fund, and the WPP ?
My own, strongly held conviction is this:-
These massive accumulations of money are all the deferred wages of working people. They represent around 68% of global GDP. That’s 58.5 trillion dollars. ( 58,500,000,000,000 ).
They are not run in the interests of those whose pensions are provided from them. “Fiduciary duty” arguably translates as “not upsetting the system”
Elected Councillors on Pension Committees are a big risk, but up to now they served as a very useful pretence at democratic accountability. The irony is that we could actually make it true !
We are up against a monstrous structure who’s DNA is deeply embedded in the world they depend on so much.
So know your enemy, but remember that public feeling over fossil fuels and Gaza is so great that it is perfectly possible that some brave councillors will decide to stand up and fight. If the slow extinction of the planet and the genocide in Gaza are not “ethical” issues, then what are?
Note: Carmarthenshire Council are debating a Motion on Wednesday (Sept 10th) asking the Dyfed Pension Fund to Divest from Genocide.
The Motion is based on one successfully passed a by Cardiff Council:
https://democracy.carmarthenshire.gov.wales/ieListDocuments.aspx?CId=155&MId=8872&Ver=4
Lobby on Carmarthen Town Hall steps 9-00am to 10-am.
If you live in Carmarthenshire contact your Councillor(s) and ask them to vote for the Motion.
APPENDIX
Cardiff and Vale of Glamorgan Pension Fund (5 Councillors)
Cardiff, Vale of Glamorgan
Dilnor Ali. (Cardiff, Labour) [Chair]
Christopher Weaver (Cardiff, Labour)
Emma Reid-Jones (Cardiff, Independent)
Rhys Taylor (Cardiff, Lib Dem)
Chris Lay (Cardiff, Labour)
45,331 members
£2.963b assets
£65,363 per member
Clwyd Pension Fund (8 Councillors, 1 Members)
Flintshire, Denbighshire, Wrexham (8 Councillors)
Chris Bithell (Flintshire, Labour) [Chair]
Alasdair Ibbotson (Flintshire, Flintshire People’s Voice)
Billy Mullin (Flintshire, Labour)
Sam Swash (Flintshire, Flintshire People’s Voice) [Group Leader]
Anthony Wren (Flintshire, Independent)
Steve Hibbert (UNISON)
Delyth Jones (Denbighshire, Plaid) [Group Leader]
Andrew Rutherford (Rhyl Twn Council, Labour)
Anthony Wedlake (Wrexham, Progressive Independent)
53,000 members
£2.35b assets
£44,339 per member
Dyfed Pension Fund (3 Councillors, 1 Reserve)
Carmarthenshire, Pembrokeshire, Ceredigion
Elwyn Williams (Carmarthenshire, Plaid) [Chair]
Dai Thomas (Carmarthenshire, Plaid)
Philip Warlow (Carmarthenshire, Labour)
Neil Lewis (Carmarthenshire, Plaid) [Reserve]
50,082 members
£3.322b assets
£66,331 per member
Greater Gwent ( Torfaen ) Pension Fund (6 Councillors)
Newport City, Torfaen, Blaenau Gwent, Caerphilly, Monmothshire
Nathan Yeowell (Torfaen, Labour) [Chair]
Stuart Keyte (Torfaen, Reform)
Jon Horlor (Torfaen, Labour)
Chris Tew (Torfaen, Independent)
David Wilton (Torfaen, Labour)
Alfie Best (Torfaen, Labour)
66,000 members
£4.2b assets
£63,636 per member
Gwynnedd Pension Fund (9 Councillors)
Cyngor Gwynned, Anglesey, Conwy
Stephen Churchma (Cyngor Gwynedd, Lib Dem/Labour ) [Chair]
Ioan Thomas (Cyngor Gwynedd, Plaid) [Vice-Chair]
John Pughe Roberts (Cyngor Gwynedd, Independent)
John Brynmor Hughes (Cyngor Gwynned, Plaid)
Richard Medwyn Hughes (Cyngor Gwynned, Plaid)
Elin Hywel (Cyngor Gwynned, Plaid)
Iwan Hughes (Cyngor Gwynedd, Plaid)
Robin Wyn Williams (Anglesey, Plaid) [Co-opted]
Gorunwy Edwards (Conwy, Independent) [Co-opted]
53,315 members
£3.1b assets
£58,144 per member
Powys (6 Councillors)
Powys
Peter Lewis ( Powys, Conservative) [Chair]
Arwel Jones (Powys, Independent) [Vice-Chair]
Adam Kennerley (Powys, Lib Dem)
Corrina Kenyan-Wade (Powys, Lib Dem)
David Thomas (Powys, Labour) [Cabinet Member for Finance]
Huw Williams (Powys, Labour)
18,448 members
£0.833,536b assets
£45,183 per member
Rhondda, Cynon , Taff Pension Fund (5 Councillors)
Rhondda, Cynon, Taff Council, Bridgend County Borough Council, Merthyr Tydfil County Borough Council
Christina Leyshon (RCT, Labour) [Chair]
Martin Douglas Ashford (RCT, Labour) [Vice-Chair]
Geraint Owen Jones (RCT, Labour)
Norman Howell Morgan (RCT, Labour)
Sam Trask (RCT, Labour)
83,374 members
£4.2b assets
£50,375 per member
City and County of Swansea Pension Fund
Swansea, Neath Port Talbot
Patience Bentu (Swansea, Labour)
Philip Downing (Swansea, Labour) ( Labour )
Michael Lewis (Swansea, Labour) [Chair]
Michael Locke (Swansea, Lib Dem)
Sam Pritchard (Swansea, Labour)
Will Thomas (Swansea, Conservative)
Phil Rogers (Neath Port Talbot, Unaffiliated)
50,082 members
£3.322b assets
£66,331 per member
Discover more from Celyn Wales
Subscribe to get the latest posts sent to your email.
