Agenda and minutes
Venue: Room MP701, 7th Floor, Town Hall, Mulberry Place, 5 Clove Crescent, London E14 2BG
Contact: Antonella Burgio, Democratic Services. Tel: 020 7364 4881 E-mail: antonella.burgio@towerhamlets.gov.uk
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The Chair welcomed Tony Childs and Kehinde Akintunde, newly appointed co-optees to the Pensions Committee representing admitted bodies and the Council’s recognised unions respectively.
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DECLARATIONS OF DISCLOSABLE PECUNIARY INTEREST PDF 64 KB To note any declarations of interest made by Members, including those restricting Members from voting on the questions detailed in Section 106 of the Local Government Finance Act, 1992. See attached note from the Monitoring Officer.
Minutes: No declarations of disclosable pecuniary interests were made.
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MINUTES OF THE PREVIOUS MEETING(S) PDF 116 KB To confirm as a correct record the minutes of the meeting of the Committee held on 17 September 2015. (To follow)
Minutes: The Pensions Committee minutes of 17 September were approved as a correct record of proceedings.
Matters Arising An update on memberships of the Council’s LGPS bodies was given informing the Committee of the that the following appointments had been made:
· A Chair of Pension Board had yet to be appointed, however the post had been advertised and applications would close on 27 November 2015. Interviews would take place on 7 December 2015. · Tony Childs had been appointed as co-optee to the Pension Committee representing Admitted Bodies. · Kehinde Akintunde, had been appointed as co-optee to the Pensions Committee representing the Council’s recognised Unions.
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PETITIONS To receive any petitions relating to matters for which the Committee is responsible. Minutes: No petitions were received relating to matters which the Committee is responsible.
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TRAINING - Overview of the Pensions Regulator Code of Practice for Public Sector Pensions Overview of the Pensions Regulator Code of Practice for Public Sector Pensions Minutes: Mr Haines, Investment Adviser to the Committee delivered a training session concerned with the Pensions Regulator Code of Practice for Public Sector Pensions. The matters covered were: · the role of the pensions regulator under the new LGPS framework · knowledge and understanding required by pensions committees · the requirements placed on pensions boards and pensions committees, · conflicts of interest and · reporting breaches.
Concerning whether the requirement to disclose personal and prejudicial interests and potential conflicts of interests was applicable to matters relating to the Pension Fund, the Board was informed that both pensions committee and pensions board members were required to comply with the Nolan Principles in public life. It was suggested that an item entitled “Potential Conflicts of Interest” should be added to the agenda of the first meeting of each municipal year.
Action by: - Democratic Services
Board Members were recommended to familiarise themselves with the Pensions Regulator Trustees Toolkit.
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REPORTS FOR CONSIDERATION |
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The Pensions Regulator Code of Practice for Public Sector Pensions PDF 96 KB To consider the code of practice for the management of public sector pension schemes. Additional documents: Minutes: Ms Tobun, Investment and Treasury Manager presented the report informing Members that the Regulator Code of Practice incorporated:
The Code was aimed at scheme managers and members of pension boards. It placed certain duties on each of these which were described at paragraph 12 of the code of practice.
The Committee enquired whether the management of Tower Hamlets Pension Fund complied with the Regulator's requirements. A checklist was being prepared to verify the elements that would be required and an update report would be brought to the next meeting.
RESOLVED
That the report be noted.
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Knowledge and Skills Audit To receive a presentation from B Tobun, Investment and Treasury Manager. Minutes: Ms Tobun, Investment and Treasury Manager presented the report and tabled a questionnaire which she asked Members to complete. The purpose of the audit was to identify skills and any gaps in knowledge so that training could be tailored appropriately. She requested that completed forms should be returned to her in the addressed envelopes by the New Year.
RESOLVED
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To consider quarterly performance monitoring data. Minutes: Mr Dodia, Pensions Manager, presented the report which informed Members of the performance of the pensions administration service relating to key performance indicators in the period July to September 2015. Members noted the data reported and did not wish to make any comments.
RESOLVED
That the report be noted
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To receive an update report. Additional documents:
Minutes: Ms Tobun, Investment and Treasury Manager presented the report which informed Members of developments relating to the following matters:
Pooling of investments The Committee noted:
Markets in financial instruments directive II (EU) (MIFID), The Committee noted:
Fossil fuel divestments, The Committee noted:
Scheme Advisory Board (SAB) work on separation of pension funds The Committee noted: · The National LGPS Scheme Advisory Board was established formally on 1 April 2015. · It is tasked to encourage best practice, increased transparency and coordinate technical and standards issues. · It will affect local government pension schemes by policing all administering authorities with pension funds. · SAB is looking to restructure the ‘administering authority’ role as most of these do not undertake their own investing and some funds are not local government pension schemes · SAB is looking to set up specific regulating structures for LGPSs and KPMG was doing analysis in this area
RESOLVED
That the updates be noted
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Collaboration Work Update - (London CIV and National LGPS Framework) PDF 113 KB To receive an update report. Minutes: Ms Tobun, Investment and Treasury Manager presented the report which provided Committee with an update on the progress of the London CIV for local government pension funds in London in collaboration with London Councils. The committee noted:
RESOLVED
That the update be noted
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2014/15 Pension Fund Annual Report and Audit Report (ISA 260 Report) PDF 105 KB To receive the External Auditors ISA260 report and approve the Pension Fund Annual Accounts. Additional documents:
Minutes: Mr Miles, Chief Accountant, presented the report concerned with: · the Pension Fund annual report and statement of accounts 2014 - 15 and · the Pension Fund ISA260 report 2014 - 15 prepared by the Council's external auditors KPMG.
He advised that: · the statement of accounts and annual report had been appropriately prepared and · were being presented for approval subject to satisfactory consideration by the Committee. Members were asked to note the unqualified auditors opinion provided in the ISA260 report.
The Chair congratulated Mr Miles and Officers on their work and asked that deputy members of the Pension Committee in that period should also be listed in the report. Subject to this amendment, the Committee was pleased to endorse the recommendations at paragraph 2.
RESOLVED
That subject to the above amendment,
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Market and Economic Outlook To receive a verbal update. Minutes: Mr Haines, Investment Adviser to the Pensions Committee presented the verbal report giving a summary of market conditions in the current period. The Committee noted: · markets had almost recovered all of the outputs lost during the summer. · markets were presently flat
Recent notable events were:
Mr Haines recommended the Committee adopt a ‘steady as you go’ approach to its investments.
RESOLVED
that the verbal update be noted.
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Pension Fund Investment Performance Review for Quarter End 30 September 2015 PDF 248 KB To note the quarterly performance of the Pension Fund. Minutes: Ms Tobun, Investment and Treasury Manager presented the report which informed Members of the performance of the Fund and its investments for the quarter 30 June to 30 September 2015.
The Committee noted the following:
RESOLVED
That the report be noted
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ANY OTHER BUSINESS CONSIDERED TO BE URGENT Minutes: Nil items.
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EXCLUSION OF THE PRESS AND PUBLIC In view of the contents of the remaining items on the agenda the Committee is recommended to adopt the following motion:
“That, under the provisions of Section 100A of the Local Government Act 1972, as amended by the Local Government (Access to Information) Act 1985, the press and public be excluded from the remainder of the meeting for the consideration of the Section Two business on the grounds that it contains information defined as Exempt in Part 1 of Schedule 12A to the Local Government Act, 1972.”
EXEMPT SECTION (Pink Papers)
The exempt committee papers in the agenda will contain information, which is commercially, legally or personally sensitive and should not be divulged to third parties. If you do not wish to retain these papers after the meeting, please hand them to the Committee Officer present. Minutes: The Chair moved and
It was resolved that press and public be excluded from the remainder of the meeting in that under the provisions of section 100 of the Local Government Act 1972 as amended by the Local Government (Access to Information) Act 1985 the press and public should be excluded the remainder of the meeting for the consideration of Section Two business on the grounds that it contains information defined as exempt in Part One, Paragraph 3, of Schedule 12 A to the Local Government Act 1972, which relates to information relating to the financial or business affairs of any particular person including the authority holding the information.
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Update on Fixed Income Investment - Exempt Report Supplementary agenda Minutes: This report was considered in closed session since the matters discussed were considered commercially and financially restricted.
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