Agenda and minutes
Contact: Nishaat Ismail, Democratic Services. Tel: 0207 364 6695. Email: nishaat.ismail@towerhamlets.gov.uk
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APOLOGIES Minutes: Apologies of absence were received from Stephen Stratton and Neville Murton. |
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DECLARATIONS OF DISCLOSABLE PECUNIARY INTERESTS PDF 67 KB Minutes: None declared. |
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UNRESTRICTED MINUTES PDF 82 KB To confirm as a correct record of the proceedings the unrestricted minutes of the meeting of the Pensions Board held on 26 June 2016 Minutes: The minutes of the Pensions Board held on 27 June 2016 were agreed and approved as a correct record with the following amendments;
· Ngozi Adedaji, Team Leader of legal services requested the cover sheet be amended to reflect that she was in attendance at the previous Board meeting.
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Presentation from London CIV (Hugh Grover and Jill Davys) Minutes: Jill Davy’s from London CIV delivered a presentation to the Members of the Pensions Board and the main points highlighted were;
· The London CIV Board is part of the decision making process · On a local level the Fund still has a considerable amount of responsibility. · To ensure the delivery of value for money as more people move to pooling, the Committee were told by Ms Davy’s the level of asset management will have to be increased with the Fund. · At the moment London CIV do not have in house expertise or resources to employ their own Fund Managers.
In response to questions Members of the Board heard that there will be savings by joining the CIV but at this initial stage there won’t be as London boroughs are quite heavily stretched.
In response to further questions the Board heard that decision making will remain at local level. The London CIV is trying to provide London authorities with as much choice as possible.
The Members also heard the Fund Managers are charged a service charge. Ms Davy’s told the Board that policy decisions are made by a Joint Committee which is made up of 33 councillors.
It was RESOLVED That Members of the Board note the content of the presentation.
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Review and Updated Work Plan for 2016/17 (To follow) Minutes: The Treasury and Investment Manager, Bola Tobun told the Members of the Pensions Board that the Work Plan needs to be matched against care duties from the Pensions Board Terms of Reference.
In response to Members questions the Board heard that data was submitted late to the Actuary, which is why it was not reflected in the Work Plan.
It was RESOLVED That the review of the Work Plan and changes made be noted. |
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Unrestricted Minutes of Previous Pensions Committee PDF 86 KB Minutes: There were no comments made by Members of the Pensions Board regarding the minutes of the Pensions Committee held on 30 June 2016. |
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PENSIONS COMMITTEE AGENDA FOR THE FORTHCOMING MEETING APOLOGIES FOR ABSENCE
1. DECLARATIONS OF DISCLOSABLE PECUNIARY INTEREST
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.
2. MINUTES OF THE PREVIOUS MEETING(S) 5 - 12 To confirm as a correct record the minutes of the meeting of the Committee held on 30 June 2016.
3. PETITIONS To receive any petitions relating to matters for which the Committee is responsible.
4. REPORTS FOR CONSIDERATION
4.1 Actuarial Valuation Update – presentation from Hymans Robertson (Barry McKay) on initial triennial valuation results (20 mins) - Will include outline of trends and changes affecting scheme funding level and contribution rates.
4.2 Presentation from London Collective Investment Vehicle (CIV) (30 mins) – Julian Pendock and Jill Davys (London CIV) to outline progress CIV has made since inception; appointment of global equity managers in early 2017; development of CIV longer term strategy.
4.3 Review of Pension Fund Investment Strategy (10 mins) – following on from the initial results of the triennial valuation, the approach and timeline for reviewing the investment strategy will be discussed. The strategy will identify options for meeting pension liabilities and closing the funding gap drawing upon items 4.1 and 4.2
4.4 Academy Conversion - Mulberry School and Ian Mikardo High School -– Pension Contribution Rates (10 mins) – Report to approve that pension contributions for the two schools above will be calculated on the same basis as other academies (including the same deficit recovery period).
4 .5 Market Update (15 mins) To receive a verbal update on recent market activity from Raymond Haines.
4.6 Pension Fund Managers Investment Performance Review for Quarter End 30 June 2016 (15 mins) – routine report detailing investment managers performance against benchmark over previous periods. Includes update on manager review
4.7 Quarterly Report - Key Pension Administration Performance Indicators: Period to June 2016 (10 mins) – routine report on administration activities, including new member enrolment, publication of annual benefit statements.
4.8 Pension Fund Annual Report 2015/16 (10 mins) – Approval of annual pension fund report for 2015/16. This will include pension fund annual accounts, statement of investment principles, funding and communication strategy and governance compliance.
4.9 Pension Fund Procurement activity(15 mins) – proposed tender processes to appoint investment consultants, investment adviser and custodian in coming year where current contracts have expired.
5. ANY OTHER UNRESTRICTED BUSINESS CONSIDERED TO BE URGENT
Minutes: The Pensions Board Members were told by the Investment and Treasury Manager, that the Fund Manager, Bailee Gifford did not perform well in the last quarter.
Members of the Board made reference to the Investment, Performance Review report. Members of the Board discussed the deficit recovery term. Most LGPS funds are in deficit because falling investment returns and increasing life expectancy. The actuary determines the period over which the deficit is to be recovered and considers the need to stabilise the employer’s contribution rate, Members of the board noted that it is at a discounted rate.
In response to questions the Investment and Treasury Manager told the Board Members that by using the national framework to review independent advisory roles, it would avoid risks in reviewing them all at once. The Board Members also heard that it is bad practice to not review advisors regularly. |
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ANY OTHER BUSINESS CONSIDERED TO BE URGENT Minutes: Members of the Pensions Board were informed about the Public Service Pensions Act, where the Government wants all Funds to be measured by the same metric value.
Members of the Pensions Board were told at the 2013 valuation the Fund was 72% funded. The Investment and Treasury Manager, Bola Tobun had received the 2016 valuation from Hymans and the Fund was 85% funded. The Pensions Board were told that Hymans uses the same assumptions for all their clients so the significant increase in valuation was not only for Tower Hamlets.
Board Members expressed that they would like to receive a presentation on the Actuarial Review.
There were no other business considered to be urgent. |