Agenda and minutes
Venue: MP702 - Town Hall, Mulberry Place, 5 Clove Crescent, London, E14 2BG. View directions
Contact: Georgina Wills, Democratic Services. Tel: 0207 364 6695. Email: georgina.wills@towerhamlets.gov.uk
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APOLOGIES Minutes: The Chair noted apologies from Minesh Jani, Councillor Dave Chesterton and Steve Stratton.
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APPOINTMENT OF VICE - CHAIR Minutes: The Chair proposed that David Thompson be appointed as Vice-Chair for the rest of the Municipal Year. There being no other nominations it was
RESOLVED
That David Thomson is appointed as Vice-Chair for the remainder of the Municipal Year. |
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DECLARATIONS OF DISCLOSABLE PECUNIARY INTEREST PDF 67 KB Minutes: None. |
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VARY ORDER OF BUSINESS At the request of the Chair, the Board agreed to vary the order of business. To aid clarity, the minutes are presented in the order that the items originally appeared on the agenda.
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UNRESTRICTED MINUTES PDF 89 KB To confirm as a correct record of the proceedings the unrestricted minutes of the meeting of the Pensions Board held on 13 March 2017. Minutes: RESOLVED
That the minutes of the meeting held on 13 March 2017 are approved as a correct record.
Matters Arising
Regarding Minute 8, Funding Strategy Statement Consultation/Comments: The Board noted that, at the last meeting, the Board had requested clarification on the inflation risk and ESG factors. It was requested that this information be provided at a future meeting.
Action by: B Tobun, Investment and Treasury Manager, Resources |
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SUBMISSIONS FROM FUND MEMBERS To consider any verbal submissions from Fund Members/Stakeholders.
(Submissions must be received by the Clerk to the meeting no later than 5.00p.m. on the day before the meeting.) Minutes: There were none. |
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SUBMISSIONS / RESPONSES FROM PENSION COMMITTEE Verbal report. Minutes: Nil items.
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PENSION BOARD REPORTS FOR CONSIDERATION |
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Pensions Board, Membership, Quorum and Dates of Meetings PDF 106 KB Additional documents:
Minutes: The Chair introduced the report which detailed the Terms of Reference, Membership and Quorum of the Pensions Board.
The Board discussed: · the contents of the report and requested that the Chair’s correct surname be recorded at Appendix A, Pensions Board Membership 2017/2018. · the schedule of meetings for the remainder of the year and noted that the meeting on 20 November may have to be rescheduled. Officers advised that Members will be canvassed for alternative meeting dates if required.
RESOLVED
1. That the report be noted.
2. That future meetings be held at 10.00am.
3. That the Chair’s surname be amended in Appendix A - Pensions Board Membership 2017/2018.
4. That officers canvass amongst Board Members for a new meeting date if the scheduled meeting for 20 November 2017 is postponed.
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Feedback from the Chair on CIPFA Pensions Board Seminar PDF 36 KB To receive a verbal report from the Chair of the Pensions Board. Minutes: The Chair reported to the Board the matters discussed at a recent CIPFA one day seminar to consider the progress of pensions boards since their inception.
The following matters of concern and interest were noted:
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Discussion on the Regulators 2017 Governance Report PDF 743 KB This verbal discussion will be led by David Thompson. Minutes: David Thompson, Vice Chair, tabled and presented a paper which set out the results of the Pensions Regulator’s Public Service Governance and Administration Survey.
The Board held an in-depth discussion on the paper and the following were noted:
RESOLVED
That the tabled report and discussion be noted.
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Report on Pension Fund Administration Update PDF 158 KB Report to follow Additional documents:
Minutes: Mr Bruce Interim Pensions Manager – HR, presented the report and the Board noted the following matters outlined in the report:
Responding to Members’ questions the Board was informed that:
RESOLVED
1. That the contents of the report and the Board’s comments be noted. and 2. That the Board’s comments on the recommendation to approve the admission of Energy Kidz Ltd as an employer within the pension fund (para 3.10).
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Report on Future Options for Pension Administration Services PDF 146 KB Minutes: Mr Bruce Interim Pensions Manager – HR, presented the report and the Board noted the following matters:
The Board considered the implications of the options and noted:
RESOLVED
1. That the report and discussion be noted. and 2. That a report on progress be made at a future meeting.
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LGPS Latest Development and Update PDF 362 KB Minutes: Ms Tobun Investments and Treasury Manager presented the report and the Board noted the following matters:
The Board discussed the following:
RESOLVED
That the discussion covering the following matters be noted 1. FCA MiFID II Policy Statement on LGPS Classification; 2. Judicial review on DCLG statutory guidance; 3. LGPS Investment Code of Transparency and 4. London Collective Investment Vehicle (CIV).
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Draft Pension Fund Annual Report and Accounts 2016/17 PDF 111 KB Report to follow. Additional documents: Minutes: Mr Miles, Chief Accountant presented the report which was circulated as a supplement and informed the Board that: • The value of the fund had increased by £200 • Once finalised the annual report would be presented to Pension Committee for approval at its meeting in November 2017.
RESOLVED
That the draft annual report and accounts be noted. |
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MINUTES OF PREVIOUS PENSION COMMITTEE PDF 130 KB Minutes:
The Board reviewed the minutes of the Pension Committee held on 16 March 2017 and noted the following matters: • There had been no contact from Tower Hamlets Digest, however this matter would be discussed at the next Pensions Committee meeting. • The Chair and Investments and Treasury Manager were monitoring the Board workplan and a standing item would be added to the agenda of each Board meeting.
Action by: B Tobun, Investment and Treasury Manager, Resources
RESOLVED
That the discussion and action agreed be noted. |
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PENSIONS COMMITTEE AGENDA FOR THE FORTHCOMING MEETING (31.07.17) This agenda will be circulated separately to Pension Board Members. Minutes: The Board noted the agenda for the meeting on 31 July 2017and that the business reports for this meeting had been discussed as part of the Boards agenda.
The Board noted: • The investment strategy review at agenda item 6.2 would take the form of a presentation. • the report: Investment Performance Review for Quarter Ending 31 March 2017 and details of the investment strategy review would be discussed at the next Pension Board meeting.
Concerning performance of the Fund, the Board was informed that six of the eight investment managers mandated have performed at or above benchmark. The comparative data for Ruffer and Goldman Sachs in the quarter, 12 month and three-year periods was also noted.
RESOLVED
That the agenda and discussion be noted
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DATE OF FUTURE MEETINGS To note the scheduled Pension Board dates which are also set out at agenda item 7.1. The dates are: · 11 September · 20 November · 12 March (2018)
Minutes: The Board heard that the Investments and Treasury Manager wished to review the date of the next meeting and to this end, Members of the Board would be canvassed for availability. |
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ANY OTHER BUSINESS · Indemnity Insurance for LPB · Vacant Post - (Representative for Admitted Bodies – Employers)
Minutes: The Board noted that Andrew Crompton, representing employer admitted bodies had ceased to be a member and was informed that the process if recruitment to fill the vacant role would be initiated by Democratic Services.
The Board also noted that Mr Bruce was shortly to take up a position at another authority and thanked him for his work for the Board during his time at Tower Hamlets Council.
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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, 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.” This information pertains to paragraphs 1 and 3 of Schedule 12A – information likely to reveal the identity of an individual and information pertaining to the financial and business affairs of an individual including the authority including the authority holding that information.
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Pension Fund Procurement Plans and Update 2017/18 Minutes: Ms Jones Senior officer, Supporting the Divisional Director, Finance presented the report informing the Board that recruitment of an investment consultant via an approved procurement framework had been completed and the firm Mercers appointed.
Mercers had been selected as it complied with quality and process. It was anticipated that a contract would be in place by December 2017.
Responding to questions from the Board Ms Jones advised that:
· of the six applicants only two had passed the first stage. Of the others, one was conflicted, another was the existing provider who did not wish to return and another did not accept the price guarantee. · there had been quality bids for actuaries but not for investment · Risk
The Board noted that investment advice was not habitually presented in written form and asked for this to be reviewed.
RESOLVED
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