Agenda item
PENSIONS COMMITTEE AGENDA FOR THE FORTHCOMING MEETING
- Meeting of Pension Board, Monday, 12th March, 2018 10.00 a.m. (Item 11.)
- View the background to item 11.
A. Verbal update on letter sent to London CIV on behalf of Pensions Board and Pensions Committee
B. Discussion on the response to the London CIV Strategy Consultation.
Pensions Committee Agenda to follow.
Minutes:
The Board noted the Agenda for the meeting which was to be held on 14 March 2018.
Verbal update on letter sent to London CIV on behalf of the Pensions Board and Pensions Committee and discussion on the response to the London CIV Strategy Consultation.
The Board was advised that a joint letter by both the Chairs of the Pensions Board and Pensions Committee had been sent to the London CIV about the Bodies governance arrangement. The letter raised concerns over the Audit Committee and Remuneration Committee not being independent. The meeting was advised that the London CIV were in the process of changing their governance and investment structure and had consulted its members about the proposals. The Board was advised that Officers had responded to the consultation and that the results will be circulated to members of the Board and the Committee.
6.1 Revised Investment Strategy Statement and Investment Options Considerations
Members were advised that the Investment Strategy Statement has been set out to reflect the funding position of the Fund and the investment beliefs of the Committee. Members were advised that there was to be an allocation to Multi-Asset Credit (MAC), Equity gains protection were to be undertaken and that allocation to long-term illiquid asset classes (long lease, private debt and infrastructure) were to be made. Members were advised that the Chair of the Pensions Committee had requested that Infrastructure be thoroughly reviewed. The Board was advised that the Independent Investment Consultants were consulted and that Officers will be meeting with the Actuaries. The Fund’s current funding level is at 90% and this equates to £150million.
6.2 Pension Scheme Administration Update
Tim Dean, Pensions Administration Team Leader advised the Board that Members had requested that the Pension Scheme Administration Update Report is more detailed and provides an in-depth information about staffing and the performance of the Pensions Team. Officers advised that the Pensions Team was still encountering difficulties with resources. The Council will be appointing more permanent Pensions staff members; the prospective staff members will be required to have experience in pension’s administration. At current there are 4 permanent staff members in the Pensions Team. The HR Payroll Pensions Team and the Pensions Administration Team was included as part of the Finance Directorate restructure and both are expected to be moved into this Service Area.
Members were advised that external contractors will be used to help ensure that the Team met set deadlines.
6.4 Update on Pension Fund Procurement Plans 2017/18
The Board was advised that the Global Custodian Service was now to be provided by The Northern Trust Company and that contract was due to start from 2 April 2018. Members commented that the mentioned contractor should ensure that all ‘Class Action Reports’ are undertaken in-house and are not contracted to a third party.
The advertisement for an Independent Advisor is now closed and 12 applications were received. The Board was advised that the vacancy had a good response and attracted a broad range of applicants. Officers will be shortlisting. Prospective candidate will be required to answer seven questions as part of the selection process.
RESOLVED
1. That officers provide a briefing note about the outcome of the London CIV Governance and Investment restructure; and
2. That the Pensions Board be provided an update on the changes made to the Pensions Administration Team following the Finance Service restructure.