Agenda item
Pensions Committee Meeting Papers 17 September 2015
To Consider the meeting papers of the Pensions Committee held on 17 September 2015.
Minutes:
The Board considered the agenda and papers that had been presented to the Pensions Committee on 17 September 2015 and discussed the following matters:
Pensions Committee Minutes 24 February 2015:
The Board:
- Requested (Concerning minute 4.1) that the gains of the Fund be confirmed
- Requested that a summary of the Fund's performance be provided to the Board annually, to contain a high-level overview of performance
-
Requested (Concerning minute 4.2) that information
be provided relating to what measures were being taken to ensure
accountability in relation to payments made to London
CIV. Ms Tobun advised that the
£50,000 requested by London CIV from all authorities
participating in the scheme was towards setting up costs and for
the recruitment of financial experts.
The Board was concerned that the CIV should be accountable and
Members were informed that the London CIV had established an
advisory panel which would help the decision making of the
CIV. Additionally:
- LBTH Councillor Harrisson was a member of this body.
- London CIV have employed some professionals (Eversheds) to monitor contributions to the fund and transparency. Mr Thompson noted that the board should also monitor the processes of the CIV as it would be receiving monies from LBTH pension fund. Mr Miles, Chief Accountant informed the Board that regular reports on the progress of London CIV were being made to the Pensions Committee. However because of the nature of this organisation and the numbers of local authorities participating in the London CIV. a degree of trust concerning its function would have to be exercised.
· Enquired whether there a paper setting out how the CIV will operate was available and asked whether such a paper had been made available to the Pension Committee? Ms Tobun informed the Board that she was presently preparing a briefing for Pensions Committee on this matter. The Board asked that a copy of this paper be made available at its next meeting:
Action by: B Tobun, Investments and Treasury Manager
· Cautioned against duplicating the work of the Pensions Committee.
· Was concerned that the resolution at minute 4.2 did not address the key concerns raised regarding the CIV Joint Committee relating to accountability. The Board was informed that Ms Tobun would circulate the private minute relating to this item to the Pensions Board
Action by: B Tobun, Investments and Treasury Manager
· Asked for assurances that the concerns around accountability had been addressed as there was no evidence to indicate this in the minute. Ms Tobun informed the Board that the concerns referred to related to the CIV Joint Committee and not to the Council's own Pensions Committee.
· Notwithstanding Councillor Chesterton asked that these concerns be reported back to the Pensions Committee asking the Pensions Committee to ensure that their minutes are properly concluded, addressing all matters discussed in the agenda item.
Action by: B Tobun, Investments and Treasury Manager
· Noted (Concerning minute 4.5) that it was important that the Board was able to view the KPIs listed. It was also important that Pension Committee monitored the KPIs.
Pensions Committee Minutes 23 July 2015:
The Board:
· Noted (concerning minute 5.3) that the minutes did not resolve the underperformance reported. Councillor Chesterton requested that the following recommendation be made to the Pensions Committee:
- that it review the underperforming investment managers.
Ms Tobun clarified that the item concerned an annual review of the pension fund performance presented by WM Company and the reported figures were relative and set in the context of other local authorities for whom WM Company provided services. Councillor Chesterton noted the explanation and asked that the minutes be written such that they might be scrutinised more easily.
Pensions Committee 17 September 2015 - Item 4.1:
Mr Dodia, Pensions Manager introduced the report.
He:
- advised that it was the first of a new monitoring themes which would provide quarterly information on the performance of the pensions administration service, based on key performance indicators. Two further KPI's “death benefit/Administration benefit statements” and “new joiners” later would be introduced and reported from quarter two.
- noted that since the introduction of the new LGPS, pension funds were required to issue benefits statements annually by August. This is had proved difficult for most local authorities to achieve and therefore the Local Government Association had made representations to the Regulator. A response was presently awaited.
In response to Board Members’ questions the following information was provided:
· eight of the 12 KPIs were presently being reported and the remainder would be introduced incrementally by April 2016 quarter 4.
· KPIs were set by officers on the basis of regulations and best practice amongst local authorities.
· Because it was obligatory to comply with the regulator's requirements deadlines must be observed. This was especially at the end of year two of the new pension scheme.
The Board noted its discussion of this item and recommended that the Pension Committee should receive an action plan as part of its regular reporting to ensure that the risk of a non-compliance in year two was monitored and mitigating measures implemented in a timely manner should they be necessary.
Action by: A Dodia Pensions Manager
Pensions Committee 17 September 2015 - Item 4.2:
The Board considered the pension fund investment performance review for quarter ending 30 June 2015.
The Board:
· noted the underperformance of Schroders
· contrasted the role of the Pensions Committee which was to monitor the performance of managers and note under/poor performance where necessary with the function of the Pensions Board which was to monitor how the Committee discharged its role.
· further noted, that although Board Members were able to examine Pensions Committee, they were not able to view what actions the Committee had taken regarding matters presented to them.
· considered what mechanisms could be implemented in order to rectify the above matter and decided that its schedule of meetings should be revised to enable Board Members not only to review the papers of previous Pensions Committees meeting but also the accompanying minutes.
The Board noted its discussion of this item and recommended that the schedule of Pension Board meetings be amended to enable Pensions Committee Reports and Committee’s responses to be monitored.
Pensions Committee 17 September 2015 - Item 4.3:
The Board considered the training and development for Members report
The Board:
- noted that the Pensions Committee had adopted the training policy.
In response to Board Members’ questions the following information was provided:
- concerning how many hours the training to an appropriate level would comprise, the Board was informed that there had been challenges in delivering the required training because of a lack of member availability. However, 40 minute training sessions had been incorporated into each of the Pensions Committee's standard meetings.
The Board noted its discussion of this item and recommended that officers take all necessary steps to ensure that training of Pensions Committee members was fit the purpose.
Action by: B Tobun, Investments and Treasury Manager
This concluded the business of the Pensions Committee on 17 September 2015.
RESOLVED
- That the discussion and review of the minutes of the Pensions Committee meetings held on 24 February 2015 and 23rd of July 2015 be noted
- That the discussions and review of the Pensions Committee agenda for the meeting held on 17 September 2015 be noted
- That the actions arising from the review of minutes and agenda items be undertaken and carried out appropriately by the support officer.
Supporting documents:
- Whole Agenda for Recirculation , 17/09/2015 Pensions Committee, item 6.1 PDF 52 KB
- PC Agen 17_09_15, item 6.1 PDF 949 KB