Issue - meetings

The Chancellor of the Exchequer presented his budget to the House of Commons on 8 July 2015.  This paper contains a summary of the implications for the Local Government Pension Scheme (LGPS).

Declarations of interest:

None.

Key points raised during the discussion:

1.    The Strategic Finance Manager (Pension Fund and Treasury) introduced the report highlighting that the overall thrust of the Budget for the Local Government Pension Scheme is the requirement for funds to pool investments. 

2.    Members queried whether a reduction of the cost base for the Surrey Pension Fund would offer any protection against being forced into pooling investments.  The Chairman confirmed that it would not and highlighted that the Treasury wanted proposals to meet common criteria for delivering savings to be presented by October 2015.   She suggested that the Surrey Pension Fund Committee needed to be proactive in establishing its position.

3.    It was clarified that the requirement was to pool investments not administration. 

4.    The Surrey Pension Fund Advisor outlined three options: ignore; align with existing pooled investments; and create a new vehicle for pooled investments.

5.    The Director of Finance explained that the government rationale for pooling investment is to reduce costs while retaining investment performance. 

6.    It was suggested that at this stage nothing should be ruled out and all options, apart from ignoring the requirement to pool investments, be considered.  The report to committee in September should address the three options outlined by the Surrey Pension Fund Advisor, detail experience and lessons learnt by local authorities that have already begun pooling investments, and include information on existing arrangements to deliver pensions administration for other local authorities.

Actions/Further information to be provided:

None.

Resolved:

That officers develop proposals to meet common criteria for delivering savings for consideration at the next meeting of the Surrey Pension Fund Committee.

Next steps:

None.