Agenda and minutes
PDF 179 KBVenue: Committee Room C, County Hall, Kingston upon Thames, Surrey KT1 2DN. View directions
Contact: Andrew Spragg
| No. | Item |
|---|---|
|
APOLOGIES FOR ABSENCE AND SUBSTITUTIONS
Minutes: No apologies were received and there were no substitutions.
The Board was asked to note that Mandy Horrell had stood down as a member representative on 31 July 2015. A request had been sent to GMB to identify a new nominated representative. |
|
|
MINUTES FROM THE PREVIOUS MEETING: 27 July 2015
To agree the minutes as a true record of the meeting. Minutes: These were agreed as an accurate record of the meeting. |
|
|
DECLARATIONS OF INTEREST
To receive any declarations of disclosable pecuniary interests from Members in respect of any item to be considered at the meeting.
Notes: · In line with the Relevant Authorities (Disclosable Pecuniary Interests) Regulations 2012, declarations may relate to the interest of the member, or the member’s spouse or civil partner, or a person with whom the member is living as husband or wife, or a person with whom the member is living as if they were civil partners and the member is aware they have the interest. · Members need only disclose interests not currently listed on the Register of Disclosable Pecuniary Interests. · Members must notify the Monitoring Officer of any interests disclosed at the meeting so they may be added to the Register. · Members are reminded that they must not participate in any item where they have a disclosable pecuniary interest.
Minutes: Trevor Willington asked that it be noted that he is a governor at Nescott College, which is an employer of the scheme.
David Stewart asked that it be noted that he would be commencing employment at Hammersmith and Fullham, an admitted body in the scheme, on 4 January 2016. |
|
|
QUESTIONS AND PETITIONS
To receive any questions or petitions.
Notes:
1. The deadline for Member’s questions is 12.00pm four working days before the meeting (6 October 2015). 2. The deadline for public questions is seven days before the meeting (5 October 2015) 3. The deadline for petitions was 14 days before the meeting, and no petitions have been received. Minutes: There were no questions or petitions. |
|
The Board is asked to note its action tracker. Minutes: Witnesses: Neil Mason, Senior Advisor (Pension Fund)
Key points raised during the discussion:
1. The Board reviewed the action tracker and discussed the use of named substitutes. It was felt by the Board that the arrangements for named substitutes would disadvantage retired or deferred member representatives. The Board agreed that meetings should be scheduled to ensure substitutes were not required.
2. The Chairman informed the Board that the use of independent members would be reviewed in 2016, once the Board had completed its training and knowledge requirements.
3. Officers informed the Board that the Scheme Advisory Board had re-issued a national Key Performance Indicator (KPI) proforma, and that the scheme would be submitting a response to this. This proforma will be available to the Board for their next meeting. The Board was informed that the Scheme Advisory Board had proposed that the Department for Communities and Local Government changed regulations to make reporting these KPIs a statutory requirement.
Actions/Further Information to note:
· That the updated terms of reference of the Surrey Local Pension Board be circulated.
|
|
|
KNOWLEDGE AND UNDERSTANDING UPDATE
The Board is asked to provide a verbal update on progress to meet its knowledge and understanding requirements. Minutes: Witnesses: Neil Mason, Senior Advisor (Pension Fund)
Key points raised during the discussion:
1. The Board was advised that there would be joint training on 6 November 2015 with the Surrey Pension Fund Committee. This training would cover Pension Fund investment arrangements.
2. Board members updated on their individual progress to meet the Board’s knowledge and understanding requirements.
Actions/Further information to note:
None.
|
|
|
SUMMARY OF PENSION FUND COMMITTEE MEETING - 18 SEPTEMBER 2015
The Board will receive a verbal update on the Surrey Pension Fund Committee meeting on 18 September 2015 (minutes to follow). Minutes: Witnesses: Phil Triggs, Strategic Manager, Pensions and Treasury Neil Mason, Senior Advisor (Pension Fund)
Key points raised during the discussion:
1. The Board was provided with a verbal update on the Pension Fund Committee meeting on 18 September 2015. Officers briefly outlined the government’s recent announcement concerning the intention to pool investments for local government pension funds. A discussion statement would be published by the government in late November, with proposals being submitted to government by pension fund administrators in February 2016. The Board was informed that pension funds would then be given 3 years from April 2016 to implement new proposals. The Pension Fund Committee would be reviewing these proposals in February 2016.
2. The Board was advised that the Pension Fund Committee had approved the implementation of the unitisation of assets. This would mean that there would be the opportunity to match employer funding strategies to their specific experience (it was expected that this would initially be restricted to three funding groups). Officers expressed the view that this would improve risk management and allow the fund to take a more flexible approach to its investment strategy. The Board was assured that the project would be conducted after consultation with the employers.
3. The Board was informed that there had been some transactional issues related to transfers when new employees had joined the Surrey pension fund. The Board requested a report back on the issue and steps taken to resolve it at the next meeting.
4. The Board was informed that it was now included in the risk register and reporting mechanisms for the Pension Fund Committee. Officers advised that the Committee had also conducted a deep-dive review on Fund costs and that the results of this had been presented to the Committee at the meeting.
5. A review into the private equity investments made by the scheme had been presented to the Committee at the meeting.
Actions/Further Information to be provided:
· The Surrey Pension Fund Committee minutes for 18 September 2015 to be circulated to the Board · A future report to be provided to the Board outlining transactional issues related to the transfer of data from new employees joining the scheme.
|
|
|
SURREY PENSION FUND STATEMENT OF ACCOUNTS 2014-15
The Surrey Local Pension Board is asked to:
1. Note and approve the financial statements set out in Annex 1. 2. Note the content of the Audit Findings for Surrey Pension Fund Report as set out in Annex 2. 3. Note the Letter of Representation as set out in Annex 3. 4. Note the External Auditor’s Report as set out in Annex 4. Additional documents: Minutes: Witnesses: Phil Triggs, Strategic Manager, Pensions and Treasury Neil Mason, Senior Advisor (Pension Fund) Alex Moylan, Senior Accountant
Key points raised during the discussion:
1. The Board was given a summary of the statement of accounts, with officers highlighting the approximately £20 million increase in contributions from the previous financial year. After the payment of benefits and expenses, this had left the fund in cash flow positive position of £30 million in 2014/15.
2. The Board discussed the fund’s approach to investment, and raised a question about how the investment management fees compared to other pension funds. The Board was advised that £3.9 million were performance fees. This reflected a performance that was higher than average over the previous 5 years. . It was highlighted that officers and the Pension Fund Committee had completed a deep-dive review of the pension fund’s cost base. The Board agreed to review this deep-dive review following circulation and to request an item if there were additional questions.
3. The Board discussed the use of currency hedging, and was advised that hedging was undertaken specifically by Legal and General on behalf of the fund.
Resolved:
The Surrey Local Pension Board resolved to:
· Note the financial statements set out in Annex 1. · Note the adjustments made to the financial statements during the course of the audit as set out in Annex 2. · Note the Letter of Representation as set out in Annex 3. · Note the External Auditor’s Report as set out in Annex 4.
Actions/Further Information to be provided:
Officers to circulate the deep dive review into the cost base of the pension fund to the Board.
|
|
|
DATE OF THE NEXT MEETING
|
|
|
EXCLUSION OF THE PUBLIC
That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting during consideration of the following items of business on the grounds that they involve the likely disclosure of exempt information under the relevant paragraphs of Part 1 of Schedule 12A of the Act. Minutes: Resolved:
that under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting during consideration of the following items of business on the grounds that they involve the likely disclosure of exempt information under paragraph 3 of Part 1 of Schedule 12A of the Act.
PART TWO – IN PRIVATE THE FOLLOWING ITEMS OF BUSINESS WERE CONSIDERED IN PRIVATE BY THE BOARD. SET OUT BELOW IS A PUBLIC SUMMARY OF THE DECISIONS TAKEN.
|
|
|
CHARTERED INSTITUTE OF PUBLIC FINANCE AND ACCOUNTANCY PENSION FUND ADMINISTRATION BENCHMARKING CLUB 2015 DRAFT REPORT The Board is asked to note the content of the Chartered Institute of Public Finance and Accountancy (CIPFA) Pension Administration Benchmarking Club 2015 (draft) report (annex 1). Minutes: Resolved:
The Board
notes the content of the Chartered Institute of Public Finance and Accountancy (CIPFA) Pension Administration Benchmarking Club 2015 (draft) report (annex 1).
Actions/further information to be provided:
The Board to receive the Chartered Institute of Public Finance and Accountancy (CIPFA) Pension Administration Benchmarking Club 2016 report upon publication.
|
|
|
INTERNAL AUDIT REPORT: REVIEW OF PENSION ADMINISTRATION The Board is asked to note the content of the Internal Audit Report (annex 1) and Management Action Plan (annex 2).
Minutes: Resolved:
The Board
notes the content of the Internal Audit Report and Management Action Plan.
Actions/further information to be provided:
None.
|
|
|
SURREY PENSION FUND ANNUAL REPORT
The Board is asked to note the content of the unaudited annual report (annex 1) Minutes: Resolved:
The Board:
notes the content of the unaudited annual report (annex 1)
Actions/further information to be provided:
The Board requested that the governance policy statement and that additional updates concerning the Board were circulated for information.
|
|
|
PUBLICITY FOR PART TWO ITEMS
To consider whether the items consider under Part 2 of the agenda should be made available to the Press and public. Minutes: That non-exempt information relating to items considered in Part 2 of the meeting may be made available to the press and public, if appropriate.
|