Agenda item

This report makes the case for Surrey County Council to officially endorse the Border to Coast pool and create a Joint Committee and Shareholder Board for the purpose of delegating authority for the running of the pool to the Committee and the Board, and setting out the administrative issues that need to be considered.

Declarations of interest:

None

Witnesses:

Phil Triggs, Strategic Manager Pension Fund & Treasury

David John, Audit Performance Manager

Sheila Little, Director of Finance

Key points raised during the discussion:

1.    That this report would be going to Full Council in March if the committee agreed the recommendations.

2.    It was confirmed that shareholder board members could be officer or member but the joint committee needed to be a member.  Pools were able to employ their own advisors.

3.    The relationship between the Pool Shareholder Board, Joint Committee and the Administering Authority was explained and discussed.

4.    The use of A (voting share) and B shares (regulatory capital) and how this may change over time depending on regulatory changes.

5.    It was explained that the private equity investments will remain with the council and the distributed cash will then go to the Pool.

6.    There was some discussion about why Surrey was not entering the local regional pool and the Director of Finance would ensure that the report to Council would make the reasons clear why Border to Coast had been chosen.

7.    The optimum level for a pooled fund was said to be between £20bn to £50bn.

8.    The potential for academies being removed from the LGPS in the future and how this would change the fund completely.

Actions/ further information to be provided:

Members requested that the 4^th bullet point of paragraph 9 of the main report be amended to include examples of ‘complex asset classes’.

Resolved:

The Committee supported the recommendations and resolved to recommend to Full Council to:

1.    Approve the Border to Coast Pensions Partnership Limited (BCPP) as its pooling option to provide compliance with the legislation that mandates pooling.

2.    Approve the acquisition by the Council, as Administering Authority of the Pension Fund, one share in the Border to Coast Pensions Partnership Limited and nominate the Chairman of the Surrey Pension Fund Committee (or Vice Chairman in their absence) to attend any meetings of the BCPP Shareholder Board on behalf of the Council.

3. Approve the creation of the BCPP Joint Committee with the Chairman of the Surrey Pension Fund Committee (or Vice Chairman in their absence) nominated to attend on behalf of the Council.

4. Delegate to the Director of Finance and the Monitoring Officer, in consultation with the Chairman of the Surrey Pension Fund Committee, to update the Council’s Constitution to reflect the above approvals and to approve for execution by the Council the final versions of any documents necessary to put these decisions into effect.

5.    To approve the revised Surrey Pension Fund Committee Terms of Reference functions as set out within the Constitution with the following addition: “Receive minutes and consider recommendations from and ensure the effective performance of the Joint Committee of the Border to Coast Pensions Pool and any other relevant bodies.” 

Reasons for decision:

1.    To comply with legislation.

2.    To conform to best local authority pensions practice.

The Committee took a comfort break at 11.26am and reconvened at 11.42am.