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Agenda and minutes

Venue: Salisbury Room - County Hall, Bythesea Road, Trowbridge, BA14 8JN. View directions

Contact: Kieran Elliott 

Items
Note No. Item

34.

Membership

To note that Cllr Tim Swinyard has replaced Cllr Oliver Donachie as a substitute member for Swindon Borough Council.

 

To note that Sue Eley will substitute for Diane Hall as the representative from Selwood Housing on the Committee.

Minutes:

It was noted that Councillor Tim Swinyard had been appointed as the nominated substitute member for the Swindon Borough Council members of the Committee, in place of Councillor Oliver Donachie.

 

It was also agreed that while Diane Hall of Selwood Housing was undertaking a sabbatical year, Sue Eley of Selwood Housing would serve on the Committee in a non-voting capacity.

35.

Attendance of non-members of the Committee

To note the attendance of any non-members of the Committee.

Minutes:

There were no non-members present.

36.

Apologies for Absence

To receive any apologies for absence or substitutions for the meeting.

Minutes:

An apology was received from Councillor Mark Packard, who was substituted by Councillor Gordon King.

37.

Minutes

To confirm the Part 1 (public) minutes of the meeting held on 10 March 2016.

Supporting documents:

Minutes:

Resolved:

 

Subject to the addition of Sue Eley among the list of attendees for the Part 1 section of the meeting, to approve and sign as a true and correct record the minutes of the meeting held on 10 March 2016.

38.

Declarations of Interest

To receive any declarations of disclosable interests or dispensations granted by the Standards Committee.

 

Minutes:

There were no declarations.

39.

Chairman's Announcements

To receive any announcements through the Chairman.

Minutes:

At the conclusion of the meeting it was announced a pensioner member of the Fund had contacted the Council to ask that officers be thanked for the excellent and accessible newsletter produced for members of the Fund, and that this be brought to the attention of the Committee.

40.

Public Participation and Councillors' Questions

The Council welcomes contributions from members of the public.

 

Details of questions submitted to this meeting are attached to this agenda.

 

Statements

If you would like to make a statement at this meeting on any item on this agenda, please register to do so at least 10 minutes prior to the meeting. Up to 3 speakers are permitted to speak for up to 3 minutes each on any agenda item. Please contact the officer named above for any further clarification.

 

Questions

To receive any questions from members of the public or members of the Council received in accordance with the constitution. Those wishing to ask questions are required to give notice of any such questions in writing to the officer named above (acting on behalf of the Corporate Director), no later than 5pm on 23 June 2016 in order to be guaranteed a written response prior to the meeting. Any question received between the above deadline, and no later than 5pm two clear working days before the meeting, may only receive a verbal response at the meeting. Please contact the officer named on the first page of this agenda for further advice. Questions may be asked without notice if the Chairman decides that the matter is urgent.

 

Details of any questions received will be circulated to Committee members prior to the meeting and made available at the meeting and on the Council’s website.

Supporting documents:

Minutes:

A question from Mr Sigurd Reimers together with response was noted in the agenda papers.

41.

Appointment of the Investment Sub Committee

To reconstitute the Investment Sub Committee (ISC) in accordance with the attached Terms of Reference.

 

Supporting documents:

Minutes:

Resolved

 

In accordance with the approved terms of reference, to appoint the membership of the Investment Sub-Committee as follows:

 

Councillor Tony Deane

Councillor Charles Howard

Councillor Steve Weisinger

Councillor Mark Packard, or other Liberal Democrat Committee Member as approved at the July Meeting of Wiltshire Council.

10:35am

42.

Update from the Local Pension Board

The receive an update and minutes from the Local Pension Board meeting held on 7 April 2016.

 

The current Local Pension Board Work Plan is available here.

 

Supporting documents:

Minutes:

The Committee considered notes from the Local Pension Board, and were informed Sarah Holbrook of Wiltshire Police had replaced Kirsty Cole of Swindon Borough Council as a representative.

 

The Committee were informed the Board did not cost a large amount to run, but it would need to be reviewed to ensure it could be properly resourced.

 

Resolved:

 

To note the update.

10:40am

43.

SWAP Internal Audit Report

The Treasurer to the Pension Fund presents the internal audit report on key controls of the Wiltshire Pension Fund, forming part of the Wiltshire Council audit, for Members to note.

Supporting documents:

Minutes:

A report was received from Kerry Chisholm on the 2015/16 audit undertaken by the Fund’s internal auditors, South West Audit Partnership (SWAP), identifying risks to be addressed along with an action plan for the forthcoming year.

 

The Committee discussed the report, seeking details on staff resourcing, reviewing the guaranteed minimum pension, reconciliation checks, and provision for data backups.

 

At the conclusion of discussion, it was,

 

Resolved:

 

To approve the report and action plan.

10:55am

44.

Pension Fund Administration Outturn Statement 2015-16

A report presents the Fund’s outturn statement for the last financial year for members to consider.

Supporting documents:

Minutes:

The Pension Fund Administration Outturn Statement for 2015-16 was presented for consideration. The budget underspend of £0.160m was noted, due in part to vacancies which had now been filled.

 

Resolved:

 

To note the Outturn statement for 2015-16.

11:00am

45.

Draft Statement of Accounts

A report presents for consideration the draft Statement of Accounts that outlines the financial transactions during 2015-16 and will be included within the Council’s accounts.

 

Members are asked to approve the draft Wiltshire Pension Fund Financial Statements 2015-16 for publication, subject to the completion of the audit.

 

Supporting documents:

Minutes:

The Draft Statement of Accounts was presented for consideration. The final report would be considered in September 2016, and audits had not identified any key issues at the present time. It was confirmed accounts would go to the July meeting of the Audit Committee for approval.

 

The Committee considered the draft statement. Details were sought on employers’ contributions increasing and on the transfer of liabilities from the magistrate’s courts.

 

At the conclusion of discussion, it was,

 

Resolved:

 

To approve the draft statement of accounts 2015-16 for publication, subject to completion of the audit.

11:10am

46.

Amendment Regulations Consultation

A report from the Head of Pensions presents the proposed response from the Wiltshire Pension Fund on the latest Government consultation in respect of the amendment regulations, for Committee to consider.

 

Members are recommended to delegate the approval of the formal response from the Wiltshire Pension Fund to the Chairman and Vice Chairman taking into consideration the officers’ proposed response and the points raised at this meeting.

 

Supporting documents:

Minutes:

A report from the Head of Pensions was received on the proposed response from the Wiltshire Pension Fund on the latest Government consultation in respect of the amendment regulations issued in May 2016. The closing date for responses is 20 August 2016.

 

The Committee considered the report on the proposed response, which included supporting the proposed approach to adopt the reformed Fair Deal requirements making it compulsory for providers to provide the Local Government Pension Scheme for members except those previously transferred to a broadly comparable scheme. Comments were provided on the implications of the proposed changed to inform any response.

 

At the conclusion of discussion, it was,

 

Resolved:

 

To delegate approval of the formal response from the Fund to the Chairman and Vice-Chairman in consultation with officers.

11:20am

47.

Statement of Investment Principles

The Committee is asked to consider the draft Statement of Investment Principles for approval.

Supporting documents:

Minutes:

The Committee received the annual statement of investment principles. It was noted that the Department of Communities and Local Government had proposed revoking the regulations requiring an annual statement, instead replaced with an investment strategy statement. However, these new regulations were still to be implemented. Details were sought on changes in asset allocation.

 

Resolved:

 

To approve the 2016 statement of investment principles.

11:35am

48.

Pension Fund Risk Register

The Committee is asked to consider an update from the Head of Pensions on the Wiltshire Pension Fund Risk Register and note the measures being taken to mitigate risks.

Supporting documents:

Minutes:

The Committee received the latest quarterly update on the Pension Fund’s Risk Register. Since the last update in March 2016 two additional risks had been added to the register. These would be to monitor any impact from the government’s policy on encouraging further academisation, as well as operational decisions to mitigate market volatility in the event, since realised, of a vote to exit the European Union on the referendum held on 23 June 2016.

 

Details were sought on the decision taken to mitigate the risks, as well as the potential for swift increases in the number of academies and the impact on the Fund.

 

Resolved:

 

To note the Risk Register and measures taken to mitigate the current risks.

 

49.

Date of Next Meeting

To note that the next regular meeting of the Committee will be held on Thursday 29 September 2016.

Minutes:

The date of the next meeting was confirmed as 29 September 2016.

50.

Urgent Items

Any other items of business which, in the opinion of the Chairman, should be considered as a matter of urgency. Urgent items of a confidential nature may be considered under Part II of this agenda.

 

 

Minutes:

There were no urgent items.

51.

Exclusion of the Public

To consider passing the following resolution:

 

To agree that in accordance with Section 100A(4) of the Local Government Act 1972 to exclude the public from the meeting for the business specified in Item Numbers 19-23  because it is likely that if members of the public were present there would be disclosure to them of exempt information as defined in paragraphs 1 & 3 of Part I of Schedule 12A to the Act and the public interest in withholding the information outweighs the public interest in disclosing the information to the public.

 

Minutes:

Resolved:

 

To agree that in accordance with Section 100A(4) of the Local Government Act 1972 to exclude the public from the meeting for the business specified in minute number 52-56 because it is likely that if members of the public were present there would be disclosure to them of exempt information as defined in paragraphs 3 of Part I of Schedule 12A to the Act and the public interest in withholding the information outweighs the public interest in disclosing the information to the public.

 

11:45am

52.

Minutes

To confirm the Part 2 (Confidential) minutes of the meeting held on 10 March 2016.

Minutes:

Resolved:

 

To approve and sign as a true and correct record the Part 2 minutes of the meeting held on 10 March 2016.

11:50am

53.

Investment Pooling- proposed response to Government Consultation

The Committee is asked to consider a confidential report from the Treasurer to the Pension Fund which outlines the proposed response to the Government consultation on pooling to be submitted by the Brunel Pension Partnership on behalf of the ten Founder Funds.

 

Further documentation is to follow.

 

Minutes:

The Committee received a confidential report on continued work with the Brunel Pension Partnership to provide a response to the government consultation on investment reforms regarding pooling of pension investment funds.

 

Resolved:

 

To approve the joint submission of the Brunel Pension Partnership as its detailed proposal to the government’s consultation on investment reforms.

 

To delegate to officers to appoint an independent adviser to assess the Brunel Pension Partnership Business Case.

1:15pm

54.

Ill Health Insurance for Employers

The Committee is asked to consider an approach the Fund could take to assist employers in dealing with their ill-health liabilities.

Minutes:

The Committee received a confidential report on a potential risk mitigation tool for the Fund’s employers in respect of ill-health early retirement claims.

 

Resolved:

 

To set up a Fund ill-health insurance policy which is automatic for all employers, unless they confirmed in writing that they understood the risks and wished to opt out.

1:30pm

55.

Potential Class Action

The Committee is asked to consider whether the Fund should participate in a potential class action claim. A report from the Head of Pensions is to follow.

Minutes:

The Committee received a confidential report on whether it wished the Fund to be considered as a lead plaintiff in litigation against company which it had invested in. As a class action lawsuit had been instigated in the United States, the Fund would be automatically added as a plaintiff unless it opted out. As a lead plaintiff the Fund would have greater control over the action.

 

Resolved:

 

To consent to put the Fund forward as a lead or co-lead plaintiff in the case against Lending Club Corporation based on the current details outlined in the report.

 

1:55pm

56.

Investment Quarterly Progress Report Update

The Committee is asked to note three confidential reports from the Strategic Pension manager and Mercers.

 

An verbal update will be provided on the outcome of the Investment Sub Committee meeting held on 16 June 2016. The minutes of this meeting are to follow.

Minutes:

The Committee received a confidential report on the Fund’s investment performance up to 31 March 2016 from Mercers, its investment advisers.

 

Resolved:

 

To note the investment reports.

 

To delegate to the Chairman and Vice Chairman, in consultation with the Treasurer to the Pension Fund, to suspend the overlay in the event of serious concerns emerging as a result of market volatility.