Agenda and minutes

To note any changes to Membership of the Committee

Following the meeting of Council on 12 November 2013, the following changes to membership of the Committee were noted.

Councillor Graham Payne was removed as a Member of the Committee.

Councillor Roy While, previously a substitute Member of the Committee, was appointed a full Member of the Committee

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

There were no non-member attendees

To receive any apologies or substitutions for the meeting.

Apologies for absence were received from Mrs Lynda Croft and Mr Tony Gravier.

To confirm the minutes of the ordinary meeting held on 19 September 2013 and the extraordinary meeting on the 10 October 2013.

The minutes of the meeting held on 19 September 2013 were presented for consideration. It was,

Resolved:

To APPROVE as a true and correct record and sign the minutes.

To receive any announcements through the Chair.

It was announced that following the Committee’s decision at its meeting on 04 June 2013 to transfer 10% of the Fund’s assets to a Emerging Markets Multi Asset Manager, the contract had gone out for tender and three managers were expected to attend a special meeting of the Committee in January 2014 for one to be appointed to that mandate

It was also noted that the Pensions Team would shortly be transferred to their new working space in the renovated County Hall facilities. The Chairman expressed his concerns about the open plan work space planned for the pension team given the sensitivity of their work.

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

There were no declarations of interest

The Council welcomes contributions from members of the public.

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, no later than 5pm on Wednesday 27 November 2013. 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.

There were no questions or statements submitted.

An update from the Associate Director, Finance (Section 151 Officer) Revenues and Benefits, Pensions,on the Wiltshire Pension Fund Risk Register is circulated for Members’ to note.

The Head of Pensions presented the updated Pensions Fund Risk Register, noting there had been no significant changes since the last meeting.

Attention was drawn to an update to risk PEN018: Failure to implement the LGPS 2014 Reforms and it was noted that work was continuing on the communications strategy through collaboration with South West Funds, with a newsletter to be sent out in the new year and leaflets explaining changes in more detail while Roadshows have been scheduled across the County.  Further presentations are available on request from employers.

It was also noted that the new software for the scheme is planned to be released in February 2014 and currently the firm responsible for the software are monitoring the testing process.  A discussion followed raising concerns around the implementation stage and it was stated that the testing stage is progressing successfully and that contingency plans were in place if needed.

There was also an update on PEN 011 – Lack of expertise of pension fund officers, it was noted that training was ongoing and that staff were actively gaining relevant qualifications.  

Resolved:

The Committee is asked to note Risk Register and the measures being taken to mitigate the current medium risks.

A verbal update by Robert Summers (CIPFA Business Services) on current activities and the latest developments/issues within the LGPS sector for Members’ information. 

Robert Summers (Chairman CIPFA Pensions Panel and Network) presented an update on the current activities and the latest developments/issues within the Local Governance Pension Scheme (LGPS) sector, as attached to these minutes, including details of the proposed Pensions Code of Practice, current and future operation of Pensions Boards, the LGPS Governance Consultation the work of the CIPFA Pensions Panel and its responses to statutory changes and changes to investment regulations

Discussion followed noting issues around recruitment for the Pensions Board and the level of detailed knowledge that would be required by all the members, as well as the need for an application guide for Local Government Pensions Scheme operating under the new Pensions Code of Practice

The issue of Collaborative Investment Vehicles (CIVs) as a potential collaborative model for LGPS schemes was discussed, with members concerned about a lack of resources for such a scheme. The Committee also discussed the most appropriate method for engaging with Wiltshire’s parliamentary representatives to raise concerns and questions over the forthcoming changes, in particular the emphasis on administrative costs of running pensions schemes over the issue of the liabilities of those schemes.

After discussion,

Resolved:

For the Chair and Vice-Chair arrange a meeting with Claire Perry MP to discuss concerns regarding the implementation of the new system with officers assistance from officers, and report back to Committee members before the next committee meeting.

To note that the next regular meeting of the Committee will be held on Thursday 6 March 2014 in the Kennet Room, County Hall, Trowbridge.

It was confirmed that the next regular meeting of this Committee would be held on Thursday 6 March 2014.

A special meeting of the Committee to appoint a new Fund Manager would take place in January 2014, with a date to be confirmed later

There were no urgent items.

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 13 – 16  because it is likely that if members of the public were present there would be disclosure to them of exempt information as defined in paragraph 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.

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 Numbers 76-80 because it is likely that if members of the public were present there would be disclosure to them of exempt information defined in paragraph 3 of Part 1 of the Schedule 12A to the Act and the public interest in withholding the information outweighs the public interest in disclosing the information to the public. 

Paragraph 3 – information relating to the financial or business affairs of any particular person (including the authority holding that information).

A confidential report reviewing the Fund’s performance compared to the other members of the CIPFA Pension Administration Benchmarking Club for the Committee to note.

 The Head of Pensions presented the Pensions Administration Benchmarking Club Report for 2013, comparing the service of the Wiltshire Pension Fund against 52 other Local Government Pension Scheme Authorities. It was noted that the survey results were based on pension administration only, and due to differences between administration for the different Funds within the benchmarking club, the provided data and comparison is useful as an indicative assessment of the Fund, while not being an exact comparison with other Funds.

The Committee discussed the report, noting that overall costs were in line with peers despite increased costs from IT administration arising from increased membership of the scheme and department restructuring, Staff costs per member were below the average for the Funds in the Club.

Other points included that the Fund’s administration staff had a lower than average level of relevant qualifications, but it was noted that several members were in the process of obtaining those and higher qualifications. It was also noted that the Fund had a higher proportion of deferred members than the average

At the conclusion of discussion, it was,

Resolved:

That the committee note the updates to the report.

Two confidential reports are circulated updating the Committee on the performance of the Fund’s investments for the quarter.

The Fund Investment and Accounting Manager presented the Investments Quarterly Progress Report to note the performance of the mandates of the Fund, along with a commentary report from the advisers to the Fund, Mercers.

The Committee discussed the reports and noted that most mandates had performed strongly, and continued to note the phased transition of the Edinburgh Partners mandate to the L&G Fundamental Indexation Fund.

After discussion, it was,

Resolved:

That the committee note the progress report. 

A confidential report from Berenberg bank is attached and Members are asked to consider this along with the verbal report at the meeting.

Matthew Stemp, Tindaro Siragusano and Maria Heiden from Berenberg gave a presentation and report on their mandate of the Pension Fund, and took questions from the Committee on the progress and future plans for that mandate.

Following which it was,

Resolved

To thank the representatives from Berenberg for their attendance and presentation.

A confidential Annual Report from CBRE is attached and Members are asked to consider this along with the verbal report at the meeting.

Max Johnson, Alex Bignell and Mark Adcock from CBRE gave a presentation and report on their mandate of the Pension Fund, and took questions from the Committee on the progress and future plans for that mandate.

Following which it was,

Resolved

To thanks the representatives from CBRE for their attendance and presentation.