Agenda item

A report from the Head of Pensions on the implementation of the Local Pension Board, changes to the Fund Governance Compliance Statement and appointments process to the Investment Sub-Committee for members consideration.

The Committee received a report on the implementation of a Local Pension Board (LPB), changes to the Fund Governance Compliance Statement and appointments process to the Investment Sub-Committee.

The establishment of a LPB was approved at Full Council on 24 February 2015 and positions now needed to be filled. On 28 January 2015 the final guidance for the Boards had been published, the main changes included that the Chairman of the Board would be non-voting to encourage decision-making by consensus. Additionally, ‘relevant experience’ required for members had been dropped, members would be required to have the ‘capacity’ to carry out their duties and to demonstrate a high level of knowledge and understanding of the Scheme and of their role once in post. The concession was made by the Government to overcome a perceived substantial barrier to encouraging nominations.

Members’ allowances and expenses would be considered by Full Council in May 2015 following consideration by the Independent Remunerations Panel. It was noted the timing for recruitment before this meeting was tight therefore the Committee suggested that the position of Chairman be advertised without a confirmed level of remuneration, likewise a special meeting of the Independent Remuneration Panel should be called if needed. Members considered there would be much background work required as Chairman of the LPB. A recommendation of £12,000 remuneration was suggested to reflect the commitment necessary from a Chairman, the Committee considered this comparable with other similar positions.

The Committee was updated that recruitment for Employer and Member representatives for the Board was currently underway. The Investment Sub-Committee (ISC) had an expanded role and an overview of its membership was provided.  The appointment of Wiltshire Councillor to the ISC would be subject to the rules of political proportionality of the Council, Members agreed it would be ideal for the co-opted Member of the ISC to be one of the Swindon representatives.

The Chairman invited all members of the Wiltshire Pension Fund Committee who would not be members of the ISC to attend its meetings when appropriate.  Projected dates for the LPB, ISC and amended dates for the Wiltshire Pension Fund Committee in the agenda pack were highlighted. Questions were raised over whether a one-year membership for the co-opted member of the ISC would be sufficient. Members were assured that since the member would come from the full Committee they would have sufficient knowledge. A one-year membership would also provide other members of the Committee the opportunity to participate.

As a result of the implementation of the LPB and ISC, the Governance Compliance Statement had been amended, the Committee considered the revised document.

Resolved:

1.    To note the update on the current position in relation to the establishment of Local Pension Board (LPB);

2.    To approve the appointment of an additional elected Member and co-opted Member to the Investment Sub-Committee as outlined in paragraph 17 of the report;

3.    To approve the revised Governance Compliance Statement outlined in Appendix B of the report;

4.    To recommend that the Chairman of the LPB receive a £12,000 allowance and;

5.    To recommend that the position of Chairman of the LPB be advertised in advance of a confirmed remuneration.