Berkshire Pension Fund Panel
Tuesday 28 October 2014 4.00 pm
To listen to an audio recording of the Part I section of this meeting please use this link http://www.rbwm.gov.uk/web/meetings_audio_recordings_october2014.htm
PRESENT: Councillors Lenton (Chairman), Comber (RBWM), Dudley (RBWM), Hilton (RBWM), Brooker (Slough Borough Council), Stanton (Wokingham Borough Council), Worrall (Bracknell Forest), Mr Eryilmaz (University of West London) and Mrs Nicholls (Unison).
Independent Adviser to the Panel: Sue Timbrell
Officers: Mr Greenwood, Mr Taylor, Mr Brooker, Mr Pedro and Mr Cook.
14/14 APOLOGIES FOR ABSENCE
Apologies for absence were received from Cllr Hill, Cllr Law, Mr Fuller and Mr Nestor.
15/14 DECLARATIONS OF INTEREST
There were no declarations of interest declared.
16/14 MINUTES
The Pension Fund Manager introduced the report that dealt with the pension fund’s annual report and accounts. The funds financial statement was a subset of the Council’s Financial Statements that were approved in September 2014.
Whilst considering the report it was noted that employee contributions would be increased and that employees would be kept informed of any changes. There had been an increased use of the website, especially in April 2014 when changes to the pension scheme were made and that this increased use had helped decrease administrative pressures on staff. The Panel gave their thanks to officers for their work on the report.
18/14 UPDATE ON PENSION FUND COLLABORATION
The Pension Fund Manager introduced the report that provided an update on the proposed pension fund collaboration with Buckinghamshire and Oxfordshire County Councils. Following the consultation meeting of the 25th September 2014 Members requested an update on; a revised business plan, additional benchmarking data, an organisational chart showing accountabilities, the revised timetable, additional information why option one had been recommended as the preferred choice and a risk register.
The Panel were informed that colleagues at Buckinghamshire and Oxfordshire County Councils were currently working on a revised business plan and that this would be presented at the Panels November 2014 meeting.
The Panel were informed that an organisation chart was included in the report as appendix 1 that showed an operational board consisting of S151 Officers from the three administrating authorities who would have oversight of the arrangement whilst the Lead Authority managed the working arrangements. There would be Consultative Groups in place, that would act in a similar fashion to the existing Berkshire Pension Advisory Panel that could feed recommendations to the joint committee.
During discussion on the item a number of points were raised; in particular:
19/14 DATES OF FUTURE MEETINGS
Future meeting dates were noted.
20/14 LOCAL GOVERNMENT ACT 1972 – EXCLUSION OF THE PUBLIC
PRESENT: Councillors Lenton (Chairman), Comber (RBWM), Dudley (RBWM), Hilton (RBWM), Brooker (Slough Borough Council), Stanton (Wokingham Borough Council), Worrall (Bracknell Forest), Mr Eryilmaz (University of West London) and Mrs Nicholls (Unison).
Independent Adviser to the Panel: Sue Timbrell
Officers: Mr Greenwood, Mr Taylor, Mr Brooker, Mr Pedro and Mr Cook.
14/14 APOLOGIES FOR ABSENCE
Apologies for absence were received from Cllr Hill, Cllr Law, Mr Fuller and Mr Nestor.
15/14 DECLARATIONS OF INTEREST
There were no declarations of interest declared.
16/14 MINUTES
- RESOLVED UNANIMOUSLY: That the Part I minutes of the meeting of the Panel held on 14 July 2014 be approved.
The Pension Fund Manager introduced the report that dealt with the pension fund’s annual report and accounts. The funds financial statement was a subset of the Council’s Financial Statements that were approved in September 2014.
Whilst considering the report it was noted that employee contributions would be increased and that employees would be kept informed of any changes. There had been an increased use of the website, especially in April 2014 when changes to the pension scheme were made and that this increased use had helped decrease administrative pressures on staff. The Panel gave their thanks to officers for their work on the report.
18/14 UPDATE ON PENSION FUND COLLABORATION
The Pension Fund Manager introduced the report that provided an update on the proposed pension fund collaboration with Buckinghamshire and Oxfordshire County Councils. Following the consultation meeting of the 25th September 2014 Members requested an update on; a revised business plan, additional benchmarking data, an organisational chart showing accountabilities, the revised timetable, additional information why option one had been recommended as the preferred choice and a risk register.
The Panel were informed that colleagues at Buckinghamshire and Oxfordshire County Councils were currently working on a revised business plan and that this would be presented at the Panels November 2014 meeting.
The Panel were informed that an organisation chart was included in the report as appendix 1 that showed an operational board consisting of S151 Officers from the three administrating authorities who would have oversight of the arrangement whilst the Lead Authority managed the working arrangements. There would be Consultative Groups in place, that would act in a similar fashion to the existing Berkshire Pension Advisory Panel that could feed recommendations to the joint committee.
During discussion on the item a number of points were raised; in particular:
- If the consultative groups offered conflicting advice the Joint Pension Committee would hold the final decision authority.
Each county would retain responsibility for their pension funds.
Draft regulations suggested that each pension fund would have to have their own Pension Boards; therefor it was unlikely there would be a joint board.
The efficiency and resilience benefits of the proposed collaboration outweighed the bureaucratic need for so many boards; without the proposals each fund would still require their own Pension Boards.
The lead authority would be responsible for delegating powers to the Joint Pension Committee.
The Operational Board would be an officers meeting feeding into the lead authority.
It was not proposed to merge the funds as this would require primary legislation.
If the proposals were approved a central team would be established with satellite teams remaining in current locations, this was to mitigate the risk of loosing staff if the changes were introduced straight away. All teams would be merged into one location at a later date.
The investment teams would be relocated into one place and it was expected that the combined expertise in private equity funds would be developed to a point were there would be a reduction in fees paid to private companies.
It was expected that £3 million would be saved per year from investment management fees.
The risk register was split into existing RBWM risks and those risks associated with project BOB.
Each fund would be responsible for setting their investment strategy and appetite for risk.
19/14 DATES OF FUTURE MEETINGS
Future meeting dates were noted.
20/14 LOCAL GOVERNMENT ACT 1972 – EXCLUSION OF THE PUBLIC
RESOLVED: That under Section 100(A)(4) of the Local Government Act 1972, the public be excluded from the remainder of the meeting whilst discussion takes place on items 5-8 on the grounds that they involve the likely disclosure of exempt information as defined in Paragraph 3 of part I of Schedule 12A of the Act.