To note the report.

The Berkshire Pension Fund Manager informed the Panel that discussions with The Local Pensions Partnership (LPP) were ongoing but there had been little progress since last reported to the Panel.

The Panel were informed that LPP had reviewed Berkshire’s pension administration costs with Lancashire’s and conclude that there would be few short term administration cost savings available however there would be increased resilience.  Officers were currently awaiting the revised draft legal agreement.

Cllr Hill asked if we were so efficient would this be a basis for not having to enter a ‘Pooling’ arrangement and was informed that officially this was not possible; however legacy and local investments should not be pooled.  Officers would be meeting with Fund Managers to discuss this. 

Cllr Hill asked if we invested in Maidenhead development projects if this therefore would be outside pooling.  The Panel were informed that this would be outside pooling and investment opportunities were being investigated.

Cllr Stanton asked if once the legal document was signed would it be binding and was informed that it would however due diligence would be undertaken before any contract was signed.

Cllr Hill asked if we were forced to continue with pooling when would we loose control of local investments and when does it have to be implemented.  The Panel were informed that pooling needed to be in place by 1^st April 2018 with all liquid assets equity and bonds being transferred.  The Pension Panel would remain responsible for its investments strategy.

Cllr Stanton asked if LPP had agreed to the list of conditions put together by the Panel Chairman and was informed that the majority had been accepted although there were issues regarding the request to hold 10% of our assets to be managed locally as this was outside guidelines.

Cllr Stanton asked if the final agreement would be brought back to Panel and was informed that it would, we have issued a letter of intent but this was not binding.   It was noted that even after savings there would be additional costs of £1.1 million, that officers over 55 may take redundancy and that a local manager may be maintained to manage legacy investments.

Cllr Hill asked what would happen to the current Pension Fund Manager if we joined LPP and raised concern that if we did retain 10% for local investment we would have lost our local expertise to LPP.  The Panel were informed that there was an assumption that the Pension Fund Manager would join LPP however as yet he had not seen evidence of a role he would want and his preference would e to stay with RBWM.

The Chairman reported that he had not seen any benefits to pooling for the Panel or the funds members. The Fund needed 4.5% above inflation on its investments and he did not see this being met by Government infrastructure investments. He mentioned that MPs had similar pensions but were not being ask to pool and that the authority would be lobbying local MPs.

The Panel noted the update.