To consider the report.

The Panel considered the report that requested they approve the signing of the Memorandum of Understanding with the Local Pensions Partnership as appended.

The Head of Finance informed that in 2015 the government had informed of the intention that all LGPS Funds in England and Wales should join an approved ‘pool’.  This should be done by April 2018.  The signing of the Memorandum of Understanding demonstrated commitment from both parties to work together to reach a successful conclusion in respect of the Berkshire Pension Fund joining LPP.

The Panel Advisory Members representing the other local authorities in attendance said that they would have to explain to their Councils why the Berkshire Pension Fund was proposing joining LPP, what other options had been considered and what would happen if we did not agree to be pooled.  Members would have to explain why we were agreeing to pool when this would increase costs.

The Panel were informed that there had been discussions with the other pools and it had been agreed that LPP was the best option for the Fund especially as it would be a partnership.

The RBWM Managing Director informed that the Panel / Advisory Panel had been kept abreast of pooling and that Berkshire Leaders, Berkshire Chief Executives and S151 officers had received briefing notes and updates at their meetings.

The Panel Advisory Members requested a briefing note be produced that they could take back to their Council Members.  It was mentioned that this process had been underway for over 15 months and there had never been a single consolidated report and that it would be useful to have a summary of the business case. 

The RBWM Managing Director mentioned that there would be a summary of the business case in the report due to be considered at the Panel’s next meeting and a pack of progress / decisions taken could be provided.

It was mentioned that a briefing note would be required prior to the next Panel meeting on 18^th December 2017 so Members could be briefed.  Other Council’s would want to know what options had been considered and what were the consequences if we did not pool. 

The Chairman mentioned he had offered to discuss pooling with the other local authorities but there had been no up take.

The RBWM Managing Director agreed that a summary would be circulated to the Panel / Advisory Panel before the meeting in December 2017. 

The Chairman mentioned that the Panel had executive authority to make the final decision for the Fund and a briefing note would be produced.  He did not wish sanctions to be imposed on the Fund and the Government forcing us to pool. The Memorandum of Understanding was not a binding commitment.  The Chairman also mentioned that the Panel had never gone against the wishes of the Advisory Panel. 

Cllr Law mentioned that there had been a meeting with LPP in August where the Memorandum of Understanding had been available.  The Panel were informed that the appendix before them was different and that at the Panel meeting following the LPP meeting it had been agreed to send them a letter of intent. 

Cllr Stanton mentioned that the report said that LPP would get 100% of the Funds’ assets.  The Panel were informed that the Panel would remain in control of our strategies such as maintaining local investment. 

Cllr Hilton mentioned that the Fund already maintained local investments and that it would be some time before 100% went to LPP.  It was important to know how these assets would be managed before LPP get 100% of the Funds’ assets.  The Chairman mentioned that the assets would remain with the Fund but would be managed by LPP.

Concern was raised that a press release was due to be released prior to the briefing note being made available.  It was mentioned that there had already been many references of pooling in the public domain.  It was agreed that the press release would make it clear that there would be no impact on the Funds’ members and that the Memorandum of Understanding was not a formal agreement.

Resolved unanimously: that the Panel approve the signing of the Memorandum of Understanding with Local Pensions Partnership.