Agenda and minutes

Pension Committee - Friday 13 May 2016 10.00 am

Venue: Cabinet Suite - Shire Hall, Gloucester. View directions

Items
No. Item

28.

Minutes pdf icon PDF 87 KB

To approve as a correct record the Minutes of the meeting held on 12 February 2016.

Minutes:

The minutes were approved as a correct record.

 

29.

Declarations of Interest -

Members of the Committee are invited to declare any financial or pecuniary interest related to specific matters on the agenda.

 

Please see note (a) at the end of the agenda.

Minutes:

Cllr Brown made a non-prejudicial declaration as a member of Gloucester City Council.

 

Cllr Hay made a non-prejudicial declaration as a member of Cheltenham Borough Council and as a trustee of Cheltenham Trust.

 

Cllr Theodoulou made a non-prejudicial declaration as a member of Cotswold

District Council.

 

Cllr Parsons made a non-prejudicial declaration as a member of Cotswold District Council.

 

Peter Clark declared that he was a member of the Local Government Pension Scheme.

 

30.

Public Questions -

To answer any written questions about matters that are within the powers and duties of the Committee. The closing date/time for the receipt of questions is 10.00am on 6 May 2016.

 

To answer any oral question(s) put by members of the public.

 

Depending on the nature of the oral questions asked it may not be possible to provide a comprehensive answer at the meeting, in which case a written answer will be supplied as soon as reasonably possible after the meeting.

Minutes:

Nopublic questionshad beenreceived

 

31.

Members' Questions -

To answer any written members’ questions. The closing date/time for the receipt of questions is 10.00am 6 May 2016.

Minutes:

Nomember questionshad beenreceived.

 

32.

Training Update

Verbal Updates

Minutes:

Thecommittee receivedan update from Graham Burrow on the training that had taken place on 27thMay which covered the role of Pension Regulator and the Breaches Policy. The slides from the session had been circulated.

Cllr Hay and Cllr Gill apologised for being unable to attend the session and welcomed the slides that had been provided.

 

33.

Market Valuations and Quarterly Performance Review of the Fund Q1 2016 pdf icon PDF 23 KB

To note the report.

Minutes:

33.1    Sharon Crane introduced the report which showed the market values for each fund manager and their performance to date and since inception. She presented an amendment to the third sheet which showed a comparison of quarter 4 2015 with the first quarter. The value had changed and an adjustment had been made based on the rebalancing which was presented incorrectly on the original paper.

 

33.2    In the first quarter  for 2016 the Fund’s value had increased by £28m with performance being 1.3% below the benchmark. This represented underperformance over this period, but performance exceeded the benchmark by 0.6% over the last 3 year period..

 

33.3    During discussion it was suggested that the lower returns were due to increased volatility. One member commented that emerging markets had begun to recover in quarter 1.

 

 

33.4    There was detailed discussion on what return the fund needed to make to reduce the deficit and the way in which investment returns and contributions affected that and how this could be covered within the performance report. It was commented that when thinking about future strategic asset allocations how active or passive management should be used.

 

34.

Pension Board minutes pdf icon PDF 93 KB

To note.

Minutes:

34.1    The minutes from the Pension Board meeting on 22 April were provided for benefit of the Committee.

 

34.2    Graham Burrow explained that there had been a few items that the Board had wanted to flag up.

 

34.3    The Board had received the amended version of the Risk Register. The Board had suggested that the Committee may wish to add how the unitary proposals might impact the Fund and the impact of Project Brunel. 

 

34.4    The committee noted that these issues could be flagged up as emerging risks.

 

·         With regards to the Annual Benefit statement, the Board had asked officers to consider raising charges for late returns.

 

·         One member queried whether the Council was satisfied that other employers within the fund were backing up records. In response it was explained that officers were  satisfied with regards to large employers, but were not certain with regards to the smaller employers. A communication would be sent out reminded employers of the need to back up data.
ACTION                     Graham Burrow/ Mark Spilsbury

 

35.

Exclusion of the press and public

Resolved

 

That in accordance with Section 100 A (4) of the Local Government Act 1972 the public be excluded from the meeting for the following agenda items, 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 1 of Schedule 12 A to the Act and the public interest in withholding the information outweighs the public interest in disclosing the information to the public.

 

Minutes:

THAT in accordance with Section 100 A (4) of the Local Government Act 1972 the public be excluded from the meeting for the following agenda items, 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 1 of Schedule 12 A to the Act and the public interest in withholding the information outweighs the public interest in disclosing the information to the public.

 

36.

Exempt Minutes

To approve as a correct record the exempt minutes of the meetings held on 12 February 2016.

Minutes:

The exempt minutes of the meeting held on 12 February 2016 were agreed as a correct record and signed by the Chairman.

 

37.

Pension Administration Report

To note the report.

Minutes:

37.1    The committee were introduced to Alan Marshall who was the Administration Manager. The Committee noted that the Administration Report provided an update on Pension Administration Benchmarking, Pension Administration performance information and the position regarding the receipt of CARE reports from employers for the valuation and Annual Benefits Statements.

 

38.

2016 Valuation

To note the report

Minutes:

38.1    Julie West presented the 2016 Formal valuation of the Gloucestershire County Council Pension Fund.

 

RESOLVED

 

That the Pension Committee agreed with the assumptions.

 

It was noted that the staff representative indicated he was uncomfortable with the assumptions.

 

39.

Minutes of Shadow Oversight Board

To note.

Minutes:

Cllr Ray Theodoulou provided members with an update. The Committee considered the minutes from the previous meeting of the Board.

40.

Update on Fund Pooling proposals

To update the Committee

Minutes:

Graham Burrow provided an update including the circulation of the draft suggested template for the July response to Government.

 

41.

Feedback from Manager Meetings

To note the report.

Minutes:

RESOLVED

 

To agree to a switch in allocation of funds as suggested within the report in principle, subject to fee agreement and low transaction costs.

42.

Admission Body Requests

To update the Committee and note the report.

Minutes:

The Committee were informed of four decisions taken under delegated powers.

43.

Update on Recovery Action

To note the report.

Minutes:

RESOLVED

 

That the Committee approve the actions taken by officers.

 

44.

WM Annual Fund Review

Minutes:

Karen Thrumble updated members on the performance review for the periods to end March 2016. This would be the last report as State Street would no longer be providing performance measurement.

 

45.

Investment Update

Minutes:

Steve Tyson provided members with an update ahead of the discussions with investment managers. He outlined the long term investment strategy and the further strategy considerations.

 

46.

Investment Report - Standard Life

(Start at 13.40)

Minutes:

Standard Life  gave a presentation on their performance and set out their strategy going forward.

 

RESOLVED

That the presentation be noted.

47.

Investment Report - GMO

(start at 14:30)

Minutes:

GMO gave a presentation on their performance and future strategy for 2016/17.

 

RESOLVED

That the presentation be noted.