Agenda and minutes

Pension Committee - Friday 2 December 2016 10.00 am

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

Items
No. Item

98.

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:

No additional declarations were made to those already recorded.

99.

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 25 November 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:

No public questions were received.

100.

Members' Questions -

To answer any written members’ questions. The closing date/time for the receipt of questions is 10.00am on 25 November 2016.

Minutes:

No Member Questions were received.

101.

Brunel Partnership Business Case pdf icon PDF 83 KB

The full business case is now complete and needs to be approved by each of the ten administering authorities in order that the establishment of the Local Authority Company can be progressed. The executive summary of the full business case is attached at Appendix 1 to this report, with the detailed business cases being included for information under the exempt part of the agenda.

Additional documents:

Minutes:

101.1              Mark Spilsbury outlined the executive summary of the business case for the Brunel Pension Partnership.  The business case was now complete and needed the approval of each of the ten administering authorities in order that the establishment of the Local Authority Company could be progressed.

 

101.2              The Pension Committee was being asked to recommend to the County Council that they enter into investment pooling with respect to the Gloucestershire Pension Fund. The full proposal was outlined within the report including the relevant terms and conditions.

 

101.3              The business case had been reviewed by the Finance/ Legal Assurance Group comprising of the Section 151 and Monitoring Officers/ Head of Legal Services of each of the ten administering authorities. It had been reviewed by the Shadow Oversight Board comprising of the chairs of the ten funds.

 

101.4              The detailed business case and risk register were contained within the exempt part of the papers by virtue of paragraphs 3 and 5 of part 1 of schedule 12A of the Local Government Act 1972. Members were able to go into exempt session to ask questions on these papers as required.

 

101.5              It was clarified that approval was being sought to establish a company called Brunel Pension Partnership Ltd (Brunel company or BPP Ltd) regulated by the Financial Conduct Authority and the new governance arrangements to establish client side joint shareholder oversight and joint contract management.

 

101.6              The report explained the strategic, economic, management, commercial and financial case on which to go forward with the proposals. It was suggested that the Council needed to be challenging the transition costs proposed.

 

101.7              Members noted the outcome of sensitivity analysis for the Gloucestershire Fund in terms of the impact on the breakeven year within the report. In response to a question it was confirmed that this was based on estimates and that the £11.5m saving in 2027/28 equated to around 0.6% of the value of the fund. It was confirmed that the starting point for the Gloucestershire Fund was that it had low fee levels and that meant that the savings through pooling were smaller than the other Funds within the pool.

 

101.8              It was explained that the assumptions within the business case did not make allowances for a change in asset performance.

 

101.9              There was some discussion around the impact that performance would have on justifying a return. A small deviation in asset performance would have a greater impact that reduced manager fees.

 

101.10            In regards to transition costs, there had been large variations in the figures forecast. It was important that the transition was planned carefully and that there was a full understanding of where the costs might lie.

 

101.11            One member clarified that the proposals would have no influence on the pensions that were paid out and that it was important to emphasis that for the public.

 

101.12            It was explained that Gloucestershire would retain administration of the Pension Fund and the responsibility for asset allocation. A member detailed that the key risks  ...  view the full minutes text for item 101.

102.

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 & 5 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:

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 & 5 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.

 

103.

Brunel Partnership Business Case

To support the consideration of the summarised full Business Case provided in the previous items, exempt reports have been provided.

Minutes:

The Committee noted the exempt documentation supporting and providing further detail on the Brunel Partnership Business Case.

104.

2016 Fund Valuation Results

Minutes:

The Committee received the 2016 fund valuation results.

105.

Admission Body Update

Minutes:

The Committee was provided with an update on an admitted body,

106.

Pension Board Exempt Minutes

Minutes:

The Committee noted the minutes of the previous meeting of the Pension Board.  Cllr Nigel Moor, a member of the Board, explained that the Board were thorough in their activity of scrutinising the Pension Committee. He welcomed the Committee commitment to a regular updating of the risk register.