Agenda and minutes

Pension Committee - Friday 1 July 2016 10.00 am

Venue: Meeting Room 6 - Shire Hall, Gloucester. View directions

Items
No. Item

48.

Minutes - pdf icon PDF 135 KB

To approve as a correct record the Minutes of the meeting held on 13 May 2016

Minutes:

The minutes were agreed as a correct record subject to the following amendment:

 

Cllr Lynden Stowe noted that his declaration of interests were missed off from the minutes and asked that they be added to read

Cllr Stowe made a non-prejudicial declaration as a member of Cotswold District Council and UBICO’

 

49.

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 Cooper made a non-prejudicial declaration as a member of Stroud District

Council and governor at Archway School.

 

Cllr Stowe made a non-prejudicial declaration as a member of Cotswold District Council and UBICO’

 

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.

 

50.

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 24 June 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 questions were received

 

51.

Members' Questions -

To answer any written members’ questions. The closing date/time for the receipt of questions is 10.00am on 24 June 2016.

Minutes:

No questions were received.

 

52.

LGPS Pooling of Investments pdf icon PDF 86 KB

Minutes:

52.1    Mark Spilsbury, Head of Pension Fund, provided a short introduction of the paper within the report and acknowledged that further detail was contained within the exempt papers including the outline business case. Members had received a detailed presentation in June which outlined many of the documents for consideration by the Committee.

 

52.2    By way of summary, members noted that following the Government’s announcement in the July 2015 budget statement that they intended to work with Local Government Pension Scheme (LGPS) administering authorities to ensure that they pooled investments to significantly reduce costs, work had been undertaken to set up the Brunel Pension Partnership comprising ten LGPS Funds.

 

52.3    A detailed joint submission was required to go to Government by 15 July. The Committee was being asked to approve the joint submission from the Brunel Pension Partnership and to recommend that the County Council approve in principle the establishment of a Local Authority Company with the other Brunel founder funds in which Gloucestershire County Council would own 10% of the shares.

 

52.4    Members agreed to consider the exempt documents in detail in exempt session and then return to the public paper to consider the recommendations. While noting the confidential nature of the documents being considered, the Committee were keen to ensure as much of the discussion on the documents and the questions asked by members as possible to be available within the public domain as far possible. A public summary of the discussion can be found at minute 54 which led to the agreement of the recommendations outlined in the public paper.

 

 

 

 

 

 

 

Therefore it was resolved:

 

That

 

(a)  the Committee endorses the joint submission from the Brunel Pension Partnership, including the Gloucestershire Pension Fund;

 

(b) the Committee formally recommends the Council to agree, in principle, to the establishment of a Local Authority Company with the other Brunel founder funds, in which Gloucestershire County Council will own 10% of the shares.

 

(c)  consequently,  the Strategic Finance Director be authorised to continue negotiating as necessary  with other Fund Members on the detail of the proposition and, in consultation with the Chairman of the Pension Fund Committee, to agree the terms of any final agreement, reporting back to this Committee in the normal manner;

 

(d) the Head of Legal Services be authorised to execute all necessary legal documents or formal agreements required to be agreed by the Council to give effect to the proposals concluded in line with the above.

 

53.

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:

The committee agreed

 

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.

 

54.

Project Brunel Submission to Government

Minutes:

54.1    Mark Spilsbury outlined the government’s approach to pooling explaining that three submissions were required. The first was the strategic submission which had been approved by the Pension Committee in February; the second was the submission outlined for members in the papers which would be sent to Government on 15 July and the third was the final business case. The current timescale proposed for the Committee to receive the final business case is 11 November 2016, with approval sought from full Council on 7 December 2016.

 

 

 

 

54.2    The submission had been produced by officers of the ten pension funds working with the Oversight Board which was made up of the chairs of each pension committee. It had been considered in detail by legal and financial advisers acting on behalf of the 10 funds and Chief Financial Officers. Any concerns or comments from the committee would be included in the minutes and addressed at the next stage of the process when drawing up the detailed business case.

 

54.3    The staff representative on the Committee reiterated his concern that there was no scheme, staff or employee representative on the oversight board and asked for this to be addressed. In response it was explained that this had been referred back to the Local Government Association and would continue to be as the final business case is produced.

 

54.4    Members noted that the Government would be changing the Investment Regulations to enable the pooling of investments. It was confirmed that pooling cannot take place until these regulations are amended.

 

54.5    Structure

 

            The committee was shown the current proposed structure of the partnership which confirmed that decisions on the asset investment strategies and allocation of investments over various portfolios would still be the task of the Pension Committee, with implementation of the strategy, selection of investment managers and all other related investment tasks transferring to the new Brunel provider function. It was confirmed that Gloucestershire’s current allocation would fit into the current portfolios and there was reassurance that there was sufficient breadth of portfolios.

 

54.6    One member asked how the remuneration for the management within the Brunel company would work, in particular whether there would be performance bonuses. In response it was explained that this had not yet been set, but would be considered as part of the final business case.

 

54.7    It was explained that a recruitment specialist would be brought in to advise the funds in terms of the recruitment approach required to setting up the company as a separate legal entity.

 

54.8    One member asked how ethical investments could be considered within the new model, if the committee had a desire for ethical investments could that be followed through? In response it was explained that this could be catered for within the new pooled portfolios. 

 

54.9    In response to a question it was explained that administration for the stand alone premises would unlikely to be in a local authority building. The Committee indicated a preference for a base in the South West  ...  view the full minutes text for item 54.

55.

Western Asset Update

Minutes:

55.1    Members were provided with an update following decisions made at the previous meeting.

 

56.

GMO Update

Minutes:

56.1    The Committee considered the report and agreed further actions.

57.

Cotswold Water Park Update

Minutes:

57.1    Before consideration of this item, Cllr Theodoulou and Cllr Parsons noted that Cotswold Water Park sat within their divisions and wished to ensure that was declared ahead of the discussion.

 

57.2    The Panel received an update regarding Cotswold Water Park

58.

Exempt Minutes

To approve as a correct record the exempt minutes of the meetings held on 13 May 2016.

Minutes:

The exempt minutes of the meeting held on 13 May 2016 were agreed as a correct record and signed by the Chairman subject to amendments.