Greenwich Council

Agenda, decisions and minutes

Venue: Committee Room 6 - Town Hall, Wellington Street, Woolwich SE18 6PW. View directions

Contact: Daniel Wilkinson  Email: daniel.wilkinson@royalgreenwich.gov.uk or tel: 020 8921 5102

Items
No. Item

1.

Apologies for Absence

To receive apologies for absence from Members of the Panel.

Minutes:

There were no apologies for absence.

2.

Urgent Business

The Chair to announce any items of urgent business circulated separately from the main agenda.

Minutes:

There was no urgent business.

3.

Declarations of Interest pdf icon PDF 39 KB

Members to declare any personal and financial interests in items on the agenda.  Attention is drawn to the Council’s Constitution; the Council’s Code of Conduct and associated advice.

Additional documents:

Minutes:

Resolved –

 

That the list of Councillors’ memberships as Council appointed representatives on outside bodies, joint committees and school governing bodies be noted.

4.

Minutes pdf icon PDF 50 KB

Members are requested to confirm as an accurate record the Minutes of the Pension Fund Investment and Administration Panel meeting held on 21 September 2015.

 

No motion or discussion may take place upon the Minutes except as to their accuracy, and any question on this point will be determined by a majority of the Members of the body attending who were present when the matter in question was decided.  Once confirmed, with or without amendment, the person presiding will sign the Minutes.

Minutes:

Resolved -

 

That the minutes of the meeting of the Pension Fund Investment & Administration Panel held on 21 September be agreed and signed as a true and accurate record.

5.

Communications Policy Statement pdf icon PDF 28 KB

To agree the Pension Fund Communications Policy Statement

Additional documents:

Decision:

Agreed the Pension Fund Communications Policy Statement

Minutes:

The report was introduced by the Finance Manager.

 

Resolved –

 

That the Pension Fund Communications Policy Statement be agreed

6.

Early Retirements 1 April 2015 to 30 September 2015 pdf icon PDF 30 KB

To note a report on early retirements covering the period 1 April 2015 to 30 September 2015 and review the financial effect, and to agree that the appendix be considered in closed session as exempt information

Additional documents:

Decision:

1.            Noted the report on early retirements covering the period 1 April 2015 to 30 September 2015.

 

2.            Agreed that the appendix to the report be considered in closed session as information as defined in paragraph 2 of Schedule 12A of the Local Government Act 1972 (Schedule 1) is likely to be made known:  “2.         Information which is likely to reveal the identity of an individual.”

 

3.       Agreed that the information detailed in the exempt appendix to the report be not subsequently released to the press or public.

 

Minutes:

The report was introduced by the Finance Manager.

 

In response to a question from the Panel the Head of Strategic Accounting clarified that there would be no strain on the Fund if an individual was at normal retirement age.

 

Resolved –

 

1.       That the report on early retirements covering the period 1 April 2015 to 30 September 2015 be noted.

 

2.       That it be agreed that the appendix to the report be considered in closed session as information as defined in paragraph 2 of Schedule 12A of the Local Government Act 1972 (Schedule 1) is likely to be made known:  “2.         Information which is likely to reveal the identity of an individual.”

 

3.       That it be agreed the information detailed in the exempt appendix to the report be not subsequently released to the press or public.

 

7.

Fund Manager Performance to 30 September 2015 pdf icon PDF 52 KB

To note a report on the performance of the Pension Fund Managers for the period ending 30 September 2015, and to agree that the appendix be considered in closed session as exempt information

Additional documents:

Decision:

1.       Noted a report on the performance of the Pension Fund Managers for the period ending 30 September 2015.

         

2.       Agreed to consider the information detailed in the Appendix to the report in closed session under the provisions of the Local Government Act 1972, Schedule 12A, Paragraph 3 “3.  Information relating to the financial or business affairs of any particular person (including the authority holding that information)”

 

3.       Agreed that the information detailed in the exempt appendix to the report be not subsequently released to the press or public.

Minutes:

The Senior Investment Consultant from Hymans Robertson presented the report at the appendix.

 

Resolved –

 

1.       That a report on the performance of the Pension Fund Managers for the period ending 30 September 2015 be noted.

         

2.       That it be agreed that the appendix to the report be considered in closed session as information as defined under the provisions of the Local Government Act 1972, Schedule 12A, Paragraph 3 “3.  Information relating to the financial or business affairs of any particular person (including the authority holding that information)”

 

3.       That it be agreed that the information detailed in the exempt appendix to the report be not subsequently released to the press or public.

8.

Pension Fund Draft Quarterly Accounts pdf icon PDF 32 KB

To note the draft Pension Fund accounts for the period ending 30 September 2015

Additional documents:

Decision:

Noted the draft Pension Fund accounts for the period ending 30 September 2015

Minutes:

The report was introduced by the Acting Principal Accountant.

 

In response to a question from the Panel the Senior Investment Consultant from Hymans Robertson explained that assets were reinvested but there was the option to instead draw income to the Fund, and that this would likely to be done at periods when the Fund paid out more than it received in from Fund members.

 

Resolved –

 

That the draft Pension Fund accounts for the period ending 30 September 2015 be noted

9.

Local Government Pension Scheme Investment Reform pdf icon PDF 52 KB

To note the outcome of the Government consultation ‘Local Government Pension Scheme Opportunities for collaboration, cost savings and efficiencies’, to note various related publications, and to note the requirement for the Fund to submit initial pooled investment proposals to the Government.

 

Additional documents:

Decision:

1.       Noted the outcome of the Government consultation ‘Local Government Pension Scheme: Opportunities for collaboration, cost savings and efficiencies’.

 

2.       Noted the publication of the Government consultation ‘Local Government Pension Scheme: Revoking and replacing the Local Government Pension Scheme (Management and Investment of Fund) Regulations 2009’, the publication of LGPS investment reform criteria and guidance, and the publication of draft LGPS investment regulations

         

3.       Noted the requirement for the Fund to submit initial pooled investment proposals to the Government by 19 February 2016 and refined proposals by 15 July 2016.

 

Minutes:

The report was introduced by the Finance Manager. The Finance Manager corrected two errors in the report in that at 1.3 it should state ‘19’ not ‘9’ February, and at 5.1 it should state ‘active’ rather than ‘passive’ global equities.

 

The Finance Manager advised Members on the rationale for collective investment, the related changes to the Regulations, and detailed the pooling proposals. 

 

In response to questions from the Panel the Finance Manager replied that the expectation was that each Fund would be required to pool all of their assets.  If they are not able to do so, they will be required to explain the reasons for this. The practical time scale for the pooling of the funds would be determined separately by each Fund.

 

The Senior Investment Consultant from Hymans Robertson advised that it was expected there would be 6 pools across the country; London already has the Collective Investment Vehicle (CIV). There would be a transition period for pooling to avoid costs associated with the forced sale of assets.  It would vary initially how much was put in.  An immediate change was not required but authorities had to demonstrate a move to the new structure.

 

There was a discussion of the matter.

 

Members questioned the expected savings from pooling, and expressed concerns over accountability.

 

Members were advised that there would benefits of economy of scale, that the initial fees for CIV were expected to be lower than that for the individual boroughs. Whilst assets were to be pooled each authority would retain its own Fund. A Fund could choose which of the pools to join. The Fund would be dependent on the pool but each Fund would have representation on the pool. It was envisaged that the pooling would take place over about 15 years.

 

Resolved –

 

1.       That the outcome of the Government consultation ‘Local Government Pension Scheme: Opportunities for collaboration, cost savings and efficiencies’ be noted.

 

2.       That the publication of the Government consultation ‘Local Government Pension Scheme: Revoking and replacing the Local Government Pension Scheme (Management and Investment of Fund) Regulations 2009’, the publication of LGPS investment reform criteria and guidance, and the publication of draft LGPS investment regulations be noted

         

3.       That the requirement for the Fund to submit initial pooled investment proposals to the Government by 19 February 2016 and refined proposals by 15 July 2016 be noted.