Agenda and minutes

Hampshire Pension Fund Panel and Board
Friday, 28th September, 2018 10.00 am

Venue: Mitchell Room, EII Podium, Winchester

Contact: Email: members.services@hants.gov.uk 

Items
No. Item

107.

Apologies for Absence

To receive any apologies for absence.

Minutes:

Cllrs Joy, Tennent, Smith, Cartwright and Chaloner sent their apologies.

 

108.

Declarations of Interest

All Members who believe they have a Disclosable Pecuniary Interest in any matter to be considered at the meeting must declare that interest and, having regard to Part 3 Paragraph 1.5 of the County Council's Members’ Code of Conduct, leave the meeting while the matter is discussed, save for exercising any right to speak in accordance with Paragraph 1.6 of the Code.  Furthermore all Members with a Personal Interest in a matter being considered at the meeting should consider, having regard to Part 5, Paragraph 4 of the Code, whether such interest should be declared, and having regard to Part 5, Paragraph 5 of the Code, consider whether it is appropriate to leave the meeting while the matter is discussed, save for exercising any right to speak in accordance with the Code.

 

Minutes:

Members were mindful that where they believed they had a Disclosable Pecuniary Interest in any matter considered at the meeting they must declare that interest at the time of the relevant debate and, having regard to the circumstances described in Part 3, Paragraph 1.5 of the County Council's Members' Code of Conduct, leave the meeting while the matter was discussed, save for exercising any right to speak in accordance with Paragraph 1.6 of the Code.  Furthermore Members were mindful that where they believed they had a Non-Pecuniary interest in a matter being considered at the meeting they considered whether such interest should be declared, and having regard to Part 5, Paragraph 2 of the Code, considered whether it was appropriate to leave the meeting whilst the matter was discussed, save for exercising any right to speak in accordance with the Code.

109.

Confirmation of Minutes (Non-Exempt) pdf icon PDF 71 KB

To confirm the Minutes of the meeting held on 27 July 2018.

Minutes:

The minutes of the Pension Fund Panel and Board held on 27 July 2018 were confirmed.

 

110.

Chairman's Announcements

To receive any announcements the Chairman may wish to make

Minutes:

The Chairman announced to the committee that Jennifer Devine had left the County Council after over nine years as an officer working for the Pension Fund and the members thanked her for her support to them and contribution to the Pension Fund.

 

The Chairman, Cllr Dowden and Mr Wood summarised the main themes that they took from attending the Local Government Chronicle Investment Summit, which included investment in social housing, managing Environmental, Social and Governance investment issues, and an update from the pools.

 

111.

Governance - Funding Strategy Statement - Amendment pdf icon PDF 84 KB

To consider a report from the Director of Corporate Resources-Corporate Services seeking the approval of the Panel and Board for changes to the Funding Strategy Statement and Employer Policy in relation to the payment of exit credits.

Additional documents:

Minutes:

The Panel considered a report of the Director of Corporate Resources (item 5 in the Minute Book) on the changes to the Funding Strategy Statement (FSS) and Employer Policy in relation to the payment of exit credits following changes to the LGPS (Amendment) Regulations 2018 which were made in May 2018. The regulations now permit the payment of an exit credit to an exiting employer if the exit valuation showed a surplus of assets over liabilities.

 

Amendments to the FSS and Employer Policy have been drafted for consultation with the Fund’s employers that permit the Fund will pay the exit credit to the exiting employer in most circumstances, regardless of any side agreement which may be in place between the exiting employer and its guarantor. The proposed policy changes allow for a surplus on exit to be retained in the Fund where this is an explicit part of a subsumption agreement from a continuing employer.

 

RESOLVED:

 

(a)          That the changes to the Funding Strategy Statement and Employer Policy were approved for consultation.

 

 

112.

Governance - Pension Fund Management Costs pdf icon PDF 89 KB

To receive a report from the Director of Corporate Resources-Corporate Services providing an overview of the costs of managing the Pension Fund in 2017/18.

Minutes:

The Panel and Board considered and noted a report of the Director of Corporate Resources (item 6 in the Minute Book) on the costs of managing the Pension Fund in the financial year 2017/18. Costs were disclosed according to the three categories specified in CIPFA’s guidance on Pension Fund Accounts; investment management costs, administration expenses and oversight and governance costs.

 

The Panel and Board noted that while the cost of managing the Pension Fund was significant, it was low in comparison to the overall size of the Pension Fund and in line with Hampshire’s position as one of the largest LGPS funds. It was highlighted that investment management costs had increased in percentage terms, due to the growth of the Pension Fund’s commitments to private equity and increases in the expenses of its direct property portfolio.

 

113.

Exclusion of the Press and Public

That in relation to the following items the press and public be excluded from the meeting, as it is likely, in view of the nature of the business to be transacted or the nature of proceedings, that if a member of the public were present during the items there would be disclosure to them of exempt information within Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972, and further that in all circumstances of the case, the public interest in maintaining the exempt information outweighs the public interest in disclosing the information, for the reasons set out in the report.

 

Minutes:

RESOLVED:

 

            That the public be excluded from the meeting during the following items of business, as it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the public were present during these items there would be disclosure to them of exempt information within Paragraphs 3 and 5 of Part 1 of Schedule 12A to the Local Government Act 1972, and further that in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, for the reasons set out in the reports.          

 

114.

Confirmation of the Minutes of the Previous Meeting

To confirm the exempt minutes of the meeting held on 27 July 2018.

Minutes:

The exempt minutes of the Pension Fund Panel and Board held on 27 July 2018 were confirmed.

 

 

115.

Governance - Pension Fund Management Costs - EXEMPT

To receive an exempt appendix from the Director of Corporate Resources-Corporate Services on the costs of managing the Pension Fund in 2017/18.

Minutes:

The Panel and Board noted the exempt appendix from the Director of Corporate Resources (Item 9) in the Minute Book) detailing the Fund’s investment management costs.  [SUMMARY OF A MINUTE WHICH CONTAINS EXEMPT INFORMATION]

116.

Investment - Investment Update

To consider the exempt report of the Director of Corporate Resources - Corporate Services updating the Panel and Board on the Pension Fund’s investments since the last meeting of the Pension Fund Panel and Board on 27 July 2018.

Minutes:

The Panel and Board received an exempt report from the Director of Corporate Resources (Item 10 in the Minute Book) updating the Panel and Board on the Fund’s investments [SUMMARY OF A MINUTE WHICH CONTAINS EXEMPT INFORMATION]

117.

Investments - Alternative Investments Update

To consider the exempt report of the Director of Corporate Resources - Corporate Services updating the Pension Fund Panel and Board on the progress of the alternative investments portfolio.

 

Minutes:

The Panel and Board received an exempt report from the Director of Corporate Resources (Item 11 in the Minute Book) updating the Panel and Board on the Fund’s alternative investment portfolios.  [SUMMARY OF A MINUTE WHICH CONTAINS EXEMPT INFORMATION]