Agenda and draft minutes

Hampshire Pension Fund Panel and Board
Friday, 26th July, 2019 10.00 am

Venue: Mitchell Room, EII Podium, Winchester

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

Items
No. Item

176.

Apologies for Absence

To receive any apologies for absence.

Minutes:

Councillors  Cartwright, Dowden, Gibson and Glen and Mrs Arrowsmith and Mr Robbins sent their apologies.

 

177.

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.

 

 

178.

Confirmation of Minutes (Non-Exempt) pdf icon PDF 77 KB

To confirm the Minutes of the meeting held on 12 July 2019.

Minutes:

The minutes of the Pension Fund Panel and Board held on 12 July 2019 were confirmed.

 

179.

Deputations

To receive any deputations notified under Standing Order 12.

Minutes:

There were no deputations.

180.

Chairman's Announcements

To receive any announcements the Chairman may wish to make

Minutes:

The Chairman informed the committee that he would be unable to attend the committee’s next meeting in September 2019 and Cllr Thacker would chair the meeting.

 

181.

Governance: Annual Internal Audit Report and Opinion 2018/19 pdf icon PDF 81 KB

To consider the report of the Director of Corporate Resources-Corporate Services providing  the Pension Fund Panel and Board with the Chief Internal Auditor’s opinion on the adequacy and effectiveness of Pension Services’ framework of risk management, internal control and governance for the year ending 31 March 2019.

 

Additional documents:

Minutes:

The Panel and Board considered a report of the Director of Corporate Resources (item 6 in the Minute Book) providing the Pension Fund Panel and Board with the Chief Internal Auditor’s opinion on the adequacy and effectiveness of internal control of the Pension Fund. ‘Substantial Assurance’ can be placed on Pension Services’

framework of governance, risk management and management control and audit testing has demonstrated controls to be working in practice.

 

            RESOLVED:

 

(a)  That the Chief Internal Auditor’s annual report and opinion statement for 2018/19 was accepted.

 

182.

Governance: Responsible Investment Sub-Committee Appointments pdf icon PDF 77 KB

To consider a report of the Director of Corporate Resources – Corporate Services asking the Panel and Board to agree appointments to the Responsible Investment Sub-committee.

 

Minutes:

The Panel and Board considered a report of the Director of Corporate Resources (item 7 in the Minute Book) following the approval of the Pension Fund’s revised Responsible Investment Policy and creation of the Responsible Investment sub-committee that outlined the make-up of the committee.

 

            RESOLVED:

 

(a)  That Cllrs Barnes-Andrews, Glen, Kemp-Gee, Latham, Tennent and Dr Allen were appointed to the Responsible Investment sub-committee.

 

 

183.

Governance: 2019 Triennial Valuation pdf icon PDF 91 KB

To consider the report of the Director of Corporate Resources-Corporate Services providing the Panel and Board with information about the valuation process in the LGPS, and to give an update on progress for the 2019 valuation.

 

Minutes:

The Panel and Board considered and noted a report of the Director of Corporate Resources (item 8 in the Minute Book) on the progress of the 2019 actuarial valuation. Work is underway for the current valuation which is as at 31 March 2019. Membership data will be supplied to the Fund Actuary by 26 July and initial whole of Fund results will be presented to the Panel and Board at their meeting on 27 September before being shared with employers at the Annual Employer meeting in October.

 

184.

Governance: ACCESS business plan pdf icon PDF 159 KB

To consider a report from the Director of Corporate Resources – Corporate Services presenting  the 2019/20 ACCESS business plan for approval by the Panel and Board.

 

Minutes:

The Panel and Board considered the report from the Director of Corporate Resources (Item 9 in the Minute Book) including the ACCESS Business Plan for 2019/20, which had been agreed and recommended for approval to the member authorities by the ACCESS Joint Committee.

 

The budget for ACCESS for 2019/20 was £1.2m of which Hampshire’s equal share would be £109,000.

 

            RESOLVED:

 

(a)  That the ACCESS Business Plan for 2019/20 was approved.

 

185.

Governance: Annual Report 2018/19 pdf icon PDF 81 KB

To consider a report from the Director of Corporate Resources-Corporate Services seeking approval from the Panel and Board for the publication of the Annual Report for 2018/19.

Additional documents:

Minutes:

The Panel and Board considered and noted a report of the Director of Corporate Resources (item 10 in the Minute Book) containing the Pension Fund’s Draft Annual Report, including the Pension Fund’s Accounts for the year ending 31 March 2019. The Director highlighted to the committee the following new additions to this years annual report, including:

·      the ACCESS pool’s annual report,

·      an update on progress with investment pooling, and

·      updates to sections of the report including investment performance and the risk register to reflect the impact of pooling.

 

In finalising the report minor changes will be made, including but not limited to:

·      updates to the attendance log to include substitute members when deputising for full members,

·      changes to reflect the final version of the ACCESS pool’s annual report,

·      additional breakdown of leavers in the scheme administration report to show the number of ill-health leavers, and

·      minor corrections of grammatical and formatting errors.

 

            RESOLVED:

 

(a)  That the Annual Report for 2018/19 be approved for publication, and that the Director of Corporate Resources be authorised to make any necessary minor amendments prior to publication.

 

 

186.

Investments: Pension Fund Cash - Annual Report 2018/19 pdf icon PDF 88 KB

To consider a report from the Director of Corporate Resources-Corporate Services updating the Pension Fund Panel and Board on the policy for managing the Hampshire Pension Fund’s cash balance.

Minutes:

The Panel considered a report of the Director of Corporate Resources (Item 13 in the Minute Book) which summarised the activities of officers in managing the Pension Fund’s cash balance during 2018/19. The Panel had agreed an Annual Investment Strategy earlier in the year and the cash balance had been managed in accordance with that Strategy throughout the year. The average cash balance in 2018/19 was £64m, which included cash being held whilst the Fund’s property, private equity and infrastructure investment managers find suitable investment opportunities.

 

Following the publication of the Pension Fund’s draft statement of accounts, the Director also reported to the Panel and Board in 2018/19 the Pension Fund had improved its cashflow positive position from its dealings with members, with a surplus of £55m.

 

            RESOLVED:

 

a)    That the outturn report on the Pension Fund’s cash management in 2018/19 was approved.

 

 

187.

Governance: Pension Fund Panel and Board Training in 2019/20 pdf icon PDF 230 KB

To consider a report from the Director of Corporate Resources-Corporate Services setting out proposals for the training arrangements for members of  the Pension Fund Panel and Board in 2019/20.

Minutes:

The Panel and Board considered a report of the Director of Corporate Resources (item 11 in the Minute Book) setting out the proposed training arrangements for members of the Pension Fund Panel and Board in 2019/20. In particular members noted the importance of training for Panel and Board members in their role in the governance of the Pension Fund and their regulatory responsibilities as Pension Committee and Board members. The Director presented a draft training plan which had been produced following the analysis of the committee members’ completed Training Needs Analyses.

 

            RESOLVED:

 

(a)       That the 2018/19 training programme was approved, noting that it may be adapted based on changing circumstances, and the remainder of the report was noted.

 

188.

Governance: Pension Fund Costs 2018/19 pdf icon PDF 95 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 2018/19.

Minutes:

The Panel and Board considered and noted a report of the Director of Corporate Resources (item 12 in the Minute Book) on the costs of managing the Pension Fund in the financial year 2018/19. 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. The Director highlighted to members the impact of investment pooling in terms of the reporting of costs in the Fund’s Annual Report and the actual achievement of costs and savings, which to date have resulted in a small net deficit.

 

189.

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. 

190.

Confirmation of the Minutes of the Previous Meeting

To confirm the exempt minutes of the meeting held on 12 July 2019.

Minutes:

The exempt minutes of the Pension Fund Panel and Board held on 12 July 2019 were confirmed.

 

191.

Governance: Pension Fund Costs 2018/19 - Exempt appendix

To consider the exempt appendix relating to Pension Fund Costs 2018/19.

Minutes:

The Panel and Board received and noted an exempt appendix from the Director of Corporate Resources (Item 16 in the Minute Book) on the Pension Fund’s costs [SUMMARY OF A MINUTE WHICH CONTAINS EXEMPT INFORMATION].

 

192.

Governance - Pension Fund Cash Annual Report 2018/19

To consider the exempt appendix of the Pension Fund Cash Annual Report 2018/19.

Minutes:

The Panel and Board received and noted an exempt appendix from the Director of Corporate Resources (Item 17 in the Minute Book) on the Pension Fund’s cash investments [SUMMARY OF A MINUTE WHICH CONTAINS EXEMPT INFORMATION].

 

 

193.

Governance: Good Governance Consultation

To consider an exempt report from the Director of Corporate Resources – Corporate Services updating the Panel and Board on the ‘Good Governance’ project commissioned by the LGPS Scheme Advisory Board and Hampshire’s response to the consultation that was part of the project.

Minutes:

The Panel and Board received and noted an exempt appendix from the Director of Corporate Resources (Item 18 in the Minute Book) on the SAB’s ‘Good Governance’ project [SUMMARY OF A MINUTE WHICH CONTAINS EXEMPT INFORMATION].

 

194.

Investments: Property Portfolio Update

To consider a report from the Director of Corporate Resources-Corporate Services updating the Pension fund Panel and Board on the progress of the property investments portfolio.

Minutes:

The Panel and Board received an exempt report from the Director of Corporate Resources (Item 19 in the Minute Book) updating the Panel and Board on the Fund’s property portfolios.  [SUMMARY OF A MINUTE WHICH CONTAINS EXEMPT INFORMATION].