Agenda and minutes

To receive any apologies for absence.

Cllrs Kemp-Gee, Tennent, Cartwright and Smith sent their apologies.

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.

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.

Ms Dobson reminded the committee that she is an independent non-executive director of Aberdeen Standard Fund Managers Ltd, but that this does not prevent her fulfilling her role in advising the Panel and Board.

To confirm the Minutes of the meeting held on 15 February 2019.

The minutes of the Pension Fund Panel and Board held on 15 February 2019 were confirmed.

The Director of Corporate Resources confirmed to the committee that a response to the Government’s consultation on new draft Investment Pooling Guidance will be sent by ACCESS and Hampshire County Council. The Director also updated the Panel and Board that Essex County Council as the host of ACCESS’ Support Unit is in the final stage of making an appointment to the role of Director.

To receive any announcements the Chairman may wish to make

The Chairman reminded the members of the committee of the importance of completing their training needs analysis to inform the Panel and Board’s annual training plan.

The Chairman invited members to provide feedback on any recent training courses that they had attended. Cllr Gibson commented on a recent seminar he had been to.

To consider the report of the Director of Corporate Resources - Corporate Services seeking the approval of the Panel and Board for a technical change to the Funding Strategy Statement and for the Director of Corporate Resources to consult with employers on potential changes to the grouping mechanism.

The Panel and Board received a report of the Director of Corporate Resources (Item 5 in the Minute Book) setting out a technical change to the Funding Strategy Statement (FSS) which will allow the Fund Actuary to use the new Investment Strategy and revised calculation of Capital Market Assumptions in calculations for new and exiting employers prior to the 2019 valuation.

The Director informed the committee that the Fund’s Actuary will bring a discussion paper to a meeting with her on 3 April outlining proposals for a review of the Pension Fund’s grouping mechanism. Following this meeting it is proposed that employers are engaged on the potential changes to the grouping mechanism, prior to any redrafting of the FSS.

            RESOLVED:

(a)  That the proposed technical changes to the Funding Strategy Statement were approved.

(b)  That authority is delegate to the Director of Corporate Resources to consult with employers on proposals to change the way in which they are grouped for funding purposes.

To consider the report of the Director of Corporate Resources - Corporate Services seeking approval for some minor changes to the Administration Strategy, and to share the proposed response to the current Fair Deal consultation.

The Panel and Board received a report of the Director of Corporate Resources (Item 6 in the Minute Book) seeking approval for some minor changes to the Administration Strategy, and to share the proposed response to the current Fair Deal consultation.

The Director informed the Panel and Board that the Administration Strategy needs to be amended in light of recent LGPS amendment regulations which have an impact on some of the Fund’s discretionary policies. In addition, two beneficial changes to administration processes have been made as part of the new partnership arrangement with West Sussex and these need to be reflected in the Strategy.

The committee extend their thanks to Pension Services for their hard work in commencing the delivery of pensions administration services to West Sussex Pension Fund.

The Ministry for Housing, Communities and Local Government (MHCLG) has issued a consultation on the new Fair Deal proposals. These proposals are intended to strengthen the pension protection afforded to employees in the LGPS who are compulsorily transferred to third party service providers. A response on behalf of the administering authority has been drafted for consideration and approval by the Pension Fund Panel and Board that highlights that the proposed changes will increase the administrative burden on both the employer and the administering authority and could lead to greater confusion for scheme members.

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.

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 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.          

To confirm the exempt minutes of the meeting held on 15 February 2019.

The exempt minutes of the Pension Fund Panel and Board held on 15 February 2019 were confirmed.

To consider the exempt report of the Director of Corporate Resources - Corporate Services providing a review of custody services in the last year, as well as an update on the Pension Fund’s tax claims and class actions.

The Panel and Board considered the exempt report from the Director of Corporate Resources (Item 9 in the Minute Book) detailing the performance of the Pension Fund’s custodian.  [SUMMARY OF A MINUTE WHICH CONTAINS EXEMPT INFORMATION]

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 15 February 2019.

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 performance of the Pension Fund’s investments.  [SUMMARY OF A MINUTE WHICH CONTAINS EXEMPT INFORMATION]

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.

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 progress of the Pension Fund’s alternative investments.  [SUMMARY OF A MINUTE WHICH CONTAINS EXEMPT INFORMATION]