Pension Sub-committee And Pension Board - 05/09/2016

At a JOINT MEETING of the PENSION SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE AND THE PENSION BOARD held at Dundee on 5th September, 2016.

At a JOINT MEETING of the PENSION SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE AND THE PENSION BOARD held at Dundee on 5th September, 2016.

 

Present:-

PENSION SUB-COMMITTEE

Bailie Willie SAWERS

COUNCILLORS

Jimmy BLACK

Kevin KEENAN

Gregor MURRAY

PENSION BOARD

Arthur NICOLL

Rob MURRAY

Stephen MASSEY

Mac ROBERTS

Helen MELDRUM

Kenny DICK

Bailie Willie SAWERS, Convener, in the Chair.

I DECLARATION OF INTEREST

There were no declarations of interest.

II TAYSIDE PENSION FUNDS RISK REGISTER

There was submitted Report No 284-2016 by the Executive Director of Corporate Services updating the Risk Register for the Tayside Pension Funds.

The Sub-Committee and Board approved the updated Quarterly Risk Register for the Tayside Pension Fund and Tayside Transport Pension Fund and noted the following change to risk profiles:-

Risk 12 - Failure to comply with LGPS and other regulations.

This risk had reduced due to ever increasing staff knowledge and experience of the new career average scheme.

III FIDUCIARY DUTY

There was submitted Report No 285-2016 by the Executive Director of Corporate Services informing of the expert legal opinion provided by Pinsent Mason (legal advisors to The Scheme Advisory Board).

The Sub-Committee and Board noted the content of the report.

IV POTENTIAL IMPACT OF BREXIT ON LGPS PENSION FUNDS

There was submitted Report No 286-2016 by the Executive Director of Corporate Services providing comment of the potential impact of the European Union Referendum Result from key service providers to the Fund.

The Sub-Committee and Board noted the content of the report.

V FUNDING STRATEGY STATEMENT

A verbal update on the timing of revised CIPFA guidance and subsequent employer consultation.

The Sub-Committee and Board noted that CIPFA guidance would be received shortly and that a report on this would be submitted to the next meeting.

VI TAYSIDE TRANSPORT FUND

A verbal update was given regarding the current position of the Transport Fund, with regards to a proposal for amendments to contribution procedures for one of the final contributors.

The Sub-Committee and Board noted that following consultation with the Fund Actuary and Fund Independent Investment Consultant a further update would be given at a future meeting.

VII PENSION ADMINISTRATION PERFORMANCE

There was submitted Report No 287-2016 by the Executive Director of Corporate Services providing information on the recent quarter's operational performance in relation to Pension Administration.

The Sub-Committee and Board noted the content of the report.

VIII PENSION BOARD MEMBERSHIP

A verbal update was given introducing new GMB representative Helen Meldrum and Stephen Massey and an application for employer representation from Carnoustie Golf Links following the resignation from Live Action Perth was made. It was reported that Gordon Murray would represent Carnoustie Golf Links.

IX SUB-COMMITTEE AND PENSION BOARD TRAINING

A verbal update was given to the Sub-Committee and Board on the recent training programme and future events.

The Sub-Committee and Board noted accordingly.

The Sub-Committee and Board resolved under Section 50(A)(4) of the Local Government (Scotland) Act 1973 that the press and public be excluded from the meeting for the undernoted items of business on the grounds that they involved the likely disclosure of exempt information as defined in paragraphs 4, 6 and 11 of Part I of Schedule 7A of the Act.

X TAYSIDE PENSION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 288-2016 by the Executive Director of Corporate Services relating to Performance Summaries for the quarter 1, 3, 5 and 10 year time periods to 31st June, 2016 reviewing the investment performance of the Main Funds five Fund Managers for the quarter 30th June, 2016. It also considered the performance of the Transport Fund which invested with four of these managers.

The report compared investment performance of the Funds with the Funds specific benchmarks which consist of various stock and security market indices.

The Sub-Committee and Board noted the information contained therein with regard to the performance of the Tayside Main Fund and Tayside Transport Fund and their Fund Managers.

(b) SUMMARIES OF INVESTMENTS AND TRANSACTIONS

There was submitted Report No 270-2016 by the Executive Director of Corporate Services summarising investments and transactions during the period 1st April to 30th June, 2016 reviewing the investment activities of the Main Funds seven Fund Managers for the quarter to 30th June, 2016. The Transport Fund shared three of these managers and their transactions were included.

The report summarised the transactions of each Fund Manager and showed the market values of the Main and Transport Fund.

The Sub-Committee and Board noted the information contained therein with regard to the activities of the Tayside Pension Fund and Tayside Transport Pension Fund and the Fund Managers.

(c) QUARTERLY FUNDING REPORT

There was submitted Report No 290-2016 by the Executive Director of Corporate Services which considered the current funding level of the Funds as assessed by the Fund Actuary.

The Sub-Committee and Board noted the report by Barnett Waddingham, the Fund Actuary.

XI AMENDMENT TO EXISTING BOND MANDATE

There was submitted Report No 291-2016 by the Executive Director of Corporate Services detailing proposed amendments to the existing fixed income investment mandates within the Main Fund.

The Sub-Committee and Board approved the changes detailed in respect of the current mandates following consultation with Investment Managers and Consultant.

XII PRESENTATION

Neil Turner, Graeme Rutter and Geoff Day of Schroders gave a short presentation to members.

The presentation focussed on the current market and how this had been affected by Brexit. It was noted that the property market outside London was likely to be more resilient, and that recent investment activity reflected this.

After they had completed their presentation and answered questions from members of the Sub‑Committee and Board, they were thanked for their attendance and withdrew.

Willie SAWERS, Convener.