Venue: County Hall, Worcester
Contact: Simon Lewis, Committee Officer
The Members had before them:
A. The agenda papers (previously circulated); and
B. The Minutes of the meeting held on 25 July 2018 (previously circulated).
Apologies (Agenda item 1)
An apology was received from Mr R W Banks.
Declarations of Interest (Agenda item 2)
Mr K Bray declared general interests in his role as the Forum Officer of the Local Authority Pension Fund Forum (LAPFF) - the Worcestershire Fund is a long-standing Forum member and in relation to work he undertook with a firm of US lawyers who were involved with Shareholder Litigation and had the County Council as one of its clients.
Confirmation of Minutes - 25 July 2018 (Agenda item 3)
To confirm the Minutes of the meeting held on 25 July 2018 (previously circulated).
RESOLVED that the Minutes of the meeting held on 25 July 2018 be confirmed as a correct record and signed by the Chairman.
Further to Minute no. 119, Rob Wilson confirmed that meetings of the LGPS Central Shareholders Forum were held in private.
Administering Authority – Administration update – for review by the Board
LGPS Central update – for review by the Board
Pension Investment update– for review by the Board
Final External Audit Report on Pensions Annual Report 2017/18 – for review by the Board
Government Actuary Department (GAD) Pensions Review update – for review by the Board
Training Programme – for review by the Board
Administration Budget 2018/19 – for review by the Board
Risk Register– for review by the Board
Forward Plan – for review by the Board
The Agenda papers and Minutes have previously been sent to you. Please bring your copy with you to the meeting.
The Board received the Agenda papers and Minutes of the Pensions Committee meeting held on 5 October 2018. Members received a brief summary and commentary on the various items considered by the Pensions Committee.
Administering Authority – Administration Update
· Bridget Clark introduced Chris Frohlich, the Fund's Engagement Officer who had commenced his new role on 26 October. It was anticipated that he would only attend Board meetings where necessary. Bridget Clark would share Chris Frohlich's contact details with Board members
· Bridget Clark indicated that ITM had been appointed to undertake the Guaranteed Minimum Pension Reconciliation (GMP) exercise on behalf of the Fund, who had been working hard to meet the strict HMRC deadline for receipt of queries, of 31 October 2018. The Pensions Committee had agreed a tolerance level of £2 per week for the exercise which meant that anything below that tolerance level would be deemed to be reconciled. ITM had given an assurance that the reconciliation exercise would be completed by the deadline. HMRC had indicated that they would respond to all queries received by the deadline. On receipt of the feedback from HMRC, further decisions might need to be made by the Committee
· How had the £2 tolerance limit been determined? Bridget Clark indicated that ITM had advised that this was a standard tolerance level applied across a number of funds
· Bridget Clark would check whether the Fund could be the subject of a judicial review as a result of the GMP Reconciliation exercise
· It was possible that as a result of the agreed tolerance level, members of the Fund could gain or lose up to £100 although they would be unaware of any impact
· Bridget Clark indicated that the key focus of the exercise was one-off larger payments or the more complex payments
· In response to a query, Bridget Clark confirmed that the Fund was working closely with the actuary who was kept informed of the progress of the reconciliation exercise
· The Chairman expressed his frustration at the inability to read the powerpoint presentation by the actuary at the Administration Forum. He felt that the size of the text of the presentation slides and the lighting and acoustics in the meeting room were unsatisfactory. Bridget Clark noted these concerns for future meetings of the Forum.
LGPS Central Update
· Rob Wilson indicated that the job description for the Chief Executive of LGPS Central had been agreed with the Section 151 Officer and head hunters had been engaged to find suitable applicants with the aim of making an appointment by 31 December 2018
· Rob Wilson commented that the Pool was behind schedule for the transfer of assets. A new cost-sharing model was being created and the implications for the break-even point for this Fund was awaited
· In response to a query, Rob Wilson indicated that the possibility of arranging a further Stakeholder meeting was being considered. He would notify members of the Board when a date had been agreed
· In response to a query, Rob Wilson explained ... view the full minutes text for item 115.
For noting by the Board.
The Board considered the LGPS Central Partners Funds Audit Assurance Framework.
In response to a query, Rob Wilson explained that Ernst & Young were the external auditors to Staffordshire County Council who were leading on the audit assurance framework in consultation with the other partner funds.
The Board noted the LGPS Central Partners Funds Audit Assurance Framework.
For review/action by the Board.
The Board considered its work plan.
The Board noted its work plan.
Any Other Business (Agenda item 7)
Minutes of LGPS Central – Local Pension Board Chairs meeting -10 October 2018
· The Chairman commented that the LGPS Central Chairs meeting minutes highlighted the different styles and cultures of the Fund partners' investment advisory committees. He would report back to the Board after its next meeting on 20 February 2019.