Agenda and minutes

Councillor David Simmonds declared a general Non-Pecuniary Interest as he was a member of the Teachers' Pensions Board. He remained in the meeting during discussion on all items.

There were no conflicts of interests reported.

Agreed as an accurate record.

To confirm the items of business marked Part I will be considered in public and that items marked Part II will be considered in private.

That Agenda Items 10 and 11 be considered in private for the reasons stated on the agenda and the rest of the items be considered in public.

Dan Kanaris from AON Hewitt attended the meeting and provided the Board with a presentation on the training and skills which local Pension Board members required under regulations.

The Board was provided with the Chartered Institute of Public Finance & Accountancy publication of Local Pension Boards - a Technical Knowledge and Skills Framework which provided guidance on the appropriate skills and training which local Pension Board Members should possess.

The framework had two main purposes, one was to provide scheme managers with the tools to meet the Pensions Regulator's Code of Practise which stated that Pension Board Members should be provided with training to enable them to carry out their roles. Secondly to enable the assessment of the progress and to plan the development of Board Members.

Members discussed the example of the competency Self- Assessment Matrix contained in the document and a general assessment was carried out on the Board's learning needs analysis and training requirements. Reference was made to training which would be provided at every Board meeting, together with individual training on specific areas where required.

The Committee referred to the suggested Job Description and Role Profile for the Chairman of a Pensions Board and officers would give consideration to using this for this Pensions Board.

RESOLVED:

     1.  That the information provided be noted.

To be provided with an oral update.

The Board was provided with details of potential changes to Local Government Pension Scheme's Governance and Impending Consultations. Reference was made to the recent budget, where the Chancellor announced that Central Government would work with administering authorities to look at pooling investments.

The Board was informed that the Government was discussing the creation of five or six regional wealth funds, potentially to increase investment in infrastructure. With economies of scale this could reduce costs and increase returns. Officers were investigating options for Hillingdon.

The Board was informed that the LGPS Scheme Advisory Board was looking at options with regard to the increased separation of LGPS pension funds from Councils but this had been put to one side because of the pooling proposals.

The Board was informed of the Government announcement on a consultation which proposed to cap the total amount of exit payments (including employer pension costs) which could be made to employees leaving the public sector to £95,000. This could have implications on local authorities as employers are required to pay the capital cost of each early retirement on the grouns of redundancy.  The capital cost would be included in the £95,000 calculation..

An update was provided on the Pensions Administration Contract and the performance of Capita.

RESOLVED:

1.  That the information provided be noted.    

The Board was updated on action which had been requested at the last meeting.

In relation to the discussion on insurance indemnity protection for employee members of the Board, it was reported that from an initial discussion with the Council's insurers, it was thought that LPB Members would be covered, but further discussion would be undertaken and this would be reported back to the Board.

The Board was provided with a report which contained a list of all the policies which the Fund should have in place.

Reference was made to the Governance Policy Statement which needed to be updated to take account of the formation of the Pension Board. With regard to the Conflicts of Interest Policy, further discussions were taking place with Democratic Services and the Borough Solicitor on the necessity of having such a policy for the Hillingdon Fund. An update on this would be provided at the next meeting.

Officers reported that an Administration Strategy would be developed and submitted to the Pensions Committee for approval and then it would be brought to the Pension Board in January 2016.

In relation to Discretionary Policies, the Board was informed that each employer within the LGPS had to develop a policy on their application and these had to be published on the web pages for the Fund. The Board was informed that all employers' policies would be published on the Fund's website.

Discussion took place on communications in relation to the Pension Fund and Members were informed that this was the responsibility of CEB and they communicated in accordance with regulations. Reference was made to there being a need to update certain aspects of communication such as member education about their pensions.

RESOLVED:

1. That the information provided on Pension Fund polices be   noted and officers be asked to carry out the actions requested.    

Noted.

This item was discussed as a Part II item without the press or public present as the information under discussion contained confidential or exempt information as defined by law in the Local Government (Access to Information) Act 1985.  This was because it discussed ‘information relating to the financial or business affairs of any particular person (including the authority holding that information)’ (paragraph 3 of the schedule to the Act).

The Board was provided with the agenda for the last Pensions Committee which took place on 5 October 2015 and noted the reports.

Particular discussion took place on the item on the Pensions Administration Contract and the Board was informed that a report would be submitted to the next Pensions Committee on options for the Council.

RESOLVED:

1. That the reports which were considered by the Pensions Committee and   the update provided by officers be noted.

This item was discussed as a Part II item without the press or public present as the information under discussion contained confidential or exempt information as defined by law in the Local Government (Access to Information) Act 1985.  This was because it discussed ‘information relating to the financial or business affairs of any particular person (including the authority holding that information)’ (paragraph 3 of the schedule to the Act).

The confidential report provided Members with details of the main risks to the Pension Fund which would enable the Board to monitor and review going forward.

RESOLVED:

1. That the Risk Register in terms of the approach and the specific tasks identified and the measures taken to mitigate those current risks, be noted.

2. That the position in relation to the Pensions Administration Contract be noted.