Agenda and minutes

Councillor Philip Corthorne declared a Non-Pecuniary Interest in all agenda items because he was a deferred member of the Local Government Pension Scheme. He remained in the room during discussion on the item.

Councillor Tony Eginton declared a Non-Pecuniary Interest in all agenda items as he was a retired member of the Local Government Pension Scheme. He remained in the room during discussion on the item.

Agreed as an accurate record.

It was agreed that Agenda Items 5, 6, 7, 8 and 10 would be considered in private.

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).

Agreed as an accurate record.

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 Committee was provided with a presentation on the current position in relation to the current investment strategy.

Reference was made to the decision made by the Council in January to pool Hillingdon Pension Fund assets through the London Collective Investment Vehicle (CIV).

Discussion took place on the timetable to respond to the Government consultation of pooling of investments. The Committee was informed that the final detailed submission was due to be submitted by 15 July and a draft would be brought to the next meeting of the Committee to discuss. Included in this would be the approach to be taken for infrastructure assets which were exempt under the new proposals.

The basis of the mechanics of the London CIV was discussed before looking at the approach to different asset classes.

RESOLVED:

(1) That the information reported by officers on the Fund position be noted.

(2) That approval be given to the course of action detailed in the confidential report and minutes in relation to changes to the current investment strategy.

(3) That the Officer and Advisor Investment Strategy Group be given delegation to implement decisions.

(4) That approval be given to the consideration of a new Direct lending mandate and officers be asked to bring options to the next meeting of the Committee.

(5) That the information reported in respect of existing manager mandates 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).

Consideration was given to a report which provided an update on the work which was being undertaken in response to the Government's consultation on pooling, together with details on the process for Hillingdon to join the London CIV.

The report also included details of the work being carried out through the local Pension Board in the assessment of the Fund's compliance with the Pension Regulator's Governance Compliance checklist. The Committee was informed that officers would be contacting Members of this Committee individually to go through the knowledge and understanding section of the compliance checklist.

RESOLVED:

(1) That the information provided be noted and approval be given to urgent investment decisions in respect of transitioning mandates to the CIV, being delegated to the Chairman of the Pensions Committee, in consultation with the Corporate Director of Finance.   

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 Committee was provided with a report which provided an update on the project to transfer the Pensions Administration to Surrey County Council, together with the latest update on administration performance and early retirements.

Members were informed that robust governance arrangements were in place with project managers for Hillingdon, Surrey, Capita and the system supplier.

Internal Audit was fully involved in the project to ensure processes were sufficiently robust.

The Committee thanked officers for the work they carried out in relation to the Pension Administration contract.

RESOLVED:

(1) That the progress made on the transfer of the Pensions Administration be noted.

(2)  That the latest administration performance figures be noted.

(3) That the latest information in respect of early retirements be noted.

The Committee was provided with a report which set out the initial plans for the audit of the Pension Fund Accounts for 2015/16 by the new external auditors, Ernst Young.

Members were informed that the draft annual audit of the pension fund would be submitted to the next meeting of the Committee.     

RESOLVED:

(1) That the report 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 report provided details of the main risks to the Pension Fund which enabled the Committee to monitor and review.

Discussion took place on the importance of the Committee's role in the Risk Register, together with learning lessons from the problems associated with underperformance of the Fund's Administration.

Officers reported that an Administration Strategy was being developed, which would be submitted to the Committee, before submission to the Pensions Board.

The Committee was given an update on outstanding issues from Pension Fund Administration and Members were assured that officers were resolving many of the outstanding performance issues.

RESOLVED:

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