Agenda and minutes

Pension Committee
Monday, 12th December, 2016 7.00 pm

Venue: Civic Offices, St Nicholas Way, Sutton SM1 1EA

Contact: Fiona Bywaters, Committee Services Team Leader  Tel: 020 8770 5122 | Email:  fiona.bywaters@sutton.gov.uk

Items
No. Item

25.

Apologies for absence

Minutes:

No apologies for absence were received.

26.

Declarations of Interest

Minutes:

No declarations of interest were made.

27.

Minutes of the previous meeting pdf icon PDF 138 KB

To agree the minutes of the meeting held on 5 September 2016.

 

Minutes:

RESOLVED: That the minutes of the meeting held on 5 September 2016 are agreed as an accurate record.

28.

Member Training

Minutes:

The Chair announced that no member training would take place.

29.

CIPFA Knowledge and Skills Framework pdf icon PDF 129 KB

In response to the recommendations made in the recent governance review of the pension fund, this report recommends that the committee adopts the current CIPFA Knowledge and Skills framework and approves the Knowledge and Skills Policy Statement recommended by CIPFA.

 

Additional documents:

Minutes:

Lyndsey Gamble, Head of Financial Strategy and Planning presented the report.

 

Councillor Nick Mattey requested whether a regular training bulletin could be sent to Members. The Chair pointed to the self-assessment form attached as Appendix D which would result in a comprehensive training plan for Members. With regards to this form, Councillor Richard Broadbent questioned which information was referred to throughout and the Head of Financial Strategy and Planning explained that this was outlined under Appendix C.

 

RESOLVED: that

1.    The Knowledge and Skills Policy Statement contained within the CIPFA Code of Practice on Public Sector Pensions Finance Knowledge and Skills (2013), as attached at Appendix A, be approved.

2.    The 2010 CIPFA Pensions Knowledge and Skills Framework for Elected Members, including the two additional areas of knowledge and skills for local pension board members as set out in the July 2015 CIPFA guidance ‘Local Pension Boards A Technical Knowledge and Skills Framework,’ as attached at Appendix C, be adopted.

30.

Review of Risk Register pdf icon PDF 108 KB

This report presents the Sutton pension fund risk register as included in Appendix A.

 

Additional documents:

Minutes:

Lyndsey Gamble, Head of Financial Strategy and Planning presented the report.

 

Councillor Richard Broadbent sought clarity as to whether there were any new risks beyond those updated. The Head of Financial Strategy and Planning explained the information contained in Appendix A and how it had been updated. The Councillor also suggested that dates could be added to the risk control mitigation column.

 

Finally, Councillor Richard Broadbent asked whether there were any comments from the Pension Board to which the Head of Financial Strategy and Planning responded that these were only in relation to Risk 3.1 and amendments had been integrated accordingly.

 

RESOLVED: that

1.    The updated Sutton pension fund risk register was reviewed, with any suggestions for amendment made, and that the updated document be approved.

31.

Quarterly Investment Performance Report pdf icon PDF 302 KB

This report shows the performance of the Pension Fund Investment Managers for the quarter ending 30 September 2016, performance in the last twelve months, annualised rolling three year performance against target benchmark and performance since inception.

 

Additional documents:

Minutes:

Lyndsey Gamble, Head of Financial Strategy and Planning presented the report.

 

Councillor Nick Mattey questioned the impact of currency value upon fund performance which was explained by David Walker, Senior Investment Consultant, Hymans Robertson.

 

Further discussion ensued among Members with regards to Paragraph 9.2 and property performance in the long-term.

 

Councillor Richard Broadbent pointed to Bond performance under section 7, in particular that of Alpha Opportunities Fund. The Senior Investment Consultant explained the figures contained within the report and the percentage variance against the benchmark.

 

RESOLVED: that

1.    The performance of the Pension Fund Investment Managers be noted.

32.

Presentation by BlackRock and Aviva: Investment Performance

Minutes:

Paul Tebbit, Portfolio Manager, UK Property Fund and Peter Hunt, Relationship Director, presented the London Borough of Sutton Superannuation Fund - BlackRock UK Property Fund (BUKPF).

 

Sarah Emberson, Client Relationship Director and Catriona Allen, Fund Manager UK, presented Aviva UK’s Real Estate Investment Fund.

33.

Final Triennial Actuarial Valuation of the Pension Fund at 31 March 2016

Presentation by Barnett Waddingham.

 

Minutes:

Alison Hamilton, Partner, Barnett Waddingham LLP presented the 2016 actuarial valuation initial results and assumptions advice. The presentation focussed on what are valuations, assumptions advice and initial results of the 2016 valuation.

 

Members welcomed the actuarial valuation and noted the recommended funding level of 80% as well as the next steps involved.

 

Councillor Richard Broadbent raised his concern that Committee Members had not received a report or copy of the presentation in advance of the meeting and it was his view that Members had insufficient opportunity to prepare properly for the item and query the information provided.

 

RESOLVED: that

1.    The initial results of the final triennial actuarial valuation be approved, the assumptions agreed and the presentation noted.

34.

Governance Compliance Statement pdf icon PDF 117 KB

This report presents the Sutton Council Pension Fund Governance Compliance Statement (Appendix A) and provides assurance that the governance arrangements comply with relevant guidance. There is no material change in the governance arrangements since they were last reported to the Pension Committee on 7 September 2015.

 

Additional documents:

Minutes:

Lyndsey Gamble, Head of Financial Strategy and Planning presented the report.

 

Councillor Richard Broadbent questioned whether Paragraphs 2.2, 3.1, 4.1 and 6.3 of Appendix A were up-to-date. As a consequence, Councillor Richard Broadbent raised a motion to defer, as seconded by Councillor Nick Mattey.

 

RESOLVED: that

1.    The approval of the Governance Compliance Statement, as attached at Appendix A, be deferred to the next meeting of the Pension Committee.

35.

Pension Administration update pdf icon PDF 143 KB

This report provides an update on the main work streams impacting pension administration for the period September to November 2016.

 

Additional documents:

Minutes:

Andy Banham, Head of Pensions, presented the report.

 

RESOLVED: that

1.    The Pension administration update report was considered and noted.

36.

Progress Report: Governance Action Plan pdf icon PDF 111 KB

This report updates the committee on governance arrangements including the action plan resulting from the governance review recommendations considered by Pension Committee on 5 September and guidance on proposed changes to investment regulations including the introduction of the new Investment Strategy Statement.

 

Additional documents:

Minutes:

Lyndsey Gamble, Head of Financial Strategy and Planning presented the report.

 

Councillor Richard Broadbent referred to point 7, training plan, of Appendix A. The Head of Financial Strategy and Planning referred to discussions held elsewhere on the agenda. With regards to point 8, medium term business plan, Councillor Richard Broadbent sought clarification on the content. The Head responded that it would be a development of the current programme with the additions as mentioned.

 

RESOLVED: that

1.    The governance action plan, as set out in Appendix A, was reviewed.

2.    The changes to investment regulations were noted.

37.

Review of work programme pdf icon PDF 60 KB

Minutes:

Members reviewed the work programme.

38.

Any urgent item brought forward at the direction of the Chair

Minutes:

No urgent business was raised.

39.

Date of Next Meeting

The next meeting will be held on 22 March 2017 at the Civic Offices.

 

Minutes:

The next meeting will be held on 22 March 2017 at the Civic Offices.