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Contact information

E-mail

customer.service@shropshire.gov.uk

Telephone

0345 678 9000

Postal Address

Shropshire Council
Shirehall
Abbey Foregate
Shrewsbury
Shropshire
SY2 6ND

Agenda and minutes

Venue: Oswestry Room, Shirehall, Abbey Foregate, Shrewsbury, Shropshire, SY2 6ND

Contact: Michelle Dulson  Committee Officer

Items
No. Item

46.

Apologies

Minutes:

46.1 No apologies were received.

 

47.

Declarations of Conflicts of Interest

Members are reminded that they should declare any interests which may lead to conflicts of interest in the subject area or any specific agenda item of this meeting.  A conflict of interest is defined as a financial or other interest which is likely to prejudice a person’s exercise of functions as a member of the Pension Board. It does not include a financial or other interest arising merely by virtue of that person being a member of the LGPS.

 

Minutes:

47.1  No conflicts of interest were declared.

 

48.

Minutes of the previous meeting pdf icon PDF 99 KB

The Minutes of the meeting held on 16 November 2018 are attached for confirmation.

Contact:  Michelle Dulson (01743) 257719

 

Minutes:

48.1  In relation to paragraph 36.3 of the Minutes, it was confirmed that an update on the tracing exercise was provided in the Administration and Regulatory update report for this meeting (Agenda Item 12).

48.2  In relation to paragraph 36.6, it was confirmed that no emails had yet been received for Board Members however a reminder had been included in the ‘In Touch’ publication.

48.3  RESOLVED:

That the Minutes of the meeting held on 16 November 2018 be approved and signed by the Chairman as a correct record.

         

49.

Public Question Time

To receive any questions from the public, notice of which has been given.

Minutes:

49.1  No public questions were received.

49.2  A brief discussion ensued in relation to ways in which to increase communication with the public.

 

50.

LGPS Central

To receive a presentation and update from Mike Weston.

 

Minutes:

50.1  A presentation was given by Mike Weston, Chief Executive and Callum Campbell, Head of Client Services for LGPS Central (copy of slides attached to signed Minutes) which covered the following areas:

·           Introduction

·           Our Shared Objectives

·           Progress to Date

·           Key Performance Indicators

·           Governance and Oversight

·           Responsible Investment and Engagement

·           Our People

·           How we communicate

50.2  The Chairman informed the Chief Executive and Head of Client Services that some concern had been raised at the Pensions Board Chairs meeting that the payback was not going to materialise in the timeframe promised and that the amount expected back was not as much.  The Chief Executive explained that he had been in discussions with the Local Authorities concerned and explained about the benefits and economies of scale coming from investments and the more you invest, the more you save.  He informed the Board that different funds were more involved than others so it was difficult to predict more accurately. 

50.3  In response to a query, the Chief Executive explained that they chose managers who they felt would perform best before discussing price.  He informed the meeting that the eight partner funds did challenge those decisions about how managers and advisers were chosen as they were aware that they did not have the monopoly on experience so did take advice from partner funds who brought a different angle to the recruitment process.

50.4  The Chief Executive went on to explain that strategic asset allocation remained the prerogative of the Pension Funds themselves and that was where advisers could add significant value in order to advise the Central fund before asset classes were chosen.

50.5  A question was raised about what the ‘Business as usual’ timescale was.  The Chief Executive confirmed this would be when the bulk of transitions into the Central fund had happened.  It was suggested that 2020 was a very aggressive timescale and difficult to achieve. 

50.6  In response to a query it was confirmed that residual assets would remain with partner funds.  The Director of Finance, Governance and Assurance (Section 151 Officer) responded to a query in relation to residual assets and felt the only issue would be if other funds wanted to go in a certain direction that did not fit with Shropshire’s requirement.  The Head of Treasury and Pensions informed the Board that Shropshire was quite different to some of the other funds as it was towards 100% funded and had invested in certain asset classes specific to Shropshire.  In response to a query, the Head of Treasury and Pensions confirmed that the decision about which asset classes to invest in remained with the individual Pensions Committees.

50.6  A brief discussion ensued in relation to the ability to withdraw funds from the Central pool if, for example, Shropshire wished to put more funds into an asset class not supported by the Central fund.  This could, in theory, be achieved, however it was hoped that in this instance something mutually beneficial could be found.  Discussion then turned to the collation  ...  view the full minutes text for item 50.

51.

Pensions Board Chairs meeting

To receive an update from Mike Morris, Chairman of the Pensions Board.

 

Minutes:

51.1  The Chairman updated the Board in relation to the recent Pensions Board Chairs meeting. He reported that the following issues were discussed:

 

·           Turnover of Membership Boards;

·           Tailored training for Board Members;

·           Worcester County Council were unhappy about changes to the payback period and revisions to the cost sharing.  Nottingham County Council would not make any savings whilst Shropshire Council would save £36m over 30 years;

·           Set up costs 1/8th, based on assets under management, others split equally.

 

51.2  The Chairman felt that Board Member attendance at these meetings was very important.  He agreed to feedback to the Board following the next meeting on 9 July.

52.

Specific Risk Register matrix for the Shropshire Pension Board

Minutes:

52.1  The Communications and Governance Team Leader circulated a Risk Register based on that from Cheshire Pension Board (copy attached to the signed Minutes) and requested that Members took this away and let her have any comments.  Once the Board were happy the Risk Register could be adopted and put on the website.

 

52.2  The Director of Finance, Governance and Assurance (Section 151 Officer) explained that a meeting could be arranged with the Internal Risk Manager in order to facilitate identification of risk, risk scoring, targets etc.  He confirmed that the Risk Register could be adopted in the first instance and any amendments required could be made following the session with the Internal Risk Manager.  The targets would then be reviewed annually.

 

53.

Pensions Committee Reports and Feedback - Exempt reports to be discussed in exempt session of the meeting.

To highlight any papers/reports arising from the recent Pensions Committee meeting which may of relevance to the Board.

 

Please click on the link below to access the reports considered by the Pensions Committee at its last meeting on 15 March 2019..

 

http://shropshire.gov.uk/committee-services/ieListDocuments.aspx?CId=260&MId=3793&Ver=4

 

Minutes:

53.1  The reports considered by the Pensions Committee at its meeting on 15 March 2019 had been received by the Board.  John Hall reported that he had attended the last two meetings of the Pensions Committee and he updated the Board.

53.2   Concern was raised around the continued value of assets and the Head of Finance, Governance and Assurance (Section 151 Officer) explained non-rebuttable risk whereby the Council needed to demonstrate separation of duties.  The Head of Treasury and Pensions explained that hard to value investments could go up or down so an estimate was made.

53.3   In response to a query, the Head of Treasury and Pensions explained how assets were liquidated.  He Informed the meeting that the external auditors, Grant Thornton, were appointed in 2017 by the LGA.

53.4   The Head of Treasury and Pensions explained how risks were mitigated via equity protection as a short to medium-term measure.

53.5   It was agreed to circulate a draft of the Pension Board Chairman’s report to members of the Board.

 

54.

Liverpool Spring Workshop

To receive a verbal update from John Hall.

 

Minutes:

54.1  John Hall updated the Board following his attendance at the Liverpool Spring Workshop.

55.

Admitted Bodies

Report attached.

Contact: Rebecca Clough (01743) 254457 / Debbie Sharp (01743) 252192

 

 

 

Minutes:

55.1  The Pensions Manager introduced and amplified her report (copy attached to the signed Minutes) which provided information on the status of admitted bodies within the Shropshire County Pension Fund.  She informed the meeting that this would be updated at the end of the financial year following the valuation.

55.2  In response to a query the Pensions Manager explained that if an Academy ceased to exist, the fund liabilities would be paid by the Dfe.  In relation to historic bodies without guarantees, the Pensions Manager confirmed that a lot of these were covered by bonds.

55.3  RESOLVED:

          That the contents of the report be noted.

 

56.

Report on Breaches of LGPS Regulations

Report attached.

Contact: Rebecca Clough (01743) 254457

 

 

Minutes:

56.1  The Board received the report of the Communications and Governance Team Leader – copy attached to the signed Minutes – which provided an update on the Breaches of LGPS regulations recorded for 2018/19 affecting the Shropshire County Pension Fund.

56.2  The Communications and Governance Team Leader explained that the log was for the three months following the last Pensions Committee.  It showed that the number of employer related breaches had reduced.  She reported that the template would be changed for 2019/20 to include more detail.

56.3  RESOLVED:

          That the contents of the report be noted.

57.

Administration and Regulatory Updates pdf icon PDF 122 KB

Report attached.

Contact: Debbie Sharp (01743) 252192

 

Additional documents:

Minutes:

57.1  The Board received the report of the Pensions Manager – copy attached to the signed Minutes – which provided Members with the latest administration and regulatory updates affecting the Local Government Pension Scheme. 

57.2  The Pensions Manager draw attention to the consultation on limiting Exit Payments for public sector workers and explained the implications of this.

57.3  In response to a query, the Pensions Manager informed the Board that SCAPE stood for Superannuation Contributions Adjusted for Past Experience.

57.4  RESOLVED:

          That the contents of the report be noted.

58.

Pensions Dashboard pdf icon PDF 99 KB

Report attached.

Contact: Rebecca Clough (01743) 254457 / Debbie Sharp (01743) 252192

 

Additional documents:

Minutes:

58.1  The Pensions Manager introduced and amplified her report (copy attached to the signed Minutes) which provided Members with the latest news on the national pension dashboard project).

59.

AOB

Minutes:

59.1  None.

60.

Board and Committee Training update

To receive a verbal update.

Contact: Rebecca Clough (01743) 254457

 

Minutes:

60.1  The Communications and Governance Team Leader informed Board Members of the following training opportunities:

·         27 June Training in Wolverhampton 10am-4pm

·         9 July Responsible Investment LGPS Birmingham 10am-4pm

·         15 November Actuarial meeting

·         LGA Fundamentals 3 day training course

·         January 2020 LGA Governance Conference

 

61.

Date of Next Meeting

Minutes:

61.1  It was agreed to hold the next meeting of the Pensions Board after the meeting of the Pensions Committee on 5 December 2019.

 

NB.  The next meeting was scheduled to take place on Friday 1 November at 9.30am in the Bridgnorth Room.

 

 

 

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