Apologies for absence were received from Councillors Malcolm Smith and David Wright.

Apologies for absence were also received from Councillors Lee Carter and Adrian Lawrence (Substitute Members).

Members are reminded that they must not participate in the discussion or voting on any matter in which they have a Disclosable Pecuniary Interest and should leave the room prior to the commencement of the debate.

Members were reminded that they must not participate in the discussion or voting on any matter in which they had a Disclosable Pecuniary Interest and should leave the room prior to the commencement of the debate.

The Minutes of the meeting held on 24 November 2017 are attached for confirmation, marked 3.

Contact:  Tim Ward (01743 257713)

RESOLVED:

That the Minutes of the meeting held on 24 November 2017 be approved and signed by the Chairman as a correct record.

To receive any questions from members of the public, notice of which has been given in accordance with Procedure Rule 14.  The deadline for this meeting is 9.30 a.m. on Thursday, 15 March 2018.

There were no public questions.

To consider a resolution under paragraph 10.2 of the Council's Access to Information Procedure Rules that the proceedings of the Committee in relation to Agenda Items 6 to 11 shall not be conducted in public on the grounds that they involve the likely disclosure of exempt information as defined by the categories specified against them.

That under paragraph 10.2 of the Council’s Access to Information Procedure Rules, the proceedings of the Committee in relation to Minutes 50 to 55, be not conducted in public on the grounds that they might involve the likely disclosure of exempt information as defined by the category specified against them.

Aon Hewitt will be in attendance to present this item.

Mr Louis-Paul Hill, Aon Hewitt, was in attendance to present this item.

Presentations will be received from the various Managers.

Forty Five minutes were allocated to each candidate to make their presentation and for Members to ask questions.  In making their presentations, the managers had been asked to cover specific areas.

The exempt report of the Head of Treasury & Pensions is attached, marked 8.

Contact:  Justin Bridges (01743 252072)

The Committee received the exempt report of the Head of Treasury and Pensions (copy attached to the Exempt signed Minutes) which provided Members with further information in relation to the appointment of an Insurance Linked Securities Manger.

RESOLVED:

That the decisions as detailed in the Exempt Minutes be implemented.

Aon Hewitt will be in attendance to present this item.

Mr Louis-Paul Hill, Aon Hewitt, was in attendance to present this item.

Presentations will be received from the various Managers.

Forty Five minutes were allocated to each candidate to make their presentation and for Members to ask questions.  In making their presentations, the managers had been asked to cover specific areas.

The exempt report of the Head of Treasury & Pensions is attached, marked 11.

Contact:  Justin Bridges (01743 252072)

(From this point, the proceedings of the Committee will be conducted in public session in relation to Agenda Items 12 to 17).

The Committee received the exempt report of the Head of Treasury and Pensions (copy attached to the Exempt signed Minutes) which provided Members with further information in relation to the appointment of a Property Debt Manager.

RESOLVED:

That the decisions as detailed in the Exempt Minutes be implemented.

(The full version of Minutes 50 to 55 constitutes exempt information under Category 3 of paragraph 10.2 of the Council’s Access to Information Procedure Rules and has accordingly been withheld from publication).

(From this point, the proceedings of the Committee were conducted in public session in relation to Minutes 56 to 62).

The report of Grant Thornton is attached, marked 12.

Contact:  John Gregory (0121 232 5333) and James McLarnon (0121 232 5219)

In respect of ‘The Audit Plan for Shropshire County Pension Fund 2017/18’, the Committee received the report of the External Auditor, Grant Thornton, (copy attached to the signed Minutes) which set out the external audit plan for Shropshire County Pension Fund for the year ending 31 March 2018.

Mr David Rowley, Executive for Grant Thornton, was in attendance to present the report.  It was noted that the audit fee for 2017/18 would be the same as it was for 2016/17 (£23,427).

RESOLVED:

That the contents of the report by the External Auditor, Grant Thornton, be noted.

In respect of ‘Informing The Audit Risk Assessment for Shropshire County Pension Fund 2017/18’, the Committee received the report of the External Auditor, Grant Thornton, (copy attached to the signed Minutes) which detailed responses received from the Fund’s management in respect of a series of questions relating to the areas of fraud, laws and regulations, going concern, related parties and accounting estimates.

Mr David Rowley, Executive for Grant Thornton, was in attendance to present the report.

RESOLVED:

That the contents of the report by the External Auditor, Grant Thornton, be noted.

Andrew Warwick-Thompson and Joanne Segars will be in attendance to present this item.

Joanne Segars and Andrew Warwick-Thompson were in attendance to present this item.  They provided Members with a progress review, looked at the structure of the Governance Framework and presented the key deliverables for 2018/19.

The report of the Investment Officer is attached, marked 14.

Contact:  Ed Roberts (01743 252078)

The Committee received the report of the Investment Officer (copy attached to the signed Minutes) which informed Members of Corporate Governance and socially responsible investment issues arising in the quarter 01 October 2017 to 31 December 2017.

RESOLVED:

That the position as set out in the report, Manager Voting Reports (Appendix A) and BMO Global Asset Management Responsible Engagement Overlay Activity Report (Appendix B) be accepted.

The report of the Head of Treasury & Pensions is attached, marked 15.

Contact:  Justin Bridges (01743 252072)

The Committee received the report of the Head of Treasury and Pensions (copy attached to the signed Minutes) which proposed the Pension Fund Treasury Strategy for 2018/19 for the small cash balances that the Administrating Authority maintained to manage the day to day transactions of the Fund.  These transactions included the payment of pensions and transfers out together with the receipt of contributions from employers and transfers into the Fund.

In response to a question, the Head of Treasury and Pensions confirmed that the Fund does lend to some Local Authorities, but not many.

RESOLVED:

(a)      That delegated authority be given to the Scheme Administrator (Section 151 Officer) to manage the Pension Funds day to day cash balances.

(b)      That the Pension Fund Treasury Strategy be approved.

(c)       That the Scheme Administrator (Section 151 Officer) be authorised to place deposits in accordance with the Pension Fund’s Treasury Strategy.

(d)      That delegated authority be given to the Scheme Administrator (Section 151 Officer) to add or remove institutions from the approved lending list and amend cash and period limits as necessary in line with the Administering Authority’s creditworthiness policy.

The report of the Pensions Administration Manager is attached, marked 16.

Contact:  Debbie Sharp (01743 252192)

The Committee received the report of the Pensions Administration Manager (copy attached to the signed Minutes) which provided Members with monitoring information on the performance of and issues affecting the Pensions Administration Team.

RESOLVED:

(a)      That the position as set out in the report by the Pensions Administration Manager be accepted.

(b)      That the decision to not collect overpayment of pension due to incorrect GMP information being held in accordance with guidance that the Pensioner would not have known their pension was incorrect due to the complexity of the Contracting out legislation, be approved.

The report of the Pensions Administration Manager is attached, marked 17.

Contact:  Debbie Sharp (01743 252192)

The Committee received the report of the Pensions Administration Manager (copy attached to the signed Minutes) which informed Members of the recently drafted ‘Employer Events Policy’ which replaced the Fund’s Termination Funding Policy.  It was noted that there had been a consultation period in relation to this new policy.

RESOLVED:

That the ‘Employer Events Policy’ be approved.

To consider a resolution under paragraph 10.2 of the Council's Access to Information Procedure Rules that the proceedings of the Committee in relation to Agenda Items 19 to 23 shall not be conducted in public on the grounds that they involve the likely disclosure of exempt information as defined by the categories specified against them.

That under paragraph 10.2 of the Council’s Access to Information Procedure Rules, the proceedings of the Committee in relation to Minutes 63 to 67, be not conducted in public on the grounds that they might involve the likely disclosure of exempt information as defined by the category specified against them.

The exempt Minutes of the meeting held on 24 November 2017 are attached for confirmation, marked 19.

Contact:  Tim Ward (01743 257713)

That the Exempt Minutes of the meeting held on 24 November 2017 be approved and signed by the Chairman as a correct record.

Aon Hewitt will be in attendance to present this item.

Mr Charles Iversen, Aon Hewitt, was in attendance to present this item. 

RESOLVED:

That the decisions as detailed in the Exempt Minutes be implemented.

The exempt report of the Head of Treasury & Pensions is attached, marked 21.

Contact:  Justin Bridges (01743 252072)

The Committee received the exempt report of the Head of Treasury and Pensions (copy attached to the Exempt signed Minutes) which provided Members with monitoring information on investment performance and managers for the quarter period to 31 December 2017, and reported on the technical meetings held with managers since the quarter end.

RESOLVED:

That the position as set out in the exempt report by the Head of Treasury and Pensions be noted.

The exempt report of the Pensions Administration Manager is attached, marked 22.

Contact:  Debbie Sharp (01743 252192)

The Committee received the exempt report of the Pensions Administration Manager (copy attached to the Exempt signed Minutes) which provided Members with details of the following:

·         Two new employer admissions to the Fund under Schedule 2 Part 3 Regulation 1 (d) (i) of the Local Government Pension Scheme Regulations 2013.  These were due to services transferring from Scheme Employers, under a service contract.

·         Confirmation that one new admission had been approved by the Chairman between committee meetings.

·         One admission agreement, reported at the last Pensions Committee meeting, which did not take place.

RESOLVED:

That the recommendations in the exempt report by the Pensions Administration Manager be approved.

The exempt report of the Pensions Administration Manager is attached, marked 23.

Contact:  Debbie Sharp (01743 252192)

The Committee received the exempt report of the Pensions Administration Manager (copy attached to the Exempt signed Minutes) which informed them of breaches arising in the quarter 01 October 2017 to 31 December 2017, which had been recorded in the breaches log.

RESOLVED:

That the content of Appendix A to the report which detailed breaches recorded in the last quarter, be noted.

(The full version of Minutes 63 to 67 constitutes exempt information under Categories 2 and 3 of paragraph 10.2 of the Council’s Access to Information Procedure Rules and has accordingly been withheld from publication).