Report of the Head of Finance, Governance and Assurance attached marked 17.

Contact James Walton Tel 01743 255011.

It was proposed by the Leader, Mr M Pate and seconded by Mr A Davies, that the report, a copy of which is attached to the signed Minutes and the recommendations contained therein be received and agreed.

Responding to comments by Mr M Kenny, the Leader Mr M Pate stressed that the duty of the Pension Fund was to maximise the benefits to the fund and its beneficiaries

RESOLVED:

That the following be approved:

i)             To enter into an Inter Authority Agreement with Cheshire West & Chester Council, Derbyshire County Council, Leicestershire County Council, Nottinghamshire County Council, Staffordshire County Council, Wolverhampton City Council and Worcestershire County Council to establish a joint pension fund investment pool, in accordance with the requirements of the Local Government Pension Scheme (Management and Investment of Funds) Regulations 2016 and pursuant to that Inter Authority Agreement set up; and operate a Joint Committee under s102 of the Local Government Act 1972 to oversee the joint investment arrangements.

ii)            To agree that Cheshire West and Chester shall provide governance and administrative support to the Joint Committee on behalf of the participating Council’s, subject to the appropriate cost sharing arrangements in respect of officer time and other expenses.   

iii)           To become a joint shareholder of LGPS Central; a private company, limited by shares, held solely by the participating funds named in recommendation 2.1, on a ‘one fund, one vote’ basis; incorporated for investment management purposes and regulated under the Financial Services and Markets Act 2000.

iv)           To authorise the Shropshire Council Member who holds either the position of Chair or Vice Chair of the Shropshire County Pension Fund, to appoint themselves or other Shropshire Council Members of the Pension Committee to undertake the following roles:

i)             To act as the Council’s representative on the Joint Committee;

ii)            To exercise the Council’s voting rights as a shareholder of LGPS Central, to be exercised in consultation with the Head of Finance Governance & Assurance (s151 Officer) where the vote is in respect of a Reserved Matter as set out in Schedule 1 of the Shareholders agreement;

and each Member so appointed shall have delegated authority to undertake such roles.

v)            To agree that the Shropshire Council Members appointed under recommendations 2.4 above shall be authorised to appoint a substitute, provided that substitute is a Shropshire Council Member of the Pensions Committee, and agree that, wherever possible, the Member (or their substitute) appointed to the Joint Committee shall not be the same Member as currently appointed to the Shareholder Forum, so as to avoid potential conflicts of interest.

vi)           To agree that the signatory on behalf of the Council as Shareholder shall be the Council’s Head of Legal & Democratic Services.

vii)          To appoint the Head of Finance Governance & Assurance (s151 Officer) and Scheme Administrator of the Pension Fund or their nominated representative to represent the Council on a Practitioner Advisory Forum, providing joint officer support to the Joint Committee and Shareholder Forum.

viii)        To approve the revised terms of reference for the Shropshire County Pension Fund Committee as set out in Appendix 3 to this report.

ix)           To delegate authority to the Head of Finance Governance & Assurance (s151 Officer) in consultation with the Shropshire Council Chair or Vice Chair of the Pension Committee to negotiate and agree all necessary legal agreements to establish a joint asset pool and investment management company as outlined in this report and to implement the recommendations and to authorise their execution.