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PDF 56 KBVenue: Committee Room 'C' - The Duke of Lancaster Room, County Hall, Preston. View directions
Contact: Chris Mather, Tel: (01772) 533559, Email: chris.mather@lancashire.gov.uk
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Independent Advisers - Panel Members:
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Apologies Minutes: Apologies for absence were presented on behalf of County Councillor J Lawrenson. |
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Disclosure of Personal and Prejudicial Interests
Members are asked to consider any Personal/Prejudicial Interests they may have to disclose to the meeting in relation to matters under consideration on the Agenda. Minutes: The following members of the Committee disclosed personal non-prejudicial interests in this agenda as they were members of the Local Government Pension Scheme: M Brindle P Evans M France R Harvey P Hyett T Pimblett D Westley R Whittle |
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Minutes of the Meeting held on 10 December 2010
To be confirmed, and signed by the chair. Minutes: The minutes of the meeting held on 16 July 2010 were presented.
It was noted that County Councillor K Young had attended the meeting held on 16 July 2010 and that Mr R Whittle had disclosed a personal non-prejudicial interests in the agenda for the meeting as he was a member of the Local Government pension Scheme. Unfortunately this information had been omitted from the minutes now presented and it was agreed that the minutes should be amended accordingly.
Resolved: That, subject to the above-mentioned amendments, the minutes of the meeting held on 16 July 2010 be confirmed and signed by the chair. |
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Principles of Revised Governance Arrangements Minutes: The Committee considered a report on proposals to amend the Pension Fund's decision making and governance arrangements.
The purpose of the report was to invite comments on a range of proposals to support the new ways of working required by the revised investment strategy that was approved by the Committee on 10 December 2010. The views of the Committee were sought on the following issues:
· Procurement arrangements – the committee would determine the criteria for the award of a contract and the Treasurer would be given delegated authority to award the contract on the advice of the Investment Panel. Whilst this proposal would result in the disestablishment of the standing Appointments Sub-Committee, an ad hoc sub-committee would need to be convened to oversee the appointment of the two independent advisers.
· An enhancement of the requirement that the Investment Panel reports on its decisions to each meeting of the Committee.
· The composition of the Committee to remain unchanged.
· The future role of the Administration Sub-Committee.
Members raised a number of comments on the proposals and the main points are summarised below:
· Concerns were expressed about the accountability of the proposed new investment decision making arrangements and the lack of member involvement. It was suggested that the Chair of the Committee (or in his/her absence the Deputy Chair) should serve on the Investment Panel.
Members were assured that the proposal was no different than the other mandates which had been approved by the Committee. All investment decisions must comply with the new investment strategy and no decisions would be taken without the support of the independent advisers. The Committee would receive a report on the investment decisions taken and the rationale for them at each meeting. This would enable members to review, monitor and challenge the decisions taken in line with existing process.
It was agreed that further clarification on the proposed new investment arrangements including the decision making process and accountability should be presented to the next meeting of the Committee.
· A concern was expressed that members would not be involved in the procurement decision making phase.
Members were informed that the current arrangement of the Appointments Sub-Committee making the decision on final selection brought members in to the process at the wrong point. It would be very difficult for members to reject a recommendation which had been borne out of a selection process which met EU procurement rules. It was felt that Members would be better involved at an earlier stage in agreeing the criteria for the award of a contract. The earlier suggestion that the Chair of ... view the full minutes text for item 4. |
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Lancashire County Pension Fund - Business Plan 2011/12 Additional documents:
Minutes: The Committee considered the proposed Business Plan for 2011/12.
Work over the coming year would focus on the implementation of the new investment strategy and would include:
A copy of the Plan was presented at Appendix 'A'. This reflected the rolling forward of ongoing activity for 2010/11 and the progress made to date with specific projects included in the 2011/12 Plan.
The Committee noted that there would continue to be a considerable workload associated with the administration of the Fund. This included the implementation a new pensioner payroll system integrated with the pensions administration system.
It was confirmed that the creation of a separate bank account for the Pension Fund was on-going and that the internal audit service was happy with progress. It was also confirmed that arrangements were in hand to satisfy audit requirements around the valuation of private equity investments.
Resolved: That the proposed Business Plan for 2011/12 be approved. |
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Revised Funding Strategy Statement Additional documents: Minutes: The Committee considered the Fund's revised Funding Strategy Statement which followed the results of the 2010 formal actuarial valuation of the Fund as noted by the Committee on 10 December 2010.
It was noted that the proposed Funding Strategy Statement had been communicated to employers at the Directors Briefing held on 14 December 2010 and consultation was underway with individual Fund employers in respect of their individual employer contribution rates and the options available to them via the revised Funding Strategy Statement.
The Committee's attention was particularly drawn to Section 5 of the Funding Strategy Statement which set out the deficit recovery plan. Members were asked to agree that the Treasurer to the Lancashire County Pension Fund be authorised to use her discretion where an individual employer wished to deviate from the deficit recovery plan as set out within the revised Funding Strategy Statement, subject to any deviation not impacting on the overall prudent management of the Fund. Such action would only be taken in exceptional circumstances and details would be reported to the Committee.
It was agreed that the Committee need to strengthen its monitoring of investment activity against performance targets, as well as risk management issues. A report on these matters would be presented to each meeting of the Committee.
Resolved:
1. That the revised Funding Strategy Statement be approved.
2. That the Treasurer to the Lancashire County Pension Fund be authorised to use her discretion in exceptional circumstances where an individual employer wishes to deviate from the deficit recovery plan as set out within the revised Funding Strategy Statement, subject to any deviation not impacting on the overall prudent management of the Fund.
3. That a report on any actions taken under 2. above be presented to the subsequent meeting of the Committee. |
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Procurement of Actuarial Services Minutes: The Committee received an update on the procurement of actuarial services on behalf of the Fund.
A tripartite exercise to tender for actuarial services began on 18 January 2011. The arrangement was between the Lancashire County Pension Fund, the Cumbria Pension Fund and Merseyside Pension Fund with Merseyside acting as the lead authority during the procurement process.
Details of the process and timescale were set out in the report. It was noted that each Authority would meet on or around 1 July to consider the results of the procurement exercise and to appoint the same recommended provider. Separate contracts would be entered into by each Authority.
Resolved: That theprocess and timescale of the procurement exercise for actuarial services on behalf of the Fund be noted. |
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Date of Next Meeting
The next meeting of the Committee will be held on Friday 15 April 2011 at 10.00 a.m.at County Hall, Preston.
Minutes: It was noted that the next meeting of the Lancashire Pension Fund Committee would be held on Friday 15 April 2011 at 10.00am at County Hall, Preston.
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