Agenda and minutes

Venue: Cabinet Room 'D' - The Henry Bolingbroke Room, County Hall, Preston

Contact: Dave Gorman  Tel: (01772) 534261, Email:  dave.gorman@lancashire.gov.uk

Items
No. Item

1.

Apologies

Minutes:

Apologies were received from County Councillor G Dowding.

2.

Disclosure of Pecuniary and Non-Pecuniary Interests

Members are asked to consider any Pecuniary and Non-Pecuniary Interests they may have to disclose to the meeting in relation to matters under consideration on the Agenda.

Minutes:

None.

3.

Urgent Business

An item of urgent business may only be considered under this heading where, by reason of special circumstances to be recorded in the Minutes, the Chair of the meeting is of the opinion that the item should be considered at the meeting as a matter of urgency.  Wherever possible, the Chief Executive should be given advance warning of any Member’s intention to raise a matter under this heading.

Minutes:

None.

4.

Date of Next Meeting

The next meeting of the Committee will be held on Friday 10 June 2016 at 10.00am in Cabinet Room 'C' - The Duke of Lancaster Room, County Hall, Preston.

Minutes:

It was noted that the next meeting of the Committee would be held on Friday 10 June 2016 at 10.00am in Cabinet Room 'C' - The Duke of Lancaster Room, County Hall, Preston.

 

5.

Exclusion of Press and Public

The Committee is asked to consider whether, under Section 100A(4) of the Local Government Act, 1972, it considers that the public should be excluded from the meeting during consideration of the following items of business on the grounds that there would be a likely disclosure of exempt information as defined in the appropriate paragraph of Part 1 of Schedule 12A to the Local Government Act, 1972, as indicated against the heading to the item.

Minutes:

Resolved: - That the press and public be excluded from the meeting during consideration of the following items of business on the grounds that there would be a likely disclosure of exempt information as defined in the appropriate paragraph of Part 1 of Schedule 12A to the Local Government Act, 1972, indicated against the heading to the item. It was considered that in all the circumstances the public interest in maintaining the exemption outweighed the public interest in disclosing the information.

6.

The Creation of the Local Pensions Partnership Ltd

(Not for Publication – Exempt information as defined in Paragraph 3 of Part 1 of Schedule 12A to the Local Government Act, 1972.  It is considered that in all the circumstances of the case the public interest in maintaining the exemption outweighs the public interests in disclosing the information).

 

Report to follow

Minutes:

(Exempt information as defined in Paragraph 3 of Part 1 of Schedule 12A to the Local Government Act, 1972.  It is considered that in all the circumstances of the case the public interest in maintaining the exemption outweighs the public interests in disclosing the information)

 

The Committee considered a report on the final proposals in relation to the creation of a partnership between the Lancashire County Pension Fund and the London Pension Fund Authority. 

 

The Committee's attention was drawn to the following key issues in relation to the establishment of the "Local Pensions Partnership Limited" (LPPL):

 

·  The financial viability of the LPPL including the conclusions of a detailed review undertaken by PricewaterhouseCoopers;

·  The loan facility with LPPL;

·  Governance issues and key risks including the views of DAC Beachcroft LLP on the legal agreements required to give effect to the partnership arrangement;

·  The Financial Conduct Authority's authorisation;

·  The remuneration policy for senior staff in LPPL;

·  The Council's short and long term treasury management arrangements;

·  The ICT agreement;

·  The views of the Investment Panel; and

·  Revised terms of reference and delegation arrangements for the County Council consequent upon the establishment of LPPL.

 

Members gave detailed consideration to the report and to the views on the proposed partnership as presented by officers, the Investment Panel and representatives of PricewaterhouseCoopers and DAC Beachcroft LLP. George Graham, LPPL Chief Finance Officer & Managing Director - Administration Business designate, also responded to questions raised by Members.

 

It was noted that the Full Council would need to approve the LPPL proposal.  The Committee agreed that the Full Council should be recommended to support the proposals as set out in the report including the conditions precedent which must be in place prior to the commencement of the joint venture. 

 

Resolved: 

 

(i)  That the reports provided at Appendices 'A' 'B' and 'D' on the financial viability and the proposed legal/governance arrangements in relation to LPPL, identifying the risks and opportunities which the proposed joint venture involves be noted.

 

(ii)  That the verbal updates provided at the meeting by the Investment Panel on the proposals be noted.

 

(iii)  That the recommendations including the conditions precedent, as set out in the report now presented, be approved.