Meeting documents
Pension Fund Committee
Wednesday, 28 May 2008
To Members of the Pension Fund Committee
|
Alan Bryden |
Neville Harris |
Dermot Roaf |
Don Seale |
Bill Service |
|
Co-opted Members:
Richard Langridge |
Bob Price |
|
Notes:
· A lunch will be provided
· Date of next meeting: 27 August 2008
If you have any special requirements (such as a large print version of these papers or special access facilities) please contact the officer named on the front page, but please give as much notice as possible before the meeting. |
AGENDA
1. Election of Chairman for the 2008/09 Council Year
2. Election of Deputy Chairman for the 2008/09 Council Year
3. Apologies for Absence and Temporary Appointments
4. Declarations of Interest – see guidance note
5. Minutes
To approve the minutes of the meeting held on 21 February 2008 (PF5) and to receive for information any matters arising on them.
6. Petitions and Public Address
7. Overview of Past and Current Investment Position
10:20 Tables 1 to 7 are compiled from the custodian's records. The custodian is the Pension Fund's prime record keeper. He accrues for dividends and recoverable overseas tax within his valuation figures and may also use different exchange rates and pricing sources compared with the fund managers. The custodian also treats dividend scrip issues as purchases which the fund managers may not do. This may mean that there are minor differences between the tabled figures and those supplied by the managers.
The Independent Financial Adviser will review the investment activity during the past quarter and present an overview of the Fund’s position as at 31 March 2008 using the following tables:
Table 1 - provides a consolidated valuation of the Pension Fund at 31 March 2008;
Tables 2 to 4 - provide details of the individual managers’ asset allocations and compare these against their benchmark allocations;
Table 5 - shows net investment/disinvestments during the quarter;
Tables 6 to 7 - provide details on the Pension Fund’s Private Equity;
Tables 8 to 10 - provide investment performance
for the consolidated Pension Fund and for the four Managers for the quarter ended 31 March 2008.
(Tables - download as .xls file)
The Committee is RECOMMENDED to receive the tables, and that the information contained in them be borne in mind, insofar as they relate to items 9E, 10E and 11E on the agenda.
EXEMPT ITEMS
The Committee is RECOMMENDED that the public be excluded for the duration of items 8E, 9E, 10E, 11E, 12E, 13E, 14E, 15E and 16E in the Agenda since it is likely that if they were present during those items there would be disclosure of exempt information as defined in Part I of Schedule 12A to the Local Government Act 1972 (as amended) and specified in relation to the respective items in the Agenda and since it is considered that, in all the circumstances of each case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.
THE REPORTS RELATING TO THE EXEMPT ITEMS HAVE NOT BEEN MADE PUBLIC AND SHOULD BE REGARDED AS STRICTLY PRIVATE TO MEMBERS AND OFFICERS ENTITLED TO RECEIVE THEM.
NOTE: In the case of items 9E, 10E and 11E there are no reports circulated with the Agenda. Any exempt information will be reported orally.
8.E Overview and Outlook for Investment Markets
10:40 Report of the Independent Financial Adviser (PF8E) (download as .doc file)
The report sets out an overview of the current and future investment scene and market developments across various regions and sectors. The report itself does not contain exempt information and is available to the public. The Independent Financial Adviser will also report orally and any information reported orally will be exempt information.
The public should be excluded during this item because its discussion in public would be likely to lead to the disclosure to members of the public present of information in the following prescribed category:
3. Information relating to the financial or business affairs of any particular person (including the authority holding that information)
and since it is considered that, in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, in that such disclosure would prejudice the trading activities of the fund managers involved and would prejudice the position of the authority's investments in funding the Pension Fund.
The Committee is RECOMMENDED to receive the report and tables, to receive the oral report, to consider any further action arising on them and to bear the Independent Financial Adviser’s conclusions in mind when considering the Fund Managers’ reports.
9.E Report of Main Issues arising from Reports of the
Fund Managers not represented at this meeting
10:50 The Independent Financial Adviser will report orally on the main issues arising from the reports from Alliance Bernstein and Baillie Gifford in conjunction with information contained in the tables (Agenda Item 7).
The public should be excluded during this item because its discussion in public would be likely to lead to the disclosure to members of the public present of information in the following prescribed category:
3. Information relating to the financial or business affairs of any particular person (including the authority holding that information)
and since it is considered that, in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, in that such disclosure would prejudice the trading activities of the fund managers involved and would prejudice the position of the authority's investments in funding the Pension Fund.
The Committee is RECOMMENDED to note the main issues arising from the reports and to take any necessary action, if required.
10.E UBS Global Asset Management
10:55 (1) The Independent Financial Adviser will report orally on the performance and strategy of UBS Global Asset Management drawing on the tables at Agenda Items 7 and 8E.
(2) The representatives (Mr M Stemp and Mr N Melhuish) of the Fund Manager will:
(a) report and review the present investments of their part of the Fund and their strategy against the background of the current investment scene for the period which ended on 31 March 2008;
(b) give their views on the future investment scene.
In support of the above is their report for the period to 31 March 2008.
At the end of the presentation, members are invited to question and comment and the Fund Managers to respond.
The public should be excluded during this item because its discussion in public would be likely to lead to the disclosure to members of the public present of information in the following prescribed category:
3. Information relating to the financial or business affairs of any particular person (including the authority holding that information)
and since it is considered that, in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, in that such disclosure would prejudice the trading activities of the fund managers involved and would prejudice the position of the authority's investments in funding the Pension Fund.
The Committee is RECOMMENDED to note the main issues arising from the presentation and to take any necessary action, if required.
11.E Legal & General
11:25 (1) The Independent Financial Adviser will report orally on the performance and strategy of Legal & General drawing on the tables at Agenda Items 7 and 8E.
(2) The representatives (Mr R Barnard-Smith, Mr J Cloke and Mr M Walsh) of the Fund Manager will:
(a) report and review the present investments of their part of the Fund and their strategy against the background of the current investment scene for the period which ended on 31 March 2008;
(b) give their views on the future investment scene.
In support of the above is their report for the period to 31 March 2008.
At the end of the presentation, members are invited to question and comment and the Fund Managers to respond.
The public should be excluded during this item because its discussion in public would be likely to lead to the disclosure to members of the public present of information in the following prescribed category:
3. Information relating to the financial or business affairs of any particular person (including the authority holding that information)
and since it is considered that, in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, in that such disclosure would prejudice the trading activities of the fund managers involved and would prejudice the position of the authority's investments in funding the Pension Fund.
The Committee is RECOMMENDED to note the main issues arising from the presentation and to take any necessary action, if required.
12.E Summary by the Independent Financial Adviser
11:55 The Independent Financial Adviser will, if necessary, summarise the foregoing reports of the Fund Managers and answer any questions from members.
The public should be excluded during this item because its discussion in public would be likely to lead to the disclosure to members of the public present of information in the following prescribed category:
3. Information relating to the financial or business affairs of any particular person (including the authority holding that information)
and since it is considered that, in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, in that such disclosure would prejudice the trading activities of the fund managers involved and would prejudice the position of the authority's investments in funding the Pension Fund.
13.E Transfer of Assets
12:00 Report of the Assistant Chief Executive and Chief Finance Officer (PF13E)
The report explains the process for transferring the UBS UK Equities and Bond Portfolios to Legal & General.
The public should be excluded during this item because its discussion in public would be likely to lead to the disclosure to members of the public present of information in the following prescribed category:
3. Information relating to the financial or business affairs of any particular person (including the authority holding that information)
and since it is considered that, in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, in that such disclosure would prejudice the trading activities of the fund managers involved and would prejudice the position of the authority's investments in funding the Pension Fund.
14.E Appointment of a Passive Manager - Update on the Tender Process
12:05 Report of the Assistant Chief Executive and Chief Finance Officer (PF14E)
The report sets out a recommended process and timetable for appointing a Passive Manager.
The public should be excluded during this item because its discussion in public would be likely to lead to the disclosure to members of the public present of information in the following prescribed category:
3. Information relating to the financial or business affairs of any particular person (including the authority holding that information)
and since it is considered that, in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, in that such disclosure would prejudice the trading activities of the fund managers involved and would prejudice the position of the authority's investments in funding the Pension Fund.
15.E Appointment of Oxfordshire Pension Fund's Custodian
12:10 Report of the Assistant Chief Executive and Chief Finance Officer (PF15E)
The report sets out the process for appointing a global custodian and the reasons for re-appointing the incumbent Custodian, BNY Mellon.
The public should be excluded during this item because its discussion in public would be likely to lead to the disclosure to members of the public present of information in the following prescribed category:
3. Information relating to the financial or business affairs of any particular person (including the authority holding that information)
and since it is considered that, in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, in that such disclosure would prejudice the trading activities of the fund managers involved and would prejudice the position of the authority's investments in funding the Pension Fund.
16.E Additional Voluntary Contributions
12:15 Report of the Assistant Chief Executive and Chief Finance Officer (PF16E)
This report is the regular review of Oxfordshire Pension Fund's Additional Voluntary Contributions provision and also looks at the performance of their provider.
The public should be excluded during this item because its discussion in public would be likely to lead to the disclosure to members of the public present of information in the following prescribed category:
3. Information relating to the financial or business affairs of any particular person (including the authority holding that information)
and since it is considered that, in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, in that such disclosure would prejudice the trading activities of the provider involved.
ITEMS FOLLOWING THE RE-ADMISSION OF THE PRESS AND PUBLIC
17. Appointment of an Independent Financial Adviser – Tender Process
12:25 Report of the Assistant Chief Executive and Chief Finance Officer and County Solicitor (PF17)
The report considers the process for the appointment of an independent financial adviser.
The Committee is RECOMMENDED to:
(a) endorse the proposed arrangements for appointing an Independent Financial Adviser; and
(b) consider which members of the Committee should be represented on the appointment panel.
18. Status of the Pension Fund
12:35 Report of the Assistant Chief Executive and Chief Finance Officer (PF18)
The report sets out the position on the status of the pension fund and whether the Committee should follow the Council’s contract/procurement rules.
The Committee is RECOMMENDED to note the report.
19. The Governance Compliance Statement
12:45 Report of the Assistant Chief Executive and Chief Finance Officer (PF19)
This report follows on from the report to the last meeting and the requirements under the Local Government Pension Scheme (LGPS) Regulations to publish a Governance Compliance Statement. The purpose of this Statement is to set out the extent to which the governance arrangements for the Oxfordshire LGPS Pension Fund comply with the best practice principles set out by the Government in statutory guidance. At the last meeting, it was stated that Oxfordshire was non-compliant in one area of best practice, and partially compliant in a further three areas. The Committee asked for an update and further information to this meeting.
The Committee is RECOMMENDED to:
(a) consider any changes it wishes to recommend to Council in respect of the membership, substitutions and voting rights of the current Pension Fund Committee;
(b) consider any changes it wishes to make to the Governance Policy Statement in respect of the voting rights of the Beneficiaries Observer; and
(c) agree the revised Governance Compliance Statement as presented at Annex 2 to the report, and as amended in line with any changes agreed at (a) or (b) above, for submission to the Department for Communities and Local Government.
LUNCH
20. Consultation on Cost Sharing Proposals
14:00 Report of the Assistant Chief Executive and Chief Finance Officer (PF20)
On 4 March 2008, the Department of Communities and Local Government issued a consultation paper setting out the principles and proposals for a cost sharing mechanism which is to be in place by March 2009. This cost sharing will determine how scheme costs can be shared between scheme members and scheme employers to ensure the long term viability of the Local Government Pension Scheme.
The Committee is RECOMMENDED to agree any amendments to the proposed response as included in the annex to the report, and endorse it for submission to the Department for Communities and Local Government.
21. Requests to buy Additional Pension – Medical Report
14:15 Report of the Assistant Chief Executive and Chief Finance Officer (PF21)
The 'Benefits' and 'Adminstration' regulations came into force from 1 April 2008. Regulation 25 of the Administration regulations allows a scheme member to buy additional pension benefit from the pension fund through the payment of fixed regular payments. Oxfordshire County Council, as the administering authority, has to decide whether an employee's request to buy additional pension should be accompanied by a medical report. The costs to buy additional pension have been determined by the Government's Actuary Department. However in the event of early retirement due to permanent ill health the full contract is deemed to be paid in full and completed. This would represent additional cost to the pension fund, and seeking a positive general medical report before entering into the arrangement may help reduce the risk of this liability occuring.
The Pension Fund Committee is RECOMMENDED to:
(a) resolve that a member must provide a medical report before requesting to buy additional pension; and
(b) delegate responsibility to the Pension Services Manager to determine in light of the medical report whether to accept the request.
22. Contract for Actuarial Services
14:20 Report of the Assistant Chief Executive and Chief Finance Officer (PF22)
This report details the provisions of the current contract for actuarial services and seeks Committee approval to take the option of extending the current arrangements for one year.
The Committee is RECOMMENDED to agree the extension of the current actuarial contract for a period of one year.
23. Admission Agreements
Report of the Assistant Chief Executive and Chief Finance Officer (PF23)
The report sets out applications for admission to the fund and seeks Committee approval for their admission.
The Committee is RECOMMENDED to approve the applications in the report subject to their agreeing to the terms of the Admission Agreements and this Committee being informed when the agreements are signed.
24. Payment of Death Grant
14:30 Report of the Assistant Chief Executive and Chief Finance Officer (PF24)
This report requests the Committee, as Administering Authority, to exercise its discretionary powers in making payment of a death grant contrary to the wishes expressed by the deceased pensioner.
The Committee is RECOMMENDED to agree that payment of the death grant should be made solely to the son of the deceased scheme member.
25. Nominated Cohabiting Partners
14:35 Report of the Assistant Chief Executive and Chief Finance Officer (PF25)
The Local Government Pension (Benefits, Membership and Contributions) Regulations 2007 and the Local Government Pension Scheme (Administration) Regulations came into force on 1 April 2008. These regulations introduce a new group of beneficiaries who will have an entitlement to benefits from the scheme following the death of a member. These are known as nominated cohabiting partners.
Although the member and their partner can make a declaration about their relationship and the regulations prescribe the potential benefits after the death of the member, the administering authority needs to decide what information it will accept to check whether the partnership is eligible under the terms of the regulations.
The Committee is RECOMMENDED to:
(a) endorse the draft declaration form (Annex 1);
(b) agree not to seek additional documentary evidence under usual circumstances.
26. Annual Pension Forum
14:40 The Assistant Chief Executive and Chief Finance Officer will report orally on any issues arising from the last Pension Forum held on 4 December 2007. The next Forum will be held on 5 December 2008.
The Committee is RECOMMENDED to note the report.
27. Corporate Governance and Socially Responsible Investment
14:45 The Assistant Chief Executive and Chief Finance Officer has nothing specific to report for this quarter but it should be noted that all the managers have included pages within their valuation reports which provide details on their voting at company AGMs, engagement with companies and their involvement with other socially responsible initiatives.
The Committee is RECOMMENDED to note the report.
Pre-Meeting BriefingThere will be a pre-meeting briefing at County Hall on Thursday 22 May 2008 at 2.00 pm for the Chairman, Deputy Chairman and Opposition Group Spokesman. |