The Committee met on 24 May. The Chair of the Committee, Councillor Dickie Dawes was not able to attend the meeting due to illness and the meeting was chaired by the Deputy Chair, Councillor Richard Farrell.

The Council, at its last meeting on 2 April 2002, asked the Pension Fund Committee to advise on an application made by the Oxford City Branch for Unison representation on the Pension Fund Committee.

The Committee was told of this request at a special meeting on 8 April and asked officers to provide a written report to the 24 May meeting on the options available to the Committee in the light of best practice adopted by other councils, and guidance on who was entitled to serve on the Committee.

The report informed the Committee that the Council’s former Finance & General Purposes Sub-Committee had agreed in March 1986 to invite a representative of the pension fund beneficiaries to attend and speak at meetings of what was then the Investment Committee. At that stage it had been agreed that the union representing the majority of current employees and pensioners should be asked to nominate a representative. It was, however, stressed that the union was being asked for assistance in identifying someone to represent their members, not to represent the unions. Unison (Nalgo) was invited as the largest union and the Oxfordshire County Branch of Unison was chosen to nominate the representative because it was the largest branch. It was, however, always clear that the person nominated was not representing Unison, although nominated by them.

The Pension Fund Committee has noted that there have never been any terms and conditions attached to this appointment, although the title ‘Beneficiaries Observer’ gives some clue to the intention of the role. Nor has there ever been any provision for reviewing the appointment once made. In addition, the Beneficiaries Observer has no legal status. He/she cannot be a member of the Pension Fund Committee and cannot vote or take part in the decision-making.

Having looked at details of practice in relation to other county pension funds, the Committee has concluded that Oxfordshire is not out of line with the practice of other such schemes.

The Committee has also received advice from the Solicitor to the Council that it would not be appropriate from a legal point of view to have Unison representation on the Committee.

In the light of advice received, the Committee has concluded that there should be no change to the current arrangements and that the present policy of inviting an observer to attend Committee meetings in order to represent all beneficiaries, including non-union members and pensioners should be confirmed. The Committee does however believe that the terms and conditions of the appointment should be formalised, in consultation with Unison, and if the Council agrees this approach, the Committee will consider this aspect further at a future meeting.

Accordingly, in response to the request from the Oxford City Branch of Unison, the Committee RECOMMEND the Council to confirm the present policy of inviting an observer to attend meetings of the Pension Fund Committee in order to represent all beneficiaries and pensioners, and to note that the Committee will be taking steps to formalise the terms and conditions of this appointment, in consultation with Unison.