Agenda and decisions

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Contact: Deborah Miller  Tel: 07920 084239; E-Mail:  deborah.miller@oxfordshire.gov.uk

Items
No. Item

1.

Apologies for Absence and Temporary Appointments

Decision:

There were none.

2.

Declarations of Interest

Decision:

There were none.

3.

Minutes pdf icon PDF 421 KB

To approve the minutes of the meeting held on 7 June 2019 (PF3) and to receive information arising from them.

Decision:

The Minutes of the Meeting held on 7 June 2109 were approved and signed as an accurate record of the Meeting.

 

Mr Collins confirmed that the Climate Change Workshop would be held on 8 November 2019.

4.

Petitions and Public Address

Decision:

There were none.

5.

Minutes of the Local Pension Board

10:05

 

A copy of the unconfirmed Minutes of the Local Pension Board will be circulated separately for information.

 

Decision:

Noted.

6.

Report of the Local Pension Board pdf icon PDF 198 KB

10:10

 

This report will invite the Committee to respond to the key issues raised by the Pension Board at their most recent meeting.

 

The Committee is RECOMMENDED to notes the comments of the Board and:

 

(a)                Give further consideration to the option of investing in the passive low carbon portfolio, and the value for money of active management when is considers the fundamental asset allocation report in March 2020; and

 

(b)                Note the support for mandatory training for Committee Members alongside the introduction of named substitutes in its further consideration of the issue elsewhere on this agenda.

Decision:

Recommendations agreed.

7.

Improvement Plan pdf icon PDF 229 KB

10:20

 

This report updates the Committee on progress against the objectives and milestones set out in the Improvement Plan.

 

The Committee is RECOMMENDED to note the latest position with regard to the implementation of the Improvement Plan.

Decision:

Recommendations agreed, subject to the following additional recommendation:

 

(b)     give a formal vote of thanks to Managers and Staff for their performance and excellent results.

8.

Review of the Annual Business Plan 2019-20 pdf icon PDF 225 KB

10:40

 

This report reviews the progress against the key objectives set in the business plan for the Pension Fund for the current financial year.

 

The Committee is RECOMMENDED to note the progress against the key service priorities included within the 2019/20 Business Plan.

 

Additional documents:

Decision:

Recommendations agreed.

9.

Risk Register pdf icon PDF 201 KB

10:50

 

This report updates the Committee on the Fund’s Risk Register, updating the position on risks reported to the last meeting and adding in new risks identified in the intervening period.

 

The Committee is RECOMMENDED to note the changes to the risk register and offer any further comments

Additional documents:

Decision:

Recommendations agreed.

10.

Administration Report pdf icon PDF 214 KB

11:00

 

This report updates the Committee on those administration issues not covered under the Improvement Plan.

 

The Committee is RECOMMENDED to note the report.

 

Additional documents:

Decision:

Recommendations agreed.

11.

2019 Valuation pdf icon PDF 220 KB

11:10

 

This report updates the Committee on the work to date on the 2019 Valuation and the update of the Funding Strategy Statement.

 

The Committee is RECOMMENDED to note the latest position with regard to the 2019 Valuation and the key changes planned for the Funding Strategy Statement.

Decision:

Recommendations Agreed.

12.

Annual Reports and Accounts 2018/19 pdf icon PDF 2 MB

11:25

 

The Committee are invited to note the Draft Annual Report and Accounts for 2018/19 and offer any feedback.

 

Decision:

Recommendations agreed.

 

The Committee congratulated the fund managers for their performance in such a difficult year.

13.

Budget Outturn 2018/19 pdf icon PDF 228 KB

11:30

 

This report sets out the outturn position against the Committee’s agreed budget for 2018/19, including explanations for any material variations.

 

The Committee is RECOMMENDED to receive the report and note the out-turn position.

 

Decision:

Recommendations agreed.

14.

Constitution of the Pension Fund Committee pdf icon PDF 217 KB

11:35

 

This report provides further information on the options for changing the constitution of the Pension Fund Committee to ensure all members have the relevant skills and knowledge to undertake the responsibilities of the role.

 

The Committee is RECOMMENDED to note the content of the report and:

 

(a)         Ask Officers to draw up a Training Policy consistent with the proposals contained in the report and summarised in paragraph 18 above;

(b)         Agree to amend their Governance Policy to mandate all Members of the Committee to complete training in line with the Training Policy;

(c)         Determine their approach to substitutions, being either:

i.     No substitutions allowed or

ii.    Only named substitutes allowed where they have completed training in line with the Training Policy; and

(d)         Recommend Council via the Audit and Governance Committee to make the appropriate changes to the Terms of Reference and Constitution to formalise the new governance arrangements.

 

Decision:

 

Agreed.

 

Agreed.

 

(c)(i) Agreed by 6 votes to 4.

 

Agreed.

 

(d)     ask Officers in consultation with the Chairman, Deputy Chairman and spokesperson to amend their Governance Policy/Terms of Ref  to ensure that the independence and impartiality of the Pension Fund Committee Members is assured.

 

 

15.

Overview of Past and Current Investment Position pdf icon PDF 552 KB

11:50

 

The Independent Financial Adviser will review the investment activity during the past quarter, present a summary of the Fund’s position as at 30 June 2019, and highlight any key performance issues, with reference to Tables and Graphs.  He will also report on the annual performance report from PIRC which compares the Funds performance to that of its peers.   

 

Additional documents:

Decision:

Received.

 

16.

EXEMPT ITEMS

The Committee is RECOMMENDED that the public be excluded for the duration of items 17,18,19, 20 and 21 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 18 and 20, there are no reports circulated with the Agenda. Any exempt information will be reported orally.

Decision:

Agreed.

17.

Overview and Outlook for Investments Markets pdf icon PDF 469 KB

12:00

 

The attached report of the Independent Financial Adviser (PF17) 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, tables and graphs, 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.

Decision:

Received.

18.

Legal & General

12:10

 

(1)          The Independent Financial Adviser will report orally on the performance and strategy of Legal & General drawing on the tables at Agenda Items 14 and 17.

 

(2)          The representatives (Chris Lyons and Tom Carr TBC) of the Fund Manager will report and review the investments within their part of the Fund. 

 

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.

 

Decision:

Noted.

19.

Report on the Main Issues arising from the Reports of the Fund Managers not represented at this meeting

12:50

 

The Independent Financial Adviser will report on the officer meeting with Wellington and UBS, and the latest position on investments with Brunel.

 

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.

Additional documents:

Decision:

Noted.

20.

Summary by the Independent Financial Adviser

12:55

 

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. 

Decision:

No further summary needed.

21.

Annual Review of the AVC Provision

13:00

 

The Local Government Pension Scheme Regulations require the Administering Authority to appoint an Additional Voluntary Contributions (AVC) provider, to fulfil the statutory requirement of section 12 of the Social Security Act 1986.  The authority must provide facilities whereby members may elect to pay additional contributions, within Her Majesty’s Revenue and Customs limits, to provide additional benefits at retirement or in the event of death in service.  These additional contributions do not form part of the Oxfordshire County Council Pension Fund and do not require an employer’s contribution.

 

The Council appointed The Prudential Assurance Company Limited (Prudential) in 1998 to provide its AVC scheme. The Administering Authority is responsible for determining and periodically reviewing the performance of the range of fund options from which the members can select.  A review of Oxfordshire County Council Pension Fund’s AVC provider is conducted annually and this report details the findings of the review undertaken in 2019. In 2018 a full review of the Fund’s AVC arrangements was undertaken by Aon Hewitt.

 

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. 

 

The Committee is RECOMMENDED to note the report and to confirm the continued use of Prudential as the Council’s AVC provider.

 

Decision:

Noted.

22.

Corporate Governance and Socially Responsible Investment

13:10

 

This item will provide the opportunity to raise any issues concerning Corporate Governance and Socially Responsible Investment which need to be brought to the attention of the Committee. 

 

Decision:

No business for this Meeting.