The Chairman welcomed everyone to the meeting.

There were no declarations of interest

There were no requests to submit a petition or to make an address.

To approve the minutes of the meeting held on 15 July 2016 (LPB5) and to receive information arising from them.

The minutes of the meeting held on 15 July 2016 were approved and signed as a correct record, subject to the correction to the Chairman’s name in minute 21/16.

The Committee is RECOMMENDED that the public be excluded for the duration of items 7 and 8 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 OF THE BOARD AND OFFICERS ENTITLED TO RECEIVE THEM.

RESOLVED:             that the public be excluded for the duration of items 7 and 8 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.

PUBLIC SUMMARY OF PROCEEDINGS FOLLOWING THE WITHDRAWAL OF THE PRESS AND PUBLIC

To approve the exempt part of the Local Pension Board Minutes of the meeting held on 15 July 2016 (PF7).

The public was excluded during this item because its discussion in public was 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 disclosure could distort the proper process of each of the 10 Committees negotiating the final proposal. It is intended that once all Committees have agreed the final proposal for submission to Government, the final proposal will become a public document. Disclosure would also prejudice the commercial position of the individual pension funds, and future negotiations with Fund Managers.

The public was excluded during this item because its discussion in public was 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 disclosure could distort the proper process of each of the 10 Committees negotiating the final proposal. It is intended that once all Committees have agreed the final proposal for submission to Government, the final proposal will become a public document. Disclosure would also prejudice the commercial position of the individual pension funds, and future negotiations with Fund Managers.

The exempt part of the Local Pension Board Minutes of the meeting held on 15 July 2016 were approved and signed as a correct record subject to a grammatical correction to minute 26/16.

At the request of a member of the Board, the attached report (LPB8) covers the current arrangements for the Funds AVC scheme. The Board is invited to consider the arrangements and make recommendations to the Committee where appropriate.

The public should be excluded during this item because its discussion in public was 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.

ITEMS FOLLOWING THE RE-ADMISSION OF THE PRESS AND PUBLIC

The public was excluded during this item because its discussion in public would have been 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.

At the request of a member of the Board, the Board had before them a report (LPB8) on the current arrangements for the Funds AVC scheme.

The Board considered the arrangements and made recommendations to the Committee in relation to future reviews.

ITEMS FOLLOWING THE RE-ADMISSION OF THE PRESS AND PUBLIC

This report (LPB9) follows a request made by the Board at its last meeting for further information on the approach to employer management, including the approach to employer engagement, the identification of employer related risks, and the support and training provided to employers.

The Board is invited to note the latest position on employer management and offer any comments.  As the full performance model is developed following completion of the 2016 Valuation, further reports will be brought to the Board for their information and consideration.

The Board considered a report that followed a request made by the Board at its last meeting for further information on the approach to employer management, including the approach to employer engagement, the identification of employer related risks, and the support and training provided to employers.

Sean Collins presented the report highlighting that it was an issue fully recognised by the Committee and the report explained the actions being taken to address concerns. He referred to employer reports and statistics on delayed returns. He recognised that due to various issues the target for sending out annual benefit statements had been missed. Currently they were not able to say how many of those who had not received benefit statements this year had not received them in previous years. Processes were being reviewed and improved.

During discussion the Local Pension Board:

1.    Expressed concern that members were not receiving their annual benefits statement and that the extent of the problem was not known.

2.    Discussed the reasons and context for the problem and highlighted the importance of alerting affected members at the earliest opportunity. It was suggested that if possible members who had not received statements due to a query with their information  should receive a statement with an alert that the information needs to be checked.

3.    It was also suggested that as an alternative a letter be sent to all those affected.

4.    In discussion of the problems faced by employers it was suggested that a common data set across Pension Funds would be helpful.

5.    Going forward it was suggested that the key quarterly performance report should come to the Local Pension Board.

Sean Collins undertook to take forward the suggestions made to see which were most practicable.

The Local Pension Board AGREED to receive an update to the January Meeting.

The attached report (LPB10) was initially presented to the Pension Fund Committee at its meeting on 2 September 2016 and covers the key performance issues associated with the Pensions Administration Service. The Board are invited to consider the full report, but in particular to review the details provided of the formal complaints received during the year, and to identify any trends or issues needed further action.

The Local Pension Board had before them a report initially presented to the Pension Fund Committee at its meeting on 2 September 2016. It covered the key performance issues associated with the Pensions Administration Service.

The Board reviewed the details provided of the formal complaints received during the year and noted the report.

Attached at LPB11 is the latest risk register as presented to the Pension Fund Committee on 2 September 2016. The Board is invited to review the report and to offers any comments to the Committee.

The Local Pension Board considered the latest risk register as presented to the Pension Fund Committee on 2 September 2016. Sean Collins updated Board Members on the latest position in relation to the planned move from Unipart House (Risk 10). He also provided an update on the risk relating to processing pension payments.  The software providers had been able to provide a patch.

A Member raised the risk posed by the reported expected increase in the national deficit which was expected to double in one year. It would focus attention on the sustainability of the LGPS.

The report and risk register was noted.

Attached at LPB12 is a short report on the work of the Board during its first year. The Board is invited to approve the report for publication.

The Local Pension Board noted a short report on the work of the Board during its first year. The Board approved the report for publication.

Responding to a query relating to the appointment process for the scheme member representative vacancy on the Local Pension Board Sean Collins invited Stephen Davis and Alistair Bastin as current scheme member representatives to be the trade unions representatives on any interview process.

This is the standard item to be included at the end of the Agenda to consider what issues/items the Board wishes to report back to scheme members.

It was AGREED that the following itemsbe reported back to Scheme Members and included in the Members report back to the Pension Fund Committee:

·                     The issues around the annual benefits statements

·                     The recommendations arising from the Additional Voluntary Contributions (AVC) Scheme report