Agenda item

At its 9 March 2018 meeting, the Pension Fund Committee approved the Annual Business Plan for 2018-19. The Board is invited to review the latest Plan and to offer any views back to the Committee (LPB8).

At its 9 March 2018 meeting, the Pension Fund Committee had approved the Annual Business Plan for 2018/19. The Board was invited to review the latest Plan and to offer any views back to the Committee (LPB8).

Mr Collins introduced the report.

Cllr Bob Johnston informed the Board that the Council had agreed, by 59 votes to 0 (with 1 abstention) to call upon the Pension Fund Committee to incorporate the latest and best advice available on ESG matters when reviewing and drawing up the next three -  yearly Investment Strategy Statement (ISS), together with the other policies. Mr Collins reported that the Policies would be reviewed at the next Pension Fund Committee on 8 June 2017, with the full three - yearly review taking place in 2020.

Sally Fox confirmed that there was adequate staffing in the Team and sufficient money in the budget to implement iconnect.

When asked, Sean Collins explained that some of the Fund Manager fees would be offset during the year and there would be new costs as a consequence of the transition to Brunel Pension Partnership (BPP). Furthermore, it would be some years after transition before net savings would occur. The budget for BPP costs had been based on recent estimates which included transition, staffing, custodian and administration costs, together with the costs of having a company. He added that a full report on BPP had been considered at the December 2017 Committee and details of the BPP budget had been included on its website. The agreed Pricing Policy explained the costings over the ten funds which comprised BPP. Oxfordshire’s share was £650k which included staffing, offices, consultancy and transition costs of assets.

In response to a question asking how much was spent on training, engagement and communication, Mr Collins stated that it had already been included, with much of it in conjunction with other funds, or nationally, then tailored for Oxfordshire. He added that a significant budgetary cost was for the communication manager’s post in the Pensions Administration Team and her work included a responsibility for the development of the website and communication with the Local Government Association.  The draft Communication Plan would also be included in the June Pension Fund Committee papers.

In relation to the ISS the Board discussed a set of draft consultation questions which had been produced by Scheme representative, Alistair Bastin, which he proposed could be sent to all scheme members in order to glean their views on particular issues, included in the ISS.

After a full discussion, the Chairman thanked Alistair Bastin for putting forward the consultation questions. In summary, the general feel of the Board was that it was an excellent concept, that information gathering surveys were very much a positive exercise, but the form of the actual questions put forward at this meeting needed to be viewed as an early preparation for consultation on the next ISS in 2020. It thus required more thought and expert opinion.

The Board therefore AGREED to inform the Pension Fund Committee that the Board supports a consultation with Fund members on the next ISS and would wish to provide its input into a planned consultation exercise, working with fund managers and specialist consultation officers from the County Council.