Agenda and minutes

Minute of Meeting held on 11 December 2014 to be noted and signed by the Chairman. (Copy attached).

There had been circulated copies of the Minute of the Meeting of 11 December 2014. With reference to the sedurunt of the Minute of 11 December, to delete Chief Financial Officer and to amend Mr N Wood to Ms N Wood.

DECISION:

NOTED for signature by the Chairman, subject to the above amendments. 

Minute of Meeting held on 29 January 2015 to be noted and signed by the Chairman. (Copy attached).

There had been circulated copies of the Minute of the Meeting of 29 January 2015. With reference to the sedurunt of the Minute of 29 January, to delete N Wood, to add HR Services Manager and Mr P Smith.

DECISION:

NOTED for signature by the Chairman, subject to the above amendments.

Consider report by Chief Financial Officer. (Copy attached).

There had been circulated copies of a report by Chief Financial Officer providing the Pension Fund Committee with an opportunity to review the Risks previously categorised as “Red” under the Council’s approach to managing risk, and updating members on progress made in mitigating the effect of these risks on the pension fund.  Identifying and managing risk was a corner stone of effective management and was required under CIPFA guidance “Delivering Governance in Local Government Framework 2007”.  It was further reflected and enhanced in the “Local Government Pension Scheme” published by CIPFA.  Appendix 1 to the report, detailed the progress of the additional control measures on the risk identified as “Red”. Appendix 2 to the report, detailed a new risk identified around the impact of wider legislative pension changes and the introduction of pension liberation initiatives which could lead to members drawing large elements from their pension fund early.   The Committee discussed the new risk and Mrs Mirley clarified that members electing to transfer funds were required to receive professional advice; they were also obliged to sign a declaration confirming that they had sought advice.  There was no stipulation as to whether the advice had to be from an independent or restricted advisor, but had to be a Financial Conduct (FCA) regulated advisor.  The risk had been provisionally scored but it was agreed to amend the Risk scoring to “Likelihood 4; Impact 2; Risk Score 6”.   The Committee also considered that regular communication to members should be circulated, highlighting the benefits of the Local Government Pension Scheme (LGPS).  This would be included in the Business Plan to be considered at the June or September meeting of the Pension Fund Committee.

DECISION

AGREED:-

(a)       To A full risk review being undertaken in June 2015;

(b)       To the inclusion of the new risk contained in Appendix 2 of the report;

(c)       To amend the scoring of the risk in Appendix 2 of the report, to “Likelihood 4; Impact 2; Risk Score 6”; and

(d)       To consider the communication strategy, which will form part of the Pension Fund Business Plan, at the June or September meeting of the Pension Fund Committee.

Consider report by Chief Officer Human Resources. (Copy attached).

There had been circulated copies of a report by Chief Officer Human Resources reviewing the scale of charges levied by the Pension Fund in relation to Pension Sharing orders and the implementation of an annual review mechanism in line with the Pension Increase percentage.  The scale of charges had not been reviewed since 2007 and had seen these charges be applied at a reduced rate when compared to other Scottish Pension Funds.  Members discussed the report, Mr Angus, HR Shared Services Manager, explained the basis for Pension Sharing Orders and the additional amount of work required within the Pensions Administration Team. The increase in fees would bring the Scottish Borders Pension Fund in line with other Scottish Pension Funds. The scale of charges would be reviewed on an annual basis, in the event that there was no Pension Increase the scale of charges would remain as per the previous financial year.  The Committee agreed that the scale of charges should be increased; however, the increase should not be applied retrospectively to the 2007 rates and take effect from 5 March 2015.

       DECISION

AGREED:-

(a)       That the scale of charges should be increased in line with Pension Increase from 5 March 2015; and

(b)       That the scale of charges be reviewed on an annual basis with the increase based on the Pension Increase percentage, as per the Annual Revaluation Order.

Consider verbal report from HR Shared Services Manager.

The HR Shared Services Manager, Mr Angus, was in attendance and updated the Committee on LGPS since December.  Practitioner training had taken place and the software had been delivered and tested in January 2015.  Overview sessions had been delivered to SBC Payroll and HR staff; sessions would be held in March and April for scheduled bodies, Trade Unions and Employee Council.  Details of the new scheme had been issued to all members and once the scheme booklet had been finalised this would be distributed to all Pension Fund scheme members.  Further staff training would be provided and discussion was currently underway with other Scottish Funds, regarding sharing of forms.

DECISION

NOTED.

Before proceeding with the private business, the following motion should be approved:-

“That und Section 50A(4) of the Local Government (Scotland) Act 1973 the public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined in paragraph 8 of Part 1 of Schedule 7A to the aforementioned Act.”

      DECISION

          AGREED under Section 50A(4) of the Local Government (Scotland) Act 1973 to exclude the public from the meeting during consideration of the business contained in the following items on the ground that they involved the likely disclosure of exempt information as defined in paragraphs 6 and 8 of the part 1 of Schedule 7A to the Act.

SUMMARY OF PRIVATE BUSINESS

Private Section of Minute of Meeting held on 11 December 2014 to be noted and signed by the Chairman. (Copy attached).

1.         The Committee noted the Private Minute of the meeting of 11 December 2014.

Consider report by Mr Kenneth Ettles. AON Hewitt. (Copy attached).

1.         The Committee noted a report by AON Hewitt Consulting.

1.         The Committee noted the presentation by M&G Investments.

1.         The Committee noted the presentation by LGT

1.         The Committee noted the presentation by UBS

1.         The Committee noted the report.

The meeting concluded at 2.10 pm