Agenda item
Information Update
Consider briefing note by Chief Financial Officer. (Copy attached).
Minutes:
Tri-Annual Valuation
The next tri-annual valuation would take place on 31 March 2017. The final outcome would be presented to the December meeting.
Government Actuary Department (GAD) Section 13 Dry Run
The Government Actuary Department (GAD) would undertake a review following the 2017 valuation. GAD were discussing with Actuaries to ensure consistent use of terms and presentation of findings. They had also requested additional information which would require a change to the Pension Administration system. There was no anticipated changes to the information or the way the valuation was carried out.
Currency Hedge
With reference to paragraph 2 of the Minute of 15 September 2016, the currency hedge had been reduced during November and fully removed on 14 December 2016.
New Managers
With reference to paragraph 13 of the Private Minute of 13 December 2016, the appointment of Blackrock for Long Lease Property and Permira and Partners for Private Credit was noted. Blackrock had completed their review of the documents and the account was now active. Funds would be drawn down over a three to six month period with the initial drawdown anticipated in March. Permira and Partners had completed their final sign off for the documents submitted.
Training
Training events had all been well attended and all but one member had fully met their training requirements.
Co-habiting partners
A recent ruling at the Supreme Court removed the requirement for a member to nominate a co-habiting partner. The ruling could have possible consequences for wider public sector schemes. There would be little impact on Local Government Schemes as regulations changed on 1 April 2015. However, there might be a risk from cases prior to April 2015 being claimed. Mrs Robb advised that there were no known claims for the Scottish Borders Pension Fund. Mr O’Hara added that going forward; the Actuary would need to capture data on co-habiting partners for valuation purposes.
Enterprise Resource Planning (ERP) Implementation
ERP would continue to provide pensioners with the ability to sign up to view payslips online and make changes to bank details through a secure self-service portal.
Community Justice
The Community Justice Service (CJS) was being amalgamated into a new body Community Justice Scotland which would be established on 1 April 2017. Staff currently employed by CJS would be made redundant. The Scottish Government had agreed to meet all costs proposed with the severance of these staff.
Governance Review
KPMG had undertaking a review of Pension Governance. The findings of the review were presented to the Scheme Advisory Board on 23 February and were detailed in the report attached with the Agenda. Mrs Robb highlighted that with regard to the annual training plan, she proposed to arrange drop in training sessions. There was also the possibility of an annual public sector conference for Pension Boards which would mean another opportunity for training. The Scheme Advisory Board had also recommended that the diversity of members be reflected in the composition of the Board and that pensioners should be represented on Pension Boards. Other recommendations included the establishment of formal distribution of minutes between Pension Boards and their respective Scheme Advisory Boards. It was also noted that all Pension Board members be encouraged to attend other Pension and Scheme Advisory Board meetings wherever this was practicable. The Chairman thanked officers for the informative report.
DECISION
NOTED the information update.
Supporting documents: