Archived decisions
AT A MEETING of the PENSION FUND PANEL held at The Castle, Winchester on Friday 26 May 2006.
PRESENT:
p Councillor T.K. Thornber (Chairman)
p Councillor M.F. Cartwright (Vice-Chairman)
Councillors:
p F.G. Allgood a M.N. Kemp-Gee
p B.D. Dash p A.R. Ludlow
a A.G. Dowden p J.J.W. Maxwell
p P.R.C. Hutcheson
Co-opted members:
a Councillor I.R. Carr (Test Valley Borough Council)
p Mr E.W. Hughes (pensioners' representative)
p Mr D. Offord (contributors' representative)
Independent adviser:
p Mr H. Cole.
81 APOLOGIES FOR ABSENCE
Apologies for absence were received from Councillors A.G. Dowden, who was attending an Executive Member for Adult Social Care meeting, M.N Kemp-Gee and I.R. Carr.
82 DECLARATIONS OF INTEREST
Members were mindful that, where they believed they had a personal or prejudicial interest in any matter to be considered at the meeting, they should, normally at the time of the debate, declare their interest and, having regard to the circumstances described in paragraphs 9, 10, 11 and 12 of the County Council's Code of Conduct, consider whether to leave the meeting whilst the matter was discussed.
Councillor M.F. Cartwright declared a pecuniary interest in connection with the report on Tenders for the Provision of Global Custody Services (Minute 93 below refers) and left the room during the discussion of this item.
Councillor T.K. Thornber declared a non-pecuniary interest in connection with the report on the Review of Investment Management Arrangements (Minute 94 below refers).
83 CHAIRMAN'S COMMUNICATIONS
No Chairman's communications were received.
84 DEPUTATIONS
No deputations were received.
85 MINUTES
The Minutes of the meeting held on 12 May 2006 were confirmed as a correct record and signed by the Chairman.
86 LOCAL GOVERNMENT PENSION SCHEME (LGPS): CHANGES IN APRIL 2006
The Panel considered a report of the County Treasurer (Item 6 in the Minute Book) on changes to the Local Government Pension Scheme (LGPS). These included confirmation that the 85 year rule had been removed, with effect from 1 October 2005. The rule allowed certain employees to retire between the ages of 60 and 65 with unreduced pensions. The County Treasurer also reported on changes to comply with the new tax regime from 6 April 2006 and to take advantage of greater flexibilities allowed by the regime. Employers in the Fund would be advised shortly of the action required on a number of these flexibilities.
Removal of the 85 year rule and some of the other changes would make the LGPS more affordable for employers. The Government had indicated that 50% of these savings could be recycled into a new-look LGPS, due to start in 2008, and had proposed negotiations with employers and unions in the near future.
Mr D. Offord, the contributors' representative commented that there was ongoing discontent amongst staff concerning the removal of the 85 year rule, particularly amongst those aged 35 to 50.
RESOLVED:
(i) That the cost-saving changes to the LGPS benefits package be noted.
(ii) That a further report be made to the next meeting of the Employment in Hampshire County Council Committee.
87 INVESTMENTS IN COMPANIES ASSOCIATED WITH THE ARMS TRADE
The Panel considered a report of the County Treasurer (Item 7 in the Minute Book) on the Fund's policy on investments in companies associated with the arms trade, following recent publicity about a survey of pension funds undertaken by the Campaign Against the Arms Trade. The Fund's policy was in line with the legal responsibility to achieve the best possible financial return consistent with an acceptable level of risk. Ethical issues could only be a secondary consideration. The Fund's managers were asked to engage with companies on matters of socially responsible investment as set out in Statement of Investment Principles.
RESOLVED:
That the Fund's policy with regard to `ethical' investment, including investing in companies that also manufacture arms, remain unchanged.
88 GOVERNANCE AND COMMUNICATIONS POLICY STATEMENTS
The Panel considered a report of the County Treasurer (Item 8 in the Minute Book) on new Governance and Communications Policy Statements. These statements were required by 31 March 2006 under recent Government regulations. The Governance Policy Statement had been incorporated in the Fund's Statement of Investment Principles. The Communications Policy Statement had been prepared as a separate document for use with a wider audience. Both had been sent to the Government, as required.
RESOLVED:
(i) That the Governance Policy Statement as set out in the Statement of Investment Principles be endorsed.
(ii) That the Communications Policy Statement be amended to include a reference to the use of the Fund's Annual General Meeting to communicate with employers.
89 UPDATE FROM THE INDEPENDENT ADVISER
The Panel received and noted an oral report by the Panel's independent adviser, Mr Harvey Cole, on a recent meeting of independent advisers to Local Government Pension Funds. Fifty out of 101 Funds have independent advisers and 39 had attended one or more of the three meetings held to date. The meetings had proven to be interesting and worthwhile with sessions discussing matters of common interest followed by presentations by invited fund managers.
90 EXCLUSION OF PRESS AND PUBLIC
RESOLVED:
That the public be excluded from the meeting during the following items of business, as it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the public were present during that item there would be disclosure to them of exempt information within Paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972, and further that in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, for the reasons set out in the reports.
91 PROPERTY (EXEMPT)
The Panel considered an exempt report of the County Treasurer (Item 11 in the Minute Book) on the Fund's property portfolio and other property issues that had arisen over the last six months. The Panel also received a presentation on the portfolio from the Fund's property manager Cordea Savills.
[SUMMARY OF A MINUTE WHICH CONTAINS EXEMPT INFORMATION]
92 BRAMDEAN ASSET MANAGEMENT'S FUTURE ROLE (EXEMPT)
The Panel considered an exempt report of the County Treasurer (Item 12 in the Minute Book) on the future role of Bramdean Asset Management.
[SUMMARY OF A MINUTE WHICH CONTAINS EXEMPT INFORMATION]
93 TENDERS FOR THE PROVISION OF GLOBAL CUSTODY SERVICES (EXEMPT)
The Panel considered an exempt report of the County Treasurer (Item 13 in the Minute Book) concerning tenders for the provision of global custody services for the Fund.
[SUMMARY OF A MINUTE WHICH CONTAINS EXEMPT INFORMATION]
94 REVIEW OF INVESTMENT MANAGEMENT ARRANGEMENTS - UPDATE (EXEMPT)
The Panel considered an exempt report of the County Treasurer (Item 14 in the Minute Book) giving an update on progress on the review of investment management arrangements.
[SUMMARY OF A MINUTE WHICH CONTAINS EXEMPT INFORMATION]
95 SGAM'S UNCONSTRAINED MANAGEMENT OF EQUITIES (EXEMPT)
The Panel considered an exempt report of the County Treasurer (Item 15 in the Minute Book) concerning SGAM's unconstrained management of equities.
[SUMMARY OF A MINUTE WHICH CONTAINS EXEMPT INFORMATION]