Archived decisions

Agenda item: 5

HAMPSHIRE COUNTY COUNCIL

Decision Report

1. Executive Summary

1.1. The purpose of this paper is to confirm the co-opted membership of the Pension Fund Panel and to agree the arrangements for selecting the independent adviser to the Panel.

2. Contextual information

2.1. The Pension Fund Panel's membership includes:

· nine county councillors appointed by Hampshire County Council as the administering authority of the Pension Fund

· one co-opted representative of Portsmouth and Southampton City Councils

· one co-opted representative of the eleven district councils

· one co-opted representative of the Fund's pensioners

· one co-opted representative of the Fund's contributors (employees).

2.2. All 13 members of the Pension Fund Panel have full voting rights. In addition, there is an independent adviser to the Panel who does not have voting rights.

3. Representative of Portsmouth and Southampton City Councils

3.1. The representative of the two city councils alternates between the two city councils every two years. Councillor Donna Jones was nominated by Portsmouth City Council in 2008 and will continue as the representative until 30 September 2010 when Southampton City Council will be invited to nominate a representative.

3.2. The Panel considered in May 2008 whether to extend the representation on the Panel so that both city councils could have a representative each. The Panel were concerned that this would create further pressure from other employers for representation and that the size of the Panel would become unwieldy. The Panel decided to continue with the existing alternating arrangement.

4. Representative of the Hampshire district councils

4.1. The representative of the eleven district councils is nominated by the Hampshire and Isle of Wight Local Government Association (HIOW). Councillor Ian Carr of Test Valley Borough Council joined the Panel in 2005 following nomination by HIOW. In addition, HIOW nominated Councillor Peter Giddings also of Test Valley Borough Council as the deputy representative in 2007.

4.2. No time limit has been specified for the appointments of Councillors Carr and Giddings. The Panel may wish to consider whether it wishes to leave their appointments to the discretion of HIOW or whether HIOW should be asked to renew its nominations every four years, for example in July 2013.

4.3. Appointments to the Pension Fund Panel of county, city and district councillors are subject to them retaining their seats on their respective councils.

5. Other employers

5.1. The Panel considered in May 2008 whether to extend the representation on the Pension Fund Panel to other employers such as the admitted bodies (smaller voluntary bodies admitted to the Fund as employers) and the education sector (colleges, etc). The Panel decided that the relatively small size of these employers did not warrant increasing the number of representatives on the Panel, which would be in danger of becoming unwieldy. There are other means by which all employers in the Fund are kept informed, including newsletters, the annual report and the annual general meeting.

6. Pensioners' representative

6.1. Mr EW Hughes has served as the pensioners' representative on the Pension Fund Panel since 1994. His appointment is currently on an annual rolling basis, expiring each 31 March. The Panel may wish to continue that arrangement.

7. Employee representative

7.1. The trade unions have nominated Brian Wood to deputise for the employee representative Phillip Reynolds when he is unable to attend Panel meetings. Brian Wood is from East Hampshire District UNISON.

7.2. Phillip Reynolds was appointed in 2007 as the employee representative until 31 March 2010 having previously served as the deputy employee representative.

7.3. The Panel may wish to consider extending the appointments of both Phillip Reynolds and Brian Wood to cover the period until the next County Council elections, eg until 31 July 2013.

7.4. Brian Wood will attend one of the Panel's meetings in July 2009 as an observer to gain experience of the Panel's procedures.

7.5. The role of the employee representative covers `deferred' members (contributors who have left the employment of a Fund employer but have not yet drawn their pension) although, in practice, it is difficult to collate the views of such a widespread group of individuals.

8. Independent adviser

8.1. Harvey Cole has served as the Pension Fund Panel's independent adviser and sounding board in a non-voting capacity since 2002. His appointment was renewed from 1 January 2008 on the basis that it would be subject to review following the County Council elections in 2009.

8.2. The County Council agreed to make an annual payment to the independent adviser from 2008, bringing Hampshire into line with other local government pension schemes.

8.3. Mr Cole is willing to continue as the independent adviser but to comply with the County Council's contract standing orders, it will be necessary to seek tenders for the position. The position will be advertised and a job summary and person specification provided for those who express an interest, together with details of the Pension Fund's investment arrangements. The period of the appointment would run to 31 July 2013.

8.4. The shortlisting of applicants could be undertaken by the County Treasurer in conjunction with the Panel sub-group on investments (proposed in the following section), with the sub-group interviewing the shortlisted candidates and making the final selection decision.

8.5. In the meantime, it is suggested that Mr Cole be invited to continue in his role as the independent adviser on the existing terms until the new appointment can be made over the next few months.

9. Sub-group on alternative investments

9.1. In order to deal with urgent decisions on alternative investment proposals, the Pension Fund Panel agreed in 2006 to establish an informal sub-group of the Panel. This sub-group included Councillors Thornber, Cartwright, Dash and Kemp-Gee and Mr EW Hughes, together with Mr Cole as the Panel's independent adviser.

9.2. Although new investments in the alternative investments portfolio is currently suspended pending a review by the Panel later in July 2009, it would be helpful to have arrangements in place for a sub-group of members to take urgent decisions that arise between the six-monthly meetings of the full Panel and to provide a means for the County Treasurer to sound out members' views on matters that would normally be delegated to him. The sub-group could be renamed the sub-group on investments to allow it to take urgent action on any investment matters.

10. Recommendations

10.1. That the appointments of Councillors Ian Carr and Peter Giddings as representative and deputy representative on the Pension Fund Panel of the Hampshire district councils be extended until 31 July 2013, at which point the Hampshire and Isle of Wight Local Government Association be invited to consider renewing their nominations.

10.2. That the appointment of Mr EW Hughes as the pensioners' representative continue on an annual rolling basis, expiring each 31 March.

10.3. That the nomination by the trade unions of Brian Wood as the deputy employee representative be accepted and that be appointed until 31 July 2013.

10.4. That the appointments of Phillip Reynolds as the employee representative be extended until 31 July 2013.

10.5. That applications be invited for the position of independent adviser to the Pension Fund Panel.

10.6. That the Pension Fund Panel nominates members for an informal sub-group of the Pension Fund Panel on investments to take urgent decisions on investment matters affecting the Pension Fund.

i:\ . . . . \ian\docs\penpanel 080709report reps1.doc 01 July 2009

CORPORATE OR LEGAL INFORMATION:

Links to the Corporate Strategy

Other Significant Links

IMPACT ASSESSMENTS:

1. Equalities Impact Assessment:

1.1. Equality objectives are not considered to be adversely affected by the proposals in this report.

2. Impact on Crime and Disorder:

2.1. The proposals in this report are not considered to have any direct impact on the prevention of crime.

3. Climate Change:

a) How does what is being proposed impact on our carbon footprint / energy consumption?

No specific impact.

b) How does what is being proposed consider the need to adapt to climate change, and be resilient to its longer term impacts?

No specific impact.