Archived decisions

Agenda item: 6

HAMPSHIRE COUNTY COUNCIL

Decision Report


	Decision Maker:			Pension Fund Panel
	Date of Decision:			20 November 2009
	Decision Title:			Pension Fund Scheme of Delegation
	Decision Reference:			1064
	Report From:			County Treasurer
Contact name:			Ian Howell
Tel:		01962 847540			Email:	[email protected]

1. Executive Summary

1.1. The purpose of this report is to consider a Scheme of Delegation for the management and administration of the Pension Fund.

2. Background

2.1. The County Council as administering authority for the Hampshire Pension Fund has delegated responsibility for managing the Fund's investments to the Pension Fund Panel through the Audit Committee. The terms of reference of the Pension Fund Panel are to administer the Pension Fund on behalf of the County Council as Superannuation Authority.

2.2. The County Council's Constitution delegates to the County Treasurer the authority to act as Treasurer to the Hampshire Pension Fund, in addition to the general responsibilities to provide financial advice to the County Council and for the proper administration of the Council's financial affairs including the Pension Fund.

2.3. In practice, the County Treasurer cannot take all decisions and the Constitution gives the County Treasurer the power to nominate or authorise any other officer within the County Treasurer's Department to act on his or her behalf to take any decision. A Scheme of Delegation is necessary to make sure there is a clear audit trail of decisions taken by officers and lines of accountability. Such a Scheme is being developed to cover all aspects of the County Treasurer's Department's activities. This report sets out the parts of the Scheme that cover the Pension Fund.

3. Scheme of Delegation

3.1. The purpose of a Scheme of Delegation is to set out the level at which decisions can be taken. It indicates the level at which decisions will normally be taken and that such decisions cannot be taken below that level. It does not imply, however, that decisions are taken in isolation and without consultation. Staff at all levels are expected to consult and take advice as appropriate. Line managers are responsible for monitoring of decision making to make sure that standards are met.

3.2. Many of the financial decisions required in connection with the Pension Fund are the responsibility of the external investment managers. These managers have been appointed on a basis that gives them full discretion on investment matters subject to the terms of their contracts and limits set out in statutory regulations. The exception is the alternative investments portfolio for which Bramdean have been appointed on an advisory basis only.

3.3. The key decisions on Pension Fund investment are taken by the Pension Fund Panel, with the advice of the County Treasurer. Although the Scheme of Delegation is intended to cover the powers and responsibilities of the officers, the roles of the Panel have been included in the Scheme of Delegation where this improves the clarity of the officers' responsibilities.

3.4. The Scheme of Delegation is attached as Appendix 1.

4. Recommendation

4.1. That the Scheme of Delegation for the Pension Fund be noted.

i:\ . . . . \ian\docs\penpanel 201109 delegation1.doc 16 November 2009

CORPORATE OR LEGAL INFORMATION:

Links to the Corporate Strategy


Hampshire safer and more secure for all:	yes/no
Corporate Business plan link number (if appropriate):
Maximising well-being:	yes/no
Corporate Business plan link number (if appropriate):
Enhancing our quality of place:	yes/no
Corporate Business plan link number (if appropriate):
OR
This proposal does not link to the Corporate Strategy but, nevertheless, requires a decision because actions are required to make sure that a Scheme of Delegation for the Pension Fund is in place.

Other Significant Links


Links to previous Member decisions:
Title	Reference	Date


Direct links to specific legislation or Government Directives
Title		Date


Section 100 D - Local Government Act 1972 - background documents

The following documents discuss facts or matters on which this report, or an important part of it, is based and have been relied upon to a material extent in the preparation of this report. (NB: the list excludes published works and any documents which disclose exempt or confidential information as defined in the Act.)

Document	Location
None

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.

County Treasurer's Department - Scheme of Delegation

Hampshire Pension Fund - Investment Matters

Area	Decision maker	Authorised officer
Appointment of investment managers	Pension Fund Panel	N/a
Terms of the appointment of investment managers, including performance targets	Pension Fund Panel	N/a
Termination of the contracts of investment managers and advisers	Pension Fund Panel	N/a
Buy or sell `traditional' investments, such as equities, bonds and property	External investment managers	N/a
Buy or sell `alternative' investments, such as private equity funds, hedge funds, etc	Pension Fund Panel, including a sub-group of Panel members	N/a
Urgent sales of alternative investments to protect Fund value	County Treasurer	County Treasurer
Voting as shareholders and exercising other rights attached to investments	External investment managers	N/a
Management of the Pension Fund's cash balance held by the County Council	County Treasurer, within parameters agreed by the Pension Fund Panel	Details set out in the section of the Scheme of Delegation on Treasury Management
Engagement of specialist advisers on ad hoc Pension Fund investment matters, including tax advice, legal advice etc	County Treasurer, where appropriate, in accordance with Contract Standing Orders	County Treasurer
Appointment of the Custodian of the Pension Fund's assets	Pension Fund Panel	N/a
Appointment of the Pension Fund's independent adviser	Pension Fund Panel	N/a
Appointment of the Actuary	Pension Fund Panel	N/a
Strategic asset allocation, ie the longer term strategic allocation of the Fund between equities, bonds, property etc	Pension Fund Panel	N/a
Tactical asset allocation, ie in the shorter term	Currently, tactical asset allocation adjustments are not made.	The County Treasurer monitors the actual asset allocation against +/- tolerance limits
Assumptions to be used in the three-yearly actuarial valuation of the Pension Fund, eg on future inflation, pay awards, longevity, etc	County Treasurer, with the advice and recommendations of the Actuary	County Treasurer
Outcome of the three-yearly actuarial valuation - employers' contribution rates for the following three years	Fund Actuary	N/a
Stock lending - whether the Custodian should be permitted to lend the Pension Fund's securities	Pension Fund Panel	N/a
Urgent actions to protect Fund value, for example suspending stock lending	County Treasurer	County Treasurer
Write-off of rents owed by tenants of the Pension Fund's properties	Pension Fund Panel / County Treasurer in accordance with the limits in the Departmental Scheme of Delegation for Write-offs	County Treasurer

Hampshire Pension Fund - Pensions Administration

Area	Transaction type	Authorised officer
Transfers	Club transfer	Up to £100,000 - Team Manager Over £100,000 - Senior Team Manager
	Non-club transfer	Up to £50,000 - Team Manager £50,000 to £100,000 - Senior Team Manager Over £100,000 - Assistant Head of Pensions
Retirements	Lump sum	Up to £50,000 - Team Manager Over £50,000 - Senior Team Manager
	Monthly pension	Pensions Payroll Revenue Technician
	Advance net pay	Pensions Payroll Revenue Technician

Payroll deductions	Monthly income tax	Calculation - Pensions Payroll Team Manager Payment - Assistant County Treasurer
	Other deductions (Give As You Earn, HSA, life assurance)	Pensions Payroll Team Manager
HMRC	Quarterly tax returns	Senior Team Manager
Miscellaneous	For example, refund of contributions to employer	Senior Team Manager

Notes to the Scheme of Delegation for Pensions Administration:

1. This document supplements the departmental authorisation levels which should always be followed in addition to this.

2. Delegation is the lowest level at which authorisation is to be provided - in absence of that officer refer upwards to line manager first or other authorised officer in line manager's absence.

3. No officer is to authorise own personal claims, which should be passed to immediate superior.

4. No officer is to complete both parts of check and authorisation process - separation of duties is essential, eg on invoices, claims, etc.

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