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No. | Item |
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APOLOGIES To receive
any apologies for absence Minutes: Apologies were received from
Councillors Trevor Edwards,
Peredur Jenkins, H. Eifion Jones (Isle of Anglesey County Council) and Glyn Thomas |
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DECLARATION OF PERSONAL INTEREST To receive
any declaration of personal interest Minutes: None to note |
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URGENT ITEMS To note any
items which are urgent business in the opinion of the Chairman so that they may
be considered Minutes: None to note |
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The
Chairman shall propose that the minutes of the meeting of this committee held
on 19.1.2017 to be signed as a true record Minutes: The Chair signed the minutes of the meeting of this committee, held on 19 January, as a true record. |
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TREASURY MANAGEMENT STRATEGY STATEMENT AND ANNUAL INVESTMENT STRATEGY FOR 2017/18 To consider
the report of the Head of Finance Additional documents: Minutes: In accordance with Welsh Government's Statutory Guidance on Local
Government Investments, the
Council was required to prepare
an Annual Investment Strategy as part
of its treasury management role. As good practice,
it was considered that the Gwynedd Pension Fund (the "Fund"), should adopt Gwynedd Council's Treasury Management Strategy Statement (TMSS) for 2017/18, as revised for
the purpose of the Pensions Fund.
Gwynedd Council's TMSS for
2017/18 was approved by the
full Council on 2 March
2017. In addition, the Pensions Committee
was asked to request that the Council allow the surplus cash balances
of the Pensions Fund to be pooled
with the Authority's general cash flow
from 1 April onwards. It was explained that pooling the cash flow achieved better
rates of interest and reduced banking
costs. It was highlighted that these funds were
being invested with counterparties in accordance with
the TMSS in order to maximise returns. It was noted that
interest rates were currently very low; thus, other creative methods of investment were being considered.
It was also confirmed that the priority was to safeguard the Fund and protect
the money, rather than take
risks. It was proposed and seconded
to accept the recommendations. RESOLVED -
To approve the Treasury Management Strategy Statement and the Annual Investment Strategy for 2017/18, as adapted for the purpose of the Pensions Fund. -
To ask that the Pensions Committee request that the Council (although not a separate body) allow the surplus cash balances of the Pension Fund to continue to be pooled with the Council’s general cash flow
from 1 April 2017 onwards. It was noted,
for information, that the largest members of the fund (Anglesey,
Conwy and Gwynedd Councils,
the National Park and North Wales Police)
had been requested to pay the lump sum
element of their contributions (to fund the historical deficit) fully at the beginning of the three year period.
This would ensure better a return for those
employers than would be achieved from deposit
accounts in banks, and would
also create a more positive cash flow
for the Pensions Fund. |
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FUNDING STRATEGY STATEMENT 2017/18 - 2019/20 To consider
the Investment Managers Report Additional documents: Minutes: On 19 January 2017, the Committee was told that it
was a statutory requirement
to review and publish a Funding Strategy Statement by 31.3.2017. As part of this review,
the administrating authority
had to consult with all employers partaking in the scheme, with the actuary and fund consultant,
and any other
persons deemed relevant. On 20 January 2017, a letter was sent
to all employers taking part in the scheme,
the fund actuary and adviser, and
to representatives of Unison,
TGWU (Transport and General
Workers Union) and the GMB,
to consult on the agreed policies. The consultation period ended on 28.2.2017. It was reported that one
response had been received agreeing with the proposed rate of employer contributions for the next three years.
It was noted that the Funding Strategy Statement remained unchanged from the version submitted to the Committee on 19.1.2017. Attention was drawn
to the appendix which contained details of employer contributions and which stated
that the actuarial predictions had been explained and discussed
with employers in the Fund's Valuation
meeting on 10/11/2016. RESOLVED to adopt the proposed Funding Strategy Statement (FSS). |
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INVESTMENT STRATEGY STATEMENT 2017/18 - 2019/20 To consider
the Investment Managers Report Additional documents: Minutes: Submitted - a report by the Investment Manager, asking the Committee to approve the
Investment Strategy Statement
(which would replace, in name
only, the Statement of
Investment Principles - in accordance with the requirements of the new legislation). Interested Parties were consulted
but no responses
were received within the consultation period. It was highlighted that there were no
restrictions to specific investments in the new legislation and, as such,
there was no need to officially lift restrictions. Following a meeting with the Investment Panel, it was
decided that asset moving costs
would be avoided by running the risk of not de-risking for the year in
light of setting up the Wales Pool. It was noted that
the discussion with the
Investment Panel had been detailed,
technical and, if a situation of non-risk arose within the next three years, it
would be possible to resubmit the matter to the Committee. In response to a comment regarding the possibility of reduced staffing levels in future
and the consequent reduction in contributions
to the Fund, it was suggested that it would be useful
to generate a simple forecast of the situation by including statistics
in the Annual Report. RESOLVED to approve the proposed Investment Strategy Statement. The Chairman thanked the Members and officers
for the information and their support
over the period and wished Councillor
Margaret Lyon well as she would be standing down from Conwy Borough Council. |