Venue: Ystafell Gwyrfai, Council Offices, Caernarfon, Gwynedd. LL55 1SH
Contact: Lowri Haf Evans 01286 679878
No. | Item |
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APOLOGIES To receive
any apologies for absence Minutes: Apologies were received from
Councillors David Cowans (Conwy Borough
Council) and John Brynmor
Hughes. |
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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 08.11.2018 to be signed as a true record Minutes: The Chair signed the
minutes of the meeting of this committee, held on 8th November
2018, as a true record. |
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FIXED INCOME SUB-FUNDS PDF 59 KB To ask the Pensions Committee to consider and decide whether to agree to
the fixed income options for Gwynedd Pension Fund in the Wales Pool Appendix A
separate for Committee Members only The document is exempt under
Paragraph 14 of Schedule 12A of the Local Government Act 1972. Information
relating to the financial or business affairs of any particular person
(including the authority holding that information). There is acknowledged public
interest in openness in relation to the use of public resources and related
financial issues. It is also acknowledged that there are occasions, in order to
protect the financial interests of the public authorities that matters related
to commercial information need to be discussed without being publicised. The appendix deals with investment arrangements
which are commercially sensitive and confidential to the company. Publication
of such commercially sensitive information could undermine confidence of
providers to engage with Council and therefore the Councils ability to invest
effectively. This would be contrary to the wider public interest of securing
value for money and the best overall outcome. For those reason, the matter is
exempt from public interest. Minutes: Submitted - a report requesting the Committee to consider sub-funds for 'fixed income' assets
as options for the Gwynedd Pension Fund to invest via the Wales Pensions Partnership. As a contingency measure it was explained that the Gwynedd Pension Fund had access to passive 'fixed income' assets
via the passive investments agreement. It was noted in a meeting of the Investments Panel on 15/11/2018, that information and guidance had been presented to members of the Pensions Committee regarding the Wales Pensions Partnership sub-funds for 'fixed income' assets and the possible options were discussed. It was suggested that it would be an opportunity to transfer assets to the Partnership's active portfolios at the beginning of Summer 2019. With a possible option of distributing the assets between four types
of fixed income sub-funds, the conclusion of the
Investment Panel was that the Absolute
Returns Fund and the Multi Asset Credit Fund was of interest to Gwynedd
at the time of launching
the Wales Pensions Partnership sub-funds.
A summary of the possible options was submitted as an exempt appendix
to the report and therefore, in order
for the Members to discuss them in
detail, it was resolved, TO
EXCLUDE THE PRESS AND PUBLIC as there was an acknowledged public interest in openness in
relation to the use of public resources and related financial
issues. However, it is also acknowledged
that there are occasions, in order to protect the financial interests of public
authorities, when matters related to commercial information need to be
discussed without being publicised. The appendix
related to investment arrangements that are commercially sensitive and
confidential for the company in question. Publishing commercially sensitive
information of this type could undermine the provider's confidence in
submitting prices to the Council and, therefore, the Council's ability to
invest successfully. This would be contrary to the wider public interest of
securing value for money and the best overall outcome. Observations
arising from the discussion; ·
Committee
Members appreciated the views of the officers and the experts from Hymans and
Russell in this field, and wanted to follow the suggestion presented. · Committee members valued the opportunity to work with new managers, together with the possibility of retaining assets with one of the current managers of the Gwynedd Fund. · Although there was no intention for the Gwynedd Fund to transfer assets to the Worldwide Credit Fund, the Chair was asked to highlight the principles of relative responsible investment at the next meeting of the Wales Pensions Partnership Joint Committee. RESOLVED - a) In accordance with the proposal, to generally reinvest the current fixed income assets of the Gwynedd Fund in the sub-fund of the Absolute Returns Fund of the Wales Pensions Partnership and to reinvest the equity assets set aside for now in order to reduce the risk in the sub-fund of the Multi Asset Credit Sub-fund of the Wales Pensions Parntership. b) Since all the investment managers of ... view the full minutes text for item 5. |
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To ask the Pensions Committee to consider and decide whether to agree to
security lending in the Wales Pool Appendix B
separate for Committee Members only The document is exempt under
Paragraph 14 of Schedule 12A of the Local Government Act 1972. Information
relating to the financial or business affairs of any particular person
(including the authority holding that information). There is acknowledged public
interest in openness in relation to the use of public resources and related
financial issues. It is also acknowledged that there are occasions, in order to
protect the financial interests of the public authorities that matters related
to commercial information need to be discussed without being publicised. The appendix deals with investment arrangements
which are commercially sensitive and confidential to the company. Publication
of such commercially sensitive information could undermine confidence of
providers to engage with Council and therefore the Councils ability to invest
effectively. This would be contrary to the wider public interest of securing
value for money and the best overall outcome. For those reason, the matter is
exempt from public interest. Additional documents: Minutes: Submitted – a report requesting the Committee to agree for the Wales Pensions Partnership
to agree to a loan guarantee as an opportunity to increase income from equity
in the funds. It was highlighted that all Welsh funds that are
part of the Wales Pensions Partnership
would have to agree to the proposal before implementation. Reference was made to a document by Hymans Robertson attached to the report giving an
overview and explanation of the process, why investors would
loan stock and the risks linked
to this. The members noted that
the proposal was an interesting opportunity with a low risk,
was a means of receiving some gains to the fund whilst mitigating
the risk through a guarantee. In response to a question regarding limiting the relevant investment sum of the Fund, and if a maximum
had been set, it was noted that it would be possible to ask the question at the next meeting of the Wales Pensions Partnership
Joint Committee. RESOLVED that the Gwynedd
Pensions Fund agrees for the Wales Pensions Partnership
to loan stocks from the sub-funds. |
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SCHEME ADVISORY BOARD COST MANAGEMENT PDF 129 KB To consider the Head of Finance’s report Minutes: Submitted for information a report summarising the proposed recommendations of the Scheme's Advisory Board that would
return the total cost of
the scheme to its target cost of 19.5% (it is estimated
that 19.0% is the current actual cost of the scheme). It
was noted that changes had to be made to benefits if they
wanted to reach 19.5% and a package of recommendations were submitted to the Secretary of State in November
2018. It was added
that legal counsel and the views of the Government's Actuary had been considered by the national Board. The following main points were highlighted and attention was drawn to the financial impacts of the package. The final decision on the package of improvements would be made by the Ministry of Housing, Communities and Local Government
with a brief consultation likely to take place at the beginning of Spring, in order for the improvements
to take effect by April 2019. In response to a question regarding the target set at
19.5%, it was noted that
the target had been set by
the Westminster Government via a national agreement with relevant Trade Unions. Observations arising from the discussion; · Despite the cost to the fund and to employers, the modifications would benefit contributors. · Concern about the impact on small employers. · Concern that small employers cannot afford the amendments and would therefore be placed under pressure to find a different scheme. · Concern that the fund would lose members. · Accept that this was national guidance, however, everything must be weighed up carefully. RESOLVED to request that
the Head of Finance Department
and the Chair present observations on the members' concerns to the Ministry of Housing, Communities and
Local Government in Westminster and the National Advisory Board for the Local Government
Pension Scheme, when there is a consultation |
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PENSION ADMINISTRATION UNIT STAFFING PDF 63 KB To approve additional resources to enable the Finance Department to establish a more resilient staff structure for the Pensions Unit Minutes: Meirion Jones
(Senior Communications Officer
(Pensions) left the room during the following discussion. Submitted – a report requesting the Committee to approve additional resources to enable the Finance Unit to establish
a resilient staffing structure for the Pensions Unit in response to the increasing demands to administer the Local Government Pension Scheme. It was added that the proposed structure corresponded to the Council's management structure and that the posts
had been evaluated. It was noted that the staff percentage in the Unit were older and that
a continuation scheme should be established. Observations
arising from the discussion; ·
That the salary scales in the Unit were lower than other funds. ·
The team was smaller than in other funds. ·
The existing structure was historical. ·
In terms of risk management, continuation had to be planned for.
RESOLVED: ·
To approve the increase in expenditure
financed to enable the
Finance Department
to establish a more resilient
staffing structure for the Pensions Unit at an additional cost of £121,120. ·
To request that the Head of Finance implements an appropriate
amended staffing structure for the Pensions Unit
as soon as practically possible, in order
to manage business risks and work
pressure. |