Agenda and minutes

To receive any apologies for absence

An apology had been received from Councillor Aled Evans (Gwynedd Council).

To receive any declaration of personal interest

No declarations of personal interest were received from any members present.

To note any items which are urgent business in the opinion of the Chairman so that they may be considered

None to note

The Chairman shall propose that the minutes of the meeting of this committee  held on 23.10.17 be signed as a true record.

The Chair signed the minutes of the meeting of this committee, held on 23 October 2017, as a true record.

In response to a question regarding the suggestion to publish i-connect, users, it was noted that four organisations were currently using it fully and it would be timely to publish the names of the users when one large organisation had come forward.

REPORTING BACK ON EVENTS

·         October Seminar - 6.11.17

It was reported that the seminar had been a good one. It was emphasised that the matter of insurance for Pension Board members had been discussed and whether the Council's insurance was appropriate. The Chair noted that he had asked for more information for clarity. The Head of Finance Department emphasised that he had also referred the enquiry to the Council's insurers again, and had received a consistent and firm response that the Members of the Pension Board had no executive power, and therefore that the alleged need for insurance was a mystery. The Chair was thanked for referring the matter back to the conference organisers, with the hope of receiving a response by the next meeting of the Board.

It was noted that an observation had been made to the conference organisers that there had been insufficient notice for the event.

·         Pension Board Chairs Networking Meeting - 26.10.17

It was reported that the Pensions Regulator had highlighted the following observations:
-     Collect data on a monthly basis

-       Implement and develop data improvement plans

-       Consider joint Pension Boards for the future (in addition or separately)

-       Ensure that the Pension Boards do not go into too much detail, but would regularly look at the greatest risks and how they were developing

It was proposed to present the major risks at the next meeting along with recent developments.

The minutes of the Pensions Committee held on 9 11 2017 were accepted for information.

The minutes of the Pensions Committee held on 9 November 2017 were accepted for information.

In response to a question regarding the costs of reconciling guaranteed pensions, it was noted that the Pensions Committee had the financial power to determine the pension fund's expenditure. It was reiterated that the sum was a one-off payment, but that a report would be submitted to the Pensions Committee in future to attempt to permanently keep the resource. It was noted that the unit's staff was experienced and achieved very specialist work, and that the numbers, compared to other Authorities, were very low. There would be a need to ensure a continuation for this specialist service.

In response to a question about reimbursing the expenses, wages and allowance of Pension Board members, it was noted that the cost was not substantial and that the Pensions Committee had been unanimous in their decision.

To receive verbal update from the Head of Finance on recent progress

An oral update was received by the Head of Finance Department on the progress made with procuring the operator services for the Wales Pension Partnership. It was noted that one company had been offered the work, and the process was now in a standstill peiod (10 days) so that there would be an opportunity for the other bidders to challenge the decision. If no challenge would come forward, it was explained that a public statement would soon confirm the appointment of the successful company.

It was reported that some of the other partnerships had established and had started staffing their own operators, but considering the smaller sized investments of the Wales Pension Partnership, it would be difficult to pay sufficient salaries in order to attract and keep the best. As a result, it would appear that the correct decision was made to search for a third party operator by means of a contract.

It was noted that since Westminster Government had set a target of having an operator in place by April 2018, the priority was to ensure that appropriate and measured steps would be taken to ensure that things would be done properly. It was reiterated that professional guidance had been received to ensure this.

It was outlined that the procurement process had been thorough. In terms of investments, it was reiterated that discussions were likely to be held with the operator from now on to ensure the best. In terms of Gwynedd, the Pensions Committee would be deciding on the division of the Fund within the sub-funds, which would be likely to be blended sub-funds. In the context of infrastructure and property investments, it was noted that this would likely to be something transitional which could take years because it would be difficult to rotate the natural contract terms.

In response to the update, the Members noted that they agreed with the need to be cautious. In response to an observation regarding the possibility of accepting a challenge and whether a period of time had been earmarked on the timetable for this, it was noted that there would be a need to respond to the challenge and therefore it would be inevitable that there would be a possible slippage to the timetable. Nevertheless, it was noted that April 2018 continued to be a target for commencing the new arrangement.

To receive feedback from the Board in order to complete the survey

A survey that had been published by the Pensions Regulator for each Local Scheme Manager was submitted. It was highlighted that Gwynedd Council was the Local Scheme Manager for the Gwynedd Pension fund and therefore had a responsibility to complete the survey jointly with the Chairs of the Pension Board. The Chair decided that the best method of completing the survey would be to receive the Board's feedback to the survey at the meeting.

When discussing additional costs and a suggestion to penalise for some employers for their failure to submit correct, complete and timely data, it was suggested that it was possible to ask other funds about their arrangements when networking at conferences. It was added that the Unit had held a series of discussions with some late employers and that this type of collaboration was going in the right direction, but that there was definitely room for improvement.

This was considered as a possible item for the Pensions Committee to discuss.

The survey was completed (available from the Pensions Regulator in English only).