Agenda and draft minutes

To elect a Chairman for this meeting

RESOLVED to elect Councillor Peredur Jenkins as Chair for the meeting.

To receive any apologies for absence

Apologies were received by: Councillor Simon Glyn (Gwynedd Council), Councillor John P Roberts (Gwynedd Council), Councillor Peter Read (Gwynedd Council), Councillor David Cowans (Conwy County Borough Council Representative), Huw Trainor (North Wales Police), Osian Richards (Gwynedd Council), Arnold Milburn (Llangefni Town Council), Mandy Evans (Abergele Town Council), Linda Jones (Cwmni Frân Wen), Rhys Parry (Cartrefi Cymunedol Gwynedd), David O'Neill (CVSC), Wendy Jones (CVSC), Martin Morris (Gwynedd Council), Chalister Bash-Taqi (Caterlink), Joanne Barlow (Caterlink), Joanne Barlow (Kingdom), Gwyn Jones (Ysgol Eirias), Lynn Bennoch (CAIS), Morfudd Davies (Isle of Anglesey County Council), Gary Jaques-Williams (Isle of Anglesey County Council), Donna Jones (Isle of Anglesey County Council), Carys Edwards (Isle of Anglesey County Council), Sue Hill (ABM Catering), Tina Earley (Colwyn Bay Town Council), Nikki Lawrence (Careers Wales), Caren Byron (Careers Wales), Jo Cavill (Careers Wales), Adele Gatt (Careers Wales), Kathryn Coughlin (Grŵp Llandrillo Menai), Phillip Davies (Conwy County Borough Council), Sally Williams (Conwy County Borough Council), Gareth Owen (Conwy County Borough Council), Huw Ifor Jones (Conwy County Borough Council), Isobel Mitchell (Conwy County Borough Council), Francesa Pridding (Tywyn Town Council), Delyth Williams (Cartrefi Cymunedol Gwynedd), Katherine Owen (Caernarfon Town Council), Beaumaris Town Council and Medrwn Môn.

To receive any declaration of personal interest.

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

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

None to note

To receive the Pension Fund’s Annual Report for 2017-2018

The Head of Finance presented the Annual Report of the Pension Scheme for 2017/18.

Although 2017/18 had been a challenging year, it was reported that the Fund had received positive returns and had built on the funding level. There had been a 10.8% increase in members contributing to the scheme, and a 4.3% increase in the number of pensioners in the scheme. The employers who had submitted accurate and speedy data were thanked, and it was explained that this was essential for the Pensions Unit to update employer records and produce timely annual benefits to satisfy the Pensions Regulator. It was noted that submitting accurate and timely data would be essential for 2019 as the three-year valuation date.

The Head of Finance Department added that he had asked the Fund's Actuary about what the 2019 three-year valuation result would be in the context of the Government Actuary's decision to increase the Teacher Pension Scheme contribution rate from 16% to 24% in September 2019. It was explained that this substantial leap was taking place as teacher rate levels were attempting to catch up with historic levels that were too low, and an adjustment to the SCAPE discount rate that was only reviewed every five years. It was expressed that these factors would not affect the Local Government Pension Scheme.

Reference was made to the commitments of the Pension scheme, and it was reported that the Fund had been operating prudentially, and the factor that would influence the valuation the most would be investment returns and the value of the assets. Since the stock market became challenging in 2017/18, it was reported that the Fund continued to build on the outstanding investment performance of 2016/17, and in 2017/18, the Fund assets received £56m (3%) in investment returns. This reflected weaker markets compared to the 22% returned the previous year, but the further progress seen during the first quarter of 2018/19 was enough to see the value of the Fund growing to more than two million pounds.

It was explained that an element of the significant growth in 2016/17 reflected the impact of the pound slump on worldwide investment values. A graph prepared by the Fund's Investment Advisor was distributed, that separated the growth elements in equity value from the local financial value and value in sterling. It was added that the growth in asset values was encouraging, with the Gwynedd Fund being 91% funded in the 2016 triennial valuation (that was within the top 10 in England and Wales) when using prudential actuarial assumptions. For the 2019 valuation, the Fund's strength should allow for taking a flexible approach towards employer contribution rates effective from 2020.

It was noted that the investment procedure in future would change, and reference was made to the responsible investment principles and the development of the Wales Pension Partnership. With the Fund's investment strategy  ...  view the full minutes text for item 5.