Pension Sub-committee And Pension Board - 23/10/2002

At a SPECIAL MEETING of the SUPERANNUATION INVESTMENT SUB-COMMITTEE OF THE FINANCE COMMITTEE held at Dundee on Wednesday, 23rd October 2002.

Present:-

COUNCILLORS

In Attendance:-

Mr R McKELVIE, TGWU

Mr P POTTER, Hymans Robertson

Councillor REGAN, Convener, in the Chair.

The minute of meeting of this Sub-Committee of 22nd August 2002 was noted.

Unless marked thus * all items stand delegated.

I LOCAL GOVERNMENT PENSION COMMITTEE - TRAINING

There was submitted Agenda Note AN270-2002 advising that the Local Government Pension Committee had arranged a new elected member training course "LGPS Fundamentals" which aimed to cover all aspects of the Local Government Pension Scheme. The course would be held over three separate days in Edinburgh - 12th November, 2002, 14th January and 19th March, 2003. Individual days would cost 125 whilst all three days would cost 300, excluding travel and subsistence.

Councillor Sturrock questioned the timing of the course, pointing out that local council elections would be held in May next year and it would be preferable to reschedule the training for after these elections. She also questioned the need for such comprehensive training as the Sub-Committee was served by professional officers.

After discussion, the Sub-Committee agreed not to take up any places on the course and asked the Principal Treasury and Investment Officer to enquire what suitable training might be available after the Council elections.

The Sub-Committee resolved under Section 50(A)(4) of the Local Government (Scotland) Act 1973 that the public and press be excluded from the meeting in order that the undernoted item of business be considered in private on the grounds that it involved the likely disclosure of exempt information as defined in paragraphs 4, 6 and 11 of Part I of Schedule 7(A) of the Act.

II REVIEW OF STRUCTURE OF THE FUND

There was submitted Report No. 740-2002 by the Director of Finance updating the Sub-Committee on the review of Investment Structure of the Fund conducted by Hymans Robertson whose appointment was approved at the Sub-Committee meeting on 22nd May, 2002. Hymans Robertson's report had been circulated to members.

The Convener introduced Mr Paul Potter who reviewed the contents of the Hymans Robertson report and the advantages and disadvantages of three possible new structures detailed in the report. Thereafter, Mr Potter answered members' questions.

In his report, the Director of Finance provided the Officers' response to the Hymans Robertson report. In particular, it was recommended that Structure 3 was the most appropriate for the Fund and that the most efficient means of management was to merge the Transport Fund with the Main Fund whilst retaining discrete calculation of the Transport employer's contribution rates.

After further discussion and questions, the Sub-Committee approved the recommendations as detailed in the report.

The Convener thanked Mr Paul Potter for his attendance.

GEORGE REGAN, Convener.