Pension Sub-committee And Pension Board - 31/08/2015

At a JOINT MEETING of the PENSION SUB-COMMITTEE OF THE POLICY AND RESOURCES COMMITTEE AND THE PENSION BOARD held at Dundee on 31st August, 2015.

Present:-

PENSION SUB-COMMITTEE

Bailie Willie SAWERS

COUNCILLORS

PENSION BOARD

Bailie Willie SAWERS, Convener, in the Chair.

I DECLARATION OF INTEREST

There were no declarations of interest.

II TAYSIDE PENSION FUNDS RISK REGISTER

There was submitted Report No 317-2015 by the Executive Director of Corporate Services updating the Risk Register for the Tayside Pension Funds.

The Sub-Committee and Board approved the updated Risk Register for the Tayside Pension Fund and Tayside Transport Pension Fund.

III TAYSIDE PENSION FUNDS ADMINISTRATION STRATEGY

There was submitted Report No 318-2015 by the Executive Director of Corporate Services setting out, in conjunction with the implementation of a self-service pension site (pensionsWEB), the standards required of the participating employers and the Fund to ensure that the Fund meet their statutory obligations and demonstrate ability to deliver services efficiently. The strategy contained a variety of performance measures against which the Fund and participating employers were assessed with performance being reported to Sub-Committee and Board.

The Sub-Committee and Board agreed to:-

(i) Agree the policy contained within, which would be effective following successful implementation of pensionsWEB by the end of the current financial year;

(ii) Consent to distribute to all employers; and

(iii) Consent to engage in production of key partnership agreements with larger employers within the Fund.

IV TAYSIDE PENSION FUNDS COMMUNICATIONS POLICY

There was submitted Report No 319-2015 by the Executive Director of Corporate Services presenting a Communications Policy as required by the Local Government Scheme (Scotland) Regulations 2014.

The Sub-Committee and Board approved the Communications Policy which would be effective following successful implementation of pensionsWEB by the end of the current financial year.

V TRAINING - SCOTTISH LGPS TRAINING - OCTOBER 2015

A training seminar was being organised by LGPS Scotland IGG for all Scottish LGPS Funds Committees and Boards. The seminar would take place in COSLA offices in Edinburgh on 9th October, 2015.

The Sub-Committee and Board agreed that any interested member be authorised to attend these training events.

VI PENSIONSWEB SELF SERVICE ADMINISTRATION SYSTEM

A verbal update was given on the current project being undertaken within the Pension Admin section to install and implement the Hymans Robertson system. This new system would enable employer and member self service access to administration queries and facilitate automatic pension contribution processing.

A phased approach to implementation would be made, with the employer module being implemented in January, 2016 and the employee module implemented thereafter.

The Sub-Committee and Board noted the update given.

VII AON HEWITT CHANGE OF INVESTMENT TEAM

It was reported that following discussions with Investment Advisors, it was decided that the Fund would be better suited to a different investment support team. The team was headed by Emily McGuire who is Head of LGPS UK supported by Dave Lyons who has extensive experience with larger funds (LGPS and corporate).

The Sub-Committee and Board noted the change of Investment Team.

VIII PENSION BOARD - APPOINTMENT OF CHAIRPERSON

It was reported that in line with regulatory requirements, the Pension Board was required to appoint a chairperson to act on their behalf.

The Pension Board nominated Councillor Rob Murray to be appointed as chairperson.

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

IX TAYSIDE PENSION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 320-2015 by the Executive Director of Corporate Services relating to Performance Summaries for the quarter 1, 3, 5 and 10 year time periods to 31st March, 2015.

This report reviewed the investment performance of the Main Funds six Fund Managers (including Property) for the quarter to 30th June, 2015. It also considered the performance of the Transport Fund which invests with four of these managers.

The report compared investment performance of the Funds with the Funds specific benchmarks which consisted of various stock and security market indices.

The Sub-Committee and Board noted the information contained therein with regard to the performance of the Tayside Main Fund and Tayside Transport Fund and their Fund Manager.

(b) SUMMARIES OF INVESTMENTS AND TRANSACTIONS

There was submitted Report No 315-2015 by the Executive Director of Corporate Services summarising investments and transactions during the period 1st April to 30th April, 2015 and reviewing the investment activities of the Main Funds seven Fund Managers for the quarter to 30th June, 2015. The Transport Fund shared three of these Managers and their transactions were included.

The report summarised the transactions of each Fund Manager and showed the market values of the Main and Transport Fund.

The Sub-Committee and Board noted the information contained therein with regard to the activities of the Tayside Pension Fund and Tayside Transport Pension Fund and their Fund Managers.

(c) QUARTERLY FUNDING REPORT

There was submitted Report No 321-2015 by the Executive Director of Corporate Services which consisted a report by the Fund Actuary reviewing the current funding level of the Funds as assessed by the Fund Actuary.

The Sub-Committee and Board noted the report by the Fund Actuary.

X PRESENTATION

Douglas Stewart and Nicholas Davidson from Alliance Bernstein gave a short presentation to members, reviewing the current position of the portfolio including benchmarks and performance summary.

It was noted that the integrated research used by AB increased opportunities for success in both global and UK markets, and that fund was continuing to perform above the benchmark.

After Mr Stewart and Mr Davidson had made their presentation and answered questions from members, the Chair thanked the presentation in behalf of members.

Willie SAWERS, Chair.