Pension Sub-committee And Pension Board - 25/03/2019

At a JOINT MEETING of the PENSION SUB-COMMITTEE of the POLICY AND RESOURCES COMMITTEE AND THE PENSION BOARD held at Dundee on 25th March, 2019.

Present:-

PENSION SUB-COMMITTEE

BAILIE

COUNCILLORS

PENSION BOARD

Bailie Willie SAWERS, in the Chair.

Prior to the commencement of business, the Chair, on behalf of the Sub-Committee and Board, referred to the recent sad passing of Councillor Brian Gordon and paid tribute to his services as a Pension Sub‑Committee member.

I DECLARATION OF INTEREST

No declarations of interest were made.

II MINUTE OF PREVIOUS MEETING

The minute of meeting of 3rd December, 2018 was submitted and approved.

III TAYSIDE PENSION FUNDS RISK REGISTER

There was submitted Report No 118-2019 by the Executive Director of Corporate Services updating the Risk Register for Tayside Pension Fund.

The Sub-Committee and Board approved the updated Quarterly Risk Register for Tayside Pension Fund and noted that there had been no changes to risk profile since the previous report.

IV TAYSIDE PENSION FUND RISK MANAGEMENT POLICY AND STRATEGY

There was submitted Report No 119-2019 by the Executive Director of Corporate Services presenting Tayside Pension Funds Risk Policy and Strategy, which would be subject to annual review.

The Sub-Committee and Board approved the Risk Management Policy and Strategy.

V TAYSIDE PENSION FUND TRAINING PLAN 2019/2020

There was submitted Report No 121-2019 by the Executive Director of Corporate Services presenting Tayside Pension Funds Training Policy which would be subject to annual review.

The Sub-Committee and Board approved the Training Plan for 2019/2020.

VI PENSION ADMINISTRATION PERFORMANCE - QUARTERLY UPDATE

There was submitted Report No 122-2019 by the Executive Director of Corporate Services providing information on the recent quarters operational performance in relation to Pension Administration.

The Sub-Committee and Board noted the content of the report.

VII APPLICATION FOR ADMITTED BODY STATUS

There was submitted Report No 123-2019 by the Executive Director of Corporate Services seeking the agreement of the Sub-Committee and Board to admission of a new body, to be set up following a procurement exercise by the Scottish Fire and Rescue Service, into the Local Government Pension Scheme as an Admission Body. The successful bidder under the procurement exercise was Sodexho. The applicable staff would be transferring from Tayside Contracts to Sodexho under the terms of the Scottish Fire and Rescue procurement exercise.

The Sub-Committee and Board agreed that, from the date of contract, and for the period of their current contract (three years plus option to extend for one further year), the successful bidder be admitted to the Local Government Pension Scheme as an Admission Body and that an appropriate admission agreement be made and entered into.

VIII INTERNAL AUDIT REPORT 2017/15 - UTILISATION OF PENSIONSWEB

There was submitted Report No 124-2019 by the Executive Director of Corporate Services providing details of the outcome of an Internal Audit Review in relation to the utilisation of the LGPS PensionsWEB self-service module by scheme employers.

The Sub-Committee and Board noted the content of the report.

IX TAYSIDE PENSION FUND - AUDIT SCOTLAND ANNUAL AUDIT PLAN 2018/19

There was submitted Report No 125-2019 by the Executive Director of Corporate Services providing a summary of the responsibilities and approach of Audit Scotland in respect of Tayside Pension Fund for 2018/19.

The Sub-Committee and Board noted the report by Audit Scotland.

X TREASURY POLICY STATEMENT

There was submitted Report No 126-2019 by the Executive Director of Corporate Services revising the Councils Treasury Policy Statement which was intended to govern all treasury activities carried out by the Pension Fund.

The Sub-Committee and Board approved the policies and procedures laid out in the Treasury Policy Statement 2019/2020, noting that the Treasury Policy Statement required to be reviewed annually.

XI TREASURY MANAGEMENT STRATEGY

There was submitted Report No 127-2019 by the Executive Director of Corporate Services reviewing the Treasury Management Strategy for the Tayside Pension Fund.

The Sub-Committee and Board approved the Treasury Management Strategy.

XII TAYSIDE PENSION FUND - STATEMENT OF INVESTMENT BELIEFS

There was submitted Report No 128-2019 by the Executive Director of Corporate Services presenting Tayside Pension Funds Statement of Investment Beliefs, which would be subject to review in line with Investment and Funding and policies.

The Sub-Committee and Board noted the information within the report and approved the Statement of Investment Beliefs.

XIII FUNDING STRATEGY STATEMENT

There was submitted Report No 129-2019 by the Executive Director of Corporate Services reviewing the Funding Strategy Statements for the Tayside Pension Fund.

The Sub-Committee and Board approved the Funding Strategy Statement for Tayside Pension Fund.

XIV STATEMENT OF INVESTMENT PRINCIPLES REVIEW

There was submitted Report No 130-2019 by the Executive Director of Corporate Services reviewing Statements of Investment Principles for Tayside Pension Fund.

The Sub-Committee and Board noted the information contained within the report and approved the Statements of Investment Principles.

XV TAYSIDE PENSION FUNDS BUSINESS PLAN 2019/2020

There was submitted Report No 131-2019 by the Executive Director of Corporate Services introducing the annual Business Plan for the Tayside Pension Fund.

The Sub-Committee and Board noted the information within the report and approved the 2019/2020 Business Plan which applied to the administration and management of the Tayside Pension Fund.

XVI PROCUREMENT FOR CONSULTANCY SERVICES TO SUPPORT SPECIALIST PROJECTS - UNDERTAKING A SCHEME EMPLOYER COVENANT REVIEW

There was submitted Report No 132-2019 by the Executive Director of Corporate Services seeking approval to grant delegated authority for the Executive Director of Corporate Services in respect of the procurement exercise for Covenant Review Services.

The Sub-Committee and Board agreed to delegate authority to the Executive Director of Corporate Services to appoint a service provider to undertake an exercise to review the covenants of the employers of Tayside Pension Fund following the outcome of a National LGPS Framework mini-competition. The outline details of the mini-competition had been contained within the report.

The Sub-Committee and 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, 9 and 11 of Part I of Schedule 7A of the Act.

XVII TAYSIDE PENSION FUNDS

(a) PERFORMANCE SUMMARIES

There was submitted Report No 133-2019 by the Executive Director of Corporate Services relating to Performance Summaries for the quarter, 1, 3, and 5 year time periods to 30th December, 2018 and reviewing the investment performance of the Funds Investment Managers for the quarter to 31st December, 2018.

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

(b) SUMMARIES OF INVESTMENTS AND TRANSACTIONS 1ST OCTOBER, 2018 - 31ST DECEMBER, 2018

There was submitted Report No 84-2019 by the Executive Director of Corporate Services summarising investments and transactions during the period 1st October to 31st December, 2018 and reviewing the investment activities of the Main Fund for the quarter to 31st December, 2018.

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

(c) QUARTERLY FUNDING REPORT

There was submitted Report No 135-2019 by the Executive Director of Corporate Services which considered a report reviewing the current funding level of the Fund as assessed by the Fund Actuary.

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

XVIII REAL ASSET INVESTMENT OPPORTUNITY

A verbal update was given to the Sub-Committee and Board on Real Asset Investment Opportunity.

XIX ANNUAL PERFORMANCE REVIEW TO 31ST DECEMBER, 2018

There was submitted Report No 136-2019 by the Executive Director of Corporate Services considering a report by the Annual Review of Investment Performance 2018.

The Sub-Committee and Board noted the report.

XX PRESENTATION

Graeme Rutter, Patrick Bone and Geoff Day from Schroders gave a short presentation.

It was reported that the Fund was continuing to outperform the benchmark and that there had been a strong UK performance. The portfolio continued to be well diversified, with potential for investment within new residential strategies.

After they had completed their presentation and answered questions from members of the Sub‑Committee and Board, they were thanked for their attendance and withdrew.

Willie SAWERS, Convener.