Pensions Sub Committee Minutes

Date:
Friday 29 June 2012
Time:
10:30am
Place:
Council Offices, English Street, Dumfries

Attendance Details

Members:
Graham Nicol (Chairman)-Mid Galloway
Patsy Gilroy-Dee
Tom McAughtrie-Abbey
Stephen Thompson-Annandale North
Alastair Witts (Substitute)-Nith
Andrew Wood-Mid and Upper Nithsdale
Officials:
Paul Garrett - Head of Finance
Andrew Ewart - Treasury/Insurance Officer
Carol Henshall - Service Manager, Committee and Member Services
In attendance:
Tom Featherstone (Observer in Consultative Capacity) - Unite
Allison Galbraith - Hymans Robertson
John Hastings - Hymans Robertson
Alan Johnson - Hymans Robertson
John Wright - Hymans Robertson
Apologies:
Ian Carruthers - Annandale South
Iain Dick - Stranraer and North Rhins
Grahame Forster - Wigtown West
Ronnie Ogilvie - Annandale South
George N Prentice - Castle Douglas and Glenkens
Ted Thompson - Lochar
Item Number Item/Description Action
PUBLIC
1 SEDERUNT AND APOLOGIES

5 Members present, 6 apologies

 

1.1   PROCEDURE APPOINTMENT OF CHAIRMAN

 

Decision

 

AGREED to appoint Graham Nicol as Chairman for this meeting.

 

PROCEDURE - Graham Nicol assumed the role of Chairman.

 
2 DECLARATIONS OF INTEREST

NONE declared

 

MEMBER - Andrew Wood entered the meeting - 6 Members present

 
3 DELEGATIONS TO PENSIONS SUB COMMITTEE - REPORT BY DIRECTOR CHIEF EXECUTIVE SERVICE

Decision

 

3.1   NOTED that the remit of the Pensions Sub Committee was to cover all aspects relating to pensions administration and benefit issues as well as investment management issues; and

 

3.2   AGREED in principle to the training proposal by Aberdeen Asset on 9 July 2012 for Members on the Committee and FURTHER AGREED that all those Members who might be asked in the future to attend this Committee be invited to attend in order to assure continuity of knowledge.

Head of Organisational Development and HR

4 CONSIDER ADOPTION OF RESOLUTION TO EXCLUDE THE PUBLIC FROM THE MEETING IN TERMS OF SECTION 50A(4) AND PARAGRAPH 9 OF PART 1 OF SCHEDULE 7A OF THE LOCAL GOVERNMENT (SCOTLAND) ACT 1973.

Decision

 

AGREED to adopt a resolution to exclude the public from the meeting in terms of Section 50A(4) and paragraph 9 of Part 1 of Schedule 7A to the Local Government (Scotland) Act 1973.

 
5 ANY OTHER BUSINESS DEEMED URGENT BY THE CHAIRMAN DUE TO THE NEED FOR A DECISION

Decision

 

NOTED that there was no business deemed urgent by the Chairman due to the need for a decision.

 
EXEMPT
6 INTRODUCTION TO LOCAL GOVERNMENT PENSION SCHEME - PRESENTATION BY HYMANS ROBERTSON (PARAGRAPH 9).

Decision

 

6.1   NOTED and THANKED Hymans Robertson's representatives for their presentation on the Local Government Pension Scheme which clarified how the Fund worked, Scheme benefits, possible changes, the main asset classes (equities, bonds, property, alternatives), asset returns and risks, the governance of the Scheme, role of the administering authority and the Fund Actuary and provided for an introduction to the actuarial valuation;

 

NOTED

 

6.2   that Member challenges on investments and returns would be addressed in further detail at the forthcoming training event; and

 

6.3   the governance arrangements and that ethical frameworks were a variable in investment considerations.

 

MEMBER - Andrew Wood left the meeting - 5 Members present

 
7 ACTUARIAL VALUATION 2011 - PRESENTATION AND REPORT BY HYMANS ROBERTSON (PARAGRAPH 9)

Decision

 

NOTED presentation and report on the actuarial valuation of the Dumfries and Galloway Council Pension Fund as at 31 March 2011 and in particular that the funding level for 2011 was 90% compared to 88% at 2008.

 

MEMBERS - Patsy Gilroy and Stephen Thompson left the meeting - 3 Members present.  Tom Featherstone also left the meeting.

 
8 REVIEW OF INVESTMENT MANAGERS PERFORMANCE - REPORT DATED MAY 2012 BY HYMANS ROBERTSON FOR THE FIRST QUARTER OF 2012 (PARAGRAPH 9)

Decision

 

NOTED

 

8.1   that Alliance Bernstein outperformed its benchmark by 1.8% in Q1 and that Longer Term performance was behind benchmark;

 

8.2   that Templeton outperformed its benchmark by 1.6%. and that Longer term performance was behind benchmark;

 

8.3   that Aberdeen bond mandate marginally outperformed its benchmark by 0.1% and that Longer term performance was behind benchmark;

 

8.4   that Lothbury outperformed its benchmark by 0.1% and that Threadneedle also outperformed by 0.1%;

 

8.5   that RREEF underperformed by 1.0%; and

 

8.6   that Mellon underperformed by 8.1%.

 

Action Details

ItemDetail
3 Action by Head of Organisational Development and HR - the remit of the Pension Sub Committee to deal with Pensions administration is noted.