Minutes of Proceedings

Session: 2012/2013

Date: Tuesday, 25 September 2012

1. MINUTES OF PREVIOUS TRUSTEES MEETING

The minutes of the Trustee meeting held on 26 June 2012 were agreed.

Action required:

• Agreed minutes to be uploaded to the Assembly website (Pensions Team).

2. STANDING ITEMS

Risk Register

The Trustees noted that there has been no change to the risk register since the last meeting.

3. MATTERS ARISING

Scheme Rules Review - update

The Trustees were advised that the revised Scheme Rules will be available in due course on the website and on request from the HR Office.

The Trustees noted that the Assembly's Legal Services team has commented on the draft rules which will be presented to the Commission and the Panel at the next available opportunity.

Action required:

• Final version of rules to be issued to the Commission and the Panel (Pensions Team)
• Rules to be uploaded to website (Pensions Team)
• Explanatory booklet to be updated and issued to all scheme members for information (Pensions Team).

Investment Manager Tender – update

The Trustees were advised that the tender process for Investment Manager would be delayed. In light of feedback received from GAD on the specification and tender documentation, the Pensions team will liaise with the Procurement Office to revise the documents.

The Trustees stated that they would like to meet with the short listed candidates prior to awarding the contract.

The Trustees discussed the need to tighten up the specification and evaluation criteria to ensure an open, fair and manageable process.

It was agreed that illustrations to be included in tenders should be based on the following percentage splits for comparison: -
80/20 – equities/bonds ie the current position; and
40/40/20 – equities/diversified growth funds/bonds ie potential position.

The Trustees agreed that they were content with the current split for active/passive management (52:48) and the current attitude to risk.

J Dallat left the meeting at 9.40am
J Dallat returned to the meeting at 9.44am

The Trustees agreed to formally extend the contract with M & G for 6 months (i.e. to 26th May 2013) to accommodate the delay in the tender process.

Action required:

• Revise tender documentation (Pensions Team & Procurement Office)
• Take tender process forward (Procurement Office)
• Arrange 6 month extension with M&G (Pensions Team)

Review of Actuarial Factors

The Trustees noted that GAD had been informed of the outcome of the previous meeting in relation to the agreed key assumptions to be used in respect of transfers in and out of the scheme, commutation factors and early retirement factors. A revised set of factors is awaited.

Annual Report and Accounts 2011 – 12

The Trustees discussed the contents of the final version of the Annual Report and Accounts 2011 – 12 following the recent Northern Ireland Audit Office audit and noted that the NIAO's 'Report to those charged with Governance' (tabled paper) provided an unqualified audit opinion without modification.

The Trustees were informed that the report and accounts will be printed and laid before the Assembly in due course, before being distributed to scheme members.

Action required:

• Annual Report & Accounts 2011 – 12 to be printed, laid before the Assembly, distributed to Scheme members and published on the website (Pensions Team).

Review of Internal Dispute Resolution Procedure

The Trustees noted that, as agreed at the last meeting, the updated IDRP was uploaded to the website and the risk register updated as agreed.

4. REVIEW OF INVESTMENT STRATEGY

The Trustees again discussed the Investment Strategy, specifically around ethical investments. The Trustees considered the response received from the Minister of Finance and Personnel in relation to the Trustees' queries on the Scheme's government guarantee and the shortfall position.

The Trustees also considered a briefing note on 'Members' Pension Funds and Ethical Investments' produced by the Research and Information Service which provided information about the devolved institutions and the UK Parliament.

The Trustees agreed that the issue was a complex and difficult one and that it is their primary duty is to ensure the financial health of the Scheme. At the moment the Fund is not of a sufficient size to make direct investing financially viable, however this will be reviewed as the Fund grows.

The Trustees agreed that all organisations shortlisted during the tender process for Investment Manager should be required to state their position on Ethical and Social Governance issues.

Action required:

• Include the requirement in the tender documentation (Pensions team and Procurement Office)

Mark McClintock & Neil Burns joined the meeting at 9.55 am for the next item

5. DELOITTE

The Trustees were introduced to Mark McClintock (Partner) and Neil Burns from Deloitte Total Reward and Benefits Limited who will be providing outsourced administration services for NIAMPS.

Mr McClintock outlined the range of services offered by Deloitte under the terms of the contract.

Mark McClintock & Neil Burns left the meeting at 10.10 am

The Trustees agreed that a representative from Deloitte should attend future Pension Trustee meetings.

Action required:

• Pensions Team to contact Deloitte re future attendance at meetings.

6. ANY OTHER BUSINESS

The Trustees approved pensions for 4 former Members.

7. DATE OF NEXT MEETING

Tuesday 29th January 2013 at 9.30am

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