Minutes of Proceedings

Session: 2011/2012

Date: 24 April 2012

1.MINUTES OF PREVIOUS TRUSTEES MEETING

The minutes of the Trustee meeting held on 24 January 2012 were agreed.

Action required:

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

2. STANDING ITEMS

Risk Register

Due to the amount of business at this meeting the Trustees agreed to defer this item.

3. MATTERS ARISING

Independent Financial Review Panel – update

The Trustees were reminded that IFRP published their first determination on 14 March 2012. There were 4 items directly relating to the pension scheme:

Increased Member contributions from 1 July 12
Revaluation of Pensions in deferment
Pension increases for pensions in payment
Closing the favourable early retirement provision

The Trustees were advised that Eversheds have been asked to revise the draft scheme rules to reflect these changes.

The Trustees noted that in addition to the pension items, there were a number of items relating to Members and office holder salaries. Eversheds have been asked to look specifically at the clause in the determination relating to salary abatements for those Members in receipt of an allowance as a Councillor. Legal advice is awaited to clarify how this will affect individual Members pension benefits.

As his party has a number of serving Councillors, Mr Wells asked that Members be informed about the impact of this change as soon as legal advice is received.

Action

Pensions Team to arrange for publication of amended scheme rules when revisions complete.
Pensions Team to liaise with the Finance Office when legal advice on Councillor salary abatement is received.

Pension Increase RPI / CPI issues – update

The Trustees noted IFRP’s determination.

Scheme Rules Review – update

Deferred to the next meeting.

Investment Manager Tender - update

Deferred to the next meeting

4. GAD FULL VALUATION 2008 – 2011

The Trustees considered the revised GAD Full Valuation Report in conjunction with a briefing note from GAD which outlined 3 options in relation to the revision of the consolidated fund contribution.

Mr Brady left the Room at 10.20am

The Trustees agreed option 2 which adjusts the consolidated fund contribution downwards to take account of the funding position and the increased member contributions from 1 July 2012, but does not take ameliorative action in relation to the small deficit.

Action

Pensions Team to inform GAD and await the final valuation report.

5. INVESTMENT STRATEGY / STATEMENT OF INVESTMENT PRINCIPLES

At the last meeting the Trustees considered a draft Statement of Investment Principles drafted by GAD. The Trustees also discussed the possibility of investing a proportion of the fund in an ethical fund. It was agreed that further consideration of the wider investment issues was required before finalising the SIP.

Matt Gurden, Government Actuary’s Department delivered a presentation on ‘Investment and Pension Scheme Risks’. After some discussion on matching and growth assets, Matt undertook to produce some further information for the Trustees to illustrate some of the options they discussed.

Once the illustrations are received from GAD the Trustees will meet again to finalise their Investment Strategy and Statement of Investment Principles.

Action

GAD to provide illustrations as agreed.
Pensions Team to arrange further meeting once GAD information received.

6. INVESTMENT MANAGER UPDATE

Alec Spooner, M&G Investments Ltd, updated the Trustees on the Funds performance over the last quarter.

The Trustees asked about M&G Investments’ ethical fund and Mr Spooner explained that while they do provide a specific ethical fund, the returns are not impressive in comparison to Index Trackers in which AMPS are currently invested.