Minutes of Proceedings

The Chairperson welcomed the representatives from Deloitte to the meeting.

Condolences

The Chairperson expressed the Trustees’ sadness at the recent passing of Sir John Gorman, one of the Schemes Pensioners.

The Trustees agreed to forward a letter of condolence to the widow of Sir John Gorman.

Action Required:

• Letter of condolence to be drafted (Pensions Team). 
   

1.    MINUTES OF PREVIOUS TRUSTEES MEETING

The draft minutes of the meeting held on 6 of May were agreed.

Action required:

• Agreed minutes of the 6 May meeting to be uploaded to the Assembly website (Pensions Team).
   

2.    Matters Arising

The Chairperson reminded the Trustees that at their meeting on 6 May Deloitte had provided training on Investment Strategy and facilitated a discussion on diversity within the AMPS Fund and proposals to further diversify the Fund by buying into a diversified growth fund.

The Chairperson informed the Trustees that due to Member commitments the meeting on the 6 May became inquorate and had to be suspended, and that they would discuss today the two agenda items outstanding from the last meeting.

3.    Review of Investment Principles

The Chairperson advised the Trustees that they had previously discussed future investment strategy with Mr Alec Spooner from M&G Investments and Mr Matt Gurden from GAD at its meeting in January, and that Mr Gurden had prepared a paper to facilitate discussion at today’s meeting.

The Chairperson invited the representatives from Deloitte to participate in discussions.

The Trustees discussed the current diversity of the AMPS Fund and the potential advantages/disadvantages of buying into a diversified growth fund. Mr McClintock from Deloitte provided an overview of potential issues the Trustees may wish to consider when making decisions on the Funds future Investment Strategy.

Mr J Wells left the meeting at 12.56pm
Meeting suspended as inquorate.
Mr J Wells re-joined the meeting at 1.20pm

The Trustees agreed to seek further information from GAD on the appropriate asset split to match the Schemes liabilities. The current split is 80% equities, 20% bonds.  Due to the changing scheme profile – it may be necessary to adjust this.

The Trustees agreed to retain the current investment strategy at the moment and to revisit the issue at a future meeting following the Scheme valuation.    

Action required:

• Letter to be sent to GAD seeking recommendations on the appropriate asset split to match liabilities. (Pensions Team). 
• To include at a future meeting a recommendation for the Trustees to discuss possible triggers to revisit the Investment Strategy (Pensions Team).    

4.    Triennial Scheme Valuation

The Chairperson informed the Trustees that the Triennial full valuation of the scheme (1 April 2011-31 March 2014) was now due.

The Trustees considered a paper provided by GAD outlining the proposed assumptions to be used in the valuation.

The Trustees agreed the following:

• the objectives are the same as previous years;
• undertake an ‘Ongoing’ funding valuation;
• continue to retain a best estimate approach in determining the discount rate;
• Pension Team to advise GAD that there is unlikely to be a pay rise equalling that of Westminster MPs and to forward any information that is available on the Independent Financial Review Panels review of the Scheme.

Action required:

• A letter is sent to GAD detailing the Trustees decisions in relation to the 2014 valuation.

5.    Any Other Business

Foreign Account Tax Compliance Act (FACTA)

The Chairperson informed the Trustees that GAD had written to them regarding US based legislation due to come into force later this year that could affect the level of tax paid on scheme investments.

The Chairperson advised the Trustees that GAD had recommended that they write to M&G to ensure that they are taking steps to achieve compliance, in order that the Fund investments do not suffer greater tax charges than necessary, and that a draft letter to this effect had been included in their meeting papers.

The Trustees agreed to forward the letter to M&G seeking confirmation that they are taking the necessary steps to achieve compliance.

Action required:

• Forward letter to M&G (Pensions Team). 
   

New Pension

The Trustees agreed to approve two new pensions.

Councillor Pension Transfer/Chancellors Budget Changes affecting AVC Funds

Mr Wells asked if a response had been received to either of the queries raised at the Trustees meeting on 6 May 2014. The Trustees had agreed to consult the Panel regarding an amendment to the Scheme Rules to allow the transfer of Councillors NILGOSC pensions into AMPS outside the one year restriction as a one off exercise. The Trustees had also agreed to seek further information from the Actuary regarding the potential impact of taking the entire lump sum from AVC pot.

Action required:

• Pension team to contact the Panel and Actuary seeking a response to the Trustees queries. 

6.    DATE OF NEXT MEETING          

23 September 2014