Issue - meetings

There will be a presentation at the meeting on this item. Presentation slides are attached.

Jeff Wring – Head of Audit West gave a presentation to the Panel which covered the following points:

·  The Local Government Pension Scheme;

·  Membership;

·  Value of the Fund;

·  Assets and liabilities;

·  Investment portfolio;

·  LGPS national governance structure;

·  National governance framework;

·  Local Pension Board;

·  Terms of Reference – Structure of Board;

·  Focus of the Board – Code of Practice 14;

·  Pension Board – Year 1 Summary;

·  Pension Board – Year 2 Work Plan

Panel members asked the following questions and made the following points:

In response to a question from Councillor Furse regarding membership of the board, the officer explained that there is an open recruitment process with job description and criteria.

Councillor Furse asked about breeches and fraud – the officer explained that a breech would have to be significant to be reportable and this had never occurred to date.

Councillor Barrett asked if the Government can access the pension fund and also if outsourced services employees can join (eg. academy staff). The Strategic Director responded that the Government cannot access the Pension Fund but would like to influence the way funds are invested. He also explained that academy non-teaching staff regularly join the Pension Fund.

Councillor Goodman asked if 78% funded is a good level and what level would be a worry. The Strategic Director explained that this level is acceptable and that the key is a sustainable recovery plan which is in place.

Councillor Becker noted the elaborate system of controls and stated that BHS had a Pensions Board and is this structure similar. The officer explained that there is a difference between private and public pension schemes. He assured the Panel that the Avon Pension Fund is one of the best Local Government Schemes. The Strategic Director confirmed that the Local Government scheme is a national scheme, underpinned by secure funding streams and unlike many public sector schemes its liabilities are mainly funded by investments.

Project Brunel Update – the Strategic Director gave a short introduction to this project, he explained that this Government directed initiative is at a crucial stage. The Project concerns the pooling of funds and the business case is being worked on by PWC. He informed the Panel that there will be a report to Council probably in September to further update members.

Panel members asked the following questions and made the following points:

Following a query from Councillor Furse, the Strategic Director explained that the pension funds stay separate, it is the investments that are pooled.

The Chair thanked the officers.