Venue: Ystafell Gwyrfai, Council Offices, Caernarfon, Gwynedd. LL55 1SH
Contact: Lowri Haf Evans 01286 679878
No. | Item |
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APOLOGIES To receive
any apologies for absence Minutes: Apologies was received from Councillors David Cowans (Conwy Borough Council)
and Aled Wyn Jones |
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DECLARATION OF PERSONAL INTEREST To receive
any declaration of personal interest Minutes: None to note. |
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URGENT ITEMS To note any
items which are urgent business in the opinion of the Chairman so that they may
be considered Minutes: None to note. |
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The Chairman shall propose that the minutes of the meeting of this committee held on 29th July 2019 to be signed as a true record Minutes: The Chair signed
the minutes of the previous meeting of this committee, held on 29 July 2019, as
a true record |
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MINUTES OF PENSION FUND ANNUAL MEETING PDF 81 KB To submit, for information minutes of the Pension Fund Annual Meeting held 24th October 2019 Minutes: Submitted, for
information, the minutes of the Pension Fund's annual meeting held on 24
October 2019 |
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BUDGET APPROVAL FOR 2020/21 PDF 64 KB To consider the
Investment Managers report Minutes: Submitted, a
report by the Investment Manager relating to a request for the Committee to
approve the budget for the 2020-2021 financial year, for the Pension
Administration Unit and the Investment Unit. Attention was
drawn to some amendments to the budget, along with a request for an increase in
the training budget and software costs for the Pensions Administration
Unit. Budget amendments of £140,940 were
approved and this brought the total budget for the Pensions Administration Unit
to £1,015,700 for the 2020/21 financial year. Similarly, attention was drawn to
a request to amend the working hours and salary scales of officers who divided
their hours between the Gwynedd Pension Fund and Gwynedd Council within the
Investment Unit. Budget amendments of
£21,240 were approved and this brought the total budget for the Investment Unit
funded by the Pension Fund to £110,460 for the 2020/21 financial year. In response to a
question regarding whether the amendments justified commitments from the fund,
it was noted that they were being included as an 'additional resource'. RESOLVED to approve the budget for the 2020/21
financial year for the Pension Administration Unit and Investment Unit,
including the additional resources. |
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TREASURY MANAGEMENT 2019/20 MID YEAR REVIEW PDF 254 KB To consider the
Investment Managers report Minutes: Submitted, for information, a report highlighting the Council's actual
Treasury Management activity during the current financial year. It was
highlighted that, during the six months between 1 April and 30 September 2019,
the Council’s borrowing activity had remained within the restrictions
originally placed and there were no banks where the Council had deposited money
that had failed to repay. It was reiterated that it was estimated that the
Council's investment income exceeded the expected income in the 2019/20 budget.
It was explained
that a few of the Council's investments were in property and strategic combined
equity funds that were externally managed where security and short-term
liquidity was less of a consideration.
Consequently, the objectives were realised through regular revenue
income and long-term price stability. RESOLVED to accept the
information. |
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FUNDING STRATEGY STATEMENT 2020/21-2023/24 PDF 69 KB To consider the
Investment Managers report Additional documents: Minutes: The Investment Manager submitted a report requesting the Committee to confirm
the assumptions and policies in the draft Funding Strategy Statement before
consulting with all employers. The
Committee was informed that there was a statutory requirement to review and
publish a triennial Funding Strategy Statement by 31.3.2020. As part of the review, the administrative
authority must consult with all employers who are a part of the plan, with the
fund's actuary and advisers, and with any other persons deemed suitable. It was explained
that the Fund's triennial actuary valuation was in the process of being
prepared and the Actuary, Hymans Robertson gave a presentation on the process
and results to the Employers at a meeting in Caernarfon on 24/10/2019. It was
highlighted that the presumptions had been agreed and the deficit recovery
periods for various categories of employers were prudent and consistent with
the previous valuation (2016). The Draft Funding Strategy Statement (prepared by Hymans) was discussed and
attention was drawn to some matters - specific reference was made to section 3
of the report. ·
Asset share accounts - it was highlighted that the
Fund had adopted a cash flow method for tracking the assets of individual
employers. It was reiterated that there was a need to submit the information
every month and that considerations to this additional requirement had been
included in the Unit's budget. ·
Equity Risk Premium - it was highlighted that as
the assumed difference between the expected yields increased, the risk
increased and the funding basis became less prudent. It was noted that the anticipated surplus
yield from the equity assumptions for 2019 was 1.7%. ·
Deficit Recovery Periods
had been introduced for the 2019 valuation. ·
Deficit Collection - the deficit would be collected
as a salary percentage, rather than as an annual share (which was being paid in
12 monthly part-payments) ·
Established Employer -
every established employer had to pay a basic rate as a minimum over the next
three years. Potential variations had
been noted in the report. ·
Non-established Employers -
the
contribution rates for employers, that are closed to newcomers, and aim towards
cessation, are set equal to employers' basic rates. ·
Gradual Period of
Contribution Increases - the regulations would allow all employers to increase
their contributions gradually - for the 2019 valuation, the increase could be
divided across three years RESOLVED ·
to accept the presumptions and Policies
·
following the consultation process, to accept the final Funding Strategy
Statement (FSS) for adoption by 31 March 2020. |
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EXCLUSION OF PRESS AND PUBLIC The Chairman shall propose that the press and public be excluded from the meeting during the discussion on the following items due to the likely disclosure of exempt information as defined in paragraph 14 of Schedule 12A of the Local Government Act 1972. Although there is a public interest in gaining an understanding of the operation of the pension fund, this report is about proposed rates, which are being shared with Scheme Employers as a forewarning of rates. This information has not been shared through the governance arrangements of each Employer and publication at this point could have an impact on the interests of the Employers by undermining their budget reporting and preparation. On balance the Monitoring Officer is satisfied that the public interest does not support publication of this report. Minutes: RESOLVED to exclude the press and public from the meeting during the discussion
on the following item due to the likely disclosure of exempt information as
defined in paragraph 12, Section 4, Schedule 12A, Local Government Act 1972.
Although there is public interest in having an understanding of how the pension
fund operates, this report regarding proposed rates is shared as a prior
warning with the Employers of the Scheme.
This information has not been shared within the managerial systems of
each of these Employers, and its publication at this point may have an impact
on the Employers' interests by undermining their reporting arrangements and
financial preparations. On balance, the Monitoring Officer was satisfied that
there was no public interest to support the publication of this report. |
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PENSION FUND VALUATION RESULTS To consider the report (separate copy for Committee Members only) Minutes: Submitted - the
report of the Pensions Manager highlighting the Pension Fund valuation
results. It was noted that there had
been an improvement in the Fund's position with the budget level increasing
from 91% on 31 March 2016 to 108% on 31 March 2019. It was noted that this was very good news. Attention was drawn to the appendix which contained details of employer
contributions. It was noted that all employers who were part of the fund were aware of
their individual results and that discussions had taken place with them. It was expressed that the situation was very
encouraging. In response to a
question regarding employers' rights to challenge contributions / presumptions,
it was noted that the employers had a right to challenge the principles of the
Fund as part of the consultation, but it was the fund, with advice and support
from the Actuary, Hymans Robertson, that made a decision on the final
contributions. It was proposed
that a press statement should be released, when timely to do so, drawing
attention to the news. RESOLVED to accept
the information. |