Greenwich Council

Agenda and minutes.

Venue: Committee Room 4 - Town Hall, Wellington Street, Woolwich SE18 6PW

Contact: Clare Chapman  Email: Clare.chapman@royalgreenwich.gov.uk tel 020 8921 3988

Items
No. Item

1.

Apologies for Absence

To receive apologies for absence from Members of the Panel.

Minutes:

There were no apologies for absence.

2.

Urgent Business

The Chair to announce any items of urgent business circulated separately from the main agenda.

Minutes:

There was no urgent business.

3.

Declarations of Interest pdf icon PDF 37 KB

Members to declare any personal and financial interests in items on the agenda.  Attention is drawn to the Council’s Constitution; the Council’s Code of Conduct and associated advice.

Additional documents:

Minutes:

Resolved –

 

That the list of Councillors’ memberships as Council appointed representatives on outside bodies, joint committees and school governing bodies be noted.

4.

Minutes pdf icon PDF 53 KB

Members are requested to confirm as an accurate record the Minutes of the Pension Fund Investment and Administration Panel meeting held on 17th June 2019.

 

No motion or discussion may take place upon the Minutes except as to their accuracy, and any question on this point will be determined by a majority of the Members of the body attending who were present when the matter in question was decided.  Once confirmed, with or without amendment, the person presiding will sign the Minutes.

Minutes:

Resolved -

 

That the minutes of the meeting of the Pension Fund Investment & Administration Panel held on 17th June 2019 be agreed and signed as a true and accurate record.

5.

Audit Finding Report pdf icon PDF 76 KB

To review and comment upon the contents of the Auditor’s Audit Findings Report in respect of the Pension Fund Accounts – appendix to follow.

Minutes:

The report was introduced by the representative from Grant Thornton. 

 

The representative informed the Panel that the Audit Findings Report provided detail of work that was still being undertaken.  If anything was under £600k it was considered trivial and therefore not reported.  Anything over £9m triggered a request for an adjustment. 

 

Subsequent to the preparation of the draft accounts, but prior to the publication of the Audit Findings Report, the McCloud judgement had now been clarified.  The actuary quantified the judgement at £15.6m.  The representative confirmed this had not impacted on the performance and was confident this was an accurate estimate.  The final version of the accounts had been adjusted accordingly.

 

Resolved: -


That the report be noted.

6.

Pension Fund Annual Report 2018/19 pdf icon PDF 41 KB

To consider and comment upon the Pension Fund Annual Report 2018/19, and to note that the Annual Report will be published upon receipt of the Audit Opinion following Council meeting on 17 July 2019.

Additional documents:

Minutes:

The report was introduced by the Finance Manager.

 

In response to a question from the Panel, the Finance Manager confirmed that Northern Trust had been appointed as custodian of the Pension Fund with the transition due to complete by the end of August 2019.  A representative from Northern Trust would be invited to attend a future meeting of the Pension Fund Investment & Administration Panel. 

                                                                                                             

                                                             ACTION: Finance Manager

 

In response to a question from the Panel, the Pensions Operations Manager reported that the number of Pension Fund members with deferred benefits was growing due to an increase of staff with multiple jobs. 

 

In response to a question from the Panel, the Pensions Operations Manager confirmed that whilst Wide Horizons was no longer in operation, the deferred pensions of staff who worked there must still be honoured. 

 

In response to a question from the Panel, the Pensions Operations Manager confirmed there had been a third tier consultation with regard to early retirement.  Many employers did not appreciate the cost or what they were liable for.  Employers would be required to have a guarantor and bond in place. 


In response to a question from the Panel, the Finance Manager confirmed that the Annual Strategy Day would take place in October or November 2019.

 

Resolved: -

 

That the report be noted.

7.

Funding Update pdf icon PDF 68 KB

To note a funding update report from the pension fund actuary, Barnett Waddingham, as at 31 March 2019.

Additional documents:

Minutes:

The report was introduced by the Finance Manager who advised that a more detailed report of funding value would be published in October 2019. 

 

The Director of Finance reported that the contribution rate for the Fund had remained at the same level for a decade.  He noted this was a significant achievement.  The report was published prior to the McCloud ruling and showed that the funding level had increased over three years. 

 

Through the performance of the Fund, it would, in part, be able to rebut the effects of the McCloud ruling.  The Chair thanked officers for their work in this respect. 

 

Resolved: -

 

That the report be noted.

8.

Governance Compliance Statement pdf icon PDF 56 KB

To agree the Governance Compliance Statement for the Royal Borough of Greenwich Fund (the “Fund”).

Additional documents:

Minutes:

The report was introduced by the Finance Manager who noted that the report had not changed from previous years.  Regulation code 14 with a set of codes would be published around September 2019.

 

Resolved: -

 

That the Governance Compliance Statement for the Royal

Borough of Greenwich Fund be agreed.

9.

CBRE Portfolio Update pdf icon PDF 45 KB

To receive a presentation from CBRE providing an update on the Pension Fund’s Property mandate (closed session).

Minutes:

The representatives from CBRE introduced their organisation, the Greenwich portfolio and proceeded to outline their social housing offering.

 

In response to concerns raised by the Panel, the representative confirmed that CBRE would not be investing the Greenwich portfolio into the product offered.

 

The Director of Finance advised that although there was significant interest, it was not straightforward, nor what some would imagine it to be.  He added that events in Kent recently demonstrated it was difficult to withdraw from some relationships easily and thereby demonstrated a higher risk factor.  

 

Resolved: -

 

The Panel received a presentation from CBRE providing an update on the Pension Fund’s Property mandate (closed session).