Decision details

The Committee and Board considered a report, introduced by Thomas Skeen, on the governance update on the London Collective Investment Vehicle (CIV) governance structure and on the terms of appointments to the Pensions Committee and Board.

The Committee noted the changes in the governance structure of CIV, notably:

·         General meetings, which all of the boroughs attend, will be held twice annually. These meetings will be in July (to approve the accounts), and in January (to approve the Medium Term Financial Strategy). These meetings will continue to be attended by either the Chair or Vice Chair of Haringey Pensions Committee and Board.

·         Shareholder Committees will meet on a quarterly basis on a consultative capacity only, with 12 Shareholders represented: four S151 Officers, and eight Pension Chairs. The Pension Chairs would be selected via the collective political processes of the London Councils, providing political, geographical and gender diversity.

It was noted that, under the old system of governance, problems arose due to the sheer number of shareholders (32) trying to make decisions. The new structure of four S151 Officers and eight Pension Chairs was expected to create more effective dialogue by streamlining the number of participants in the decision making. Haringey Council did initially challenge the selection process of the eight Pension Chairs and questioned whether this would secure the best individuals for the committee.

In discussing the selection of the eight Pensions Chairs to attend the quarterly meetings of the shareholder committees, it was noted that, contrary to the objective of selecting chairs that reflect the political balance of London, the proposed chairs do not in fact do this. It was further noted that it was important for the Chair of the Pensions Committee and Board to build effective working relationships with the other Pension Committee Chairs.

Terms of appointment for the Pension Committee and Board

The Chair gave an update on the terms of appointment to the Pensions Committee and Board. Regarding his discussion with both Chief Whips, it was acknowledged of the need for continuity to ensure that members have the necessary knowledge and training to sit on the committee. Both Chief Whips have stated that they are committed to appointing the same members onto the Pensions Committee and Board each year within the election cycle, while recognising that Groups may wish to hold elections for their nominees for the Chair and Vice Chair positions. It was suggested that this would be a better alternative to the cumbersome approach of changing the Constitution of the Council to mandate 4 year terms for members of the Pensions Committee and Board. The Chair stated that this would be reviewed in 2 years’ time to ensure that this approach is still a workable and effective one. However, it was noted in discussion that this approach only works for members of the Pensions Committee and Board who wish to remain on the committee.

Resolved

That the Committee and board:

• note the London CIV governance structure updates.
• note the verbal update given by the Chair of the Committee and Board after his conversation with both Chief Whips.