Issue - meetings

Report of the Chief Financial Officer and the Assistant Chief Executive, People and Organisational Development to approve the 2009/10 Business Plan and to approve the revised Statement of Investment Principles.

The Chief Financial Officer presented a report on the business plan 2009/10. It was reported that there were no significant changes to the business plan for the previous year, but that all the information within the plan had been updated. Further to consultation with Terry Crossley, Communities and Local Government, it was reported that all areas of the compliance statement that had previously been recorded as partly compliant could now be updated to fully compliant .

The Committee asked for an explanation of the increase in fund management costs per scheme member since 2005/06. It was reported that some of this cost was accounted for by a one-off payment made to move the mandate following the dismissal of one fund manager, but that the appointment of a passive manager meant that any such transactions in future would cost significantly less. The Committee welcomed the low administration costs. In response to a request for information on the fund management costs excluding the one-off payment for moving a mandate, it was reported that additional sources of information were being sought to enable a more meaningful comparison to be made.

In response to a question from the Committee regarding the current funding level, it was reported that the target was for 100% funding. The Committee commented on the recent CLG consultation, and suggested that additional information on financing would be welcome in future business plans. The Chief Financial Officer reported that the Committee would be provided with updates on any proposals for a London-wide pension scheme.

The Committee suggested that the business plan should be provided to new pension fund trustees on appointment, as it provided a very useful summary.

In response to a question from the Committee on the negotiation of prices with fund managers, it was reported that this could be looked into. The Committee suggested that higher rates of interest could be sought for the funds currently held as cash. The Chief Financial Officer reported that it was necessary to adhere to Treasury Management guidance, but that he would speak with Earl Ramharacksingh outside the meeting regarding the interest rates available.

RESOLVED

i)                    That the 2009/10 Business Plan be approved.

ii)                  That the revised Statement of Investment Principles be approved.