Agenda and minutes

Apologies for absence were received on behalf of Councillor Adje, and Aitken, Roger Melling, and Gerald Almeroth, and for lateness from Councillor Wilson.

NOTED

The Chair will consider the admission of any late reports, related to any items for consideration under those agenda items. Any new items of urgent business will be considered either under Agenda Item 8 (unrestricted only), or 11 (exempt only).

Nil Items

A member with a personal interest in a matter who attends a meeting of the authority at which the matter is considered must disclose to that meeting the existence and nature of that interest at the commencement of that consideration, or when the interest becomes apparent.

A member with a personal interest in a matter also has a prejudicial interest in that matter if the interest is one which a member of the public with knowledge of the relevant facts would reasonably regard as so significant that it is likely to prejudice the member's judgment of the public interest and if this interest affects their financial position or the financial position of a person or body as described in paragraph 8 of the Code of Conduct and/or if it relates to the determining of any approval, consent, license, permission or registration in relation to them or any person or body described in paragraph 8 of the Code of Conduct.

Councillor Rahman Khan declared a personal interest in respect of his membership of the Haringey Pension Scheme. He also declared a personal interest in respect of his attendance for improving his required skills for the benefit of discharge of council duties at various forums/ trainings/ conferences, including the LGC where some of the fund Managers or agencies were sponsors.

Councillor Mallett declared a personal interest in respect of her membership of the Haringey Pension Scheme. She also declared a personal interest in respect of her attendance at a training course facilitated by pension fund managers.

Councillor Wilson declared a personal interest in respect of his employment at the Association of British Insurers.

Councillor Butcher declared personal interests in respect of his membership of the Haringey Council Pension Fund.

NOTED

To confirm and sign the unrestricted minutes of the meeting of the Pensions Committee held on 28 January 2008.

The Chair advised the Committee of two amendments to the Minutes of the meeting held on 29 January 2008, being:-

PRPP 37 – Page 2 – ‘Audit’ should read ‘Pensions’

PRPP 38 - Page 3 – first line – after the word ‘that’ remove the words to ‘the number’.

PRPP 42 – Page 8 – ’28 April’ should read ’13 March’

Councillor Mallett sought clarification to a figure quoted at page 3 – second para, 3^rd line – ‘20%’ and whether this was a correct figure.  The Chair asked that Councillor Mallett, and the Committee be advised in writing by officers.

On a MOTION by the Chair it was:

RESOLVED

That the minutes of the Pensions Committee held on 29 January 2008 be signed as an accurate record of the proceedings subject to the following amendments:

PRPP 37 – Page 2 – ‘Audit’ should read ‘Pensions’

PRPP 38 - Page 3 – first line – after the word ‘that’ remove the words to ‘the number’.

PRPP 42 – Page 8 – ’28 April’ should read ’13 March’

Attendance and presentations by the three Fund Managers for a 15 minute presentation and 15 minutes of questions from Trustees, and the Advisor:

7:05pm – ING; 7.35pm – Bernstein; 8:05pm – Fidelity; 8:35pm - Capital

The Committee received presentations from the 4 Fund Managers as follows:

ING

Fund performance was 0.96% above benchmark and 0.71% above target in the quarter to 31 December 2007. Fund performance was 1.32% above benchmark and 0.57% above target in the 9 months period between 1 April 2007 and 31 December 2007.

ING explained the reasons for current performance and answered questions from trustees.

BERNSTEIN

Fund performance for the global equities mandate was 4.70% below benchmark and 5.45% below target in the quarter to 31 December 2007. Fund performance was 4.68% below benchmark and 6.93% below target in the 9 months period between 1 April 2007 and 31 December 2007.

For the UK equities mandate, performance was 2.97% below benchmark and 3.47% below target in the quarter to 31 December 2007. Fund performance was 3.60% below benchmark and 5.20% below target in the 9 months period between 1 April 2007 and 31 December 2007.

Bernstein explained reasons for current performance and answered questions from trustees.

FIDELITY

Subject to confirmation of performance by our Custodian,

fund performance for the equities mandate was 1.3% above benchmark and 0.9% above target in the quarter to 31 December 2007. Fund performance was 0.4% above target in the 9 months period between 1 April 2007 and 31 December 2007.

Subject to confirmation of performance by our Custodian,

fund performance for the fixed income mandate was at benchmark and 0.1% below target in the quarter to 31 December 2007. Fund performance was 0.1% below target in the 9 months period between 1 April 2007 and 31 December 2007.

Fidelity explained reasons for current performance and answered questions from trustees.

CAPITAL

Fund performance for the equities mandate was 2.00% below benchmark and 2.50% below target in the quarter to 31 December 2007. Fund performance was 1.28% below benchmark and 2.78% below target in the 9 months period between 1 April 2007 and 31 December 2007.

Fund performance for the fixed income mandate was 1.32% below benchmark and 1.57% below target in the quarter to 31 December 2007. Fund performance was 2.12% below benchmark and 2.87% below target in the 9 months period between 1 April 2007 and 31 December 2007.

Capital explained reasons for current performance and answered questions from trustees.

NOTED

(Report of the Chief Financial Officer). To advise the Committee of Fund Managers’ performance for the period to 31 December 2007, and budget monitoring for the 2007/8 period 9 (to end of December 2007).

The Chair asked for a brief introduction of the report.

The Head of Finance – Budgets, Projects & Treasury informed the meeting that in absolute terms the combined fund had increased by 2.86% in the 9 months to 31 December 2007. In this period the fund had under performed the new benchmark by 1.50% and under performed the target by 2.73%.  The Committee had been advised of the fund managers performance and the underperformers were working through their particular issues.

Performance for Fidelity was in the process of being revised in liaison with our Custodian.

In overall terms the budget is on target as per budget monitoring for period 9 (to end of December 2007).

The Chair asked if there were any particular questions from Members.

Councillor Butcher commented on the performance of two of the managers and Members’ concerns as to this given the volatility in markets arising from credit issues. Mr Hardy responded that it was the case that the particular fund managers were using their best endeavours to improve performance but the risk is with the Council. Each would have known that Members would be expressing their concerns.

The Chair asked that investment details be shared regarding the invested cash set aside to invest in property once suitable opportunities are identified by our Property Fund Manager.

On a MOTION by the Chair it was:

RESOLVED

i.                    that the Fund performance position as at 31 December 2007 be noted; and

ii.                  that the budget monitoring position as 31 December 2007 (period 9) be noted.     

(Report of the Assistant Chief Executive, People, Organisation and Development)

The Pensions Manager – Mr Benson gave a brief introduction to the report highlighting that the General Purposes Committee had formally agreed the revised Pensions Policy Statement as detailed in appendix 2 of the report. Attention was drawn to revised charges for work in connection with Pension Sharing on Divorce Orders. The Committee were therefore asked to approve the revised charges in appendix 3 in light of these deliberations.

Attention was drawn to the item in LGPC Cir 207 Feb 2008 which reported that the LGPS for Councillor members will not be changed until the report of the Councillors Commission reports in 2009.

In response to points of clarification from Councillor Butcher Mr Benson responded that pension sharing on divorce did not apply to nominated co-habiting partners.

In response to clarification by the Chair in relation to communicating changes and feedback on the new scheme and feedback from all employing bodies, Mr Benson advised that as yet there had been no such feedback.  The Chair asked that this be pursued and reported upon to the Committee.

The Chair asked that the Committee particularly note issues pertaining at 11.5 of the report in relation to Councillor Members, and consultation on admitted bodies’ status, together with the information relating to the capital cost of ill health retirements, and asked that the Committee receive further quarterly reports in future.

The Chair also referred to the communications strategy in relation to the changes being reported to the next Pensions Committee.

On a MOTION by the Chair it was:

RESOLVED

i.                    that the administration update be noted;

ii.                  that the revised charges for pension Sharing on Divorce as detailed in appendix 3 be agreed;

iii.                that officers be requested to submit quarterly monitoring reports in relation to the capital costs of ill health retirements;

iv.                 that officers be requested to further report back to the committee following the pursuance of feed back  from all employing bodies; and

v.                   that the communications strategy in relation to the changes be reported to the next Pensions Committee.

To consider any new unrestricted items of urgent business admitted under Agenda Item 2 above.

Nil ITEMS

The following item is likely to be the subject of a motion to exclude the press and public from the meeting as it contains “exempt” information as defined in Section 100A of the Local Government Act 1972, namely that they contain information relating to the business or financial affairs of any particular person (including the Authority holding that information).

RESOLVED

That the Public and Press be excluded from the proceedings for consideration of items that contain exempt information as defined in Section 100a of the Local Government Act 1972 (as amended by Section 12A of the Local Government Act 1985); namely information relating to the business or financial affairs of any particular person (including the authority holding that information). 

To confirm and sign the exempt minutes of the meeting of the Pension Committee held on 28 January 2008.

RESOLVED

that the exempt minutes of the Pensions Committee held on 29 January 2008 be signed as an accurate record of the proceedings.

To consider any new exempt items of urgent business admitted under Agenda Item 2 above.

Nil Items

There being no further business to discuss the meeting ended at 21.25hrs.