Agenda item

Report of the City Treasurer.

7.1       Nikki Parsons (Pension Fund Officer) presented the report and began by referring to the Risk Register, drawing Members’ attention to a new risk (Risk 24) concerning BT being unable to provide an interface file in a format suitable for Surrey County Council to update service records. She confirmed that the Council was compliant with the Investment Regulations and no new investor class actions added were recommended to require further investigation. Carolyn Beech added that in respect of Risk 24, there had been a significant number of outstanding issues last month, however following close cooperation with BT and Surrey County Council, a large number had been resolved. She was confident that all issues would be resolved before the end of the financial year, with the most significant issues already resolved, whilst those remaining were mainly minor in nature. Carolyn Beech informed Members that there was to be a meeting the following week to ensure that the matter had been resolved.

7.2       Members sought an update in relation to Risk 19 concerning lump sum payments to scheme members and supplier payments not being made and Fund accounting not being possible. Members also enquired when the risk (Risk 11) concerning committee members having appropriate skills and knowledge to discharge their responsibilities was likely to be resolved.

7.3       In reply, Nikki Parsons advised that submission of one training self-assessment was awaited which would address Risk 11. In respect of Risk 19, that there had since been a thorough review, with lump sum payments now being made in a timely manner and the system had received extensive testing. George Bruce added that it was likely that the risk would shortly be moved to amber and all payments had gone through in time in the last six months.

7.4       Nikki Parsons then referred to cash flow monitoring and advised that additional income had recently been identified, leading to a revised forecast balance of £7.7m. In view of healthy cash flow situation, it was recommended that the monthly cash transfers from the Fund Managers be deferred until required.

7.5       Members commented on the number of employees joining the Pension Scheme and enquired if information could be provided on those leaving the scheme and how this would impact upon it.

7.6       In reply, Carolyn Beech advised that most employees were opting in, primarily because of auto-enrolment. She advised that information on the number of leavers and the impact this may have on the scheme could be provided, however in the majority of cases most leavers were replaced by staff who would join the scheme through auto-enrolment. Steven Mair (City Treasurer) added that the Council’s position was not unique and all local authorities faced budget pressures that impacted on the ability to retain staff.

7.7       RESOLVED:

1.         That the updated Risk Register for the Pension Fund be approved.

2.         That the Fund’s compliance with the limits specified in Schedule 1 of the Local Government Pension Scheme (Management and Investment of Funds) Regulations 2009 be noted.

3.         That the Class Actions update be updated.

4.         That the cashflow position of the Fund be noted and that the proposed deferment of monthly cash transfers from the Fund Managers until May 2016 be agreed.