Report of the City Treasurer.
6.1 Peter Carpenter presented the report and sought clarification on whether the Board wished to create a set of principles based on its Terms of Reference. He also sought Members’ views on what matters they wanted the Board to focus on in future and who the Board would like to attend their meetings to provide Members with advice.
6.2 During discussion, it was noted that each Board Member was appointed on a three year basis and their appointment could be extended by a further three years, subject to re-nomination. Members suggested that a rota be set up to ensure at least one Board member was always in attendance at Pension Fund Committee meetings. In respect of proposals to invite Board Members to attend the next Pension Fund Committee on 21 March 2017, it was asked whether this meant all Board Members.
6.3 Members commented on the need to prevent duplication of work that the Pension Fund Committee was already undertaking, and it was suggested that the Board focus on pension administration matters, such as scrutinising the issues in respect of Surrey County Council and BT’s administration of the pension scheme. The Chairman requested that a draft paper be produced for the Board for its next meeting on 27th February 2017 to suggest roles the Board can undertake and to form the basis of discussion when members Pension Board meet with the Pension Fund Committee on 21st March to discuss allocation of work areas. The Vice Chairman suggested that the Board could focus on the 2016 triennial valuation, the administration of the Fund and Pension Scheme and in terms of investment policy, consider whether the correct procedures were followed in appointing fund managers. In addition, the Board should receive reports that provide evidence of compliance with pension regulations. Members also sought further comments in respect of the Risk Register.
6.4 In reply to issues raised by Members, Nikki Parsons advised that it was proposed that the Risk Register to be presented to the next meeting of the Pension Fund Committee would include a break down on the impact score of each particular risk, whether this be in terms of the financial impact, or the number of people it affected. This would include reviewing the scoring mechanism. Nikki Parsons agreed to Members’ request that they receive a paper on the revised scoring mechanism and the processes involved for the Board to consider and provide feedback at the next meeting. With regard to Board Members being invited to the next Pension Fund Committee meeting, Nikki Parsons advised that Committee Members had wanted to discuss allocating work appropriately between the Board and the Committee at this meeting and so had wanted to invite Board Members to it.
6.5 Peter Carpenter added that he would discuss with the Chairman of the Pension Fund Committee whether it was intended that all Board Members be invited to the next Committee meeting. He stated that the role of the Pension Fund Committee was to monitor the performance of the Fund and to ensure that assets were growing sufficiently to meet liabilities. He confirmed that a draft paper suggesting roles for the Board be produced for discussion at the next Board meeting.