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Agenda and minutes

Venue: Committee Room 5 - Town House. View directions

Contact: Stephanie Dunsmuir, tel 522503 or email  sdunsmuir@aberdeencity.gov.uk 

Items
No. Item

The agenda and reports associated with this minute can be found at:-

http://committees.aberdeencity.gov.uk/ieListDocuments.aspx?CId=506&MId=3907&Ver=4

 

Please note that if any changes are made to this minute at the point of approval, these will be outlined in the subsequent minute and this document will not be retrospectively altered.

1.

Determination of Exempt Business

Minutes:

The Committee was requested to determine that the following items of business, which contained exempt information as described in Schedule 7(A) of the Local Government (Scotland) Act 1973, be taken in private – items 13 (Asset and Investment Manager Performance Report) and 14 (Investment Strategy Update).

 

The Committee resolved:-

in terms of Section 50(A)(4) of the Local Government (Scotland) Act 1973, to exclude the press and public from the meeting during consideration of items 13 and 14, so as to avoid disclosure of exempt information of the class described in paragraph 6.

 

The Board resolved:-

to note the decision of the Committee.

2.

Minute of Previous Meeting of the Pension Committee and Pension Board pdf icon PDF 89 KB

Minutes:

The Committee and Board had before them the minute of the Pension Committee and Board meeting of 11 March 2016.

 

The Committee and Board resolved:-

to approve the minute as a correct record.

3.

Minute of Pension Board of 13 May 2016 pdf icon PDF 61 KB

Minutes:

The Committee had before it for information the minute of the annual Pension Board meeting of 13 May 2016.

 

The Committee resolved:-

to note the minute.

4.

Motions List pdf icon PDF 49 KB

Minutes:

The Committee had before it a motions list prepared by the Head of Legal and Democratic Services.  In relation to the motion from Councillor Kiddie requiring a report on ethical investments in respect of the Pension Fund, it was noted that the report from KPMG (article 10 of the minute of 17 December 2015 refers) would possibly not solely satisfy the terms of the motion, and that the Committee had agreed to defer consideration of this item until Councillor Kiddie was in attendance.

 

The Committee resolved:-

to note the motions list.

 

The Board resolved:-

to note the decision of the Pension Committee.

5.

Pensions Investment Strategy pdf icon PDF 155 KB

Minutes:

The Committee had before it a report by the Internal Auditor in respect of the North East Scotland Pension Fund – Investment Strategy and Investment Performance Management.

 

The Committee heard from David Hughes, Internal Auditor, who spoke to the report and advised that the recommendations for improvement contained within the report had been responded to positively by Management.

 

The Committee resolved:-

to note the report.

 

The Board resolved:-

to note the decision of the Committee.

6.

Internal Audit Plan for 2016/17 pdf icon PDF 40 KB

Minutes:

The Committee had before it a report by the Internal Auditor which sought approval for the Internal Audit plan for 2016/17.

 

The report explained that although one of the functions of the Audit, Risk and Scrutiny Committee was to review the activities of the Internal Audit function and to approve the Internal Audit plan for Aberdeen City Council, that remit did not extend to any Internal Audit issues relating to the Pension Fund.

 

The report recommended:-

that the Committee approve the Internal Audit Plan for 2016/17.

 

The Committee resolved:-

to approve the recommendation.

 

The Board resolved:-

to note the decision of the Committee.

7.

Progress update on the 2015/16 Audit pdf icon PDF 196 KB

Minutes:

The Committee had before it a report by the External Auditor which provided an update on progress with the 2015/16 audit of North East Scotland Pension Funds.

 

The Committee resolved:-

to note the report.

8.

Strategy pdf icon PDF 90 KB

Additional documents:

Minutes:

The Committee had before it a report by the Pensions Manager which provided an update on any changes to the North East Scotland Pension Fund and the Aberdeen City Council Transport Fund strategies.

 

The report contained updates on the Pension Fund Staff Restructure; an update from the External Auditors and Internal Audit; the annual report of the Pensions Board; the Scheme Advisory Board; and the Risk Register.

 

The Committee resolved:-

to note the report

 

The Board resolved:-

to note the decision of the Committee.

 

9.

Request for Admitted Body Status pdf icon PDF 76 KB

Additional documents:

Minutes:

The Committee had before it a report by the Head of Finance which set out a request from Visit Aberdeenshire for admitted body status within the Local Government Pension Scheme administered by Aberdeen City Council.

 

The report advised that as of 1 July 2016, Aberdeenshire Council would transfer one member of staff to Visit Aberdeenshire under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE).  The regulations required that Visit Aberdeenshire provide pension benefits of an equal or greater value for the transferring member, therefore a request had been received for Visit Aberdeenshire to become an admission body within the NESPF.

 

The report recommended:-

that the Committee agree to allow Visit Aberdeenshire to participate in the Local Government Pension Scheme administered by Aberdeen City Council to enable them to meet the requirements of the TUPE transfer of one member of staff from Aberdeenshire Council.

 

The Committee resolved:-

to approve the recommendation.

 

The Board resolved:-

to note the decision of the Committee.

10.

Training pdf icon PDF 57 KB

Additional documents:

Minutes:

With reference to article 1(C) of the minute of the meeting of the Pension Board of 13 May 2016, the Committee had before it a report by the Head of Finance which provided details of the 2016/17 training plan for the Pension Committee and Pension Board of the North East Scotland Pension Fund.

 

The Committee resolved:-

to note the report.

 

The Board resolved:-

to note the decision of the Committee.

11.

Budget/Forecast and Actual Spend 2015-16 and Budget/Forecast 2016-17 pdf icon PDF 34 KB

Additional documents:

Minutes:

The Committee had before it a report by the Head of Finance which set out the details of the Management Expenses Budget / Forecast and Actual Spend 2015/16 for the North East Scotland Pension Fund and a proposed budget / forecast for 2016/17.

 

Members heard that although there had been an overspend on Administrative Staff costs in 2015/16, the additional £10,000 spend in 2016/17 was required to enable the staff structure to accurately reflect the required increase in capacity as a result of the Fund growth.

 

The report recommended:-

that the Committee –

(a)       note the update on the NESPF Management Expenses Budget / Forecast and Actual Spend 2015/16; and

(b)       approve the indicative NESPF Management Expenses Budget / Forecast 2016/17.

 

The Committee resolved:-

to approve the recommendations.

 

The Board resolved:-

to note the decision of the Committee.

12.

NESPF Annual Report and Annual Accounts 2015-16 pdf icon PDF 2 MB

Minutes:

The Committee had before it the North East Scotland Pension Fund Unaudited Annual Report and Accounts for the period 1 April 2015 to 31 March 2016.  The report included the Management Commentary as required by The Local Authority Accounts (Scotland) Regulations 2014 which set out details of the Fund’s business, risk and the uncertainties facing the Fund, performance and financial position including key performance indicators and environmental and social issues.

 

The Committee then heard from the Head of Finance in respect of the report.

 

It was recommended:-

that the Committee –

(a)       note the annual report and accounts as presented;  and

(b)       approve the annual governance statement.

 

The Committee resolved:-

(i)        to approve the recommendations;  and

(ii)       to thank all staff for their work on the preparation of the accounts, particularly Michael Scroggie and Louise Campbell.

 

The Board resolved:-

to note the decision of the Committee.

 

In accordance with the decision recorded under article 1 of this minute, the following items were considered with the press and public excluded.

13.

Asset & Investment Manager Performance Report

Minutes:

With reference to article 12 of the minute of its previous meeting, the Committee had before it a report by the Head of Finance which provided a review of the North East Scotland Pension Fund and the Aberdeen City Council Transport Fund for the three month period ending 31 March 2016.  The report was supported by the BNY Mellon Fund Analysis and Performance Report and the Fund Managers’ quarterly investment reports.

 

The Committee resolved:-

to note the report.

 

The Board resolved:-

to note the decision of the Committee.

DECLARATION OF INTEREST

 

Councillors Donnelly and Young declared an interest in the following item by virtue of their position as Trustees of Oakbank School.  Both members considered that the nature of their interest required them to withdraw from the meeting during discussion of the item.

 

14.

Update on Legal Matter

Minutes:

With reference to article 13 of the minute of its previous meeting, the Committee received an update from the Head of Finance in respect of the ongoing legal matter.

 

Mr Whyte explained that it had been intended to provide a report to the June Committee as discussed at the last meeting, however the financial position was still to be concluded.  He advised that if the matter was not settled by June / July then officers would contact the Committee to ask if they wished a special meeting to be arranged to discuss the action to be taken.

 

The Committee resolved:-

to note the update.

 

The Board resolved:-

to note the decision of the Committee.

 

Councillors Donnelly and Young rejoined the meeting at this juncture.

DECLARATION OF INTEREST

 

At this juncture, the Head of Finance left the meeting due to his role as adviser to Aberdeen City Council in respect of one of the items under consideration in the following article.

15.

Investment Strategy Update

Minutes:

The Committee had before it a report by the Head of Finance which provided an update on the Fund’s investment strategy and proposed actions to secure compliance and adherence to the Fund’s benchmark allocation.

 

The report recommended:-

that the Committee –

(a)       approve item 5.3, points 1 to 6 as set out in the report;

(b)       approve item 5.4 as set out in the report;  and

(c)       note the remainder of the report.

 

In respect of the recommendation at item 5.4, it was noted that the wording required to be amended to, “to agree the investment opportunity in principle, with the final decision falling to the Pension Fund Manager in conjunction with the Pension Committee Convener, following full due diligence.”

 

The Committee resolved:-

to approve the recommendations.

 

The Board resolved:-

to note the decision of the Committee.

-     COUNCILLOR BARNEY CROCKETT, Convener