Present:-

Devon County Council:-

Councillors Parsons (Chairman), Edgell, Hannon, Moulding, Pennington and Westlake

Unitary and District Councils:-

Councillors Fox and Stark (Plymouth), and J Thomas (Torbay)

Union and Retired Members: Non-Voting Observers:-

Mr Franceschini and Mr Lomax

Apologies:-

Councillors Brock, Brook and Radford and Mrs Parker (Observer)

*150 Minutes

RESOLVED that the minutes of the meeting held on 23 November 2012 be signed as a correct record.

*151 Actuarial Valuation 2013

The Committee received and noted the Report of the County Treasurer (CT/13/15 - text only | pdf CT/13/15) on the planned approach to the 2013 triennial valuation of the Pension Fund.

*152 Funding Agreements for Admitted Bodies

The Committee considered the Report of the County Treasurer (CT/13/16 - text only | pdf CT/13/16) on the use of side agreements on the closure of an admission arrangement.

A side agreement was a legal agreement between the fund and the employer which stipulated that the employer shall pay into the fund any contributions as determined by the fund actuary and replaced the admission agreement in respect of employer contributions. This enabled the closure valuation to be based on the ongoing basis and avoided large, up front deficit payments.

It was MOVED by Councillor Moulding, SECONDED by Councillor Hannon and

RESOLVED that the use of side agreements to permit on-going funding streams for admitted bodies with no active members be approved.

*153 Proposed Shared Services Arrangement for Pension Administration (Minute *132 /11 May 2012)

The Committee considered the Report of the County Treasurer (CT/13/17 - text only | pdf CT/13/17) on a proposed shared service arrangement with Somerset County Council.

Members were reminded that, in November 2011, the County Treasurer had been approached by Somerset County Council to explore the possibility of a single manager responsible for the Pensions Administration teams of both Councils. The County Treasurer advised that she had taken the view that the Council had little to gain from just sharing one managerial post and that worthwhile benefits would only accrue if there was a full shared service arrangement between the two Councils. Talks had therefore continued along those lines and progress reported to the Investment and Pension Fund Committee in May 2012. Since that time discussions had progressed satisfactorily and the Cabinet on 9 January 2013 had formally approved a shared service arrangement which would see staff transferring from their employment with Somerset County Council to Devon County Council.

The County Treasurer responded to issues raised on matters involving risks, governance and the potential for savings.

It was MOVED by Councillor Parsons, SECONDED by Councillor Moulding and

RESOLVED that the progress towards the proposed shared service arrangement for Pension Administration Services with Somerset County Council be noted.

*154 Investment Management and New Money Report

The Committee considered the Report of the County Treasurer (CT/13/18 - text only | pdf | supplementary information CT/13/18) on Fund value and asset allocation, Fund performance, Treasury Management Strategy and new money.

It was MOVED by Councillor Moulding, SECONDED by Councillor Hannon and

RESOLVED

(a) that the Investment Management Report be noted;

(b) that the Treasury Management and Investment Strategy for 2013/14 as set out in Appendix 1 to the Report be adopted;

(c) that no new money be allocated in the current quarter.

*155 Annual Consultative Meeting with Staff and Retired Members Representatives - Friday 1 March 2013 (2.15pm)

The Committee noted that presentations at the afternoon s consultative meeting would be made by Mr G Monson from Sarasin and Partners on Thematic Investing and Mrs C Thompson, Head of Pension Services, Devon County Council.

*DENOTES DELEGATED MATTER WITH POWER TO ACT

The meeting started at 10.00am and finished at 11.15am.