Present:-

Devon County Council:-

Councillors Boyd (Chairman), Brook, Dezart, Edgell, Gilbert, Greenslade, Hannon, Hill, Radford, and Randall Johnson.

Unitary and District Councils:-

Councillor Fox (Plymouth City Council).

Union and Retired Members: Non-Voting Observers:-

Mr Franceschini, Mr Lomax and Mrs Parker.

Apologies:-

Devon County Council: Councillors Squires and Wright.

Plymouth City Council: Councillor Smith.

Exeter LGA Devon: Councillors Edwards and Hicks.

*18 Minutes

RESOLVED that the minutes of the meeting held on 13 September 2013 be signed as a correct record, subject to the inclusion of Councillor Hill in the list of apologies.

*19 Consultation on Pooling Arrangements for Academies

The Committee received the Report of the County Treasurer (CT/13/59 - text only | pdf | supplementary information CT/13/59) outlining the consultation undertaken by the Department of Communities and Local Government on pooling arrangements for academies, and on her action as a matter of urgency, following consultation with the Chairman, in responding there to, supporting the option to pool academies with each other, but not with the ceding authority.

The County Treasurer also confirmed in response to questions raised that there would be no impact on pension fund members and that the pooling of academies should ensure that contribution rates remain stable for these employers.

It was MOVED by Councillor Boyd, SECONDED by Councillor Radford and

RESOLVED that the Report and the action of the County Treasurer be noted.

*20 Actuarial Valuation 2013

The Committee received the report of the County Treasurer (CT/13/60 - text only | pdf CT/13/60) outlining the outcome of the Actuarial Valuation, which showed a good result for the Fund with the funding level having increased from 81% to 83%.

Members expressed concerns at the possible impact on employer contribution rates of both the decrease in the deficit recovery period, and the impact on the Fund of decreasing contributions, as a result of local authorities employing fewer staff.

The County Treasurer advised the Committee that the decision to return to a 25 year deficit recovery period from a 30 year one was taken by the Fund s Actuary, in order to reduce the overall cost of meeting the deficit and to decrease the level of risk to the Fund; the average increase to employer contributions of 0.5% was considered to be reasonable in light of this.

The County Treasurer also reported that pension auto-enrolment had brought new members into the pension scheme, which to an extent was helping to maintain the number of employees who are contributing to the Fund.

*21 Investment Management Report

The Committee considered the report of the County Treasurer (CT/13/61 - text only | pdf CT/13/61) outlining the current Fund Value and Asset Allocation against target, acknowledging a disappointing year to date, with a Fund return of 1.5% below the Fund s customised benchmark.

Members expressed concern at the below target level of infrastructure asset allocation, in light of the decision taken at the previous meeting of the Committee to make further investments in this area, and the position with regard to equities.

The County Treasurer indicated that the commitments made to infrastructure would counteract the imbalance against the target asset allocation over time but that, particularly in relation to the ground rents fund, it would be some time before the committed funds were fully invested. The County Treasurer also confirmed that both infrastructure and equity asset allocation would continue to be monitored, and in line with the Rebalancing Policy agreed at the Committee meeting in June this year, action would be taken to address imbalances when and where necessary.

It was MOVED by Councillor Boyd, SECONDED by Councillor Radford and

RESOLVED that the Investment Management Report and the compliance with the 2013/14 Treasury Management Strategy be noted.

*22 Member Training

The Committee noted that following the joint training day with the Cornwall Investment Committee, a further training session had been arranged for Friday 28^th March for this Committee only.

*23 Applications for Admitted Body Status

The Committee noted that the application from Human Support Group Plymouth City Council domestic care services, for admitted body status had been approved.

*24 Dates of Future Meetings

28 February 2014

16 May 2014

12 September 2014

21 November 2014

27 February 2015

*DENOTES DELEGATED MATTER WITH POWER TO ACT

The meeting started at 10.20am and finished at 11.15am.

The Minutes of the Committee are published on the County Council s Website at: