<div class="mgLinks">
<ul class="mgActionList">
<li><a href="http://www.minutes.haringey.gov.uk/mgMeetingAttendance.asp?ID=3819" class="external" title="Link to attendance details for the meeting of Pensions CommitteeThursday, 23rd July, 2009 5.30 pm">Attendance details</a></li>
<li><a href="http://www.minutes.haringey.gov.uk/mgConvert2PDF.asp?ID=3819&T=0" class="external" title="Link to agenda frontsheet pdf file">Agenda Frontsheet</a>
<span class="mgFileSize"> PDF 52 KB</span>
</li>
<li><a href="http://www.minutes.haringey.gov.uk/mgConvert2PDF.asp?ID=3819&T=10" class="external" title="Link to agenda reports document pack pdf file">Agenda reports pack</a>
<span class="mgFileSize"> PDF 198 KB</span> </li>
<li><a href="http://www.minutes.haringey.gov.uk/mgConvert2PDF.asp?ID=3819&T=1" class="external" title="Link to printed minutes pdf file">Printed minutes</a>
<span class="mgFileSize"> PDF 61 KB</span> </li>
</ul>
</div><div class="mgContent"> <p><span class="mgLabel">Venue: </span>Civic Centre, High Road, Wood Green, N22 8LE. <a href="http://www.minutes.haringey.gov.uk/mgLocationDetails.asp?RID=7" class="external" title="Link to directions to Civic Centre, High Road, Wood Green, N22 8LE"> View directions</a></p>
<p><span class="mgLabel">Contact: </span>Helen Jones
Telephone : 020 8489 2615
</p>
Items
No.
Item
<p class="mgAiTitleTxt"><a name="AI17668"></a>1.</p>
<p class="mgAiTitleTxt">Welcome by Councillor Catherine Harris, Chair of Pensions Committee</p>
<ul class="mgActionList">
<li><a href="http://www.minutes.haringey.gov.uk/mgIssueHistoryHome.asp?IId=21120" class="external" title="Link to issue details for item 1.">Find out more about item 1.</a></li>
</ul>
<p class="mgSubItemTitleTxt">Minutes:</p><div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">The Chair, Councillor Catherine Harris,
welcomed those in attendance.</p>
</div>
</div>
<p class="mgAiTitleTxt"><a name="AI17669"></a>2.</p>
<p class="mgAiTitleTxt">Guest speaker - Terry Crossley, Head of Pensions DCLG</p>
<ul class="mgActionList">
<li><a href="http://www.minutes.haringey.gov.uk/mgIssueHistoryHome.asp?IId=21121" class="external" title="Link to issue details for item 2.">Find out more about item 2.</a></li>
</ul>
<p class="mgSubItemTitleTxt">Minutes:</p><div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">The Pension Fund Annual General Meeting (AGM)
received a <span class="SpellE">Powerpoint</span> presentation from
Terry <span class="SpellE">Crossley</span> (from the Workforce, Pay
and Pensions Division of Communities and Local Government (CLG))
introducing the new Local Government Pension Scheme (LGPS) which
began on 1<sup>st</sup> April 2008 and enforced viability,
affordability and fairness.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">Mr <span class="SpellE">Crossley</span>
assured members that despite the current economic climate the
pension fund was secure and guaranteed by a parliamentary act and
LGPS investments were expected to improve next year.<span> </span></p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">The AGM noted that employer costs were fixed
until 2010 but may rise in 2011.<span> </span> A valuation exercise would be
conducted and there were plans to informally consult with
ministers, local authorities and trade unions<span> </span> about how the scheme would be
managed over the long term.<span> </span> This could include
consideration of whether a final salary scheme was right for local
government, whether pension fund authorities should be larger and
whether pension payments should be delivered on a sub-regional
basis.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">In response to questions from stakeholders Mr
<span class="SpellE">Crossley</span> emphasised that there were
currently no specific plans to change any part of the LGPS but
there would be open discussions with partners and trade unions
about the possible options.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">In response to stakeholders concerns about the
potential loss of the final salary scheme Mr <span class="SpellE">Crossley</span> explained that any changes made to the
scheme would not affect the current entitlements of scheme
members.<span> </span></p>
</div>
</div>
<p class="mgAiTitleTxt"><a name="AI17345"></a>3.</p>
<p class="mgAiTitleTxt">Apologies for absence</p>
<ul class="mgActionList">
<li><a href="http://www.minutes.haringey.gov.uk/mgIssueHistoryHome.asp?IId=20737" class="external" title="Link to issue details for item 3.">Find out more about item 3.</a></li>
</ul>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">To note apologies for absence.</p>
</div>
</div><p class="mgSubItemTitleTxt">Minutes:</p><div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">Apologies for absence were received from
Councillors Cooke and Khan.</p>
</div>
</div>
<p class="mgAiTitleTxt"><a name="AI17670"></a>4.</p>
<p class="mgAiTitleTxt">Start of Formal Business by Cllr Catherine Harris, Chair of Pensions Committee</p>
<ul class="mgActionList">
<li><a href="http://www.minutes.haringey.gov.uk/mgIssueHistoryHome.asp?IId=21122" class="external" title="Link to issue details for item 4.">Find out more about item 4.</a></li>
</ul>
<p class="mgSubItemTitleTxt">Minutes:</p><div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">The Chair expressed thanks to Councillor
Rahman Khan who chaired the Pensions Committee for many years and
David Fishman for sitting on the Pensions Committee last
year.<span> </span></p>
</div>
</div>
<p class="mgAiTitleTxt"><a name="AI17347"></a>5.</p>
<p class="mgAiTitleTxt">Declarations of interest</p>
<ul class="mgActionList">
<li><a href="http://www.minutes.haringey.gov.uk/mgIssueHistoryHome.asp?IId=20739" class="external" title="Link to issue details for item 5.">Find out more about item 5.</a></li>
</ul>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">A member with a personal interest in a matter
who attends a meeting of the authority at which the matter is
considered must disclose to that meeting the existence and nature
of that interest at the commencement of that consideration, or when
the interest becomes apparent.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">A member with a personal interest in a matter
also has a prejudicial interest in that matter if the interest is
one which a member of the public with knowledge of the relevant
facts would reasonably regard as so significant that it is likely
to prejudice the member’s judgement of the public interest
and if this interest affects their financial position or the
financial position of a person or body as described in paragraph 8
of the Code of Conduct and/or if it relates to the determining of
any approval, consent, license, permission or registration in
relation to them or any person or body described in paragraph 8 of
the Code of Conduct.</p>
<p class="MsoNormal"> </p>
</div>
</div><p class="mgSubItemTitleTxt">Minutes:</p><div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">Councillors <span class="SpellE">C.Harris</span>, Mallett, Thompson and <span> </span>Winskill all declared personal
interests as they were members of the Local Government Pension
Scheme.</p>
</div>
</div>
<p class="mgAiTitleTxt"><a name="AI17348"></a>6.</p>
<p class="mgAiTitleTxt"><a href="http://www.minutes.haringey.gov.uk/mgConvert2PDF.asp?ID=13144" title="Link to document 'Minutes of the last AGM' pdf file" class="external">Minutes of the last AGM</a> <span class="mgFileSize"> PDF 74 KB</span> </p>
<ul class="mgActionList">
<li><a href="http://www.minutes.haringey.gov.uk/mgIssueHistoryHome.asp?IId=20740" class="external" title="Link to issue details for item 6.">Find out more about item 6.</a></li>
</ul>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">To consider the minutes of the previous
Pension Fund AGM, held on 24 July 2008, for approval and
signing.</p>
</div>
</div><p class="mgSubItemTitleTxt">Minutes:</p><div class="mgWordPara"><div class="Section1">
<p class="MsoNormal"><b>RESOLVED</b> that the minutes of the
AGM held on 24<sup>th</sup> July 2008 be confirmed as an accurate
record of the proceedings and signed by the Chair subject to the
following amendment:</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">Minute no. PRPP 24 – Report on the fund
valuation at 31 March 2007</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">The first line of the penultimate paragraph be
amended to read:</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">“Mr Almeroth was asked how the current
sub-prime mortgage situation in USA was likely to affect the
investment portfolio…”</p>
</div>
</div>
<p class="mgAiTitleTxt"><a name="AI17671"></a>7.</p>
<p class="mgAiTitleTxt"><a href="http://www.minutes.haringey.gov.uk/mgConvert2PDF.asp?ID=13145" title="Link to document 'The Annual Report' pdf file" class="external">The Annual Report</a> <span class="mgFileSize"> PDF 101 KB</span> </p>
<ul class="mgActionList">
<li><a href="http://www.minutes.haringey.gov.uk/mgListDeclarationsOfInterest.asp?AIID=17671&ISAI=1" class="external" title="Link to declarations of interest for item 7."> View the declarations of interest for item 7.</a></li>
<li><a href="http://www.minutes.haringey.gov.uk/mgIssueHistoryHome.asp?IId=21123" class="external" title="Link to issue details for item 7.">Find out more about item 7.</a></li>
</ul>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">Presented by Cllr Catherine Harris, Chair of
Pensions Committee.</p>
</div>
</div><p class="mgSubItemTitleTxt">Minutes:</p><div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">The Annual Report was presented and <b>was approved</b> by the meeting.</p>
</div>
</div>
<p class="mgAiTitleTxt"><a name="AI17672"></a>8.</p>
<p class="mgAiTitleTxt">Report on the Pension Fund Accounts for year end 31st March 2009</p>
<ul class="mgActionList">
<li><a href="http://www.minutes.haringey.gov.uk/mgIssueHistoryHome.asp?IId=21124" class="external" title="Link to issue details for item 8.">Find out more about item 8.</a></li>
</ul>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">Presentation by Gerald Almeroth, Chief
Financial Officer.</p>
</div>
</div><p class="mgSubItemTitleTxt">Minutes:</p><div class="mgWordPara"><div class="Section1">
<p class="MsoNormal"><span> </span>Gerald Almeroth, Chief Financial
Officer, presented the Pension Fund Accounts for the year ending 31
March 2009 and the interim Fund valuation at 31 March 2009.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">Mr Almeroth informed attendees that the value
of the Fund had significantly decreased to £488 million and
funds managed by Fund Managers had decreased by 21.6% in the last
year.<span> </span> The Committee
noted that Bernstein had ceased to be a Fund Manager in June 2009
due to low performance and had been replaced by L&G on a
temporary passive basis.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">Mr Almeroth assured the Committee that it was
not unusual for pension funds to decrease in the current economic
climate and emphasised the need to view investments over the long
term.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">A large proportion of the Fund’s
investments were in the UK and some overseas, however, the Council
was not taking undue risks by investing in volatile
countries.<span> </span> An interim
evaluation showed the funding level to be reduced to 53% in March
2009 but had risen to 58% by May 2009.<span> </span></p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">The Council would consider the need for any
changes in the employer contribution rate after the next 3-year
actuarial evaluation in March 2010.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">The Chair invited questions from members of
the Pension Fund.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">In response to a question from an attendee Mr
Almeroth explained that whilst the Council had cash deposits in
Icelandic Banks (90% of which was expected to be returned) none of
this money was part of the Pensions Fund.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">In response to a question as to why there had
been £32 million of cash investments, Mr Almeroth explained
that investing the cash into banks with a 2% interest rate was a
temporary measure prior to investment. While stock markets had been
falling, this was not an issue for the fund.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">An attendee asked what say Pension Fund
Members had about the potential rise of employee
contributions.<span> </span> Mr
Almeroth stated that employee contributions were set in legislation
and applied to everyone, therefore members were not able to
influence the decision.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">In response to a question about the Fund
Manager who recently ceased to work for the Pension Fund, Mr
Almeroth explained that the contract did not entitle the Fund
Manager to any compensation.<span> </span> The Pension Fund operated on a
one-week notice period for Fund Managers.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">Mr Almeroth was asked what the Investment
Strategy Review involved.<span> </span> Mr Almeroth explained that the
Council reviewed the Investment Strategy every three years in order
to be clear about the risks and to discuss the global situation and
the balance between shares, bonds and property, the number of fund
managers required and to see if the Strategy should be changed to
improve the chances of a better return.<span> </span> The next review and actuarial
valuation would take place in 2010.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">In response to a question from Councillor
Thompson, Mr Almeroth explained that the Pensions Committee had
signed-up to the UN Principals of Responsible Investment and Fund
Managers were encouraged to use the policy when reviewing
investments.<span> </span>
Environmental impact on investments was also monitored and often
meant a better share value.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">In response to a question from Councillor
Mallett, Mr Almeroth explained that the difference between the
Bernstein and L&G Fund Managers was that Bernstein was part of
active management funds (that actively tried to beat the market)
whereas a Passive Manager, such as L&G, moved shares around to
mirror the market for short periods of time.<span> </span> Officers would look to move back
to employing active Fund Managers next year.</p>
</div>
</div>
<p class="mgAiTitleTxt"><a name="AI17673"></a>9.</p>
<p class="mgAiTitleTxt">Ballot for Pensioner Member Representative</p>
<ul class="mgActionList">
<li><a href="http://www.minutes.haringey.gov.uk/mgIssueHistoryHome.asp?IId=21125" class="external" title="Link to issue details for item 9.">Find out more about item 9.</a></li>
</ul>
<p class="mgSubItemTitleTxt">Minutes:</p><div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">David <span class="SpellE">Corran</span> the
new pensioner member representative was introduced and pension
scheme members could contact him about any issues concerning the
pension scheme.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">The Committee expressed thanks to David
Fishman for his contribution to the Pensions Committee in the past
year.</p>
</div>
</div>
<p class="mgAiTitleTxt"><a name="AI17674"></a>10.</p>
<p class="mgAiTitleTxt">Close</p>
<ul class="mgActionList">
<li><a href="http://www.minutes.haringey.gov.uk/mgIssueHistoryHome.asp?IId=21126" class="external" title="Link to issue details for item 10.">Find out more about item 10.</a></li>
</ul>
<p class="mgSubItemTitleTxt">Minutes:</p><div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">The Chair thanked Councillors, officers and
more than 100 members of the Pension Fund for attending.</p>
<p class="MsoNormal"><br />
The meeting closed at 18:45 hrs.</p>
</div>
</div>
<div class="mgHelpLine"></div></div>
2009-06-25T15:00:51+01:00
2463
Meeting
Minutes
1622
Attendance details
Agenda Frontsheet
PDF 52 KB
Agenda reports pack
PDF 198 KB
Printed minutes
PDF 61 KB
Venue: Civic Centre, High Road, Wood Green, N22 8LE. View directions
Contact: Helen Jones
Telephone : 020 8489 2615
Items
No.
Item
1.
Welcome by Councillor Catherine Harris, Chair of Pensions Committee
Find out more about item 1.
Minutes:
The Chair, Councillor Catherine Harris,
welcomed those in attendance.
2.
Guest speaker - Terry Crossley, Head of Pensions DCLG
Find out mor...
<div class="mgLinks">
<ul class="mgActionList">
<li><a href="mgMeetingAttendance.asp?ID=3819" title="Link to attendance details for the meeting of Pensions CommitteeThursday, 23rd July, 2009 5.30 pm">Attendance details</a></li>
<li><a href="mgConvert2PDF.asp?ID=3819&T=0" title="Link to agenda frontsheet pdf file">Agenda Frontsheet</a>
<span class="mgFileSize"><img src="mgimages/logo-pdf-1.gif" alt="pdf icon" /> PDF 52 KB</span>
</li>
<li><a href="mgConvert2PDF.asp?ID=3819&T=10" title="Link to agenda reports document pack pdf file">Agenda reports pack</a>
<span class="mgFileSize"><img src="mgimages/logo-pdf-1.gif" alt="pdf icon" /> PDF 198 KB</span> </li>
<li><a href="mgConvert2PDF.asp?ID=3819&T=1" title="Link to printed minutes pdf file">Printed minutes</a>
<span class="mgFileSize"><img src="mgimages/logo-pdf-1.gif" alt="pdf icon" /> PDF 61 KB</span> </li>
</ul>
</div><div class="mgContent"> <p><span class="mgLabel">Venue: </span>Civic Centre, High Road, Wood Green, N22 8LE. <a href="mgLocationDetails.asp?RID=7" title="Link to directions to Civic Centre, High Road, Wood Green, N22 8LE"> View directions</a></p>
<p><span class="mgLabel">Contact: </span>Helen Jones
Telephone : 020 8489 2615
</p>
<table class="mgItemTable" id="mgItemTable" summary="Table of agenda items">
<caption class="mgSectionTitle">Items</caption>
<tr>
<th scope="col" abbr="No">No.</th>
<th scope="col" abbr="Item">Item</th>
</tr>
<tr>
<td class="mgItemNumberCell"><p class="mgAiTitleTxt"><a name="AI17668"></a>1.</p></td>
<td>
<p class="mgAiTitleTxt">Welcome by Councillor Catherine Harris, Chair of Pensions Committee</p>
<ul class="mgActionList">
<li><a href="mgIssueHistoryHome.asp?IId=21120" title="Link to issue details for item 1.">Find out more about item 1.</a></li>
</ul>
<p class="mgSubItemTitleTxt">Minutes:</p><div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">The Chair, Councillor Catherine Harris,
welcomed those in attendance.</p>
</div>
</div> </td>
</tr>
<tr>
<td class="mgItemNumberCell"><p class="mgAiTitleTxt"><a name="AI17669"></a>2.</p></td>
<td>
<p class="mgAiTitleTxt">Guest speaker - Terry Crossley, Head of Pensions DCLG</p>
<ul class="mgActionList">
<li><a href="mgIssueHistoryHome.asp?IId=21121" title="Link to issue details for item 2.">Find out more about item 2.</a></li>
</ul>
<p class="mgSubItemTitleTxt">Minutes:</p><div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">The Pension Fund Annual General Meeting (AGM)
received a <span class="SpellE">Powerpoint</span> presentation from
Terry <span class="SpellE">Crossley</span> (from the Workforce, Pay
and Pensions Division of Communities and Local Government (CLG))
introducing the new Local Government Pension Scheme (LGPS) which
began on 1<sup>st</sup> April 2008 and enforced viability,
affordability and fairness.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">Mr <span class="SpellE">Crossley</span>
assured members that despite the current economic climate the
pension fund was secure and guaranteed by a parliamentary act and
LGPS investments were expected to improve next year.<span style="mso-spacerun:yes"> </span></p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">The AGM noted that employer costs were fixed
until 2010 but may rise in 2011.<span style="mso-spacerun:yes"> </span> A valuation exercise would be
conducted and there were plans to informally consult with
ministers, local authorities and trade unions<span style="mso-spacerun:yes"> </span> about how the scheme would be
managed over the long term.<span style="mso-spacerun:yes"> </span> This could include
consideration of whether a final salary scheme was right for local
government, whether pension fund authorities should be larger and
whether pension payments should be delivered on a sub-regional
basis.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">In response to questions from stakeholders Mr
<span class="SpellE">Crossley</span> emphasised that there were
currently no specific plans to change any part of the LGPS but
there would be open discussions with partners and trade unions
about the possible options.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">In response to stakeholders concerns about the
potential loss of the final salary scheme Mr <span class="SpellE">Crossley</span> explained that any changes made to the
scheme would not affect the current entitlements of scheme
members.<span style="mso-spacerun:yes"> </span></p>
</div>
</div> </td>
</tr>
<tr>
<td class="mgItemNumberCell"><p class="mgAiTitleTxt"><a name="AI17345"></a>3.</p></td>
<td>
<p class="mgAiTitleTxt">Apologies for absence</p>
<ul class="mgActionList">
<li><a href="mgIssueHistoryHome.asp?IId=20737" title="Link to issue details for item 3.">Find out more about item 3.</a></li>
</ul>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">To note apologies for absence.</p>
</div>
</div><p class="mgSubItemTitleTxt">Minutes:</p><div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">Apologies for absence were received from
Councillors Cooke and Khan.</p>
</div>
</div> </td>
</tr>
<tr>
<td class="mgItemNumberCell"><p class="mgAiTitleTxt"><a name="AI17670"></a>4.</p></td>
<td>
<p class="mgAiTitleTxt">Start of Formal Business by Cllr Catherine Harris, Chair of Pensions Committee</p>
<ul class="mgActionList">
<li><a href="mgIssueHistoryHome.asp?IId=21122" title="Link to issue details for item 4.">Find out more about item 4.</a></li>
</ul>
<p class="mgSubItemTitleTxt">Minutes:</p><div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">The Chair expressed thanks to Councillor
Rahman Khan who chaired the Pensions Committee for many years and
David Fishman for sitting on the Pensions Committee last
year.<span style="mso-spacerun:yes"> </span></p>
</div>
</div> </td>
</tr>
<tr>
<td class="mgItemNumberCell"><p class="mgAiTitleTxt"><a name="AI17347"></a>5.</p></td>
<td>
<p class="mgAiTitleTxt">Declarations of interest</p>
<ul class="mgActionList">
<li><a href="mgIssueHistoryHome.asp?IId=20739" title="Link to issue details for item 5.">Find out more about item 5.</a></li>
</ul>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">A member with a personal interest in a matter
who attends a meeting of the authority at which the matter is
considered must disclose to that meeting the existence and nature
of that interest at the commencement of that consideration, or when
the interest becomes apparent.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">A member with a personal interest in a matter
also has a prejudicial interest in that matter if the interest is
one which a member of the public with knowledge of the relevant
facts would reasonably regard as so significant that it is likely
to prejudice the member’s judgement of the public interest
and if this interest affects their financial position or the
financial position of a person or body as described in paragraph 8
of the Code of Conduct and/or if it relates to the determining of
any approval, consent, license, permission or registration in
relation to them or any person or body described in paragraph 8 of
the Code of Conduct.</p>
<p class="MsoNormal"> </p>
</div>
</div><p class="mgSubItemTitleTxt">Minutes:</p><div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">Councillors <span class="SpellE">C.Harris</span>, Mallett, Thompson and <span style="mso-spacerun:yes"> </span>Winskill all declared personal
interests as they were members of the Local Government Pension
Scheme.</p>
</div>
</div> </td>
</tr>
<tr>
<td class="mgItemNumberCell"><p class="mgAiTitleTxt"><a name="AI17348"></a>6.</p></td>
<td>
<p class="mgAiTitleTxt"><a href="mgConvert2PDF.asp?ID=13144" title="Link to document 'Minutes of the last AGM' pdf file" class="mgAiTitleLnk">Minutes of the last AGM</a> <span class="mgFileSize"><img src="mgimages/logo-pdf-1.gif" height="10" alt="pdf icon" width="10" /> PDF 74 KB</span> </p>
<ul class="mgActionList">
<li><a href="mgIssueHistoryHome.asp?IId=20740" title="Link to issue details for item 6.">Find out more about item 6.</a></li>
</ul>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">To consider the minutes of the previous
Pension Fund AGM, held on 24 July 2008, for approval and
signing.</p>
</div>
</div><p class="mgSubItemTitleTxt">Minutes:</p><div class="mgWordPara"><div class="Section1">
<p class="MsoNormal"><b style="q-bidi-font-weight:normal">RESOLVED</b> that the minutes of the
AGM held on 24<sup>th</sup> July 2008 be confirmed as an accurate
record of the proceedings and signed by the Chair subject to the
following amendment:</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">Minute no. PRPP 24 – Report on the fund
valuation at 31 March 2007</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">The first line of the penultimate paragraph be
amended to read:</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">“Mr Almeroth was asked how the current
sub-prime mortgage situation in USA was likely to affect the
investment portfolio…”</p>
</div>
</div> </td>
</tr>
<tr>
<td class="mgItemNumberCell"><p class="mgAiTitleTxt"><a name="AI17671"></a>7.</p></td>
<td>
<p class="mgAiTitleTxt"><a href="mgConvert2PDF.asp?ID=13145" title="Link to document 'The Annual Report' pdf file" class="mgAiTitleLnk">The Annual Report</a> <span class="mgFileSize"><img src="mgimages/logo-pdf-1.gif" height="10" alt="pdf icon" width="10" /> PDF 101 KB</span> </p>
<ul class="mgActionList">
<li><a href="mgListDeclarationsOfInterest.asp?AIID=17671&ISAI=1" title="Link to declarations of interest for item 7."> View the declarations of interest for item 7.</a></li>
<li><a href="mgIssueHistoryHome.asp?IId=21123" title="Link to issue details for item 7.">Find out more about item 7.</a></li>
</ul>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">Presented by Cllr Catherine Harris, Chair of
Pensions Committee.</p>
</div>
</div><p class="mgSubItemTitleTxt">Minutes:</p><div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">The Annual Report was presented and <b style="q-bidi-font-weight: normal">was approved</b> by the meeting.</p>
</div>
</div> </td>
</tr>
<tr>
<td class="mgItemNumberCell"><p class="mgAiTitleTxt"><a name="AI17672"></a>8.</p></td>
<td>
<p class="mgAiTitleTxt">Report on the Pension Fund Accounts for year end 31st March 2009</p>
<ul class="mgActionList">
<li><a href="mgIssueHistoryHome.asp?IId=21124" title="Link to issue details for item 8.">Find out more about item 8.</a></li>
</ul>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">Presentation by Gerald Almeroth, Chief
Financial Officer.</p>
</div>
</div><p class="mgSubItemTitleTxt">Minutes:</p><div class="mgWordPara"><div class="Section1">
<p class="MsoNormal"><span style="mso-spacerun:yes"> </span>Gerald Almeroth, Chief Financial
Officer, presented the Pension Fund Accounts for the year ending 31
March 2009 and the interim Fund valuation at 31 March 2009.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">Mr Almeroth informed attendees that the value
of the Fund had significantly decreased to £488 million and
funds managed by Fund Managers had decreased by 21.6% in the last
year.<span style="mso-spacerun:yes"> </span> The Committee
noted that Bernstein had ceased to be a Fund Manager in June 2009
due to low performance and had been replaced by L&G on a
temporary passive basis.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">Mr Almeroth assured the Committee that it was
not unusual for pension funds to decrease in the current economic
climate and emphasised the need to view investments over the long
term.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">A large proportion of the Fund’s
investments were in the UK and some overseas, however, the Council
was not taking undue risks by investing in volatile
countries.<span style="mso-spacerun:yes"> </span> An interim
evaluation showed the funding level to be reduced to 53% in March
2009 but had risen to 58% by May 2009.<span style="mso-spacerun:yes"> </span></p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">The Council would consider the need for any
changes in the employer contribution rate after the next 3-year
actuarial evaluation in March 2010.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">The Chair invited questions from members of
the Pension Fund.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">In response to a question from an attendee Mr
Almeroth explained that whilst the Council had cash deposits in
Icelandic Banks (90% of which was expected to be returned) none of
this money was part of the Pensions Fund.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">In response to a question as to why there had
been £32 million of cash investments, Mr Almeroth explained
that investing the cash into banks with a 2% interest rate was a
temporary measure prior to investment. While stock markets had been
falling, this was not an issue for the fund.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">An attendee asked what say Pension Fund
Members had about the potential rise of employee
contributions.<span style="mso-spacerun:yes"> </span> Mr
Almeroth stated that employee contributions were set in legislation
and applied to everyone, therefore members were not able to
influence the decision.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">In response to a question about the Fund
Manager who recently ceased to work for the Pension Fund, Mr
Almeroth explained that the contract did not entitle the Fund
Manager to any compensation.<span style="mso-spacerun:yes"> </span> The Pension Fund operated on a
one-week notice period for Fund Managers.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">Mr Almeroth was asked what the Investment
Strategy Review involved.<span style="mso-spacerun:yes"> </span> Mr Almeroth explained that the
Council reviewed the Investment Strategy every three years in order
to be clear about the risks and to discuss the global situation and
the balance between shares, bonds and property, the number of fund
managers required and to see if the Strategy should be changed to
improve the chances of a better return.<span style="mso-spacerun:yes"> </span> The next review and actuarial
valuation would take place in 2010.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">In response to a question from Councillor
Thompson, Mr Almeroth explained that the Pensions Committee had
signed-up to the UN Principals of Responsible Investment and Fund
Managers were encouraged to use the policy when reviewing
investments.<span style="mso-spacerun:yes"> </span>
Environmental impact on investments was also monitored and often
meant a better share value.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">In response to a question from Councillor
Mallett, Mr Almeroth explained that the difference between the
Bernstein and L&G Fund Managers was that Bernstein was part of
active management funds (that actively tried to beat the market)
whereas a Passive Manager, such as L&G, moved shares around to
mirror the market for short periods of time.<span style="mso-spacerun:yes"> </span> Officers would look to move back
to employing active Fund Managers next year.</p>
</div>
</div> </td>
</tr>
<tr>
<td class="mgItemNumberCell"><p class="mgAiTitleTxt"><a name="AI17673"></a>9.</p></td>
<td>
<p class="mgAiTitleTxt">Ballot for Pensioner Member Representative</p>
<ul class="mgActionList">
<li><a href="mgIssueHistoryHome.asp?IId=21125" title="Link to issue details for item 9.">Find out more about item 9.</a></li>
</ul>
<p class="mgSubItemTitleTxt">Minutes:</p><div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">David <span class="SpellE">Corran</span> the
new pensioner member representative was introduced and pension
scheme members could contact him about any issues concerning the
pension scheme.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">The Committee expressed thanks to David
Fishman for his contribution to the Pensions Committee in the past
year.</p>
</div>
</div> </td>
</tr>
<tr>
<td class="mgItemNumberCell"><p class="mgAiTitleTxt"><a name="AI17674"></a>10.</p></td>
<td>
<p class="mgAiTitleTxt">Close</p>
<ul class="mgActionList">
<li><a href="mgIssueHistoryHome.asp?IId=21126" title="Link to issue details for item 10.">Find out more about item 10.</a></li>
</ul>
<p class="mgSubItemTitleTxt">Minutes:</p><div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">The Chair thanked Councillors, officers and
more than 100 members of the Pension Fund for attending.</p>
<p class="MsoNormal"><br />
The meeting closed at 18:45 hrs.</p>
</div>
</div> </td>
</tr>
</table>
<div class="mgHelpLine"></div></div>
Minutes for Pensions Committee meeting, Jul 23 2009, 5.30PM
2010-04-23T16:39:41+01:00
http://www.minutes.haringey.gov.uk/ieListDocuments.asp?CId=125&MId=3819&Ver=4
Minutes for Pensions Committee meeting, Jul 23 2009, 5.30PM
http://openlylocal.com/documents/1622-Minutes-for-Pensions-Committee-meeting-Jul-23-2009-5-30PM