Agenda item

Consideration was given to the report of the Corporate Director, Resources which gave an update to Members of the Treasury Management Service provided to the Pension Fund, and reviewed the charges for the services and the calculation of interest on short term investments administered by the County Council for 2015/2016 (for copy see file of Minutes).

Hilary Appleton advised that during the year banking arrangements would transfer from the Co-operative Bank to Lloyds Bank. The transition process was being carefully managed but Members would be informed of any changes which impacted on the service being delivered.

Resolved:

That

a)                the Pension Fund continue to invest cash balances with the Council in line with the Council’s Treasury Management Strategy;

b)                interest be paid quarterly to the Pension Fund at a rate based on the daily cash balance and the 3 month LIBID interest rate;

c)                an administration fee of £2500 per quarter be paid to the Council for the Treasury Management function being carried out on behalf of the Pension Fund; and

d)                in the event of the loss of an investment, the Pension Fund bears the loss in proportion of the value of cash balances held at the time of the investment with Durham County Council.