Minutes:
The Chairman agreed that in order to keep Members informed, consideration be given to the following items of business:-
a) Actuarial Valuation
Nick Orton advised that the draft results from the Actuarial Valuation were expected in the first week in October 2016. Employer contribution rates were expected to increase as returns on investments had not been as high as anticipated and the economic outlook at present was volatile. Employers would be notified of the amended contribution rates as soon as possible which would assist with their budget-setting processes.
Resolved:
That the information given be noted.
b) Pooling of LGPS Investments
Nick Orton reported that the Border to Coast Pensions Partnership had submitted its final submission to the Government by 15 July 2016 deadline, but until formal confirmation had been received from the Government, and Investment Regulations had been published, the Partnership was reluctant to formalise pooling arrangements. However, regular meetings of the Partnership were continuing in preparation, and the Member Steering Group was due to meet on 30 September 2016. Councillor Turner thanked Councillor Davinson for attending the Steering Group meetings on his and the Vice-Chair’s behalf.
David Ford made reference to the timescales for implementation and was informed that unless the Government confirmed its commitment to pooling in the very near future it was unlikely that the deadlines set by the Government to have a fully regulated entity operational and ready to start the transition of assets by April 2018 could be achieved.
Following a question from Councillor Tinsley about investment in infrastructure, Councillor Davinson advised that in the submission to the Government the Partnership had included a statement that sufficient resources would be allocated on the basis of serving a combined ambition of up to 10% of the Partner Funds’ asset holdings.
Resolved:
That the information given be noted and further developments be awaited.