Agenda item

The Committee considered a report of the Corporate Director of Resources which provided an update 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 Durham County Council for 2018/2019 (for copy see file of Minutes).

Councillor Shuttleworth had made reference to the average return earned in the last quarter of 0.56%, and was informed that the interest paid previously in respect of its cash balances was based upon the LIBID three month rate. For 2018/2019 it was recommended that interest would be paid to the Pension Fund at the average three month rate of return earned by the Council on its own short term investments.

Resolved:

That with effect from 1 April 2018:-

               (i)       the Pension Fund continues to invest its cash balances with the Council in line with the Council’s Treasury Management Strategy;

             (ii)       interest be paid quarterly to the Pension Fund at a rate based on the daily cash balance and the 3 month rate of return earned by the Council on its own short term investments;

            (iii)       an administration fee of £2,600 per quarter be paid to the Council for Treasury Management services; and

            (iv)       in the event of the loss of an investment, the Pension Fund will bear the loss in proportion of the value of cash balances held at the time of the investment with Durham County Council.