Agenda item

Any Other Business

Minutes:

Cost Management Process

 

Neville Hancock reported that the Scheme Advisory Board had issued an update on the cost management process which set out that the SAB part had revealed that improvements equal to 0.5% of pay was required. The outcome was expected to lead to improvements in member benefits but could potentially impact on employer contributions. Benefit changes were being considered to return the scheme to its total target costs without affecting contribution rates.

 

Beverley White confirmed that the Actuary was aware of the situation and as a decision would be made before the end of March 2019, there may be an impact upon the actuarial valuation.

 

AGREED that the information given be noted.

 

BCPP Matters

 

The Chair advised that Geoff Sykes had made a request for the following questions to be asked in his absence. Beverley White responded to each of the queries but advised that a full response would be circulated to Board members following the meeting:

 

1.    The section 151 Officer has a statutory duty to ensure that there is an effective internal audit of the council's operations. Has Internal Audit reviewed the governance arrangements of the proposed pool and particularly in relation to internal controls, monitoring and reporting? Reporting has been cited as a problematic area in the financial press.

 

Members were informed that Internal Audit had not carried out any specific reviews of the governance arrangements for reporting to the Committee. She expected monitoring and reporting for Fund Managers to be similar to existing arrangements.

 

2.    Does Internal Audit have the right to visit and inspect the records of the new company?

 

Members were informed that Internal Audit would not have a right but external audit would have access to relevant information.

 

3.    Is there a Remuneration Committee and what is the policy re bonuses?

 

Beverley White confirmed that there was a separate Sub-Group of staff not paid by the BCPP who reviewed salary and bonus payments. At present no bonuses were being paid.

 

4.    What is the progress on the new Private Equity investment?

 

BCPP were expecting to launch their private equity fund early in 2019, and a Special meeting of the Committee was likely to be called in January 2019 to finalise the Fund’s strategic asset allocation.

 

5.    An articIe in the financial press had stated that authorities were having recruitment issues because staff are defecting to the new pools. Is this an issue? The Council had recently lost the Pensions Manager and who would replace him?

 

Members were informed that Durham would have a full complement of staff once the new Pensions Manager commenced his role on 2 January 2019.

 

Terms of Office – Board Members

 

Members were informed that the terms of office for Board members ended in 2019, and a recruitment exercise would be required for the appointment/re-appointment of members.

 

AGREED that Officers establish from the Terms of Reference what actions were required for appointments to the Board at the end of the terms of office for existing Members in 2019.