Agenda item

The Committee considered a report of the Corporate Director of Resources which gave an overview of the governance arrangements of Border to Coast Pensions Partnership and highlighted changes proposed to strengthen the company’s governance arrangements (for copy see file of Minutes).

The Head of Pensions reminded the Committee of the impetus from Government in 2015 in respect of asset pooling, with the BCPP partnership being chosen as the best fit for Durham by the Committee in 2016.  He noted that the proposals to update the governance arrangements for BCPP included changes to the term of office for the Chair/Vice-Chair of the Joint Committee and changes to Durham’s shareholder representation on the BCPP Joint Committee. It was noted that while the original governance arrangements had been agreed by Full Council, the Corporate Director of Resources had delegated authority to sign off any changes.

Councillor D Sutton-Lloyd asked if there were any downsides to the new arrangements.  The Head of Pensions noted that there could be perceived issues relating to transparency which could be mitigated by the relevant Officer being able to provide feedback to the Committee as regards shareholder votes, context and. 

Councillor J Atkinson asked for the Chair’s view on the proposed changes.  The Chair explained that he felt having and Officer as the representative on the Joint Committee was positive, as Chairs could often change and therefore Officer representatives could offer greater continuity.  He added that Officers would not have the potential unreconcilable conflict as Members, as noted in the report, and also would have more detailed knowledge specific to the shareholder role than a Member representative.

Councillor J Atkinson asked if there would be any difference in autonomy.  The Chair noted that he felt as long as the Head of Pensions was able to provide feedback to the Committee then the arrangements would be satisfactory.

Resolved:

(a) That the work undertaken in reviewing the company’s governance arrangements and the summary of changes proposed be noted; 

(b) That the intention of the Corporate Director of Resources to approve the changes to the Border to Coast governance documents upon completion of the review be noted; and 

(c) That the amendment of the Council’s BCPP Shareholder Representative, from the Chair of the Pension Fund Committee to the Head of Pensions, be agreed.