D13 - Pension Fund Committee

Cambridgeshire County Council Members

6

4 years from County Council elections

Determined by Cambridgeshire County Council Full Council.

All other local authorities, police and fire

2

4 years

Nominations determined by a leaders/chief executives’ group.

Selection would be linked to the respective employers’ election cycle. Details of process to be agreed by the Chair.

All other employers

1

4 years

Nominations to be determined by eligible employers. Details of process to be agreed by the Chair.

Active scheme members

1

4 years

Determined by Unison.

Where Unison fails to nominate a committee member for any period of six months or more, nominations will be requested from all eligible active scheme members and a representative will be picked following interviews. Details of process to be agreed by the Chair.

Deferred and pensioner scheme members

1

4 years

Determined by Unison. Where Unison fails to nominate a committee member for any period of six months or more, nominations will be requested from all eligible deferred and pensioner scheme members and a representative will be picked following interviews. Details of process to be agreed by the Chair.

Total Committee Members

11

Authority to set the Pension Fund’s objectives and determine and maintain appropriate strategies, policies and procedures with ongoing monitoring in relation to the following areas:

(i) Funding Strategy – Ongoing monitoring and management of the liabilities including ensuring appropriate funding plans are in place for all employers in the fund, overseeing the triennial valuation and interim valuations, and working with the actuary in determining the appropriate level of employer contributions for each employer.

(ii) Investment strategy – To determine the fund's investment objectives and to set and review the long-term high level investment strategy to ensure these are aligned with the fund's specific liability profile and risk appetite and to oversee the delivery of the investment strategy by the LGPS ACCESS Joint Committee.

(iii) Administration Strategy – The administration of the fund including collecting payments due, calculating and paying benefits, gathering from and providing information to scheme members and employers.

(iv) Communications Strategy – Determining the methods of communications with the various stakeholders including scheme members and employers.

(v) Discretions – Determining how the various administering authority discretions are operated for the fund.

(vi) Governance - The key governance arrangements for the fund, including representation.

(vii) Risk Management Strategy – To include regular monitoring of the fund’s key risks and agreeing how they are managed and/or mitigated.

Regulations under the Superannuation Act 1972

Authority to approve and apply the policy on, and to take decisions relating to, employers joining and leaving the fund. This includes which employers are entitled to join the fund, any requirements relating to their entry, ongoing monitoring and the basis for leaving the fund.

As above

Authority to agree the terms and payment of bulk transfers into and out of the fund in consultation with the Section 151 Officer.

As above

Authority to consider and approve business plans at least annually and monitor progress against them and to monitor compliance with the Myners Principles on an annual basis.

As above

Authority to develop and maintain a training policy for all Pension Fund Committee and Sub-Committee members and for all officers of the fund, including determining the fund’s knowledge and skills framework, identifying training requirements, developing training plans and monitoring attendance at training events.

Regulations under the Superannuation Act 1972

Authority to select, appoint, monitor and where necessary terminate advisors to the fund not solely relating to investment matters.

As above

Authority to approve and issue administering authority responses to consultations on LGPS matters and other matters where they may impact on the fund or its stakeholders.

As above

Authority to consider and determine where necessary, alternative investment strategies for participating employers.

As above

Authority to oversee the work of the Investment Sub-Committee and consider any matters put to them by the Investment Sub-Committee.

As above

Authority to set up sub-committees and task and finish groups including jointly with other LGPS administering authorities.

As above

Authority to review and amend the strategic investment policies on an appropriate regular basis, in consultation with the Section 151 Officer.

As above

Authority to manage any other strategic or key matters pertaining to the Fund not specifically listed above.

As above

Production of an annual report for consideration by the Council.

In relation to pooled asset arrangements under the LGPS ACCESS Joint Committee:

(i) Determining the requirements of the administering authority in relation to the provision of services by LGPS ACCESS to enable it to execute its investment strategy effectively;

(ii) Receiving and considering reports from the LGPS ACCESS Joint Committee in order to ensure that the fund’s investor rights and views are represented appropriately; and

(iii) Ensuring arrangements are in place to identify and manage the risks and costs associated with investment pooling.

Cambridgeshire County Council Members

4

As above

Determined by Cambridgeshire County Council representatives on the Committee. Details of process to be agreed by the Chair.

All other employers

2

Up to term of office ceasing in accordance with Committee membership or six years whichever is later.

Determined by non-Cambridgeshire County Council employer representatives at the Committee. Details of process to be agreed by the Chair.

Scheme member representative

1

Up to term of office ceasing in accordance with Committee membership or six years whichever is later

By agreement between active and deferred/pensioner representatives on Committee. Details of process to be agreed by the Chair.

Total

7

Authority to implement the fund’s investment strategy including setting benchmarks and targets for the investment pool operator and reviewing performance against those benchmarks.

Regulations under the Superannuation Act 1972

Authority to review and maintain the asset allocation of the fund within parameters agreed with the Pension Fund Committee.

As above

Authority to appoint and terminate investment managers to the fund and to monitor the performance of investment managers leading to review and decisions on termination where necessary where this is not undertaken by the LGPS ACCESS Joint Committee.

As above

Authority to appoint and monitor and where necessary terminate external advisors and service providers solely relating to investment matters, for example, the fund custodian, independent investment advisers, investment consultants and investment managers where this is not undertaken by the LGPS ACCESS Joint Committee.

Regulations under the Superannuation Act 1972

Authority to set benchmarks and targets for the fund’s investment managers where this is not undertaken by the LGPS ACCESS Joint Committee.

As above

Authority to monitor the risks inherent in the fund’s investment strategy in relation to the fund’s funding level.

As above

Authority to monitor and review:

(i) Legislative, financial and economic changes relating to investments and their potential impact on the fund;

(ii) The investment management fees paid by the fund and to implement any actions deemed necessary;

(iii) The transactions costs incurred by the fund across its investment mandates and raise relevant issues and concerns with the investment providers as necessary;

(iv) The investment providers’ adoption of socially responsible investment considerations, on an annual basis, including corporate governance matters and a review of compliance with the UK Stewardship Code.

As above

Authority to receive reports from investment providers.

As above

Authority to undertake any task as delegated by the Pension Fund Committee.

As above

Employers

3

4 years

or until qualification for membership ceases

At least two representatives to be appointed by Cambridgeshire County Council Full Council

One representative appointed via an open and transparent selection process.

Scheme Members

3

4 years

or until qualification for membership ceases

To be appointed via an open and transparent selection process.

Total

6

Authority to assist the administering authority in securing compliance with (i) the Principal 2013 Regulations, (ii) any other legislation, and (iii) requirements imposed by the Pensions Regulator in relation to the scheme.

Local Government Pension Scheme (Amendment) Regulations 2014

(Regulation 106(1)(a) & (b))

Authority to assist the administering authority in ensuring the effective and efficient governance and administration of the scheme.

As above

(Regulation 106(1)(b))

Frequency of Meetings

The Pension Fund Committee will meet a minimum of five times a year. The date, hour and place of routine meetings shall be fixed by the committee, but the Chair may call additional meetings if deemed necessary.

The Investment Sub-Committee will meet a minimum of four times a year. The date, hour and place of routine meetings shall be fixed by the committee, but the Chair of the Sub-Committee may call additional meetings if deemed necessary.

The Local Pension Fund Board will meet a minimum of four times a year. The date, hour and place of routine meetings shall be fixed by the board, but the Chair may call additional meetings if deemed necessary.

Chair and Vice-Chair’s Term of Office

The normal term for the Pension Fund Committee and Board’s chair and vice-chair shall be one year subject to earlier removal by vote of the Pension Fund Committee or Board respectively.

Voting Rights

All Pension Fund Committee members, Investment Sub-Committee members and Local Pension Fund Board members shall have the right to vote in their respective meetings.

Quorum

5 (1/3 plus 1) committee members shall form a quorum for meetings of the Pension Fund Committee.

4 (1/3 plus 1) Investment Sub-Committee members shall form a quorum for meetings of the Investment Sub-Committee.

3 (1/3 plus 1) Board members shall form a quorum for meetings of the Local Pension Fund Board (shall include at least one each from the employer and member sides). No business requiring a decision shall be transacted at any meeting of the Pension Fund Committee or Investment Sub-Committee or Local Pension Fund Board unless the meeting is quorate. If it arises during the course of a meeting that a quorum is no longer present, the chair shall either suspend business until a quorum is re-established or declare the meeting at an end and arrange for the completion of the agenda at the next meeting or at a special meeting.

Training Requirement

Members may not take part in meetings of the Pension Fund Committee, Investment Sub-Committee or Local Pension Fund Board unless they have complied with any training requirements set out by the Chair of the Pension Fund Board or for Board members as set out in the Public Services Pensions Act.