Agendas, reports and minutes

A joint meeting of the Pensions Committee and Pension Board will take place in the Chamber, Council Headquarters, Glenurquhart Road, Inverness on Thursday 8 February 2018 at 10.30 a.m.

You are invited to attend the meeting and a note of the business to be considered is attached.

Webcast Notice: This meeting will be filmed and broadcast over the internet on the Highland Council website and will be archived and available for viewing for 12 months thereafter.

Yours faithfully

Stewart Fraser

Head of Corporate Governance 

BUSINESS 

1. Apologies for Absence/ Leisgeulan

2. Declarations of Interest/ Foillseachaidhean Com-pàirt

Members are asked to consider whether they have an interest to declare in relation to any item on the agenda for this meeting.   Any Member making a declaration of interest should indicate whether it is a financial or non-financial interest and include some information on the nature of the interest.   Advice may be sought from Officers prior to the meeting taking place.

3. 2017 Actuarial Valuation Presentation/  Taisbeanadh Luachaidh Actuaraidh 2017

Mr Robert Bilton of Hymans Robertson will be in attendance to give a presentation on the Actuarial Valuation Report.

4. Funding Strategy Statement/ Aithris Ro-innleachd Mhaoineachaidh

There is circulated Report No. PC/01/18 by the Director of Corporate Resources which seeks approval from Members on the proposed Funding Strategy Statement for the Highland Council Pension Fund.

The Committee is invited to approve implementation of the Funding Strategy Statement with effect from 1 March 2018. 

5. Responsible Investing/Tasgadh Cunntasach

There is circulated Report No. PC/02/18 by the Director of Corporate Services which presents a report by the Fund’s Investment Advisors, Aon Hewitt on Environmental, Social and Governance considerations.  Mr Kenneth Ettles from Aon Hewitt will be in attendance.

The Committee is invited to consider the report in advance of Item 6, Statement of Investment Principles.

6. Statement of Investment Principles/ Aithris air Prionnsapalan Tasgaidh

There is circulated Report No. PC/03/18 by the Director of Corporate Services which seeks approval on the proposed Statement of Investment Principles for the Highland Council Pension Fund. 

The Statement of Investment Principles is prepared as required by the Local Government Pension Scheme (Management and Investment of Funds) (Scotland) Regulations 2010 (No. 233).  

The Committee is invited to:-

i approve the Statement of Investment Principles; and 

ii approve the following changes to the strategic benchmark in order to increase the expected return and reduce volatility in the portfolio:-

• reduce equities from 61% to 56%;

• reduce bonds from 20% to 12%; and

• reinvest the proceeds in illiquid and liquid alternative assets. 

7. Annual Audit Plan 2017/18  (External Audit Report)/ Plana Sgrùdaidh Bliadhnail 2017/18 (Aithisg Sgrùdaidh bhon Taobh A-muigh)

There is circulated Report No. PC/04/18 by Grant Thornton which presents their annual audit plan setting out the work they plan to undertake as part of the audit of the pension fund.

The Committee is invited to consider the report.

8. Risk Management Review and Update Report/ Aithisg Ath-sgrùdaidh agus Ùrachaidh Rianachd Cunnairt

There is circulated Report No. PC/05/18 by the Director of Corporate Services which provides an update on the Fund’s risk register and compliance with the Pension Fund Regulator requirements on internal controls.

Members are asked to note the updated risk register extract and compliance with the Pension Fund Regulator requirements. 

9. Pension Fund Contributions and Administration/ Tabhartasan agus Rianachd Maoin Peinnsein

There is circulated Report No. PC/06/18 by the Director of Corporate Services which updates Members on matters relating to the administration of the Highland Council Pension Fund.

The Committee is invited to consider the details of the report. 

10. Membership of Investment Sub-Committee/ Ballrachd na Fo-Chomataidh Tasgaidh

Due to recent changes in political groups, the formulae for the membership of the Investment Sub Committee is now 3 Independent, 2 SNP, 1 Conservative and 1 Liberal Democrat.

Therefore, the Pension Committee is asked to agree to the following change to the Membership of the Investment Sub-Committee:-   Mrs C Caddick to replace Mr C Fraser.

11. Investment Sub Committee: Minutes of Meeting/  Fo-chomataidh Tasgaidh: Geàrr-chunntas na Coinneimh

The Minutes of meeting of the Investment Sub-Committee held on 1 December 2017 are circulated for confirmation.