Issue - meetings

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9.1.        The Board considered a report seeking comment on the Draft Pension Fund Annual Report for 2018/19.

9.2.        DP asked whether it was realistic to lower the forecast management expenses for 19/20 when outturn for 18/19 was higher than forecast.

9.3.        OO explained that the increased costs for 18/19 included a number of one-offs that were not expected to be incurred again for 19/20, for example the additional costs under supplies and services due to the triennial valuation, GMP, etc.

9.4.        SO asked why there is no forecast for fees deducted at source.

9.5.        OO explained that these were very difficult to predict as they depended on the performance of the assets from which they were deducted, which vary in value depending on market conditions.

9.6.        CA asked whether any of the increase in return on investments from £86m in 17/18 to £260m for 18/19 was the result of pooling investments in ACCESS.

9.7.        OO confirmed that some of it would have been as with the capacity and potential to invest significant larger amounts collectively,  there are more opportunities to benefit from economies of scale as a result of investing  into specialist areas. The Chair added that increase is also due to the considerable increase in the markets, which had seen significant increases during the year. Due to the reliance of return on investment on the markets, the figure is likely to always be volatile.

9.8.        SO asked why payments from the fund varied by £30m between 17/18 and 18/19.

9.9.        OO said that this was due to employers moving in and out of the scheme at varying degrees of regularity. The Chair added that death benefits and transfers of employees can also result in significant changes to payments from year to year.

9.10.      The Chair asked whether there was a simplified version of the Pension Fund Annual Report and recommended it be sent out with the Annual Benefit Statement as people are more likely to read it.

9.11.      OO confirmed that a summary will be included within  the pension fund newsletter. IG added that the first 10 pages of the accounts are already a summary statement and the remainder of what is included is governed by reporting requirements.

9.12.      The Board RESOLVED to:

1)    note the report; and

2)    request that the following are included in the Pension Fund Annual Report - 2018/19:

·         an explanation for the increased outturn in expenses being caused by one-off expenditure.

·         An additional line underneath management expenses total to include the expenses total minus the fees deducted from source. 

3)    recommend that the newsletter summarising the Annual Report is dispatched alongside the Annual Benefit Statement.