To receive a performance update on the Pension Fund and any related matters.
Minutes:
The Chair welcomed Mr Dilwyn Williams Corporate Director with Gwynedd Council to the meeting and he invited him to address the Audit Committee on the position with regard to the Pension Fund and specifically, the £18.4m increase during 2012/13 in the net pension liability from £63.7m to £83.1m and the implications thereof.
In his presentation to the Committee, the Strategic Director explained the mechanics of the Local Government Pension Fund system and how it works, and he highlighted the key considerations and factors in approaching issues in relation to the performance of the Pension Fund.
There followed a question and answer session in which Members of the Committee were given the opportunity to raise queries and/or points of clarification on the information provided by the Corporate Director. The following is a summary of the issues raised:
• The performance of the pension fund against the benchmark and compared to other local authorities. Questions were asked regarding the low position of the fund in terms of its performance in recent years relative to that of other authorities and the reasons for the weak performance lately.
• Whether in light of the fact that the pension liability is in effect a liability for the Island’s ratepayers, Members and Members of the Audit Committee in particular should be taking a more proactive approach to the management of the pension fund to seek to ensure optimum performance and returns.
• It was proposed and endorsed by Members of the Committee that the Audit Committee in order to reinforce its monitoring intentions in this respect receives the Annual Report on the Performance of the Gwynedd Local Government Pension Fund as matter of course and that the Annual report is presented to a meeting of this Committee scheduled after the Annual meeting of the Pension Fund Management Board in order to allow the Council’s representative on the Pension Fund Committee to provide a report back on any issues arising from the Annual meeting.
Gwynedd Council's Corporate Director emphasised that with regard to pension fund performance longevity and life expectancy are key factors and that pension fund investment is an undertaking for the long term and that for the reasons given in the presentation performance should not be judged on a single year’s output figures. The Portfolio Member for Finance as this Authority’s representative on the Gwynedd Local Government Pension Fund Committee endorsed the comments made in the presentation with regard to the influencing factors in relation to the pension fund's performance and he explained to Members the reporting arrangements to the Pension Fund Management Committee with regard to the performance of the Fund.
It was resolved to note the information presented in relation to the position of the Gwynedd Local Government Pension Fund and to thank Gwynedd Council’s Corporate Director for the presentation.
Action Arising: Head of Function (Resources) to include the Annual Report on the Gwynedd Local Government Pension Fund on the Audit Committee’s annual work programme with specific regard to scheduling to allow the Authority’s representative on the Pension Fund Committee to provide the Committee with feedback from the Annual Meeting.