[To consider changes required to the operational and governance arrangements for West Midlands Pension Fund following the recent amendment of the LGPS Investment Regulations]
Geik Drever, Strategic Director of Pensions presented the update report on investment pooling and on changes that would be required to the operational and governance arrangements for the West Midlands Pension Fund following the recent amendment of the Local Government Pension Scheme (LGPS) Investment Regulations. The revised regulations required all administering authorities in England and Wales to enter into joint (pooled) arrangements for the management of their investment assets, with effect from 1 April 2018, in order to achieve scale economies and increase investment capacity.
Cllr Phil Page commented that for the purposes of continuity, it was important that there were seamless briefings between the Chair and Vice-Chair for meetings of the Shareholders’ Forum of LGPS Central and the Joint Committee in the event that the Vice Chair had to attend the meetings. The Vice Chair advised the Committee that he was attending meetings with the Chair that related to investment pooling, even if in an observer capacity.
In response to a question from Cllr Jasbir Jaspal on the proposed terms of reference for the Pensions Committee, and the duty relating to the selection, appointment and dismissal of an investment pool operator to manage the assets of the Fund’, the Strategic Director of Pensions explained that LGPS Central’s eight fund partners would need to determine the removal of an investment pool operator. The Strategic Director went on to outline the process and timetable for making appointments to the positions of Chair and Chief Executive of the Investment Pool, and on criterion and background experience that would be expected from applicants. The Strategic Director also reported on the breakeven point for the Pensions Fund as set out in the Business Case and for LGPS Central Ltd and advised that the Pool would be looking to try and maximise savings during the transition period.