Agenda item

That the Committee recommend to County Council changes to its Constitution as outlined in Appendix 2 of the report and to allow substitutions for Flintshire Members provided the substitute has received the appropriate training.

The Head of Finance introduced Mr Philip Latham, Clwyd Pension Fund Manager.  She introduced a report to provide Members with a proposal to change the governance arrangements for the Clwyd Pension Fund, and hence, the Council’s Constitution, and also to seek agreement for a recommendation to Council for the creation of a newly constituted Clwyd Pension Fund Committee. 

              The Head of Finance provided background information and context and referred to the key considerations in the report.  She expressed her thanks to the Democracy and Governance Manager for his assistance in developing the proposals.  She advised that the proposed new structure, which was in line with the Chartered Institute of Public Finance and Accountancy (CIPFA) recommendations, was appended to the report.  Under the new arrangements the County Council would delegate, in its constitution, all decisions relating to its statutory duty to administer the Clwyd Pension Fund to the Clwyd Pension Fund Committee, instead of the Head of Finance as at present.  The recommended role and function of the Committee was detailed in Appendix 2 to the report. 

            The Head of Finance advised that Legal and Democratic Services had provided advice and support and would continue to assist with the Terms of Reference and Scheme of Delegation for the proposed new structure and representation.   

Subject to approval by the Committee the new governance structure and representation could be recommended for approval to the Council with the new structure becoming effective at the Annual Meeting of the Council in May 2014. 

The Chairman thanked the Head of Finance for her presentation and invited Members to raise questions.

The Chairman asked how the scheme member representative would be selected.  The Pensions Fund Manager explained that the representative would be appointed through the joint Trade Unions.          

During discussion Officers responded to the concerns and queries raised by Members in relation to the composition of  the Clwyd Pension Fund Committee. 

Councillor Chris Bithell asked how the representative for the 'other scheduled body', such as from a Town and Community Council would be selected. He also referred to admitted bodies. In his response, the Pensions Fund Manager explained that admitted bodies would not have a representative as they made up a very small proportion of the liabilities of the Clwyd Pension Fund.  In terms of Town and Community Councils they would be asked whether they would like to put forward an elected member. There is only one position on the Committee, hence a selection process may be required. As stated in the constitution, paragraph 1.2 (a iv) the appointment procedure would be done in consultation with the members of the Pension Fund Advisory Panel.

Councillor Chris Bithell proposed that the Committee support the recommendation as outlined in the report.  This was seconded by Councillor Arnold Woolley

In response to a query from Councillor Owen Thomas concerning the 8 pension funds in Wales, the Head of Finance advised that the Authority was responsible for dealing with the Clwyd Pension Fund.  She referred to a report submitted to a meeting of the Cabinet on 18 March 2014 which set out Flintshire’s position within the Clwyd Pension Fund as per the last actuarial valuation at March 2013. 

Councillor David Evans sought further information on the terms of office for membership of the Pension Fund Committee.  The Democracy and Governance Manager explained that the term of office was a single period term of office for no more than 6 years initially, but a representative member could be reappointed for a further term of office.  The Pension Fund Manager commented on the need to maintain continuity of membership on the Committee.

Councillor Evans asked if minutes of the meetings of the Clwyd Pension Fund Panel were available and if minutes of meetings of the Clwyd Pension Fund Committee would be provided in the future.  The Clwyd Pension Fund Manager explained that information was available in the Clwyd Pension Fund Annual Report which was in the public domain.  Under the proposed arrangements for the future the Committee minutes would be available in the same way as other committee minutes. 

In response to a question from Councillor Dave Mackie concerning the composition of the Clwyd Pension Fund Committee, the Pension Fund Manager advised that it still remained a legal responsibility of the Administering Authority to manage the Clwyd Pension Fund and that was why there was a balance of membership in favour of  Flintshire on the Committee.

Councillor Clive Carver asked whether there would be any change in the way that the senior salary allowances were made as a result of the proposal to change the governance arrangements for the Clwyd Pension Fund.  The Democracy and Governance Manager explained that the members allowance scheme was decided at the Annual Meeting of the Council and it was for Members to decide at that meeting whether the Chair of the Clwyd Pension Fund Committee would be awarded a senior salary.  

Councillor Chris Bithell referred to the matter of quorum and asked whether substitutions were allowed at meetings of the Committee.  He said that provision for this needed to be included in the Constitution.  The Democracy and Governance Manager acknowledged the point made and said there would be a  requirement for substitutes to have received training.

Councillor Ian Dunbar sought assurance from the Head of Finance that the Council’s Chief Finance (S.151) Officer  would remain involved with the work of the Clwyd Pension Fund Committee.  The Head of Finance explained that this officer would continue to be involved and be providing advice to Members along with other officers and advisors through the work of the Advisory Panel.

RESOLVED:

That the Committee recommend to County Council changes to its Constitution as outlined in Appendix 2 of the report and to allow substitutions for Flintshire Members provided the substitute has received the appropriate training.