Agenda item

(a)       That no further Clwyd Pension Fund Framework be established and that

            the National LGPS Frameworks be used in future where possible; and

(b)       The option to extend the contract period for a further two years to March 2019 for the Independent Advisor and Investment Consultant contracts with ongoing review.

Karen McWilliam, Kieran Harkin and Anthony Kershaw left the room for this agenda item.

Alwyn Hughes, Pensions Finance Manager, introduced a report to provide a quarterly update on governance related issues. Mr Hughes reported on the main considerations, as detailed in the report, concerning the business plan 2016-17, the National Scheme Advisory Board, Local Pension Board, governance related policy/ strategy implementation and monitoring and the use of delegated responsibilities.

In 2008, the Fund put in place a framework which would allow for the effective and quick appointment of consultants when required. The term of the framework has now come to an end and the Fund needs to consider whether it wishes to bring the framework to a conclusion or run a further framework.  Since the Clwyd Framework was launched, there have been a number of other frameworks relating to LGPS services. The key ones are run by the National LGPS Frameworks (managed by Norfolk County Council).

The officers of the Fund have carried out an analysis against the services available by the National LGPS Frameworks compared to the Clwyd Framework and it would appear the majority of the services are covered by the National LGPS Frameworks. 

Using the National LGPS Frameworks in the future, rather than a Clwyd specific Framework would result in efficiencies for officers.  The Fund could also still run individual procurement exercises for any services not covered by the National LGPS Frameworks.

The Committee was asked to approve that no further Clwyd Pension Fund Framework be established and that the National LGPS Frameworks be used in future where possible.

The Independent Advisor and Investment Consultant were appointed on 3 year contracts from April 2014 with the option to extend for a further 2 years. Following a performance review of both contracts the officer recommendation is to use the option to extend to March 2019. During this period the performance of both will be regularly monitored.

The Committee was asked to approve the option to extend the contract period for a further two years to March 2019.

Councillor Bateman requested clarification regarding any impact on the fees charged by the external advisor and consultants of extending their contracts for a further two years to March 2019. Mrs Fielder confirmed that under the current contracts there would be no increase in fees charged for these additional two years.

Mr. Hibbert asked whether Item 1.03 (G1 Review of CPF Adviser Procurement Framework) and 1.04 (G3 Review/ Tender Investment Consultancy and Independent Adviser Contracts) were linked. Additional background was given by Mrs Fielder regarding the Clwyd pension Fund framework agreements and the National LGPS Framework run by Norfolk County Council. If the contracts were not extended then the matter of procurement would be dependent on the outcome of whether to renew the local framework.

Councillor Andrew Rutherford asked whether moving onto the National Framework would affect the Pooling in Wales. Mrs Fielder explained that the Fund’s framework is out of date and that the involvement of the external advisor and consultants in the discussions around pooling possibly favoured extending the contracts for two years.

RESOLVED: 

(a)       That no further Clwyd Pension Fund Framework be established and that

            the National LGPS Frameworks be used in future where possible; and

(b)       The option to extend the contract period for a further two years to March 2019 for the Independent Advisor and Investment Consultant contracts with ongoing review.