Pension Fund Update
Management Report Investment Report Financial Statements highlights Benefit Statements Pension Board
Structure Training Participating Employers Membership Cash Flow Statements
Pension Fund Structure as at 2 February 2016 Property CBRE (Real Estates) UK Equities Legal and General Fixed Interest BlackRock Insight Investment Consultant Hymans Robertson Legal Framework Pension Fund Committee and Panel BBC Officers Finance & Legal Actuary Hymans Robertson Global Equities Trilogy BlackRock Legal and General Northern Trust (Custodian) Bedfordshire Pension Fund Employers Multi Asset Absolute Managers Invesco Newton Pyrford Board NB BlackRock, Legal and General are Passive Managers their target is to match an index Pensioners Paid Via altair Employees
The Pension Fund has adopted the CIPFA Pensions Finance Knowledge and Skills Framework. Those charged with pension scheme governance should have access to skills and knowledge to do role effectively. There are 6 areas of knowledge identified.
1. Pensions legislative and governance context 2. Pensions accounting and auditing standards 3. Financial services procurement and relationship management 4. Investment performance and risk management 5. Financial markets and product knowledge 6. Actuarial methods, standards and practices
The Pension Fund has a training plan and a review is in the Annual Report. Highlight in 2014/2015 was a full day training session with other LGPS Funds being involved.
31/03/2013 31/03/2015 Type of Employer Large Scheduled Bodies 9 9 Admitted Bodies 16 17 Colleges/ Universities 6 6 Academies 58 77 Town & Parish Councils 29 33 118 142
31/03/2013 31/03/2015 Type of Employer Large Scheduled Bodies 12,354 13,633 Admitted Bodies 1,312 842 Colleges 1,209 1,914 Academies 2,430 3,392 Town & Parish Councils 137 150 17,442 19,931
2013 2015 Luton Borough Council 4,339 4,685 Central Bedfordshire Council 3,975 4,485 Bedford Borough Council 2,976 2,884 Academies 2,430 3,532 Police and Crime Commissioner 845 988 University of Bedfordshire 687 1,148 Cranfield University 443 404 Other bodies 1,747 1,805 17,442 19,931
60,000 50,000 40,000 30,000 20,000 10,000 0 2011 2012 2013 2014 2015 Active members Pensioners Deferred Pensioners
31/03/13 TOTAL M 31/03/14 TOTAL M 31/03/15 TOTAL M Income 96 101 109 Expenditure 81 90 116* TOTAL Net Cash Flow 15 11-7 *The effect of the centralisation of Probation ( 23m)
1) Funding Strategy Statement This links the Statement of Investment Principles (SIP) to the Valuation 2) Governance Policy How we do things 3) Governance Compliance Statement How we compare with good practice 4) Communication Policy
1) Statement of Investment Principles (SIP) This is the document that says what the Fund is trying to do, with whom and how risks are to be managed 2) Actuarial Statement
Investment Activity and Performance
Asset Class Allocation Range % % UK Equities 19 Overseas Equities 31 Total Equities 50 40-60 Fixed Interest 18 8-28 Property 10 5-15 Multi Asset Absolute Returns 20 15-25 Cash/Opportunistic 2 0-14 Total 100
Assets 31/03/13 TOTAL M Assets 31/03/14 TOTAL M Assets 31/03/15 TOTAL M UK Equities 285.5 300.5 320.6 Overseas Equities 452.2 465.0 558.4 Fixed Interest 281.5 284.9 312.7 Property 113.1 129.7 168.8 Alternatives 288.3 284.3 304.5 Cash 41.7 73.7 39.2 TOTAL 1,462.3 1,538.1 1,704.2
Global Tactical Asset Allocation (GTAA) 52.8 0.0 0.0 Commodities Futures 24.7 0.0 0.0 Multi Asset Assets 31/03/13 TOTAL M Assets 31/03/14 TOTAL M Assets 31/03/15 TOTAL M Absolute Return 210.8 284.3 304.5 ALTERNATIVES TOTAL 283.3 284.3 304.5
Barings Invesco Newton - 190m Absolute return Multi asset + 125m Absolute return Multi asset + 75m Absolute return Multi asset BlackRock 80m Switch from corporate bonds to gilts Insight 65m Switch to higher investment target
L&G 50m UK Equities switch to FTSE 250 Lazard - 170m Global Equity mandate withdrawn BlackRock + 170m Global Equities
Actual To 31/03/15 Benchmark To 31/03/15 1 Year 11.3% 8.5% 3 years (pa) 8.9% 8.3% 5 years (pa) 7.4% 8.1% Source: Hymans Robertson
Summary Accounts Statement and Reports Expenses 2014/2015 Audit View
Please see leaflet circulated
1) Statement of Responsibilities 2) Auditors Report 3) Actuarial Report Present Value of Promised Retirement Benefits
6000 5000 4000 3000 2000 1000 Admin Invest Support Invest Management Oversight and Governance 0 2007/08 2010/11 2011/12 2012/13 2013/14 2014/15 2013/14 onwards new CIPFA Guidance
2013/14 Actual 000 2014/15 Estimate 000 2014/15 Actual 000 Administration Authority 850 841 841 Systems and development costs 242 237 194 Other 84 105 38 TOTAL 1,176 1,183 1,073
2013/14 Actual 000 2014/15 Estimate 000 2014/15 Actual 000 Administering Authority 108 120 120 Training 9 25 5 Audits Internal and external 46 46 44 Professional Advice 126 198 231 TOTAL 289 389 400
External Audit 2014/2015 Annual Governance Report Accounts unqualified No recommendations BUT we must not be complacent as it is important that you, the employers, pay the right money at the right time with the right information.
Internal Audit Governance Administration & Payroll Investment Management - Full assurance - Full assurance - Full Assurance
Active member benefit statements only being done on request this year Problems with data from employers and statement with additional benefit structure All deferred members sent a statement Pension Regulator informed of the issue and updated in November 2015 Arrangements are being put in place to issue 31 March 2016 in August 2016
Pension Board created in line with LGPS Regulations to assist the Administering Authority a) secure compliance with the Regulations, any other legislation relating to the governance and administration of the Scheme, and requirements imposed by the Pensions Regulator in relation to the Scheme and; (b) to ensure the effective and efficient governance and administration of the Scheme.
The board consists of 4 Employer Representatives and 4 Employee Representatives There is a vacancy for each! The Board has met 3 times and its meetings are available on the Bedford Borough Council website
Any Questions?