Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
The future of management of the Local
Government pension scheme has been the subject of much political
and academic debate in recent years.
London Councils’ Leaders committee has for some time been
exploring an option, a Collective Investment Vehicle (CIV) that
attempts to gain potential economies of scale without some of the
perceived disbenefits.
The Pension Fund Advisory Committee (PFAC) at its meeting of 19
March 2014 considered the proposal from London Council’s
Leaders Committee that London Boroughs collaboratively set a
London-wide collective investment vehicle (CIV). The paper details
the proposals and actions required by Merton to be a part of the
vehicle.
RESOLVED:
That Cabinet:
a) agrees to become a shareholder in a private company limited by shares which will be incorporated to be the Authorised Contractual Scheme Operator (the ACS Operator") of the Collective Investment Vehicle;
b) notes that participation by London Boroughs is voluntary;
c) agrees to contribute £1 to the ACS Operator as initial capital;
d) agrees to join the London Boroughs "Pensions CIV Joint Committee", to be formed under section 102 of the Local Government Act 1972 and to delegate to such Joint Committee those functions necessary for the proper functioning of the ACS Operator, including the effective oversight of the ACS Operator and the appointment of Directors;
e) nominates the Chair of the Pension Fund Advisory Committee authority to act as the Leader’s deputy for the Council in exercising its rights as a shareholder of the ACS Operator.
f) notes that there is a possibility that there could be a call from shareholding boroughs for a small initial investment as discussed in section 2.12 for capital required for the initial authorisation of the Operator. The Director of Corporate Services will clarify this issue prior to signing any membership agreement and report further to the Cabinet meeting. The Director of Corporate Services would make any minor spending/investment decision required under delegated authority following consultation with the Cabinet Member for Finance and the chair of the Pension Fund Advisory Panel and would report any action to subsequent meetings of both Cabinet and Panel.
g) notes that other investments will be considered by PFAC and a recommendation made to the appropriate decision making body.
Report author: Paul Dale
Publication date: 24/04/2014
Date of decision: 23/04/2014
Decided at meeting: 23/04/2014 - Cabinet
Accompanying Documents: