Agenda item

To consider the report of the Governance Committee

The Governance Committee reported that the Pensions Committee had considered the outcome of the Annual review of the Statement of Investment Principles and had undertaken a review of its Governance Compliance Statement. There was concern that not all members of that Committee had received suitable training. Members had also expressed the view that named substitute members should be trained to the same level. To encourage all members to avail themselves of the training opportunities, the Pensions Committee had recommended that its Terms of Reference be amended.

The Council was reminded that the Pensions Committee was expected to conform to the “Myners Principles” for good governance of pension funds.

Whilst reviewing its Governance Compliance Statement, the Pensions Committee had also considered the current duties and terms of reference of the appointment of advisors and felt that these needed amendment.

The Audit Committee had also given consideration to the need to ensure all Members of that Committee, and named substitutes, should be adequately trained.

The Governance Committee accordingly recommended to the Council that:

1.                  Part 3 of the Constitution, paragraph 1.2 Functions delegated to general council committees be amended as follows:

a.      Advisers and Investment managers

      To “Authorise staff to invite tenders and to award contracts to actuaries, advisers and fund managers and in respect of other related investment matters

      To appoint and review the performance of advisers and investment managers for pension fund investments.”

2.                  Part 4 of the Constitution, Paragraph 12 Pensions Committee be amended to read:

(a)   The bodies that are Scheduled or Admitted Bodies of the Havering Pensions Fund for the purposes of the Local Government Pensions Scheme are entitled between them to nominate a representative who shall be co-opted to serve on the Committee with voting rights.

3.                  Part 4, section 3,  of the constitution, Committee Procedure Rules paragraph 17 ‘Training and continuity of membership of certain committees’, sub paragraphs (a) and ( c) be amended by the addition of the following sentence at the end of both paragraphs:

“If a member does not undertake the required training within six months of appointment then that member shall not partake in the decision making of the Committee until their training has been completed”

and at the end of paragraph ( c):

“Non-nominated members may not act as substitutes.”

Recommendations 1 and 2 were AGREED without division.

Amendment on behalf of the Independent Residents’ Group

That recommendation 3 be deleted

Following debate, the Independent Residents’ Group amendment was LOST by 3 votes to 48 (see voting division 2). The recommendation of the Committee was ADOPTED as the substantive proposal without division and it was RESOLVED that:

1.                  Part 3 of the Constitution, paragraph 1.2 Functions delegated to general council committees be amended as follows:

a.      Advisers and Investment managers

To authorise staff to invite tenders and to award contracts to actuaries, advisers and fund managers and in respect of other related investment matters

To appoint and review the performance of advisers and investment managers for pension fund investments.”

2.                  Part 4 of the Constitution, Paragraph 12 Pensions Committee be amended to read:

(a)   The bodies that are Scheduled or Admitted Bodies of the Havering Pensions Fund for the purposes of the Local Government Pensions Scheme are entitled between them to nominate a representative who shall be co-opted to serve on the Committee with voting rights.

3.                  Part 4, section 3,  of the constitution, Committee Procedure Rules paragraph 17 ‘Training and continuity of membership of certain committees’, sub paragraphs (a) and ( c) be amended by the addition of the following sentence at the end of both paragraphs:

“If a member does not undertake the required training within six months of appointment then that member shall not partake in the decision making of the Committee until their training has been completed”

and at the end of paragraph ( c):

“Non-nominated members may not act as substitutes.”