J Hattersley referred to a recent South Yorkshire Leaders Meeting at which the Chair, Treasurer and himself had provided an update on general pooling matters and had answered any questions raised.  The issues discussed at the meeting included infrastructure and governance of the pooling arrangements moving forwards.  The Chair had also attended a meeting with other Fund Chairs at the Pool level, which was progressing satisfactorily in terms of governance.  J Hattersley urged the new Members to review the draft Memorandum of Understanding (MOU) and the structure of the Pool-co moving forwards, which had previously been approved by the Authority.

Members noted that the Pool Officers had given a presentation to a CLG Treasury Panel earlier this week, to provide an update on the Pool’s position in terms of preparedness and the discussions taking place in relation to governance structures and the potential product mixes; no negative feedback had been received.

A letter had today been received from the CLG to confirm that the July submission deadline would be satisfied by a letter from the Pool rather than from each underlying fund, but that the letter must contain an annex on a fund by fund basis.  It had been agreed at the last Authority meeting, that the Investment Board would consider at its next meeting the matters to be settled out with and within the Pool, which would form the basis of the Authority’s submission on the back of the Pool submission.

Councillor Wraith queried whether arrangements had been made to merge the two South Yorkshire Pools.

J Hattersley commented that the two South Yorkshire Funds had both selected the Boarder to Coast Pool.  There would be associated establishment costs with pooling which was estimated at £1.5m to £2.5m, and had been progressed on the basis of one fund, one vote.  The South Yorkshire Passenger Transport Pension Fund was the smallest of the 13 funds within the Pool, and the establishment costs could prove to be disproportionate to the Fund.  The South Yorkshire Passenger Transport Pension Fund Committee (SYPTPFC) had initiated discussions to determine whether the Authority could represent the South Yorkshire Passenger Transport Pension Fund at Pool level or whether it would be prudent for the South Yorkshire Passenger Transport Pension Fund to be dissolved and the assets and liabilities transferred to the South Yorkshire Pension Fund.  As part of the general devolution discussions for the Combined Authority, there could be an opportunity to incorporate into the legislation remarks in relation to their administering authority status with the LGPS.  The Authority had lodged the possibility of those discussions taking place with the CLG, together with email communication, and the Monitoring Officer had spoken to the Law Officers at the CLG.

Councillor Wraith queried the costings involved.

J Hattersley commented that it was premature to discuss the cost of transition, although if agreed it would require legislation which would be equivalent to a bulk transfer in actuarial terms.  There would be a cost involved in the legal transfer of assets, therefore the Authority had suggested that any transfer be delayed until the time of pooling, to enable only one set of transition costs.  The Authority was exploring the possibility of administering two funds, and retaining two separate administrative strategies and investment strategies.

Councillor Sangar queried whether Members of the SYPTFC had held a quorate meeting to agree matters.

J Hattersley referred to discussions held with the Chair and Vice-Chair of the SYPTPFC and at its last meeting which had been inquorate, where Members had agreed in principle that they were favourable to the suggestions.  A meeting of the Combined Authority was scheduled for 20 June, to which a paper outlining the proposals would be presented.  It was hoped to provide confirmation of the assets to be held outside of the Pool at the next Investment Board meeting, which would form the basis of the Fund’s annex to the Pool submission.

RESOLVED – That Members noted the update.