S Barrett gave a presentation to inform the Authority of the current position with regard to agreeing to join the Border to Coast Pension Partnership.

The Authority then considered a report to seek authority for the South Yorkshire Pensions Authority to pool its LGPS assets with 11 other Funds in a newly created, wholly owned, local government regulated asset management company – Border to Coast Pension Partnership Ltd as its chosen means of achieving regulatory compliance.

The report contained the following recommendations:

That the Authority meets the regulatory requirements to pool Pension fund assets by:

1.      Agreeing to be a member of the Border to Coast Pensions Partnership (BCPP) and to adopt its arrangements, by authorising the Clerk and the S151 officer in consultation with the Interim Fund Director to finalise the approval and execution, where required, of all legal documents necessary to give effect to the decision below:

i.       entering into the Inter-Authority Agreement between the Authority and the administering authorities of the other Pool funds

ii.      entering into the Shareholders’ Agreement between the Authority and the administering authorities of the other Pool funds and Border to Coast Pensions Partnership Limited

iii.     agreeing the Articles of Association to be adopted by the Border to Coast Pensions Partnership Ltd.

2.      Approving the establishment of the Border to Coast Pensions Partnership Joint Committee as a formal Joint Committee under section 102 of the Local Government Act 1972 in accordance with and to carry out the functions as set out in the Inter-Authority Agreement.

3.      Approving the subscription by the South Yorkshire Pension Fund of one Class A voting share in the asset management company, Border to Coast Pensions Partnership Limited.

4.      Appointing the Chair of the Authority as the shareholder for BCPP Ltd.

5.      Approving the subscription by the South Yorkshire Pension Fund for such number of Calls B non-voting shares in the Border to Coats Pensions Partnership Limited as shall be necessary to ensure that the Authority contributes by way of equity one twelfth of the minimum regulatory capital requirements of the Financial Conduct Authority.

6.      Appointing the Chair to represent the Authority on behalf of the Fund at the Border to Coast Pensions Partnership Joint committee meetings.

7.      Authorising the Clerk to make the consequential changes required to the Constitution to reflect these new arrangements.

The Authority discussed the report in detail highlighting issues around ‘one share, one vote’ and infrastructure investment.  Members expressed concern that he report did not contain any information on the role of Trade Union representatives or Local Pension Boards in the new structure.

After a lengthy discussion on the matter, Cllr P Wood proposed an amendment that the decision on the recommendations within the report be deferred to allow the Chair to contact the Chairs of the other Authorities proposing to join the pool to ascertain their position on Trade Union representation in the pool governance structure.

The amendment was seconded by Cllr R Wraith.

After further discussion around Trade Union representation and how they could be involved in governance arrangements the amendment was carried.

It was noted that the Chair would contact the other Chairs by email or telephone.

A report would be brought for a decision at the next Authority meeting on 16 March 2017.