Agenda and minutes

Apologies for absence were received from Councillors Julian Grainger and Gordon Norrie.

The following declarations of interest were made –

·  Councillors Roger Charsley and John Getgood in respect of minute 159, Appointment of Honorary Aldermen.

·  Councillor Michael Turner, in respect of minute 161, as a member of the London Pensions Fund Authority Pension Fund.

In accordance with the Council’s Constitution, questions to this Committee must be received in writing 4 working days before the date of the meeting.  Therefore please ensure questions are received by the Democratic Services Team by 5pm on Thursday 20^th March 2014.

The following question for written reply had been received from Councillor Julian Grainger –

Can I ask you to highlight the matter of the Pension Deficit Recovery Parallel Fund contained in the Minutes of Pensions Investment Sub-Committee (11^th February 2014) and GP&L (24^th February 2014). In particular, Members (especially those on Pensions Investment Sub-Committee) might like to know:

(i)  whether the Parallel Fund has been established (and if not, when?)

(ii)  the initial amount (from earmarked reserves – recommended up to £10m)

(iii) future annual payments (which would be inversely proportional to the initial amount)

(iv) whether the investment vehicles (DGF’s with Standard Life & Baillie Gifford) have been confirmed – and if not what alternative has been proposed?

(v) Given that these matters are subject to report and decision under the aegis of GP&L, which of the above matters (i) to (iv) are non-executive decisions and which are executive?

Reply:

On 24^th February 2014, Council agreed the recommendations of the Pensions Investment Sub-Committee to set up a Parallel Fund. It was recommended that the amount of capital invested in the Fund be up to £10m through a Diversified Growth Fund (DGF) type investment. Options relating to the type and value of investment will be reported to Executive in June when the 2013/14 final outturn figures are available and this will assist in the identification of funding options.

Therefore, the fund has not yet been established and will be subject to the outcome of the Executive meeting in June.

The Baillie Gifford DGF is closed to new investments and no decision has yet been taken regarding an alternative. This will be included in the June Executive report when options are considered.

These matters are all executive decisions as the establishment of the Parallel Fund relates to the setting aside of an earmarked reserve (although as stated above funding options are yet to be confirmed) as opposed to a direct Pension Fund Investment decision. There may also be an impact on the Council’s Treasury Management Strategy which would require approval of full Council.

RESOLVED that the minutes of the meetings held on 4^th and 24^th February 2014 (excluding exempt items) be confirmed.  

Report CSD14059

The Government had recently introduced regulations requiring Councils to take a recorded vote on their budget and council tax setting decisions. The requirement came into force on the day after Bromley set its 2014/15 Council Tax. The report proposed changes to the Council’s Constitution, to be recommended to full Council, to reflect the new requirement in the Council Procedure Rules. 

RESOLVED that Council be recommended to adopt the following additional words (in italics) in the Council Procedure Rules in the Constitution -

15.5   Recorded vote

If one third of the Members present at the meeting demand it, the names for and against the motion or amendment or abstaining from voting will be taken down in writing and entered into the minutes. A demand for a recorded vote will override a demand for a ballot. A recorded vote will be taken on Budget and Council Tax setting matters and where required by law.

Report CSD14058

An informal cross party meeting had been held to consider potential Honorary Aldermen from amongst those Members known to be standing down at the forthcoming local election who had qualified by serving for three terms and rendering eminent service to the borough. A special meeting of the Council would be held just before the annual meeting on 4^th June 2014 to make the appointments.

The Chairman recorded his thanks to Councillors Reg Adams and Peter Fookes who had assisted in considering the candidates.  

RESOLVED that the following Members be nominated to full Council for appointment as Honorary Aldermen –

Councillors Roger Charsley, John Getgood, Brian Humphrys, Mrs Anne Manning, David McBride and Ernest Noad.

Report CSD14056

The Committee considered a schedule of proposed meeting dates for the Licensing Sub-Committee for the period June to December 2014.

RESOLVED that, subject to the re-appointment of Committees and Sub-Committees at the Council’s annual meeting on 4^th June 2014, the schedule of Licensing Sub-Committee meetings attached at Appendix 1 to the report be approved.

Report FSD14028

The London Pension Fund Authority (LPFA) had carried out a cessation valuation following the retirement of the one remaining active London Borough of Bromley employee in the Fund.  There were now thirteen former Council employees in receipt of a pension from the fund. Under Local Government Pension Scheme (LGPS) Regulations, an exit payment became payable once a Scheme employer ceased to have active members contributing to the Fund. 

RESOLVED that

(1)  Deficit liabilities continue to be measured using ongoing funding assumptions.

(2)  An initial deficit recovery period of 17 years be agreed.

(3)  A payment plan with no set exit date and a flat rate payment of £40k per annum be approved.

(4)  It is noted that the position will be closely monitored and any request to exit the Fund and trigger a full cessation will be subject to a further report to this Committee. 

The minutes of the Pensions Investment Sub-Committee meeting held on 11^th February 2014 (excluding exempt information) were received.

RESOLVED that the Press and public be excluded during consideration of the items of business referred to below as it is likely in view of the nature of the business to be transacted or the nature of the proceedings that if members of the Press and public were present there would be disclosure to them of exempt information.

The following summaries

refer to matters

involving exempt information

In respect on Minute 148/1, it was noted that issues arising from the Domiciliary Care Appeal would be reported to the next meeting of the Care Services PDS Committee.  

RESOLVED that the exempt minutes of the meetings held on 4^th and 24^th February 2014 be confirmed.

The exempt minutes of the Pensions Investment Sub-Committee meeting held on 11^th February 2014 were received.