Meeting documents

To consider a report by the Fund Administrator on the progress to date on the Brunel Pensions Partnership (attached).

The Committee considered a report by the Fund Administrator on the progress to

date in implementing the Full Business Case (FBC) for the Brunel Pension

Partnership (BPP), as approved by the Committee at its meeting on 9 January 2017.  

He informed members that Dorset County Council, as administering authority,

had approved the processes to establish the company and implement the new

governance arrangements.

The Fund Administrator believed this was the largest ever change to the

management arrangements of the Fund, and a huge amount of work had been

completed to date and was still needed to implement the changes successfully.  He

informed members that there were monthly meetings of the Shadow Oversight Board

(SOB), attended by representatives of all ten pension fund committees or equivalent

and chaired by the Dorset Fund Chairman, regular meetings of the chief financial and

legal officers for each fund, the Finance and Legal Assurance Group (FLAG), and the

investment officers of each fund, the Client Operating Group (COG) were held.

The Fund Administrator informed members that Denise La Gal had been

appointed as chair of Brunel Pension Partnership Ltd.  The Chairman told members

that the three Non-Executive Directors (NEDs) had also been appointed – Steve

Tyson (the shareholder representative NED), Mike Clark and Frederique

Pierre-Pierre.  The Fund Administrator confirmed that the recruitment process for the

executive posts had begun, and that Dawn Turner, Environment Agency, had been

appointed Interim Managing Director.  He added that there had been significant

discussions at SOB and FLAG on reward packages, with salaries capped and no

bonuses for executives.

Members were informed members that officers were close to finalising the evaluation

of the responses to the Invitation to Tender (ITT) to appoint an administrator and

custodian for BPP Ltd and the underlying funds.

It was noted that from July 2017 the Shadow Oversight Board (SOB) would become

the Oversight Board (OB).  The Chairman was mindful not to overburden members

with too much detail on project progress but asked that members continued to raise

any queries or concerns with him, as the Fund’s representative.  He added

that SOB had provided a high level of scrutiny and challenge on all matters,

particularly future governance arrangements and cost control.  He felt that the

funds had worked well together, with decisions reached so far by consensus not

majority, including some very difficult issues.  He also highlighted the comprehensive

 legal and financial advice and support provided to the project by Osborne Clarke and

PwC respectively.

A member asked about the management of transition costs.  The Chairman

replied that to date there had been set-up and development costs, but as yet no

transition costs.  Once officers had been recruited to BPP Ltd detailed plans for

transition would be developed and implemented, with cost control a major factor.

The Fund Administrator noted that transition costs would also be an important consideration in implementing any changes to the strategic allocation in advance of BPP.

The Vice-Chairman said that it would be useful to receive a regular, short and

specific report, highlighting key risks and measuring performance against Key

Performance Indicators (KPIs).  The Chairman asked that officers request a forward

plan be produced by BPP Ltd, and a member asked if the Committee could be

informed of any significant developments between meetings.  The Fund

Administrator agreed with these requests and explained that the Services Agreement

between each fund and BPP Ltd included the requirement for KPIs to be agreed and

monitored, and it was expected these would be agreed later in the year.

Noted