Buckinghamshire Pension Fund Annual Report 2019-2020

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Buckinghamshire Pension Fund Annual Report 2019-2020 Page 1 of 149 Buckinghamshire Pension Fund Annual Report Table of Contents Scheme Management and Advisors ........................................................................................................ 1 Introduction by the Head of Projects and Pensions ................................................................................. 2 The Pensions and Investments Team ...................................................................................................... 4 Local Government Pension Scheme Benefits ........................................................................................... 6 Risk Management ................................................................................................................................... 9 Risk Management Report ................................................................................................................................. 9 Internal Audit Testing .................................................................................................................................... 19 Financial Performance Overview........................................................................................................... 19 Five-year analysis of pension overpayments, recoveries and any amounts written off ..................................... 21 Employee Contributions ................................................................................................................................. 21 An analysis of amounts due to the Fund from Employers ................................................................................ 22 Average Employer and Employee contributions received 1 April 2019 - 31 March 2020 .................................... 23 Investment Policy and Performance Report .......................................................................................... 29 Scheme Administration ........................................................................................................................ 32 How the Service is Delivered .......................................................................................................................... 32 Value for money statement ............................................................................................................................ 35 Summary of Key Projects Undertaken by Administration Team 2019/2020 ...................................................... 35 Key Performance Data ................................................................................................................................... 36 Governance Statements ....................................................................................................................... 41 The Pension Fund Committee ............................................................................................................... 48 Buckinghamshire Pension Board ........................................................................................................... 49 Annual Review of the Buckinghamshire Pension Fund Board ................................................................. 50 Pensions Administration Strategy ......................................................................................................... 52 Communications Policy Statement ........................................................................................................ 61 Funding Strategy Statement ................................................................................................................. 70 Aims and purpose of the Fund .............................................................................................................. 70 Investment Strategy Statement ............................................................................................................ 86 History of the Fund ............................................................................................................................... 93 Actuary’s Statement as at 31st March 2020 ........................................................................................... 95 Statement of Responsibilities for the Statement of Accounts ................................................................ 98 Independent Auditor’s Report to the Members of BPF .......................................................................... 99 Pension Fund Accounts ....................................................................................................................... 100 Buckinghamshire Pension Fund Annual Report Net assets statement ................................................................................................................................... 101 Description of the Fund ................................................................................................................................ 102 Accounting Policies and Critical Judgement in Applying Accounting Policies .................................................. 104 Critical Judgements in Applying Accounting Policies ...................................................................................... 107 Contributions ............................................................................................................................................... 109 Investments ................................................................................................................................................. 111 Investment Management Arrangements ...................................................................................................... 114 Analysis of the Value of Investments ............................................................................................................ 115 Financial Instruments ................................................................................................................................... 116 Valuation of Financial Instruments Carried at Fair Value ............................................................................... 117 Additional Financial Risk Management Disclosures ....................................................................................... 121 Related Parties ............................................................................................................................................ 126 Current Assets and Liabilities........................................................................................................................ 127 Taxes on Income .......................................................................................................................................... 127 Actuarial Position of the Fund ...................................................................................................................... 128 Actuarial Present Value of Promised Retirement Benefits ............................................................................. 130 Contingent Liabilities and Contractual Commitments .................................................................................... 132 Additional Voluntary Contributions (AVCs) ................................................................................................... 133 List of Scheduled and Admitted Bodies ......................................................................................................... 134 Scheduled Bodies ......................................................................................................................................... 134 Investment Pooling ............................................................................................................................. 137 Contact us .......................................................................................................................................... 143 Glossary of Terms and Acronyms Used ................................................................................................ 144 Buckinghamshire Pension Fund Annual Report Scheme Management and Advisors Administering Authority Buckinghamshire Council (BC) from 1st April 2020 Buckinghamshire County Council (BCC) to 31 March 2020* Pension Fund Committee Cllr John Chilver (Chairman) (BC unless stated) Cllr David Martin (Vice-Chairman) Cllr Arif Hussain (to 30 June 2019) Cllr Ralph Bagge (from 1 July 2019) Cllr Timothy Butcher Cllr Clive Harriss Cllr Niknam Hussain Cllr John Gladwin - District Councils Cllr Norman Miles - Milton Keynes Council Cllr Matthew Barber - Thames Valley Police Asset Pool and Asset Pool Operator Brunel Pension Partnership Advisors Mercer Investment Consulting Carolan Dobson Fund Managers BlackRock Blackstone Alternative Asset Management Investec Asset Management – to November 2019 La Salle Legal & General Investment Management Pantheon Private Equity Partners Group Royal London Asset Management Schroders – to November 2019 Standard Life Investments Custodian State Street AVC Providers Scottish Widows Prudential Actuary Barnett Waddingham LLP Fund Legal Advisors HB Public Law until 30 September 2019 BC Legal Team from 1 October 2019 Bankers to the Fund Lloyds TSB Bank plc Fund Accountant Rachael Martinig Head of Pensions Julie Edwards Head of Projects and Pensions Mark Preston Auditor Grant Thornton UK LLP Scheme Administrators Pensions and Investments Team (BC) *For the purpose of this document, all references to BCC have been replaced with BC. Equally, all references to BCCPF have been replaced with BPF
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