Buckinghamshire County Council Page 1 TABLEScheme OF Management CONTENTS and Advisers Scheme Management and Advisers .......................................................................................................................... 1 Introduction from the Finance Director (Finance Consultancy) .............................................................................. 2 The Pensions and Investments Team ....................................................................................................................... 3 Local Government Pension Scheme Benefits .......................................................................................................... 4 Management and Financial Performance Report ..................................................................................................... 7 Risk Management .................................................................................................................................................... 7 Financial Performance ........................................................................................................................................... 16 An analysis of amounts due to the Fund from Employers ...................................................................................... 18 Five year analysis of pension overpayments, recoveries and any amounts written off .......................................... 19 Administrative Management Performance ............................................................................................................. 20 Investment Policy and Performance Report ........................................................................................................... 29 Scheme Administration Report ................................................................................................................................ 32 Governance Statements ........................................................................................................................................... 34 Governance Policy Statement ................................................................................................................................ 34 Governance Compliance Statement ...................................................................................................................... 36 Pensions Administration Strategy Report .............................................................................................................. 42 Communications Policy Statement ......................................................................................................................... 44 Funding Strategy Statement ..................................................................................................................................... 45 Statement of Investment Principles ......................................................................................................................... 50 Additional Information for the Scheme Annual Report .......................................................................................... 56 Actuary’s Statement as at 31 March 2015 ............................................................................................................... 59 Statement of Responsibilities for the Statement of Accounts .............................................................................. 60 Independent Auditor’s Report to the Members of Buckinghamshire County Council ........................................ 61 Description of the Fund .......................................................................................................................................... 62 Membership of the Fund ........................................................................................................................................ 62 Pension Fund Account for the Year Ended 31 March 2015 ................................................................................... 63 Net Assets Statement ............................................................................................................................................ 64 1. Basis of Preparation ....................................................................................................................................... 64 2. Accounting Policies and Critical Judgements in Applying Accounting Policies ............................................... 64 3. Contributions .................................................................................................................................................. 67 4. Transfer Values .............................................................................................................................................. 67 5. Benefits .......................................................................................................................................................... 68 6. Payments to and on Account of Leavers ........................................................................................................ 68 7. Management Expenses .................................................................................................................................. 68 8. Investment Income ......................................................................................................................................... 69 9. Investments .................................................................................................................................................... 69 10. Investment Management Arrangements ......................................................................................................... 71 11. Analysis of the Value of Investments .............................................................................................................. 72 12. Financial Instruments ..................................................................................................................................... 73 13. Additional Financial Risk Management Disclosures ....................................................................................... 77 14. Related Parties ............................................................................................................................................... 82 15. Current Assets and Liabilities ......................................................................................................................... 83 16. Taxes on Income ............................................................................................................................................ 83 17. Actuarial Position of the Fund ......................................................................................................................... 84 18. Actuarial Present Value of Promised Retirement Benefits .............................................................................. 85 19. Contingent Liabilities and Contractual Commitments ..................................................................................... 86 1 20. Additional Voluntary Contributions (AVCs) ..................................................................................................... 87 21. List of Scheduled and Admitted Bodies .......................................................................................................... 88 Contact Us ................................................................................................................................................................. 91 Glossary of Terms and Acronyms Used ................................................................................................................. 92 Page 2 Scheme Management and Advisers Scheme Management and Advisers Administering Authority: Buckinghamshire County Council (BCC) Pension Fund Committee: Cllr John Chilver (Chairman) (BCC unless stated) Cllr Richard Scott (Vice Chairman) Cllr Trevor Egleton Cllr Peter Hardy Cllr Steven Lambert Cllr David Martin Cllr John Gladwin (representing the District Councils in Buckinghamshire) Cllr Peter McDonald (Milton Keynes Council) Cllr David Carroll (Thames Valley Police) Advisers: Mercer Investment Consulting Carolan Dobson Fund Managers: Aviva Investors BlackRock Blackstone Alternative Asset Management DB Advisors Investec Asset Management Legal & General Investment Management Mirabaud Investment Management Pantheon Private Equity Partners Group Royal London Asset Management Schroders Standard Life Investments Custodian: BNY Mellon AVC Providers: Clerical Medical Prudential Actuary: Barnett Waddingham LLP Fund Legal Advisors: Buckinghamshire Law Plus (BCC) Bankers to the Fund: Lloyds TSB Bank plc Fund Accountant: Julie Edwards (BCC) Finance Director, Consultancy: Mark Preston (BCC) Auditor: Grant Thornton UK LLP Scheme Administrators: Pensions and Investments Team (BCC) Page 1 Introduction from the Finance Director (Finance Consultancy) Introduction from the Finance Director (Finance Consultancy) Contained within this publication are the report and accounts of the Buckinghamshire County Council Pension Fund. The Fund is a part of the statutory Local Government Pension Scheme (LGPS) and is administered by Buckinghamshire County Council (BCC). The changing landscape for local government Recently LocalGov revealed that government spending on care for people aged 65 and over had fallen by a fifth in England over the last 10 years. In Buckinghamshire