States Treasury and Exchequer
Ministerial Decision Report
Public Employees Pension Scheme and Jersey Teachers’ Superannuation Fund
Re-appointment of Chairman
- Purpose of the Report
Mr Gordon Pollock, the Chairman of both the Public Employees Pension Scheme (PEPS) and the Jersey Teachers’ Superannuation Fund (JTSF) was appointed for a 5 year period from 1 July 2014 until 30 June 2019.
Members of both Boards and Treasury officials support a second term of office for a further 5 year period from 1 July 2019 until 30 June 2024.
- Background
Public Employees Pension Scheme Legislation
Under the PEPS legislation the Chief Minister may extend the Chairman’s initial term of office by re-appointing the Chairman for a second term of office not exceeding 5 years or any subsequent term of office thereafter not exceeding 5 years. The Chairman must on appointment (or re-appointment, as the case may be), enter into a contract for services with the States Employment Board which must specify such fee and reasonable expenses to be paid to the Chairman out of the fund, as is determined by the Minister for Treasury and Resources in consultation with the Committee.
Jersey Teachers’ Superannuation Fund Legislation
Under the JTSF legislation the Chairman of the JTSF shall be appointed by the Chief Minister on the recommendation of the Minister for the States Treasury and Exchequer. The fee to be paid to the Chairman from the assets of the Fund shall be decided by a simple majority of the member and employer representatives.
- Original Recruitment Process
The panel that conducted the recruitment, selection and interview process in late 2013 early 2014 were:
- Ken Soar, Commissioner, Jersey Appointments Commission (Chairman) until 6th January 2014
- Edward Sallis OBE, Commissioner Jersey Appointments Commission (Chairman) from 6th January 2014
- Terence Le Sueur OBE, Employer Representative PEPS / JTSF
- John Mills CBE, Employer Representative PEPS / JTSF
- Ron Amy OBE, Chairman of PEPS / JTSF
- Gary Burton, Member Representative JTSF
- Mark Richardson, Member Representative PEPS
- Laura Rowley, Treasurer of the States
The panel unanimously agreed that Gordon Pollock had the skills and experience that best matched the criteria for the role. A biography is included at Appendix A.
- Chairman’s Remuneration
Remuneration, fixed for the 5 year term of office, was £85,000 per annum and is shared between both schemes. PEPF pays the higher amount of £50,000 per annum as it is the larger scheme, whilst the JTSF pay £35,000. The fee has remained fixed for the 5 year period of the first term of office.
Following consultation it was unanimously agreed by both Boards to increase the Chairman’s fee for the second term and to fix the level of remuneration for the next 5 year term of office. It is proposed the fee level has an inflationary increase equal to civil servants pay awards over the last 5 years to bring it to £92,500 per annum.
The amount will be divided with the PEPF paying £54,200 per annum and the JTSF £38,300 per annum.
- Recommendation
PEPF legislation - for the Treasury and Resources Minister to agree that the fee of £54,200 per annum being offered to the Chairman is appropriate following consultation with the Committee.
JTSF legislation – for the Treasury Minister to recommend to the Chief Minister the appointment of Mr. Gordon Pollock for a second term of office with the fee to be paid to the Chairman from the assets of the Fund being decided by a simple majority of the member and employer representatives to be £38,300 per annum.
Report author : Project Director – Pensions | Document date : 28th January 2019 |
Quality Assurance / Review : Head of Decision Support | File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2018-0145 - PEPS and JTSF - Recommendation to the Chief Minister – Re-appointment of Chairman |
MD sponsor : Director of Financial Planning and Performance |
Appendix A
Biography
Mr. Gordon Pollock
Gordon is a former Worldwide Partner and UK Chief Actuary of Mercer and an expert witness. He joined Duncan Fraser & Co in Edinburgh in 1976 and was appointed Partner in 1983. After the firm was sold to Mercer in 1986 he advised some of the firm’s largest pension fund and corporate clients on pension issues including actuarial, funding strategy, and the impact of corporate activity. These included BT, SAUL, RAC, the Electricity Companies, PWC and Compass Group. He became Head of Mercer’s City office in 1989 for 6 years before being appointed Head of the UK Actuarial business.
Prior to his early retirement in 2011, he was UK Chief Actuarial Officer for 6 year and spent half his time in this role reviewing Mercers actuarial advice to the firm’s most complex pension fund clients.
From 2002 until 2004, he was Chairman of the Association of Consulting Actuaries, having been Honorary Treasurer since 1998. He lobbied the DWP and government ministers over pension policy, including their response to the increasing number of occupational pension schemes closing due to cost and regulatory pressures and the need to encourage growth in future pension savings. He is an experienced trustee, having been a director of the MMC UK Pension Plan (£3.3bn) for 16 years. He was a member of the investment committee which oversaw a Common Investment Fund and he chaired a sub-committee that focused on de-risking and new asset classes. He was also Chairman of both the Audit and Risk and the Legal committees.
Since retiring from Mercer, Gordon has continued to act as an expert advisor and witness in legal cases concerning actuarial and investment strategy. He was appointed as a consultant to Barnett Waddingham to help them develop the firm’s capability in this field. One of the largest cases he worked on involved possible litigation over actuarial and investment advice given in 2006 by a consulting firm. He was also appointed as the Chairman of Expert Witness Working Group of the Institute and Faculty of Actuaries and a trustee of their Staff Pension Scheme (£50mil) and he recently acted as an expert in the court case involving the British Airways Pension Schemes. In 2017 he was appointed as an independent member of the Treasury Advisory Panel. Gordon has been described as an ‘industry heavyweight’ and brings considerable experience, gravitas and sound judgement to the Chair role.