The Board met on 1 July 2010 and discussed a number of strategic and operational issues, including:

1. Product & Investment Committee Review – Proposed Charter & Delegations -Appointments/Reappointments 

That the Board:
·         approved amendments to the delegations/charters for the Product and Investment Committee. 
·         agreed that one Board Member and the General Manager Governance & Fund Secretary authenticate by signature the attachment of the Common Seal of the ESSB to the amended Instruments of Delegation for the Product and Investment Committee. 

2. Other Committee Appointments

Mr King distributed a proposal detailing the new Committee memberships effective from 1 July 2010, and spoke to the composition of each Committee. Mr King encouraged the attendance of new Board Members at Committee meetings. 

i)              Product and Investment Committee
The Board agreed that Ms Mitchell, Ms Beale, Mr Dalton, Mr Jones, Mr Lyons and Mr Glare would comprise the Product and Investment Committee, with Ms Mitchell appointed as Chairperson of that Committee. 

ii)            Audit, Finance and Risk Committee
The Board agreed that Ms Mitchell, Mr Herbert, Ms Sanger, Mr Jones, Mr Stephenson and Mr Lyons would comprise the Audit, Risk Management and Finance Committee, with Ms Mitchell appointed as Chairperson of that Committee until December 2010.

iii)          Benefits and Services Committee
The Board agreed that Mr Glare, Mr Stephenson, Ms Beale, Mr King, Mr Larkin and Mr Lyons would comprise the Benefits and Service Committee, with Mr Glare and Mr Stephenson appointed as Co-Chairpersons of that Committee. 

The Board noted that Mr Wilson would replace Mr Larkin on the Benefits and Service Committee following Mr Larkin’s retirement in December 2010. 

iv)         Governance and Remuneration Committee 
The Board agreed that Mr King, Ms Sanger, Mr Glare and Mr Stephenson would comprise the Governance and Remuneration Committee, with Mr King appointed as Chairperson of that Committee. 

3. CEO Report

Mr Dundon spoke to his July 2010 CEO Report and responded to questions from the Board. 

The Board noted the CEO’s July 2010 report.  

4. CEM Conference Trip Summary 

Mr Parry spoke to the CEM Conference Trip Summary information paper and responded to questions from Board Members. 

The Board noted the report. 

5. Update on Multi-Manager and Asset Advisor Implementation

Mr Puli and Mr Laity spoke to the Update on Multi-Manager and Asset Advisor Implementation information paper and responded to questions from Board Members.

The Board noted the progress to date on the Investment Advisor and Multi-Manager Implementation project.

The Board approved the changes to the Investment Policy Manual.                                       

6. Discussion on Investment Beliefs 

Mr Graeme Miller and Mr Jeff Chee from Towers Watson joined the meeting. 

Mr Miller and Mr Chee led the discussion on the Board’s investment beliefs and responded to questions from Board Members. 

The Board agreed that the philosophy embodied in its Investment Mission Statement is a current reflection of the Board’s investment beliefs. The Board agreed that the Mission Statement should be referred to the Product and Investment Committee for refinement, and to be presented to the Board at a subsequent meeting. 

7. Member Satisfaction Survey Results

Ms Boucher introduced Ms Angela Baker and Ms Jessica Bradley of Forethought Research

Ms Baker presented to the Board the Member Satisfaction Survey Results and responded to questions from Board Members.

Ms Boucher confirmed that an action plan was currently being developed in light of the survey results, and would be considered by the Benefits and Service Committee prior to being presented to the Board for approval.

The Board noted the presentation on Member Satisfaction Survey results.

8. Audit, Risk Management & Finance Committee Report – June 2010

Mr Dundon and Ms Mitchell spoke to the Audit, Risk Management & Finance Committee Report – June 2010 information paper.

The Board noted the outcomes of the Audit, Risk Management & Finance Committee Meeting of 10 June 2010, in particular, the Committee’s determinations to:
·               approve the updated Risk Management Strategy & Risk Management Plan;
·               approve the 2010-11 Internal Audit Plan; 
·               adopt the Derivative Risk Statement subject to a review by Ernst & Young to ensure compliance with APRA/ASIC requirements; and
·               endorse various arrears and advances write-off recommendations (as tabled) subject to the development and implementation of detailed procedures that are overviewed by the Controls Self Assessment Program.  

9. FY2011 Business Plan and Budget

Mr Puli presented the FY2011 Business Plan and Budget and responded to questions from the Board.

The Board approved the FY2011 Business Plan & Budget, being:
-          Total Expenditure of  $26.422M;
-          Total Income of $28.372M, including agreed defined benefit recovery rates;
-          Projected surplus of $1.949M; and
-          FTE headcount (at year end) of 141.6.

The Board approved the Operating Reserve Funding Policy.

The Board approved the proposed target level for the Operating Reserve for the end of financial year 2012/13 being equal to a minimum of $15 million with an appropriate target being 0.10% of Scheme assets. 

10. Benefits & Service Committee Report –  June 2010

Mr Pearse and Ms Boucher spoke to the Benefits and Services Committee Report - June 2010 information paper.   

Mr Pearse noted that the issue surrounding amendments made by the Superannuation Legislation Amendment Act 2010 increasing the age of contributory service to 75 and the inability of emergency services members to exempt out of the Scheme would be discussed with the Emergency Services Federation at the next meeting scheduled on 8 July 2010. Mr Jones requested that given the complexity of the matter, the agenda for that meeting be circulated to Attendees as soon as possible, and that the ESF representatives and emergency services member-elected Board Members be given an opportunity at that meeting to meet in camera. 

The Board noted the summary information and decisions of the Benefits & Service Committee meeting held on 17 June 2010. 

11. Receipt of Gifts, Benefits and Hospitality Policy

Mr Dundon spoke to the Receipt of Gifts, Benefits and Hospitality Policy information paper. 

Subject to minor amendment, the Board approved the Receipt of Gifts, Benefits and Hospitality Policy. 

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