Agenda item

The Pensions Manager presented the report. He said that the number of employers continued to grow and there were about 45 new employers in the pipeline at the moment. Overall performance had declined in the reporting quarter. The number of outstanding cases had increased and a project team had been created to address the backlog. A simplified leaver process had been introduced for employers. Employer performance had improved over the last two years, and the focus of the Employer Services Team was increasingly on those who were still struggling. At the 2014/2015 year end process there had been 130 employers identified as providing late or inaccurate data to the Fund. This had reduced to 21 employers reported at 2016/2017 year end, representing a significant improvement over the period.

A Member commented on the amount of work and the potential impact on cash flow that could arise from Fund members exercising their right to transfer to another pension scheme. The Pensions Manager confirmed that a small number of Fund members had already done so, and said that it was important to ensure that those considering it were steered towards appropriate sources of independent advice and information.

A Member said that the performance of some employers as shown in Appendix 3 was appalling. What was the point of targets if employers were not trying to achieve them? He wondered what action the Fund could take to secure improved performance. He conceded that some of the poor performance might be due to staff cuts. The Pensions Manager said that simplifying procedures and the use of new technology would go some way to mitigating the position. The Head of Business, Finance and Pensions said that most problems related to the smaller employers, who only carry out a few pension transactions and lack familiarity with the procedures. It was a challenge to educate and support them. Pressure had been put on software suppliers to make the processes as clear and simple as possible; options being considered included having an on-screen help facility. However, it had to be remembered that it was the Fund that could be fined for poor performance; the ultimate fall-back position was to report breaches by employers to the Regulator. The Fund could levy charges on poorly performing employers under the Administration Strategy.

RESOLVED to note:

1. Membership data, Employer Performance and Avon Pension Fund Performance for the 3 months to 30 September 2017.

2. Progress and reviews of the TPR Data Improvement Plan.

3. Proposed member and Employer feedback.