Agenda item

The Pensions Manager introduced this report to the Committee. He informed them that updated advice and guidance for scheme administrators has been received from the Pensions Regulator as the COVID-19 pandemic continues to evolve. He added that whilst the prioritisation of critical administration work to support scheme members by focussing on the continued payment of pensioner and dependent members and the processing of retirements and death cases remains, administrators are also reminded of their responsibility to maintain other administrative processes.

He stated that officers have completed work to reconcile data returns ahead of the statutory ABS exercise. He added that 94% of all active member statements were issued ahead of the 31^st August deadline and that work is now underway to assess requirements for the provision of statutory Pension Saving Statements.

He said that the I-Connect onboarding project was still suspended pending recruitment of the I-Connect team and that recruitment to fulfil the teams would recommence in September 2020 along with a review of the project.

Charles Gerrish asked how the recruitment process would be managed with Covid-19 restrictions still in place.

The Pensions Manager replied that it would take place over a period of 6-8 months and would be closely controlled to ensure that adequate training was in place. He added that the team had been under resourced for some time.

Shirley Marsh-Hughes commended the current team for doing a sterling job in the current climate. She asked if there was a back up plan if the correct staff can’t be found.

The Pensions Manager replied that outside help could be brought in to help if necessary for specific projects or larger pieces of work.

Shirley Marsh-Hughes asked how staff were coping with working from home.

The Pensions Manager replied that it was beginning to take its toll on some staff, but that there are support mechanisms in place. He added that regular health checks are undertaken with staff that include discussions on mental health.

The Head of Business Finance & Pensions added that we were moving into unchartered territory with the pandemic and that he expected working from home through the Winter to be difficult. He said that the management team have been working together to try to maintain morale.

He stated that work would be outsourced where possible and warned that some areas of performance may deteriorate in the coming months.

He thanked all staff for doing a great job.

The Pensions Manager highlighted the following information from the report.

McCloud Judgement

He said that on 16 July 2020, MHCLG published a consultation on amendments to the statutory underpin which are designed to remove age discrimination from the LGPS. He explained that in summary the consultation proposes that qualifying members, all who were active in 2008 scheme on 31^st March 2012 and accrued benefits in the 2014 scheme without a disqualifying break, would be protected by the application of a revised underpin which will be applied retrospectively for those who have already left the scheme. He said that the consultation runs until 8th October 2020 and we are currently in the process of formulating a response.

Public Sector Exit Payments Cap

He informed the Committee that on 21 July 2020, HM Treasury published the Governments response to the consultation on restricting exit payments in the public sector. He added that this was followed by the publication of draft regulations which include a list of employers who will be covered by the cap, which is set at a total of £95,000. He said that exit payments include redundancy payments, severance payments, pension strain costs and other payments made as a consequence of termination of employment.

He stated that the Regulations will need to be approved by both houses of parliament and will come into force 21 days after that process is complete. He added that we understand it is the intention that the cap will be in force for the end of the 2020 calendar year.

The Committee RESOLVED to note:

i)  Fund and Employer performance for the period to 31st August 2020

ii)  The current position regarding the developments that could affect the administration of the Fund.

iii)  The updated Risk Register and actions taken