Agenda item

The purpose of this report is to present the Fund’s administration performance for the three months to 31st March 2024 vs key performance indicators (KPI’s).

The Pensions Operations Manager introduced the report to the Committee and the following points were highlighted from it.

• Recruitment for the two key posts of Employer Services Manager and Member Service Manager are under way.

• McCloud: Awaiting guidance from the Scheme Advisory Board (SAB) with respect to the application of the McCloud remedy. This is now expected to be issued following the General Election (4^th July). Early reporting suggests the fund has c1,000 members that will require the remedy.

• GMP: The fund is in the final stages of reviewing the Mercer closure report for member reconciliation. 5,150 remain outstanding as “stalemate cases” out of a population of 91,369 members, (a reduction of 8,916 previously reported to the Board in February 2024). The review will aim to be completed in July and we plan to bring recommendations to Board & Committee in September.

·  Process Controls: The fund is working with an external consultancy company to carry out a piece of work to map and review existing processes and relevant controls. The initial project will review the top 15 processes based on risk. The review is due to complete at the end of June and a full report will be brought to Board in September.

·  The budget outturn for the 2023-24 year was an underspend of £503k.

·  From 30 May 2024 APF entered a 45-day consultation period with all staff for an organisational re-structure which will take effect on 1 August. The new structure will increase overall FTE’s from 83 to 94.

Councillor Mike Drew asked if anything unexpected had been raised as part of the consultation so far.

The Pensions Operations Manager replied that there had not yet been anything of significance. She said that some posts were likely receive a two grade increase and that some roles may change to allow the formation of the new Digital Team. She added that promotion opportunities would be more possible within the new structure.

Councillor Fi Hance asked if there would be a role for all of the 28 staff who have been ring-fenced.

The Pensions Operations Manager replied that there would and that the appropriate Trade Unions have been involved in these discussions.

McCloud – Pensions in-to payment from 1st October 2023 to 31st May 2024

·  From 925 normal (from active or deferred) pensions 18 (2%) have had the underpin applied resulting in an annual uplift of £6,735 which equates to £561 monthly.

·  From 204 dependant pensions there has been no need to apply the underpin.

The Chair asked if further work was required of officers with regard to McCloud.

The Pensions Operations Manager replied that there was and that they had around another 20,000 member details to work through. She said that it was likely that around 1,000 members could receive the underpin.

SLA – Performance average June 23 to May 2024

• Figures are not improving much which is still due to the backlog of cases.

KPI’s - cases outstanding under 31 days

• 1,601 as at 2^nd June 2024

KPI’s - cases outstanding over 31 days

• 734 as at 2nd June 2024

The Pensions Manager commented that staff continue to support members whilst also promoting the digital route to self-service.

Nick Weaver, Chair of the Pension Board, said that it was clear that the direction of travel is good and that the priority remains to clear the backlog of cases. He added that the Board was encouraged by this report when they received it earlier in the month.

Service performance – plan v’s actual

• Good progress being made – deliver sooner if possible.

The Technical and Compliance Manager addressed the Board and provided them with an update on the Pensions Increase.

Phase 1 is complete

• Remediated 801 members using Retro PI process:
• 696 members paid arrears/interest and corrected their monthly pensions going forward (645 LGPS and 51 Teachers).
• 105 members fixed in readiness for 2024 PI.

Lessons learned - Phase 1

·  We have improved our knowledge of the PI annual process. Heywood support has been invaluable and effective.

·  Communication with the APF Committee, Pension Board, Council and within the APF project team has been constructive.

·  We achieved the Phase 1 timeline within the hard deadline imposed by the 2024 PI run.

Future Phases plan

·  Population

• Cases are more complex than Phase 1 and require deeper analysis.

• Not all of population will require remediation.

·  Approach

•    Technical Manager to lead project and will from part of teams BAU project work.

•  Likely to be more resource intensive for manual calculations.

•   Use full end-to-end bulk remediation process where possible – run smaller batches with similar profiles once analysis and any correction work complete.

•  Aiming to address all cases by end 2024.

The Committee RESOLVED to note the service performance for the period ending 31st March 2024.