Agenda item

The purpose of this report is to present the Fund’s administration performance for the three months to 30th June 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.

McCloud: Moving forward slowly following recent software issues.

Year End: Late data received from some employers. Seek to avoid fines where possible and provide training opportunities.

Restructure update

·  New structure in place with effect from 1st August

·  All Ring-fenced officers got their first choice of roles

·  Recruitment into new structure & new roles – Q3-Q4

·  Movement of work and responsibilities – Q3

Wendy Weston asked if any redundancies were made as a result of the restructure.

The Pensions Operations Manager replied that two positions have been deleted, leading to 1 resignation and 1 notice being given.

The Head of Pensions added that a process was ongoing to see if a possible new role could be established for the person who has been given notice.

Q1 and beyond – what’s been happening

·  Permanent team leaders appointed

·  Training – new and existing officers

·  Continued focus us on backlogs

·  Temporary “retirement team”

SLA monthly performance average July 23 – 18th August 24

• Many more areas turning green
• Team is focussed and working hard

KPI cases completed as % July & August 24

• Overall picture is improving

The Pensions Operation Manager commented that, as suggested by the Chair of the Pension Board, officers will input a cumulative ‘Green’ column to this slide for future reports.

Wendy Weston asked if she was happy with the recruitment that had taken place so far.

The Pensions Operation Manager replied that she was and that the additional officers have enabled resources to be available across all teams.

Service performance – plan v’s actual – August 24

·  14% ahead of our current target

Pensions Increase Update

The Technical & Compliance Advisor highlighted the following areas from the report.

Phase 2

• 39 cases have been manually calculated, with arrears / interest paid in July and August 2024.
• 95 cases are going through the bulk remediation process and will have the arrears / interest paid in September 2024.
• 68 cases have been reviewed and no further remediation is due.
• Total = 202 completed

Phase 2 – What’s in progress

• 11 suspended child pensions have had arrears calculated. Dependants have been written to for current bank details.
• 39 death cases have been reviewed and arrears are being calculated.
• 10 cases are currently in checking
• Total = 60 in progress

Phase 2 – What’s left

• 142 pensions suspended from outset (Member tracing) – These members are being traced and this population will be removed from the project as they are not a pension increase issue. These will be owned and dealt with as part of the normal tracing process.
• 94 GMP cases. These are complex cases and will require manual calculation and resolution.
• 11 Payroll cases – Once payroll queries are resolved, increases will need to be calculated.
• Total = 247 – 142 = 105 to action

The Head of Pensions said that a figure of £1.5m had been assigned as financial provision regarding the Pensions Increase and that he expected to be well within that figure at the completion of the work.

Councillor Joanna Wright said that it was good to see the improvements made and knowledge in place across the teams and asked how this would be maintained.

The Pensions Operation Manager replied that there is now a Training Team in place and that only one version of the training manuals are to be in place. She added that annual reviews of the training will be held.

Pensions Dashboard

The Pensions Operation Manager highlighted the following areas from the report.

What is the Pensions Dashboard?

• The Government’s aim is that online Pensions Dashboards will match users with all their pensions yet to be brought into payment, in one place and in a secure way.
• Their personal details will be verified within a complex “ecosystem” and details of their schemes and pension benefits will be fed back and available to view on a dashboard.
• The data will be presented in a simple and understandable way.

Councillor Mike Drew asked where all the data would be stored.

The Data Control Team Leader replied that it would be stored in the Cloud by the Integrated Service Provider.

Councillor Joanna Wright commented that she was worried about the storage of this data.

The Pensions Operation Manager replied that it is the role of the Integrated Service Provider to oversee any security issues and to make sure that this information is locked down. She added that this is a paramount issue for the Fund and that an Integrated Service Provider had yet to be chosen.

Councillor Wright said that she felt that the Council should write to the Government to set out the costs involved in this process.

The Head of Pensions said that he shares the sentiment, but felt that all parties were too advanced into the journey.

Councillor Shaun Stephenson-McGall suggested that a briefing be held with all local MPs so that concerns are able to be shared.

DWP Connection Deadline dates

• All Public Service Pension Schemes must be connected by 31^st October 2025.
• Implementation planned between June – October 2025

Nick Weaver, Chair of the Pension Board said that he was concerned that the project will take longer than planned and that the Government would change their deadlines at the very last minute.

The Pension Regulator (TPR) Guidance

• TPR will be responsible for ensuring we comply with the duties of the dashboard.

• We must be able to evidence:
  • Having regard for our “connect by” date
  • Appropriate Governance, processes and systems in place
  • Key decisions and progress recorded

TPR Guidance – what must we be doing now?

• Decide how to connect –
  • Review options
  • Current provider / Integrated Service Provider / Build your own

• Data Accuracy

o  Review your data to ensure:

o  We can match members with their pension

o  Return accurate data values

TPR Compliance & Enforcement approach

• Principle based
• Data led
• Will have a range of powers
• Will be pragmatic but robust where they see intentional non-compliance

Pensions Administration Standards Association (PASA) Guidance

• Key pillars which need to be addressed to achieve connection readiness.
  • Governance
  • Matching
  • Pensions Values
  • Technology
  • Administration

APF – Governance readiness

• Appointed a Project Manager
• Project plan for delivery and connection
• Education of Management team

• Next steps:
  • Ongoing monitoring of progress & compliance
  • Ongoing communication with officers, employers, Board & Committee
  • Delivery ISP and connect October 2025

The Committee RESOLVED to note the service performance for the period ending 30th June 2024 and the presentations that were delivered to them.