Agenda item

The Finance & Systems Manager (Pensions) presented the budget report. He asked Members to note the increased forecast underspend for investment managers’ fees, which reflected current market conditions.

The Pensions Manager presented the performance reports. He drew attention to the paragraph 5.5 (performance against target), noting that performance was acceptable, although marginally below target in some areas. Customer satisfaction was good. The level of opt-outs from the Fund had been low. Paragraph 8.2 gave information about how administration processes were amended in June 2011 to identify opt-outs in a reportable field; the current annual opt-out rate was only 0.29%, which was reassuring. There had been no complaints about service in the period.

Before the discussion of Appendix 7, which summarised the performance of Scheme Employers during the first 2 quarters of 2011, the following resolution was passed by 6 votes with 5 abstentions:

Having been satisfied that the public interest would be better served by not disclosing relevant information, the Committee resolves, in accordance with the provisions of Section 100(A)(4) of the Local Government Act 1972, that the public be excluded from the meeting for this item because of the likely disclosure of exempt information as defined in paragraph 3 of Part 1 of Schedule 12A of the Act as amended.

Summarising the discussion on Appendix 7, the Chair said that the Committee’s views should be communicated to underperforming employers when officers next met them, and that they should be told that it might be necessary to discuss their performance in open session if there was no improvement. The Pensions Manager observed that under the Administration Strategy there was a power to charge employers for any disproportionate work they caused for Pensions staff in comparison with other Fund employers.

The meeting returned to open session.

A Member congratulated Pensions staff for an excellent quarter’s work, with costs significantly below budget. However he was concerned about outstanding workload being so close to target, and wondered whether this was due to failure to fill a staff vacancy. The Pensions Manager said that the post had not been deliberately left unfilled, but there had been recruitment difficulties.

Members noted the list of Academies given in Appendix 8. The Investments Manager said that the pensioner and deferred liabilities and sufficient assets to cover these liabilities are retained by the Unitary Authority employers. A Member asked the Investments Manager to report back to the Committee how the “old” Academies were treated on leaving the UAs.

RESOLVED to note the expenditure for administration and management expenses incurred for the year to 31 October 2011 and Performance Indicators for the 3 months to 31 October 2011 and Summary Performance report for the first two quarters 2011.