Agenda item

This report provides an update to the Pensions Board on the transition of the Pension Administration contract from the current supplier, Capita, to the new supplier, Local Pensions Partnership (LPP).

This report updated the Pensions Board on the performance of the external contractor (Capita), responsible for the delivery of the pension’s administration services, including governance and record keeping.  The report also introduced key documentation that would significantly improve governance of the scheme.

Ravinder Jassar (Head of Finance) stated that as previously reported to the Pensions Board, the scheme administrator did not send out 100% of annual benefit statements (ABS) by the statutory deadline of 31 August for both the 2015/16 and 2016/17 ABS roll out. As a result of the breach, the scheme administrator had had to report itself to The Pensions Regulator for two consecutive years.  He explained that the root cause of some of the underlying data issues was information flow from payroll providers for schools and other employers. In view of  the above challenging issues, the Council had agreed a number of actions to help prevent these issues from re-occurring.  He updated members that as at 14 May 2018 (last formal update from Capita) all ABS for 2016/17 had been issued to those that were eligible and that for the 2017/18 ABS roll put Capita had received all end of year submissions from employers and were working to resolve any outstanding queries with those relevant employers.

The Head of Finance explained the significance of Record Keeping Plan (RKP) document and having provided key updates to it continued that as a result of the RKP, significant progress had been made in terms of the quality of member data, governance and effectiveness of the Pensions Board’s scrutiny role. He reported on the scheme manager’s regular meetings with The Pensions Regulator (TPR) and drew members’ attention to appendix two to the report that set out key metrics and detailed all of the individual activities and actions taken with a view to having a robust governance arrangements in place and compliance with relevant regulations and guidance in relation to data management/quality. He advised that as part of the scheme’s robust governance arrangements (such as a Pensions Administration Strategy, Risk Management Strategy and Record Keeping Plan) the Scheme manager was also proposing that a policy be put in place setting out how breaches of the law could be identified, recorded and reported.  The policy, attached at Appendix four, set out further details of the decision processes involved in determining materiality and reporting arrangements.

In welcoming the report as a significant step in the right direction to address the issues highlighted in the report, members requested further information on the TPR’s code of practice.  Brian Aspinwall (Interim Pensions Analyst) was requested to circulate the code.

RESOLVED:

(i)         That the progress report be noted;

(ii)       that the Risk Management Strategy and Risk Register as set out in Appendix three to the report be agreed;

(iii)      that the breaches policy as set out in Appendix four to the report be agreed;

(iv)       that the high level principles that would feed into the draft Pensions Administration Strategy as set out in section eight of the report be agreed