Agenda item

This report updates the Pension Board on various pensions administration matters as part of its remit to oversee the administration of the Brent Pension Fund. 

Sawan Shah (Head of Pensions, Brent Council) introduced the report, which updated the Pension Board on various pensions administration matters as part of its remit to oversee the administration of the Brent Pension Fund. The Board were informed that the report was divided into three sections, ‘Pension Administration Performance Update’, ‘Annual Benefit Statements’, and ‘Regulatory Projects’, which would be addressed in turn. It was explained that the data covered January to March 2023 and therefore was slightly out of date at the time of the meeting.  In addition to the Pension Board meetings, members noted that officers and LPP held monthly meetings to review performance and address any issues.

The Board were advised that performance during the quarter, as stated in the previous Pension Board meeting in March, was challenging due to the UPM migration. However, performance was highlighted as improving and members were reminded of the temporary SLA’s agreed due to the UPM migration. In concluding their introduction, Sawan Shah detailed the increase in complaints spanning February to May 2023, with 33 new complaints received since the last Pension Board meeting. Out of the 33 cases, 17 related to delays, 15 related to general service and 1 related to payment. It was acknowledged that the number of complaints were high compared to the historical average, which were mainly due to the challenges in performance following the system migration.

Following the introduction of the report, the Chair welcomed John Crowhurst from Local Pensions Partnership Administration (LPPA), the Council’s administration service provider, who provided a verbal update regarding recent pensions administration performance, with the update summarised below:

• The average percentage of cases processed on time was 97% during May, 97% during June and 96% during July. The performance for May to July was above the contractual SLA target of 95% and was largely attributed to clearing historical spikes in workload arising from the UPM migration, with performance now expected to stay around the 95% target.

• The Board were informed that the percentage of retirements active cases currently being processed on time was 90%. LPPA recognised that further improvements could be made in this area, but it was highlighted that the number of retirements active cases were comparatively low meaning that a small drop in performance greatly impacted performance percentages.

• 80% of bereavement cases were currently being processed on time, with cases that included a beneficiary being prioritised.

• The Fund had a significant increase in its Helpdesk wait times with performance of 10 minutes 29 seconds in January, 10 minutes 4 seconds in February and 6 minutes 19 seconds in March, all of which were above the target time of 4 minutes. However, since implementing a new call handling system in March which improved call routing and providing additional training to staff, call times had decreased in recent months assisted by a reduction in call volumes compared to earlier in the year.

• Regarding The Pension Regulator (TPR) data scores, as at 31 March 2023, common data had a total accuracy rate of 96.5% whereas conditional data had total accuracy rate of 89.6%. In addition to quarterly updates, a 12 month rolling trend was being monitored to analyse how data scores moved. The Board were also informed that LPPA were developing a data strategy regarding data controls and the management of data which would be provided to the Board.

After the verbal update, the Chair invited questions from Board Members, with questions and responses summarised below:

• In highlighting the poor performance during quarter four in processing transfers out and refund cases, members were advised that performance during quarter one was 96% for refunds and 87% for transfers out.

• Regarding the expectations of future performance, the Board were informed that performance was now more stable, with mitigations implemented including initiatives to address staff turnover, training and development. In summary, confidence was expressed that performance should not dip significantly below contractual SLA targets.

• In response to a question relating to the increase in complaints, the Board heard that the majority of complaints were largely due to delays resulting from the spikes in workload that occurred during the UPM migration. The Board were reassured that the complaints team were analysing complaints and the improvements in performance were hoped to reduce the number of complaints being received.

In turning the Board’s attention to section 4 of the report, relating to annual benefit statements (ABS), Sawan Shah explained that scheme employers were required to submit an end of year return in order to be able to produce an ABS. Once returns had been submitted, queries needed to be resolved by 31 August each year. The Board were informed that both the Fund and LPPA monitored submissions and outstanding enquiries, with the latest update showing that 10 employers had not submitted their end of year return. While the number of outstanding returns were higher than the Fund would ideally want, it was a significant improvement from last year and the Fund had been in contact with the remaining employers and were confident that the statements would be submitted within the deadline.

In thanking Sawan Shah for the update, the Chair welcomed questions from the Board, with questions and responses summarised below:

• In response to a query regarding the attendance of the year end training sessions, members were informed that the exact attendance numbers could be provided after the meeting, but the Board were reassured that the largest payroll providers attended.

• To notify employers where payroll providers had not yet submitted a return, senior staff members in the relevant organisations had been contacted.

• In providing the updated figures regarding the ABS submissions, the Board noted that the outstanding employers were generally the smaller employers, with 98% of statements issued to deferred members and 80% of statements issued to active members as of 21 July. It was also explained that LPPA had launched a facility that enabled employers to submit monthly returns which was said to improve the flow of data between LPPA and employers. Whilst the facility was still new, LPPA received 43% of expected files in April, 39% in May and 32% in June, which was said to be above average compared to other pension funds.

• The Board heard that the move from a yearly return to monthly returns would be a positive step for the Fund, as issues could be resolved faster and more proactively as communication between employers and the Fund would be more regular. However, it was stated that the number of employers submitting monthly returns needed to increase.

As there were no more contributions from the Board regarding ABS’s, the Chair thanked Sawan Shah and John Crowhurst for the update and asked that members were updated at the end of August on the number of statements issued ahead of the Board meeting in November.

In moving to the third and final topic of the agenda item, concerning regulatory projects, Sawan Shah advised the Board that the pension’s dashboard had been paused until further notice by the Department of Work and Pensions to allow for a more achievable timeline for the platform to be established. Furthermore, the regulations arising from the McCloud case were expected to come into force on 1 October 2023, with LPPA continuing to work alongside the UPM system provider Civica to develop and implement functionality for the McCloud remedy throughout 2023. LPPA had also issued emails to employers in relation to data requirements for the McCloud exercise.

In providing a verbal update on the progress regarding the McCloud remedy, John Crowhurst informed members that functionality testing was currently on track and employers had been surveyed to confirm their information. Whilst some responses had been received, LPPA were arranging follow up communications imminently. Concerning LPPA’s preparedness for the enforcement of the regulations, further training on McCloud was being prepared and the Fund were regularly updated in monthly meetings.

As there were no further questions from Members, the Chair thanked John Crowhurst for the update, and it was RESOLVED that the report be noted.