Agenda item

This report presents the updated Risk Register for the Brent Pension Fund Administration Service.

(Agenda republished to include the attached report on 18 March 25)

John Smith (Pensions Manager, Brent Council introduced a report from the Corporate Director Finance & Resources, presenting the updated Risk Register for the Brent Pension Fund Administration Service.  In considering the report, members noted the updated Risk Strategy (attached as Appendix 2 to the report) and key changes made to the Risk Register (attached as Appendix 1 to the report) since the previous update which included:

• Item 1.1 Business Continuity – the update of supporting commentary
• Item 3.2 Record Keeping – the update of the supporting commentary to reflect recent data cleanse activity
• Item 3.5 Pensions Payroll Migration – the update of supporting commentary to reflect recent activity which had also led to a reduction in score following the successful transfer of the payroll service.
• Item 3.6 Re-enrolment – the reduction in score and update of a supporting comment to reflect recent progress made
• Item 3.7 Pensions Dashboard – the addition of this as a risk following delays with the release if supporting software.
• Item 4.5 Admission agreements – the update of supporting commentary
• Item 5.4 Governance – the update of supporting commentary and controls
• Item 5.5 Discretions – the update of supporting commentary
• Item 6.2 Geographical and economic risk in relation to investments – risk outline and commentary updated
• Item 6.3 Impact of McCloud judgement on Long Term Liabilities – scoring increased and the update of supporting commentary
• Item 6.5 Annual Audit - the update of supporting commentary to reflect the unmodified accounts being signed-off
• Item 6.6 Inflation is higher than expected – scoring increased and the update of supporting commentary,

In thanking John Smith for the overview and commending the quality of the register and comprehensive nature of the update provided the Chair welcomed comments from Board members. Contributions, questions, and responses were as follows:

• Further assurance was sought regarding the level of assessed risk in terms of the impact from the increasing automation of processes involving scheme members from an anti-fraud perspective. In response, the Board was advised this was an issue that remained under ongoing review with the management and prevention of fraud also a high priority in terms of The Pension Regulator.  This involved a range of measures and checks having been established to test assurance and prevent fraud in terms of managing scheme member details and ensuring the accuracy of payments and as such it was felt the risk had been appropriately reflected within the register.

• Details were also sought on the way in which the age profile and demographic profile of scheme members would also be monitored given the increasing automation of systems.  In response, confirmation was provided on the level of nature of checks being conducted to verify details matched member profiles in order to avoid any issues in terms of payments.  These include specific checks relating to overseas members and also the matching of data through the National Fraud Initiative.

The Board was advised that comments on presentation of the Register would continue to be welcomed including on the review of any risk classifications or if it was felt any new or emerging risks needed to be considered.

As no further issues were raised, the Board (having once again commended the report) RESOLVED to note the overall report, including the key changes to the Risk Register (as detailed in Appendix 1 and set out in section 3.2.4 of the report).