Agenda item

Report of the Director of People Services.

4.1      Miriam Adams (Strategic Finance Manager - Treasury and Pensions) provided an overview of training for Board Members since the membership changes that had taken place after the last meeting. The first event had been a Data Challenge session that had taken place on 15 June. Members had also attended the Local Government Pension Scheme (LGPS) Annual Conference on 27 June. There had subsequently been a session led by Investec on 9 July where Investec’s Head of Environmental, Social and Governance (ESG) Investment had given a presentation.

4.2      Miriam Adams advised that the next training event would take place on 17 September and would focus on what the Board’s roles, powers and expectations should be. There would also be a presentation from a representative of The Pensions Regulator. Most Members had confirmed their attendance for this event and Miriam Adams stated that notes of the event could be provided. Additional training sessions were due to be scheduled and information and invitations to future conferences would also be sent to Members. Miriam Adams welcomed any views on how much detail Members would like in respect of investment training.

4.3      The Chairman requested that a training survey to identify Members’ training needs to be sent to her and the Vice Chairman after the 17 September event for review, before subsequently being circulated to all Members. In reply to a Member’s query, the Chairman advised that Board Members were invited to Pension Fund Committee meetings and there had been suggestions of holding a joint meeting of the Committee and the Board. Members concurred that it was important for the Board and the Pension Fund Committee to work together going forward. The Chairman added that she would be meeting with the Pension Fund Committee Chairman to discuss ways of future working between the two bodies.

4.4      Joanne Meagher (Head of Operational People Services) then presented the Pension Administration Update report that monitored the Pension Administration performance undertaken on behalf of the Council by Surrey County Council (SCC) and BT.  Joanne Meagher advised that there had been some performance issues in the past, however over time things had much improved and most key performance indicators (KPIs) were now on target. She was pleased with the progress that had been made which had required a lot of work from officers, SCC and BT. The Board was advised that Hampshire County Council (HCC) was due to take over from BT as the payroll provider on 1 December 2018.

4.5      During discussions, the Chairman acknowledged the initial problems encountered and the subsequent big improvements that had been made, following the efforts of officers. She enquired what steps were being taken to ensure there were no problems when payroll services were transferred from BT and SCC and how had this change had been communicated to pension scheme members. She also asked if admitted bodies would be affected by the change. The Chairman requested that information be provided on outlining the future Pensions Communications Strategy at a subsequent Board meeting. She also asked whether new Board Members had been sent induction packs.

4.6      A Member commented that he was impressed with the improvements that had been achieved with pension administration performance. In respect of staff who were approaching retirement, he emphasised the importance of ensuring that they were fully informed of what they needed to do at least two months before their retirement.

4.7      Members asked if there was any risk of scheme members not receiving their pension payments over Christmas because of the change of payroll provider. It was suggested that those who were about to retire may be at greatest risk in respect of this. A Member welcomed the circulation of the Pensions News newsletter which she had found helpful. It was asked whether the number of City Council staff who were part of the pension scheme could be provided. Members asked if it was possible for People Services to be given additional resources in view of the heavy workload involved. It was asked whether surveys captured relevant data in respect of complaints and was data quality an issue.

4.8      In reply to issues raised by Board, Joanne Meagher advised that the Project Team was working closely with HCC to ensure that the payroll provider transition from BT would run smoothly. She informed Members that HCC worked with a number of other local authorities and so had extensive experience of running payroll services. She had also been impressed when she had met with their staff. Joanne Meagher advised that the testing undertaken to date had gone positively. Every effort was being made to ensure that the HCC payroll system went live on 1 December, and any delay would be very undesirable as it would mean diverting resources to continue with BT in the meantime. Joanne Meagher advised that active consideration was being given to different ways of engaging with pension scheme members and that a report on this could be presented at a future meeting. She added that People Services were looking at getting additional resources for pension administration.

4.9      Sarah Hay (Pensions and Payroll Officer) advised that an induction pack containing additional details would be sent before the next training event on 17 September. She also stated that the number of City Council staff who were pension scheme members could be provided by then, although it may take longer to compile member numbers from admitted bodies to the scheme. In respect of HCC taking over payroll responsibilities, Sarah Hay advised that pension scheme members would shortly be advised of when this goes live. Admitted body members would be unaffected as they did not use the current BT payroll system, whilst SCC administered the pension payments. The Pensions Regulator required the administering bodies to report on data quality and the City Council’s actuary, Barnett Waddingham, were working with officers in putting together a data improvement plan.

4.10    The Chairman welcomed the Board receiving information on a Communication Strategy and ways in which to engage scheme members and it would also be beneficial to receive feedback from admitted bodies. She requested that all communication on pensions should be sent to scheduled bodies and admitted bodies at the same time. The Chairman also requested that training materials from all sessions undertaken to date be circulated to the Board, which Phil Triggs (Tri-Borough Director of Treasury and Pensions) agreed to circulate.