The Board received and noted the update the update report on the current position with the Pensions Administration service. The main points of the discussion may be summarised as follows:

The Board:

·         Welcomed the commendable reduction in the work outstanding at the end of June. Which shows a considerable improvement compared with the position at the end of March.

·         Were encouraged that the initiative to implement the I connect system as this will enable data to be uploaded more easily and improve overall efficiency.

·         Noted that the majority of employers including the council continue to rely on pension fund staff to upload their monthly payroll data on the portal. A drive to get employers signed up and using the portal for data submission will commence in September

·         Noted that the Government want people to belong to workplace pension schemes, so employers have to automatically enrol you back into the LGPS approximately every three years.

·         Noted that concerns have been expressed about the fall in stock markets and the potential resultant impact on defined contribution pensions. However, the LGPS as a defined benefit pensions are not linked to stock market performance and are set out in statute.  Therefore, although short term investment values may vary, the LGPS as a long-term investor is securely managed to address any longer-term impacts. Therefore, LGPS Scheme members can be assured that both their contributions and their pension, whether in payment or built up to date, will be unaffected.

·         Acknowledged that COVID-19 has led to an extraordinary period of lockdown and social distancing measures which has put many employers with LGPS liabilities under considerable financial pressure as their sources of revenue has reduced.  Accordingly, the Pensions Team are closely monitoring if to see if any employer with LGPS liabilities is under pressure.

·         Was informed that it is anticipated that the pressure on employers will continue over the short to medium term as Government measures to curb the spread of the infection are gradually lifted and public confidence improves.

·         Recommend that in future the Service should work with Trade Union representatives to encourage staff to join and continue membership of the LGPS;

·         Noted that, where employers have opted to furlough staff, pay continues to be pensionable (i.e. if a member receives 80% of their pay under furlough, employee and employer contributions are due on this level of pay). However, the Government furlough scheme only compensates employers by 3% of pay towards employer pension contributions (the minimum employer contribution under autoenrollment rules). Therefore, the balance of employer pension contributions must be found by the employer through other sources which may deplete any cash reserves held by employers, putting their businesses at risk.

·         Stated that it wished to place on record their thanks and appreciation to Pensions and Investment Manager and her team on the commendable reduction in the back logs.

·         Noted the progress in responding to the McCloud ruling with reference to engagement with employers to ensure receipt of member data when required; identifying those  ...  view the full minutes text for item 5