Agenda item
Pensions Administration and LGPS Quarterly Update – June 2021
- Meeting of Pension Board, Monday, 6th September, 2021 10.00 a.m. (Item 6.1)
- View the background to item 6.1
Minutes:
Ms Miriam Adams, Interim Head of Pensions and Treasury stated the report provided members with information relating to the administration and performance of the Fund over the last quarter as well as updates on key LGPS issues and initiatives which impact the Fund.
Ms Adams said the Pensions Committee also received the report on a quarterly basis together with comments of the Board. She asked Board members to note the admissions to the Tower Hamlets Pension Fund listed in the recommendations to the Committee and said the Cyril Jackson Academy was being represented by the University School Trust (a Multi Academy Trust - MAT).
Ms Adams explained the Clara Grant Primary School was moving to the Boleyn Trust (MAT) Newham and the Stepney Green Mathematics and Computing College to Mulberry Academy Trust (MAT) Tower Hamlets. She said although the management of Clara Grant Primary School was moving to the Boleyn Trust Newham, the MAT had requested to remain part of the Tower Hamlets Pension Fund. Ms Adams said the actuary had been consulted who agreed to the arrange as the school wasn’t moving physical from its location.
Ms Adams referred Board Members to page 28 of the agenda and said there had been a small increase in membership numbers, from 7,263 at the last quarter to 7,283 for this quarter. Ms Adams referred to the table and the percentage changes for active, deferred, pensioner categories.
In reference to table 3.2 Ms Adams said this showed the number of tasks completed and outstanding as of 30th June 2021. Ms Adams said this excluded the queries received via the Pensions Administration inbox and calls received from Fund members. She said there had been an increase in the number of calls received with an average of 40 to 50 calls a day. She stated that Covid-19 appeared to have increased awareness with Fund members wanting to find out about their pensions.
Ms Adams said they had made progress with workflows with thirty workflows having been set up on the system and this had helped with consistency. A further six workflows needed to be added with the help of the Pensions software provider. She referred members to the table at paragraph 3.7 and said this set out the performance against CIPFA suggested timelines. Ms Adams explained that some of the missed targets were due to information being awaited from members. For example, deferred members who are close to retirement would be written to with an estimate of their pension. However further action cannot be taken until the estimate is acknowledged and the form is returned. Therefore, there is a time lag in achieving the target. Ms Adams said there were ten cases which required action before June.
Referring to the Annual Benefit Statement, Ms Adams said they missed the deadline of 31st August to dispatch the statements however statements had been sent out by 3rd September 2021. She said several active members would not receive their statements due to ongoing payroll data issues which the Pensions Team are assisting the Council’s Payroll team to resolve.
Ms Adams referred to the table at paragraph 3.9 which showed the active members of the Fund as of 30th June before referring to paragraph 3.10. Ms Adams said the Pensions auditors as well as the Internal Audit report recommended that the breach be reported to the Pensions Regulator. Ms Adams stated that she will take questions in relation to this in the closed session.
Referring to the LGPS updates, Ms Adams referred to paragraph 3.13 and said the Pensions Team had project planned for the impact of the McCloud judgement and said that due to a delay in the regulation being issued, some of the tasks were shown as amber on the project plan as the true impact would not be known until the regulations had been published.
Ms Adams said paragraph 3.16 dealt with TCFD disclosures and the MHCLG were consulting on making TCFD a compulsory part of LGPS funds. She said Tower Hamlets were ahead of the curve, with the Pensions Committee agreeing to receive TCFD reporting in November 2020. Ms Adams said the Committee would be receiving an update at its next meeting.
On the staffing update Ms Adams stated three vacancies had been filled, two of which were existing agency staff. Ms Adams said there were seven more posts to fill, and she was hopeful of advertise a further three vacancies this week, with the remining four being advertised in October/November 2021.
In response to questions from members the following was noted:
- The Chair stated the number of tasks outstanding, were the lowest figures he had seen. Ms Adams explained with was partly due her holding direct meetings with all the officers within the Pensions Team. She said she met with them weekly and/or fortnightly to go through the task list in detail. In cases where they are not getting responses, she was able to directly input and resolve queries.
- In reference to table 3.7, and the workflow for transfers, Mr Thompson said this area required focus in terms of performance. Ms Adams responded stating that transfers were a difficult area to manage as much depended on the ‘starter’ completing forms and returning this to the Pensions Team. She said some transfers were club transfer whereas other were non-club transfers.
- The Chair and Board Members agreed that looking at tables 3.2 and 3.7 together, the improvements made was significant. The Chair on behalf of the Board members expressed his thanks to Ms Adams and the Pensions Team for the work they had undertaken which had resulted in the improvement.
- Ms Adams explained the Pensions team were 100% funded by the Pensions Fund and they had no recourse to the Council’s General Fund. Ms Adams said when the actuary made their triennial valuation a 0.6% adjustment for costs included in employer contribution rates. If day to day operational cash was required there was an approved process agreed by the Pensions Committee which was followed.
- Ms Adams confirmed 2021 would be the last year for sending out paper statements to Fund Members. Referring to paragraph 3.16 and the roll out of the Member Self-Service portal, Fund Members could view their pension information on the portal. However, if a Fund Member had requested a paper copy, they were legally required to provide one.
- Regarding the recruitment of staff, Ms Adams confirmed the timetable to fill vacancies had slipped slightly however the remedial action plan was a two, three-year plan. Ms Adams said she remained hopeful that the remaining vacancies would also be filled.
- In respect to the frozen category referred to on page 28, Ms Adams said a former employee recently interviewed is being recruited to focus on this membership category.
The Pension Board RESOLVED to:
Note the recommendations being made to the Pensions Committee who were to consider this report at their meeting of 23rd September 2021.
The Pensions Committee is recommended to:
- Note and comment on the contents of this report and appendix
- Note the following admissions to the Tower Hamlets Pension Fund:
· Age UK East London
· Juniper Ventures Limited
· Olive Dinning Limited
· Cyril Jackson Academy, Boleyn Trust Academy and Age UK Limited.
- Note admission of University School Trust (Multi Academy Trust MAT) is in respect of Cyril Jackson School.
- Note the exit of Tower Trust Multi Academy Trust and move of Schools managed by the Trust - The Clara Grant Primary School to Boleyn MAT Newham and Stepney Green Mathematics and Computing College to Mulberry Academy Trust (MAT) Tower Hamlets.
- Note that Clara Grant Primary School although moving under the management of Boleyn Trust Newham have requested to remain in the Tower Hamlets Pension Fund.
Supporting documents: