Agenda item

The purpose of this report is to update the Panel and Board on administration performance for 2020/21, seek approval for delegated authority to proceed with a re-tender for the actuarial services contract and seek approval for the updated Communication Policy Statement.

The Panel and Board received a report from the Director of Corporate Operations (Item 8 in the Minute Book) on the administration of the Pension Fund in 2020/21. Pension Services have performed well against the four key measures for good administration in 2020/21 with 100% achievement against service standards for all key processes. The team has been able to maintain its service despite the continuing Covid-19 situation. Pension Services retained the Customer Service Excellence award following an interim assessment in April 2021, with compliance plus passes in five areas.

The Pension Fund’s contract for Actuarial Services with Aon was let via the LGPS National Framework in 2014 and the intention was that in advance of the expiry of the current contract in December 2020 a new contract would be let through the next iteration of the LGPS National Framework. Unfortunately due to the pandemic, the new framework was delayed by a year and the existing contract was extended for a further year to 31 December 2021. The new LGPS National Framework for Actuarial, Benefits and Governance Consultancy Services is now live and the Panel and Board are asked to delegate authority to the Director of Corporate Operations to use this framework to procure actuarial services for the Fund by way of a mini competition between the four providers for Lot 1 on the framework.

The Pension Fund’s Communication Policy Statement has been updated to more accurately reflect the ways in which Pension Services communicate with stakeholders including giving a year’s notice that pensioners will no longer be automatically sent a paper payslip and P60 in March/April each year. This change is part of the overall move towards increasing online communications; there has been really good take up for those parts of the membership where an opt out rather than opt in approach is already in place.

Although it was clear in the newsletter that pensioners can continue to receive paper copies of their annual payslip and P60s by opting out of electronic communication, the announcement understandably has generated some concern. These concerns have been responded to on an individual basis, either through supporting the pensioner to access the Member Portal or accepting a request to opt out of electronic communications. A quarter of pensioners already have access to the Member Portal with 11,099 pensioners registered by 30 June 2021. Since announcing the move to electronic payslips 459 pensioners have requested that they retain their paper payslips. An exercise to write to any pensioner who have not either registered or opted out is planned to start in January 2022, to ensure that all pensioners will be able to access their end of year payslips and P60s in 2022 either electronically or by receiving a paper copy.

Dr Allen raised concerns on behalf of pensioners and their Trade Union representatives, that for a number of pensioners receiving electronic payslips and requesting in writing to retain a paper payslip was not appropriate. The Head of Pensions, Investments and Borrowing undertook to review the level of take-up of pensioners registering for the Member Portal or requesting to retain paper payslips and will review the move to electronic payslips after the first year of operation. The Head of Pensions, Investments and Borrowing also reiterated that any pensioner who wishes to continue to receive a paper payslip and P60 can request to do so.

RESOLVED:

(a)          That approval was delegated to the Director of Corporate Operations to use the National LGPS Frameworks framework for Actuarial, Benefits and Governance Consultancy Services to procure actuarial services for the Pension Fund.

(b)          The updated Communication Policy statement was approved for publication.

(c)          That the strong performance of Pension Services in 2020/21 was noted.