Issue - meetings

50.1     The Committee considered a report and presentation from Hymans Robertson on the Employers' Triennial Valuation Results and Draft Funding Strategy Statement.

50.2     The Committee’s discussion included the following issues:

• The actuary highlighted the importance of accurate data for employers, particularly for small to medium organisations, due to the potential impact on funding levels and contribution rates that inaccurate pension data can have on these employers.
• It is difficult to draw firm conclusions about whether data quality at a whole Fund level has improved or deteriorated since the 2013 valuation. However, the actuary noted that data provided in relation to employer ‘crystallisation events’, such as cessation valuations, has deteriorated in some cases.  These events involve more detailed data checks - there have been an increasing number of cases where the 2016 valuation data required a retrospective update to be made due to incorrect membership data supplied at that time.
• It was acknowledged that the increased number of employers and complexity of the recently introduced career average pension benefits means timely and accurate data provided by the pension administrator to the fund actuary is essential. The quality of data raises questions on the capacity of the pension administration service and a service based review of the pension administration service should consider whether there are enough skilled staff in place to maintain the data to an appropriate standard.
• Internal audit when questioned on why the breaches did not feature in their audit report highlighted that their reporting process is pitched at a high level. The Chair commented that the Internal Audit Report should highlight risks and issues within the pension administration service in sufficient detail to allow an effective scrutiny process.  The annual internal audit findings on Orbis pension administration services should be a standing item on the board and committee agendas. Internal audit agreed to meet with the Chair to preview the 2019 audit findings

50.3     The Committee RESOLVED to:

1) note the progress of the actuarial valuation including the update on the valuation membership data and employer contribution rates; and

2) agree the draft revised Funding Strategy Statement for consultation with Fund employers