Agenda item

Including general Pension Admin update; update on Management Actions arising from Internal Audit reports; Data Improvement Programme Update incl. Annual Benefit Statements (ABS); and best practice on ABS to causal workers.

47.1.      The Board considered a report providing an update on matters relating to Pension Administration Team (PAT).

47.2.      The Chair asked for clarification as to why the Key Performance Indicator (KPI) “Employer estimates provided” was at 49% during July 2020.

47.3.      Paul Punter (PP) explained that this was a resourcing issue. During that month there was a number of staff who were on holiday;  there were two vacancies; there was a backlog of work accrued during lockdown; there was an unusually high number of complex calculations; and it is a time of year where – due to teacher retirements and the issuing of Annual Benefit Statements (ABS) – there is more contact from scheme members than normal.  

47.4.      The Chair asked whether there is a plan to retain the shared Orbis help desk after the PAT is bought back in-house.

47.5.      PP said a number of options are being explored, including retaining the help desk but with an expectation of an improved contractual service. An alternative would be to bring customer calls in-house, which would require the hiring of an additional 3-4 members of staff to the PAT. He clarified that the help desk had only been in place two years and currently picks up calls for all pension funds administered by Orbis. 

47.6.      The Chair asked whether 12 deaths or suspensions from the 478 overseas pensioners was high and whether there were any pensions that had continued following the deaths for a long time.

47.7.      PP said that the deaths may have just coincided with the mortality exercise and would have been reported anyway, as they were only a few months old. The size of the exercise also means that more cases have been picked up, as it included all overseas pensioners, not just those in ill health or over 70. Due to Covid-19, it is more difficult to get a signature of a professional witness in English for some of the overseas pensioners. As a result, the pensioners have been given extra time to respond and they are allowed to send it electronically.

47.8.      With regards to the new £95k exit cap LW asked how members will be affected by this in future.

47.9.      PP confirmed that there would be an effect on scheme members who will take redundancy or voluntary severance termination packages after the new Exit Payment Regulations become law on 4th November, as the LGPS Compensation Regulations have not yet been updated. The conflict is  that the LGPS regulations say a member over age 55 who exits on a termination package must have an unreduced pension, but the exit cap regulations may restrict the employer’s ability to pay the full strain cost. The administering authority will continue to make payments as normal for those retiring after 55 and who do not breach the cap. A decision, however, is needed around what to pay those who retire early in the interim. The PAT is keen to ensure some kind of payment is made rather than defer the calculation until the Compensation Regulations come into force, but it is not clear how it should be calculated and what factors should be included.  He added that multiple judicial reviews of the Exit Payment Regulations could mean that the legislation could end up being quashed.

47.10.   LW added that the unions feel that making a payment is the position administering authorities should be in and is preferable to deferring payments until the regulations come into force.  She added it was very disappointing how the legislation has been implemented during Covid-19 and without supporting regulations in place.

47.11.   The Board RESOLVED to note the report.