Agenda item

The Pensions Manager reported that some of the complaints received related to pension death benefit, where an employee had not completed the necessary form to indicate to whom the lump sum death grant should be allocated.  These cases went to probate, but the Council’s position was that it did not wish to become involved in disputes between family members of the deceased.  It would be necessary to clarify the policy in this respect and he suggested that the Pensions Team could remind Fund members by including a message on the annual benefit statements.

He also reported that the scoping impact of the McCloud remedy was being assessed for former, current and deceased members of the Fund. Additional resources were being utilised for this purpose. Admitted bodies had not supplied the information required by the Pensions Team so assumptions would have to be made about the missing data.  Members of the Board urged the Pensions Manager to prompt schools and admitted bodies to supply the required information on their employees who fell within the scope of McCloud as a matter of urgency.

Unfortunately, annual benefit statements for active members had been despatched later than anticipated and this would have to be reported to the Pensions Regulator.  Work was ongoing with the Council’s Human Resources Team to mitigate this happening in the future.

On the Risk Register, the Pensions Manager said that he met monthly with Human Resources and felt confident that their input would have a positive affect on trends in the Register.  He suggested that new software for use by Pensions Team and Human Resources would mitigate some of the red areas highlighted in the Register.

A member of the Board suggested that any areas marked in red on the Register should include some narrative.  He noted that some of the “Trend” arrows on the Register were incorrect and required attention.  Narrative should also be included in the Register to indicate “no new risks” where appropriate.

The Board noted that, with reference to risk no 14 “Loss of Investment returns; bond yields fall”, which was coloured red, it was likely always to remain so, despite the very good work by the Pensions Committee to avoid.

RESOLVED:

(a) To note the number of members auto-enrolled into the LGPS during the relevant period from 1 May to 31 July 2023, that there were no complaints under consideration under the Internal Dispute Resolution Procedure, the numbers of compliments and complaints to the Pensions Team and that there were no current Internal Audit investigations, all as detailed in the report of the Corporate Director of Resources.

(b) That the performance data for the administration activities of the Council’s Pensions Office, again as detailed in the report, be noted.

(c) To note the publication by Department for Levelling Up, Housing and Communities of the LGPS Amendment (No.3) Regulations 2023 implementing the ‘McCloud Remedy’.

(d) To note the reported breach of the law to the Pensions Regulator regarding the production of the Annual Benefit Statements for active members.

(e)  To note the updated Pensions Risk Register at Appendix 1 of the report.

(f) To note that three new staff had been recruited to the Pensions Team since the Board’s last meeting.