Agenda item

(To receive a report by Jo Ray (Pension Fund Manager) which presents an update from Lincolnshire County Council to provide assurance on their progress in addressing the issue and establishing robust arrangements to fulfil their statutory responsibilities as an employer in this area)

Consideration was given by the Board to a report from Jo Ray, Pension Fund Manager, which provided an update and assurance on the progress in addressing the issue of outstanding leaver's information; and controls for data submission.

Claire Machej, Accounting, Investment and Governance Manager reminded the Board that the matter had been brought to their attention at their January meeting; and that the improvement plan had documented the actions to be taken to provide the West Yorkshire Pension Fund all outstanding leavers' information for 31 May 2018, which would allow West Yorkshire Pension Fund to process and issue all Annual Benefit Statements to employees within the statutory deadline.  A further report had then been received at the March meeting, following which the Board's concerns had been raised with the Executive Director for Finance and Public Protection, which advised the Executive Director to self-report the breach to the Pension Regulator.  The Council had subsequently self-reported the breach to the Pension Regulator.  The Board had at their March meeting also requested a further update on the situation in June, as all information should have been submitted to the West Yorkshire Pension Fund.

The situation reported in June was that the backlog had not been fully cleared; the remaining 500 cases (approximately) were the more complex ones and required further information for completion.  The Board was reassured that the backlog would be cleared within three months.  The latest details as at the time of the report were shown on page 184 for the Board's consideration.

The report highlighted that the Leavers backlog was around 320 and was slowly reducing.  The Board was advised that the Annual Benefit Statements queries had reduced; and the part time hour's mismatch had now reduced to 940.

The Board was advised that there were now monthly meetings between West Yorkshire, LCC and SERCO to improve communication; and to help resolve any future issues quicker.

Yunus Gajra, Business Development Manager, West Yorkshire Pension Fund advised that there were currently 618 leaver forms outstanding; this figure included current cases and normal requests.  Some concern was expressed as to whether the number reported would be cleared by the end of September 2018.  The Board was advised that the backlog needed to be cleared, as lots of members were in a state of uncertainty; and that some of the 320 leavers were coming up to pensionable age.  Confirmation was given that all leavers coming up to pensionable age were being monitored.

One member queried as to what response had been received from the Pension Regulator. 

The Board was advised that they had no confidence that the backlog would be cleared by the deadline.  It was agreed that the Accounting, Investment and Governance Manager would look into what had been received from the Pension Regulator; and to the current situation in relation to the backlog situation.  Once the current information was received, it was agreed that the Chairman of the Board would consider writing a letter to the Executive Director of Children's Services with a copy to the Section 151 Officer expressing the concerns of the Board; and to highlight the reputational risks to the Council.

RESOLVED

1.    That the Employer Issue – Lincolnshire County Council Improvement Plan report presented be noted.

2.    That once accurate backlog information was received.  The Chairman of the LGPS Local Pension Board, in consultation with the rest of the Board consider writing a letter to the Executive Director of Children's Services  (copy to be sent to the Council's Section 151 Officer) expressing the concerns of the Board regarding the backlog situation; and to the potential reputational risk to the Council.