Agenda item

The Board considered the Risk Register.

In the ensuing debate, the following points were raised:

·         Bridget Clark introduced the report and indicated that a sub-group might wish to be established to look at red risks initially and then perhaps amber risks at a later date

·         In relation to the risk associated with employers not being able to make their contribution payments, Bridget Clark advised that an annual covenant review had been undertaken to consider the financial information provided by employers and the covenant review was used to inform the Triennial valuation. It also provided an opportunity for concerns to be raised with individual employers. Despite initial concerns, the Covid 19 pandemic had not impacted on employer payments to date and there had not been any defaults. A monthly newsletter is provided to all employers and Administration Forums were convened throughout the year

·         Third tier employers, notably Academies were particularly vulnerable to the impact of the pandemic and their finances. It was important that these funds were monitored closely in the future to avoid default as the cost would be picked up by the Fund

·         There was also a danger of cashflow issues arising for smaller employers who could be tempted to fraudulently fail to provide the necessary information. Bridget Clark responded that along with the proactive approach to communication, there was also a reactive element where members notified the Fund concerning a failure to receive pension benefits when they became due

·         In response to a query about the impact of home-working on the administration of the Fund, Bridget Clark commented that from 23 March, all bar one member of staff had been working from home. Staff were being consulted regularly from a productivity and well-being perspective and individual contacts were made with more vulnerable members of staff. Members and employers had also been encouraged to use the Pension Fund web site to access information. There was an option to bring people back into County Hall which was being explored with a small number of staff with the majority of staff content to continue home-working. There had been full productivity, with very few delays. There had not, so far, been a spike in the number of recorded deaths notified to the Fund

·         It was reassuring that there had been no issues for the Fund relating to the impact of Covid 19. The monitoring of staff well-being was crucial particularly as the winter months approached. Whilst recognising the shift towards home-working, it was important that the work was continued to be agile in nature and that the significance of maintaining communication and camaraderie was recognised

·         The Board recognised the good work carried out by staff through this pandemic and the seamless delivery of the pension scheme and that message should be conveyed to staff. Michael Hudson echoed those sentiments and added that the financial implications of Covid 19 for the Fund going forward would be monitored because issues such as the £95k cap could impact on staff work load and well-being. He would bring the outcome of the staff consultation surveys and actions arising to a future Board meeting.

The Board:

a)    Noted the Risk Register as at 7 September 2020;

b)   Recognised the good work carried out through this pandemic and the seamless delivery of the pension scheme and that message be conveyed to staff; and

c)    The outcome of the staff consultation surveys and actions arising be reported to a future Board meeting.