Agenda item

The Committee considered the Administering Authority – Administration update.

The HR Service Centre Manager introduced the report and made the following points:

·         The increase in membership was as a result of members not choosing to opt out of the scheme following the introduction of auto-enrolment. It was anticipated that due to transition arrangements there would be an increase in the number of members in the current cycle up to 2017

·         From 6 April 2016 the LGPS was no longer contracted out. Members and employers would no longer receive the NI rebate and would see a rise in NI contributions

·         Employers had been requested to forward their End of Year returns to the Pension Fund by 30 April 2016. Employers have been advised that the Pension Regulator would be informed where an employer had not completed the Annual Benefits Statement which could result in a fine which the Fund would pass onto the Employer

·         A good response had been received from employers, particularly from Academies to the request for information for the Pension Fund Valuation. Mercers had looked at the key changes to the Valuation of liabilities and provided a more reasonable assessment. This had been explained to employers

·         Work had been carried out with the Department of Work and Pensions to devise a 'Tell Us Once' system which would reduce administration for grieving relatives and reduce the level of administration costs

·         A newsletter for employees and employers had been devised in liaison with partner funds. It was intended that the formatting and feel of the newsletters would be improved to make it more appealing to members. Discussions were being held with the Brand Manager to establish a logo for the Fund 

·         Following an options appraisal, the Head of HR and Organisational Development and Chief Financial Officer would determine the best option for Member Self-Service. Member Self-Service would have a positive impact for the Administering body in terms of reduced costs and for members in terms of their ability to access information

·         Following feedback from employers at the Administration Forum, the Administering Authority was currently developing a new workshop for new employers.  The workshop would enable the Administering Authority to explain the roles and responsibilities of the Fund and the new employers, to share information about key activities which take place during the year and be an opportunity to meet key staff.

In the ensuing debate the following principal points were raised:

·         What was the biggest/most difficult challenge facing the administering authority? The HR Service Centre Manager explained that the changes to the administration of the fund as a result of the introduction of the CARE regulations had been a particular challenge as well as explaining the changes to members

·         Were there implications for the Administering Authority of providing individual pension statements for members?  The Chief Financial Officer stated that it was possible that the administration requirements would increase and that the current cost of the service could not be maintained.

RESOLVED that the general update from the Administering Authority be noted.