Minutes:
Vicky Jenks introduced the item and explained the report outlined what the administration team had been working on. A lot of work had been taking place preparing and testing the new member self-service, which would allow members to access their annual benefit statements online. Much of this entailed setting up account profile details for members. Vicky Jenks drew members’ attention to the key performance indicators listed in the report, which explained why some of them were off target. The report also noted recorded breaches, progress being made in relation to McCloud, and the guaranteed minimum pension reconciliation exercise.
Members said it would have been beneficial if the pages containing
the key performance indicators and breaches had been printed in
colour, as it was harder to tell which were rated as red,
amber or green. Vicky Jenks said there
had been an increase in the number of green breaches reported in
January. She explained however that this related to one payroll
provider that was responsible for the payrolls in a large number of schools; although the increase
looked as though it was a significant issue, it had been caused by
a single provider and had been relatively straightforward to
combat.
Responding to a question from Jeff Carruthers regarding
communication about the self-service scheme, Vicky Jenks said a
plan was being developed and would be rolled out to all employers
in due course. Priority for the rollout was being given to deferred
members as they tended to receive their annual benefit statements
first. Jeff Carruthers said he would like to have any
communications sent out so it could be sent round staff at his
employer.
Responding to a point raised by the Chair in relation to the guaranteed minimum pension reconciliation scheme, Vicky Jenks said it was anticipated more users would get back in touch with the Fund as they approached pensionable age. The introduction of the pensions dashboard had been helpful in reuniting members with their pensions. The next phase of the project would be to communicate to members how they could access the self-service portal to deal with their queries. The Chair raised the point that some users may have more than one pension pot under multiple schemes, and said the dashboard was a useful tool to help people with any questions they had and would prevent staff at the Pension Fund from becoming overwhelmed dealing with queries.
Mike Snow noted that some overpayments were due to be written off
during the reconciliation process and asked for details on what
values were involved. Vicky Jenks said there had been around 800
overpayments totalling approximately £2million. Approval for
writing off the overpayments was being sought from the Leader of
the Council. Liz Firmstone added that the recommendation given to
all local authorities was not to try and recover overpayments.
Vicky Jenks said some of the overpayments for pensions had come
about because the information held by the Pension Fund and HMRC did
not match up, which the Fund members would not have known about and
would not have been expected to have acted upon. This was a
situation affecting a large number of
local authority pension schemes. Additionally, a large percentage
of the overpayments had been for relatively small amounts. The
Chair said he accepted this position, although if an individual had
been overpaid by a significant and was aware of it then they should
be pursued to try and recoup the overpayments. Nic Vine (Strategy
and Commissioning Manager, Legal and Democratic) said that in many
cases pursuing claims against individuals would cost the Fund money
as the amount it cost to take action was
more than the amount that would be reclaimed, and there was no
culpability on the Fund members.
Responding to a question from Alan Kidner, Vicky Jenks said the
reconciliation process had started in 2016 and it had taken time
for the various Funds to work through it as they received
information from HMRC. The final set of data files to reconcile had
been supplied in 2019. Alan Kidner suggested the length of time
taken to supply the information could have meant that some
overpayments had been taking place over a longer period of time than necessary, and the situation
could have been rectified if the information had been provided by
HMRC sooner. Andy Felton said the exercise would mean overpayments
would not be an ongoing issue.
Responding to a question from Mike Snow, Vicky Jenks said the
number of underpayments was significantly lower than the number of
overpayments. These had now been corrected and arrears paid back to
members, and information on this would be available at the next
meeting.
Members noted the content of the report and thanked officers for compiling a substantial amount of information.
Supporting documents: