Document to follow.
Minutes:
SP introduced Caroline Gorlay (Rewards and Benefits Manager) to the Board.
The Scheme Manager update as circulated for the meeting was considered. This covered:
· surveys and annual returns;
· pension communications;
· specific pension projects;
· breach issues.
Surveys and Annual Returns
The Benchmarking Survey from Scheme Advisory Board sought information on the cost and quality of pension administration services provided. It was anticipated that feedback on the completed survey would form part of Scheme Advisory Board (SAB) annual conference in September, at which attendance formed part of CPD for Board members.
Pensions Communications
The Annual Benefits Statements had been key area for communications. The Service had been delayed in providing the year end data to the West Yorkshire Pension Fund (WYPF) which had agreed an extension for the Service to provide the required data. This data had now been manually prepared and provided to WYPF and statements had now gone into production and should be issued within the next week. In order to create a more automated approach, a report from the Service payroll system was being developed.
The Board recorded its appreciation for the work of the HR team in providing the data to WYPF.
Work was still ongoing for the production of Annual Benefit Statements for those in the Modified Scheme by WYPF. WYPF had indicated that these statements would not be completed by the deadline of the 31 August and this was across all clients. However, WYPF was working on a new system approach which would resolve this for future years.
In relation to the Annual Allowance, the Service was looking to make staff aware in promotion letters of the potential for breaching the annual allowance. The Service had already identified and offered training sessions for staff who could be affected.
Project areas
Pensionable pay for allowances: SP had circulated a spreadsheet on existing allowances and some where no determination had yet been made. This would feature elsewhere on the agenda for the meeting.
Transition Protection Judgement: an application to the Supreme Court for a further right of appeal had been rejected. The matter would therefore be referred back to the Employment Tribunal for remedy but it was anticipated this could take up to two years.
Abatement: A number of staff pensions had not been correctly abated and WYPF were undertaking further checks on this. It had been clarified that abatement rules would apply to people retiring and being re-employed by Red One Ltd. SP would check why abatement did not, apparently, apply to the 2015 Scheme and advise members of the LPB accordingly.
Two Pensions: Some individuals had had more than one pension split applied. WYPF had identified the individuals and had put revised figures in place. There were still outstanding cases to be addressed.
Reporting breaches
The Pensions Regulator had written to advise that it did not intend to take any enforcement action over the reported breach arising from the late publication of the Annual Benefits Statement. Additionally, the issue relating to two [split] pensions had been identified as representing a breach, but there was a question on whether the breach was reportable. The Scheme Manager would work through breach flow chart, together with using the SAB template and guidance, to assess if a reportable breach. An update on this would be reported to the next Board meeting.
Other issues
One IDRP dispute was still outstanding but a date had been set to hear this.
Quality of Service provided: The latest WYPF report (for July) was circulated. This indicated good performance against most of the Key Performance Issues (KPIs) with the exception of the KPI on deferred benefits set up on leaving. WYPF would be looking to improve performance against this KPI.
It was AGREED to invite WYPF to attend the next Board meeting on 30 October 2019 or a subsequent meeting, depending on availability.
Appointment of LPB members: There had been only one expression of interest for the Scheme Member vacancy, but the individual concerned was awaiting the outcome of another issue prior to committing to joining. In the event that this did come to fruition, the trades unions had indicated that they could provide candidates.
SP advised that the aim was to have the appointment secured by the next Board meeting.
PR advised that he was prepared to stay on as a Board member until advised otherwise.
MP commented that this still two left two vacancies (one Scheme Manager and one Scheme Member), for which an advertisement would need to be placed for the external Scheme Manager representative.
(See also Note LPB/19/33 below).