Declarations of interest:
None.
Witnesses:
Jason Bailey, Pensions Lead
Manager, Shared Services
Neil Mason, Senior Advisor
(Pension Fund), Finance
Alex Moylan, Senior Accountant,
Finance
Phil Triggs, Strategic Finance Manager,
Finance
Key
points raised during the discussion:
- This agenda item was
taken out of order as witnesses had arrived for this
item.
- The Board was
provided with the context of the report, including the delay in
producing 2014/15 annual benefits statements. It was explained that
the Pensions Regulator had agreed that funds would not be penalised
for this delay, and only a couple of funds had suggested they had
issued their annual benefits statements in time for the August 2015
deadline.
- Officers informed the
Board that the 2015/16 statements had not been issued in line with
the August 2016 deadline. Statements had been produced by
mid-September for active members. Officers commented that the cause
of this delay was related to the workload of associating and
validating year-end returns, and the timing of the triennial
valuation of the pension fund. It was noted that this had not been
reported to the regulator as it was not considered a material
breach. This view had been taken as no members had contacted the
Pension Service regarding the statements, and there was considered
to be no material impact as a result of the delay.
4.
The Board discussed the breach, and highlighted that
the Pension Regulator had emphasised the need to meet the August
2016 deadline, in view of the widespread failure of local authority
funds to meet the August 2015 deadline. In compliance with the
draft breaches policy, which was due to be discussed in the
meeting, the Board recommended that the breach should be reported
to the regulator, although noted this would not normally be
regarded as material.
- The Board discussed
the transition arrangements to an electronic annual benefits
statement for active members in 2017. It was felt that this would
mitigate the logistical challenge of producing the statements in
time. Officers confirmed that all
employers in the Fund had been asked to supply email addresses for
each active member as part of the 2016 year-end returns in
preparation for the launch of member self-service and the issue of
electronic statements.
- The Board raised
concerns that the electronic statement would not be appropriate for
all active members, particularly if there were issues with internet
access. It was confirmed that the Pension Service would continue to
provide a paper statement where requested by the employer but that
experience from other areas (e-payslips) suggested most local
government staff now had internet access.
- The Board was
informed that deferred members would be notified in 2017 of the
intention to transfer them to electronic annual benefits statements
in future and asked to register for this. Officers highlighted that
non-respondents would continue to receive paper
statements.
Resolved:
The Board noted
the contents of the report.
Recommendations:
That
the delay in providing annual benefits statements be reported to
the regulator in line with the draft Breaches Policy
process.
Actions/further information to be provided:
An update report on the
transfer to online annual benefit statements to be provided to the
Board.