Councillors and committees

Agenda item

LOCAL PENSION BOARD REPORT

This report provides a summary of administration and governance issues reviewed, or approved, by the Local Pension Board at its last meeting that require noting or action by the Pension Fund Committee.

 

Minutes:

Speakers:

Tim Evans, Independent Chairman of the Local Pension Board

Neil Mason. Assistant Director - LGPS Senior Officer

 

Key points raised during the discussion:

 

1.    The Local Board Chairman introduced the report and highlighted the following areas:

·         Detailed changes to the risk register and that the registers were to be combined so there would only be one register in the future

·         the continual improvement over the last year and much due to the Turnaround Programme

·         The clearing of the backlog of work and the new staff members employed to the team

·         The work of the internal audit team which was welcomed.

2.    The Chairman stated that the work from the McCloud judgement was a major piece of work that was expected to last two years and thanked the Pension Team for the revamp of the risk register.

3.    The Assistant Director - LGPS Senior Officer explained that Phase 1 of the Turnaround Programme was now complete and that all staff were now in place for the integrated Pension Team from May 2022.

 

Actions/ further information to be provided:

 

That the Committee and Board Members receive newsletters by email or be sent the link when published.

 

Resolved:

 

1.    That the following changes to the administration risk register be approved:

              i.        Total Residual Risk scores (column R) of F3, F4, F13, F14, F16 and F17 have been lowered by reducing its likelihood.

             ii.        Total Inherent Risk score (column J) of F19 has been increased by increasing its likelihood.

            iii.        Risk F12 is no longer relevant.

2.    That the following changes to the Fund risk register be approved:

a)    Total Inherent Risk scores (column J) have been lowered by reducing the various impacts (in columns E to I and shown below in brackets) of the following risks:

                                  i.    A1 and A9 (Financial),

                                 ii.    A2, A17 and A18 (Services and Reputational),

                                iii.    A3, A4, A5, A12, A23 and A24 (Financial, Services and Reputational),

                               iv.    A10 (Financial and Reputational),

                                 v.    A13 (Likelihood)

b)    Risk A19 to be modified for more general system transition risk.

c)    The following risks are being suggested to be removed with reasons (shown in brackets) and see details in Risks Removed section below:

                                  i.    A7 (suggested closure due to risk mitigation)

                                 ii.    A8 (suggested closure due to Surrey only now)

                                iii.    A15 (proposed closure due to Risk A2 above)

d)    No change – A14, A16

3.    That the following risks be removed:

a)    Risk F12 in Annexe 1: Volatility caused by uncertainty with regard to the withdrawal of the UK from the European Union and its aftereffects.

b)    Risks A6, A11, A20 and A22 in Annexe 2 to be removed as detailed in the Revised Risk Register Cover Report of 11 November 2021 – Minute Item 53/20).

c)    Risk A7 is being suggested to be closed due to risk mitigating measures implemented - Training plans and matrices are now in place for all staff to enhance development, including formal external training which provides accreditation. The introduction of a Training Officer has formalised this and reduced the risk, giving the structure required.

d)    Risk A8 is being suggested to be closed due to the risk reduced - With the final LOBO partner having migrated in January, it is proposed this risk be closed as we are now a single provider to Surrey Scheme only. 

e)    A15 is being proposed to be closed in view of the changes made to reduce the Inherent Risks in Risk A2.

 

 

Supporting documents: