Agenda item

The Board has requested an update on Scheme management activities.

Witnesses:

Danni Lamaignere, Scheme Manager

Janine May, Senior Pensions Advisor

Jo Hart, Pensions Officer – SFRS (attended remotely)

Key points raised during the discussion:

1.      The Scheme Manager, supported by the Senior Pensions Advisor, provided a summary of each of the scheme management activities.

McCloud Age Discrimination Remedy

2.      The Senior Pensions Advisor clarified that pensioners were most likely to elect for a change in benefits and that protected members were in receipt of the highest available benefits.

10% pensionable allowance

3.      The Scheme Manager explained that payments out had been completed and the remaining work was to collect contributions from some members.

Matthews cases

4.      Payroll had confirmed that the first payments would be made in February. Of the 218 affected scheme members, 94 had responded positively, and 8 refused the offer. A member enquired about the Scheme’s position if a member initially refused but later agreed to the offer, within the allowed timescales.

5.      The Senior Pensions Advisor considered that it would be within the Scheme Manager’s discretion. Each of the 8 that refused were contacted.

6.      A member raised on behalf of scheme members concern that the contact was fraudulent. The substitute Board member and Scheme Manager agreed to contact some members directly.

7.      The Senior Pensions Advisor confirmed an address match for the remaining 100 affected scheme members, who would be contacted again. Employee representatives offered to use networks to gauge concerns about fraudulent contact. An XPS representative recommended including information directing Scheme members to the Scheme’s website.

Amendments to the Firefighters’ Pension Scheme (England) 2006

8.      The Scheme Manager reported that the Service was preparing a formal response to the Home Office consultation on amending the Firefighters’ Pension Scheme (England) 2006.

Annual Benefits Statement (ABS) / Remediable Service Statement (RSS)

9.      The scheme administration had been working with Surrey County Council’s payroll to prepare data for XPS. The first report had been sent and a further report would follow subsequent to further work with payroll. Scheme members had been informed of progress.

10.   An XPS representative explained that once data had been received work could begin on preparing benefit statements. The priority would be to determine if any Scheme members had breached HMRC reporting triggers in 2023/24, however, the number was expected to be low. The self-assessment deadline of 31 January had already passed, impacting those that had breached.

11.   A Board member noted Scheme members’ frustration and anxiety from delayed statements, noting that it had also occurred in previous years. The Senior Pensions Advisor explained through work with payroll, it was aimed that the Unit4 reports would be set up correctly for future use.

12.   Board members recognised ongoing issues were significantly due to Unit4. The Chair noted the Section 151 Officer had appeared before Surrey County Council’s Audit and Governance Committee reflecting uncertainty that issues had been resolved.

13.   An XPS representative noted complexity of preparing remediable service statements, requiring rollback to 2022, and in some cases to 2015. Scheme members would need to input data to HMRC with a deadline of 3 months from receipt of the statement. The XPS representative assured the Board that the SFRS Scheme members were not alone in experiencing delays in receiving their statements as other scheme administrators were similarly affected.

14.   The Scheme Manager confirmed that communications would be sent to Scheme members about issuing Annual Benefit Statements and Remediable Service Statements.

15.   As the Annual Benefit Statement deadline, 31 August 2024, had been breached, the service had reported itself to the Pensions Regulator. The Senior Pensions Advisor confirmed that the Pensions Regulator has asked to continue receiving updates.

Pension Savings Statements (PSS)

16.   The Scheme manager noted that a minority of Scheme members were required to file a self-assessment with HMRC. The Senior Pensions Advisor had worked with the affected individuals.

The Pensions Regulator – General Code of Practice Compliance Report

17.   The Scheme Manager noted the Pensions Regulator had consolidated 10 of its 15 existing codes of practice into one comprehensive code.

18.   The service had created an action plan with RAG statuses to track service changes to ensure compliance with the code.

19.   Key feedback included ensuring sufficient training for staff and Board members, which had been arranged.

Pensions Dashboards

20.   XPS representatives confirmed testing of live connections between the service and the administrator, with feedback shared on issues. Focus was on ensuring that data matched as completely as possible; for instance noting where there were only initials for names. The representative highlighted that the Pensions Regulator could question why there was only a partial match and more effort had not been made to ensure it was stronger.

21.   It was confirmed that connections between the service and the administrator needed to be in place by October 2025 with a go-live of 2026 for Scheme members’ access to data.

Member Contribution Structure Review

22.   The Senior Pensions Advisor noted a consultation from the Home Office on changes to the Firefighters’ Pension Scheme (England) Regulations 2014 and a response had been submitted by the Service.

23.   The response would be published on the Scheme’s website for members to review.

24.   Board members confirmed that the unions had not been formally consulted.

25.   The Chair suggested including the response and proposed changes on the next meeting’s agenda, to which the Board agreed.

Pre-Retirement Course

26.   The Scheme Manager reported positive feedback from Scheme members on pension courses, with more planned for the coming year.

Pension Team Resourcing

27.   The service had filled the vacancy for the Pensions Support Assistant. The Chair requested a note of appreciation be recorded for fully staffing the team.

Unit4 Payroll adjustments

28.   The Scheme Manager confirmed the Service was being prioritised by payroll to correct errors experienced by Scheme members.

29.   The Chair noted that an update to the Resources and Performance Select Committee confirmed dedicated resources to resolve pensions-related issues.

Communications

30.   The Scheme Manager summarised the communications work that had been undertaken in the reporting period.

31.   Members thanked the Pensions team for introducing walk-in advice sessions, with positive feedback from Scheme members for increased service accessibility.

32.   The Chair thanked the Scheme Manager and Senior Pensions Advisor for their work on the report, noting the iterative increase in quality and detail.

Actions/ further information to be provided:

Scheme Manager and substitute Board member to directly contact the 8 scheme members that had refused the offer resultant from the Matthews retained settlement determination.

Employee representatives to use existing employee and former employee networks to understand concern that scheme contact about the Matthews retained settlement is fraudulent.

The Scheme Manager to send communications to scheme members on the progress with issuing Annual Benefit Statements and Remediable Service Statements.

Include an item on Member Contribution Structure Review for the next meeting of the Board.

Resolved:

The Board noted the report and actions taken.