Report attached.

Contact: Vicky Jenks 01743 252192

The Board received the report of the Pensions Administration Manager which provided Members with the latest administration and regulatory updates affecting the Local Government Pension Scheme.

The Pensions Administration Manager introduced and amplified her report which updated Members on the work undertaken by the pensions administration team   She reported that 10 out of 14 Key Performance Indicators (KPIs) met the 95% target for timely case completion.

Changes in work allocation were discussed; to address lagging tasks, particularly in transfer out and deferred benefits cases, the team will transition from an alpha split to a skill set and capacity-based allocation model from February. Recruitment of an additional Pensions Officer and two Pensions Assistants was underway to increase capacity, with particular focus on improving deferred benefits processing, which remained below target due to high volume, staff turnover, and reliance on employer notifications.

The Pensions Administration Manager highlighted the help desk and online portal usage, noting high take-up among pensioners and plans to target deferred members for increased registration. Data quality initiatives, including address tracing and dashboard readiness, were ongoing, with some delays attributed to software implementation issues.

CIPFA benchmarking results indicate Shropshire’s costs were below average, with balanced membership and efficient payroll operations. Regulatory updates were provided, including forthcoming changes to inheritance tax, death benefits, and minimum pension age, with the team monitoring and preparing for new reporting requirements.

A number of questions were asked, and answers were provided as follows:

• The deferred benefits KPI was low due to high workload, staff turnover, and dependence on employer updates. Recruitment was boosting capacity, and efforts were underway to enhance information flow from employers. It was confirmed that the deferred benefits KPI had consistently been under 95%, but it was hoped that the increased pensions assistant capacity would improve performance. 
• A question was raised about the correlation between online activation keys issued and registrations. The response clarified that there was a close correlation, with active registrations promoted upon scheme entry, but deferred member registration needed further improvement. 
• It was clarified that amber breaches relating to payroll issues indicated that these problems had continued for more than three months.  However, while the breaches had persisted for over three months, employers were taking active steps to address them and aimed to resolve all issues by the end of the year.
• A question was raised regarding the timeframe for escalating breaches to red status. It was clarified that escalation depended upon ongoing communication with the employer and the progress being made; should these prove unsatisfactory, matters may be referred to the Pensions Regulator.
• It was confirmed that delays in dashboard progress for AVC information and address tracing were caused by software issues, which were being resolved and affected all funds using the same system.  The delay did not impact members as the dashboard was not yet live.
• The response to the question about benchmarking comparisons clarified differences such as team structure, fund size, and salary levels. It emphasised that Shropshire was well-resourced and invested heavily in systems to boost efficiency.

RESOLVED:

That the contents of the report be noted.