Minutes:
The Board noted the report regarding the Pensions Regulator (TPR) review of a cohort of 10 LGPS Funds from around the UK in respect of scheme managers’ approaches to a number of key risks. The Board noted the key findings, good practice and the suggestions regarding improvements.
The Pension Fund Manager highlighted the following in respect to the Administering Authority:
Record keeping
· Data quality improvement plan – the Administering Authority has a plan in place, which is monitored every year. An annual data extract is undertaken with the pension administration software providers and the next extract will take place later in the month.
· Administration Strategy – the Strategy had been rewritten. Consultation had taken place with the employers and the Strategy would be considered by the next Pensions and Investment Committee. The Chair advised that under the Good Governance Project there was a recommendation that MHCLG make it a legal requirement.
Internal Controls
· Risk Register – documentation is in place and the Board and the Pensions and Investment Committee regularly review the Risk Register.
· Internal controls and processes – documentation was now being kept to record any decisions regarding internal processes and the reasons for these decisions. This would ensure that if questions were asked about a decision in the future the relevant information would be available and there would be less reliance on officer’s knowledge level.
· Reviewing processes – reviewing the workflow and improving processes is a daily process by all of the administration team.
Administrators – the Board noted that these issues were not applicable for the Pension Fund as it is not a third party provider. The Pension Fund Manager advised that the contract with its administration provider was due for renewal in 2023, but the contract allowed for an extension. The Chair advised this was mission critical dimension to the Board’s work in helping to guarantee to ensure the continued payments to scheme members.
Member Communications
· Information for scheme members – when information is created or amended, it is reviewed by the senior staff within the section.
· Member survey – conducting a survey is being considered.
· Website traffic – use of website traffic has not grown over past 12 – 18 months but the number of pages looked at on each visit has increased. Officers are currently looking at what members do when they are on the website for example using the facilities to update their personal information or calculating pensions. The Chair advised that the recent PLSA sessions had emphasised the importance of Fund websites. He asked the employee representatives if they could encourage their members to utilise the website. The Pension Fund Manager agreed to send the portal address to the Union representatives, to enable them to do this.
Internal Dispute Resolution Procedure [IDRP]
IDRP – a procedure has been produced and is on the Fund website. The document also contains information on the appeals process. The Chair raised an issue about the advantages of an external review, which could be provided by other Pension Funds. The Pension Fund Manager advised that he would consider this.
Pension Boards
· Training opportunities – training opportunities are highlighted to Board members. Currently more webinar training was available and the Pension Fund Manager advised he would forward such links to the Board.
· Training needs assessment – the Pension Fund Manager would forward this to members and for this a Board and/or individual programme will be developed.
Employers and contributions
· Employer covenant and position – discussed this with the Fund actuary regarding the approaches taken by other funds and work will continue on this.
· Receipt of employer contributions – currently the procedure is under review and the desire is to move all employers to an automated system.
Cyber security
· Cyber security policy – as advised working with ICT to develop the policy.
· Security testing – the software provider has assured the Scheme Manager that it undertakes regular penetration testing. The Pension Fund Manager advised he would provide an update report regarding testing from the ICT Department and the software provider at the next meeting.
· Custodian review – this needs to be undertaken.
Internal Fraud and False Controls
Processes and procedures – further work is required in this area.
RESOLVED |
Reason for decision |
The Board noted the report and agreed that an Action Log be produced. |
To ensure that further work is noted and monitored by the Board. |
Supporting documents: