The Local Pension Board met on Thursday 23 June 2022 to discuss the Data Improvement Plan, the Pensions Scheme Risk Register, and the Administration Performance Report. Key decisions included noting progress on the data improvement plan and historical leavers, and noting the most recent risk register.

Data Improvement Plan and Historical Leavers

The Board received an update on the Data Improvement Plan and the historical leaver exercise, which aims to ensure the accuracy of member data for benefit calculations and compliance with The Pensions Regulator (TPR). Mark Fox, Pensions Manager, reported that the number of outstanding data items requiring correction had reduced significantly, though the process had slowed due to West Yorkshire Pension Fund (WYPF) processing historical leavers. The introduction of character recognition software by WYPF is anticipated to accelerate data correction.

Significant progress has been made on the historical leavers exercise, with the number of outstanding leaver forms reduced to under a thousand. Fines have been issued to employers who have not submitted the necessary documentation, with some success in encouraging compliance. The Council is working with employers and their payroll providers to ensure timely submission of leaver notifications to prevent future issues.

The Board noted the progress on correcting member data and the historical leaver exercise.

Pensions Scheme Risk Register

The Board reviewed the Pensions Scheme Risk Register, which identifies potential risks to the pension fund and outlines mitigation strategies. Mark Fox highlighted that while most risks remain unchanged, a new risk, PB018, concerning the effect of new pensions legislation and LGPS regulations, has been added and classified as green in risk velocity. Updates were provided on administration risks, including member data (PB002), administration agreements (PB010), and the impact of COVID-19 (PB015).

Councillor Anne Hutton raised concerns about the potential impact of legislation changes, specifically the proposed increase in the State Pension Age to 68. Mr Fox indicated that this change is currently scheduled for around 2046-2048 but is subject to government consultation, and he would provide further updates. Stephen Ross requested a reminder for Board members to complete a new module on the TPR toolkit, which Mr Fox agreed to provide.

The Board noted the most recent risk register.

Training Update

Mark Fox presented an update on the training for Board members, emphasizing the legislative requirement for members to possess a thorough understanding of the Local Government Pension Scheme (LGPS) rules and general pensions law. The Board agreed that training would be a standing item at each meeting. A new module on pension scams from The Pensions Regulator (TPR) was highlighted, and Mr Fox confirmed it would be circulated to members. David Spreckley, Head of Pensions & Treasury, announced that members would be offered a training programme from Hymans Robertson, with further details to follow.

The Board noted the report.

Administration Performance Report

The Board received an update on the administration performance of the West Yorkshire Pension Fund (WYPF) for April 2022. Mark Fox reported that while WYPF's overall performance remained good, there had been a slight reduction in cases completed within Service Level Agreements (SLAs). This was attributed to the recruitment of new staff, requiring more experienced personnel to provide training, and a high workload due to the issuance of benefit statements. WYPF is implementing measures to address these issues, including allocating dedicated staff to specific tasks and moving to a hybrid working model.

Councillor Anne Hutton inquired about the 1,200 members who opted for paper copies of correspondence, and Mr Fox explained this was likely due to age or a lack of IT access. Mr Rida asked about the member portal's capabilities, and Mr Fox confirmed that officers were developing an informative video to assist members, including the ability to run their own retirement estimates.

The Board noted WYPF's performance levels and updates on annual benefit statements and administration issues. An exempt appendix concerning a Pensions Ombudsman complaint was also noted in a Part 2 session.

Work Programme

The Board noted the work programme for the upcoming year, which includes regular reviews of administration strategy, data improvement, training, risk registers, and audit plans.

The meeting concluded with the exclusion of the press and public for an exempt session to discuss Appendix D, relating to a Pensions Ombudsman complaint case.