The Local Pension Board of Havering Council met on Tuesday 8 April 2025 to review the performance of the pension administration service, discuss the proposed budget for the upcoming financial year, and consider the communications plan. Decisions were made regarding the approval of minutes and the noting of various reports.

Pensions Administration Update

The Board received an update on the performance of the Local Pensions Partnership Administration (LPPA) for the period October to December 2024. Caroline Guyon, Pensions Projects and Contracts Manager, presented the report, which highlighted a reduction in the elapsed time for retirement cases and complaints. This reduction was partly attributed to a change in the complaints procedure, where cases are now handled by operational teams with oversight from senior officers, rather than a standalone team.

A spike in death cases was noted in the third quarter, coinciding with team sickness. However, officers confirmed that these cases were being processed and there was no cause for concern. Members expressed concern about the low return rate of satisfaction surveys, noting that they only provided scores without comments. Officers clarified that this was because the survey was only being sent to those retiring due to retirement, not illness retirements.

The report also detailed LPPA's focus on three key areas: Automation, Monthly Returns, and Portal Enhancements. These initiatives aim to improve the process for uploading information to the portal, enhance the user interface, and introduce better online forms. Members were pleased to see that manual retirement quotes had become significantly quicker, with the fastest taking just 48 seconds, compared to a target of five working days. The satisfaction rate for the automated system was reported as positive.

A discrepancy was noted between the number of total processed cases on pages 42 and 44 of the agenda documents. LPPA was unable to provide an immediate explanation for this difference and committed to providing an answer at a later date.

Pensions Administration Budget Update

The Board reviewed the proposed Pensions Administration Budget for 2025/26. Officers noted that there were some incorrect dates within the report, which would be amended before presentation to the Pensions Committee. The proposed budget of £0.74 million represents a 14.14% increase, attributed to a 3% average wage increase, a 2.4% rise in costs, and a 3% increase in National Insurance contributions. Efficiencies are anticipated through investment, but upfront expenditure will be required.

Members noted that a budget had been allocated for training and development. The new Pensions Dashboard is expected to be available for public access from October 2026. Board members questioned whether Havering Council's (LBH) costs were shared with LPPA's costs, and officers agreed to investigate and confirm this at a later date.

Pensions Fund Communications Plan

The Board received the Pension Fund Communications Plan, which reviewed the previous year's activities and outlined the plan for the upcoming year. Officers reported a positive response to emails and good reach to scheme members. One member raised a concern about the formatting of some communications not being compatible with schools, and offered to provide an example for investigation. The team is aware of hard to reach members, although their numbers are low, and the system is under review. Some messaging relies on line managers to disseminate to their teams. Members confirmed that the volume and level of information provided were appropriate.

Pensions Papers Review

The Board received a review of recent Pensions Committee meetings. Two Committee meetings had taken place since the last Board meeting, and officers provided details of the discussions. It was noted that there had been significant staff changes within the London Collective Investment Vehicle (LCIV), and that investment management responsibilities might be transferred to the LCIV.

Training Update

The Board received an update on training progress. While more modules had been completed, officers reiterated the importance of all members completing the LOLA (LGPS Online Learning Academy) modules. The Chairman noted that their training had been completed in Sutton, and that Sussex would need to be corrected on the report. Members also requested a footnote to indicate that one member had left. A general consensus emerged that the format and usability of the training were poor. Officers stated there were no immediate plans to change the training but that the feedback would be passed to Hymans Robertson for consideration.

Risk Register

The Board reviewed the risk register. Members questioned whether they should focus on the strategic or operational register. The Chairman indicated that the Board's views would be communicated to the Council's Chief Finance Officer, with a preference for focusing on the strategic register.