Agenda item

The Head of Pensions provided an update on the Pension Fund Business Plan. The Fund’s incumbent strategic adviser, Mercer LLC, had been re-appointed for the investment advisory services contract. Currently the local government reorganisation in Northamptonshire had not resulted in large changes but the situation was being kept under review. The Business Continuity Plan (BCP) covering the Fund’s governance and administration need to be reviewed following the creation of the new unitary authority of West Northamptonshire Council and a template had now been received. It was different to the previous BCP and therefore a fundamental review was being undertaken and risks considered. It would be submitted to a meeting of the Board in the future.

The majority of the milestones for the cyber-resilience strategy had been completed and an update would be provided later in the meeting.

Work was ongoing in preparation for the application of the McCloud age discrimination remedy and employers had to provide the service with information within two months. It was noted that conversations had been undertaken up to Assistant Director levels regarding the West Northamptonshire Council payroll. Julie Petrie enquired as to whether it was anticipated that the percentage of employers’ contributions would have an impact. The Head of Pensions advised that the contributions had been built in from last time and although there had been a significant administrative exercise undertaken, for the majority of people there would be nil or little difference.

It was noted that preparation for the 2022 Valuation of the Pension Fund had commenced in August with the Fund’s actuarial advisors to develop requirements and plan for the triennial valuation of the Pension Fund.

The Head of Pensions referred to the increase of 335 undecided leaver records since 31 July 2021, that was due to an increase in volume of cases in the business as usual team following the end of the school year. The project team were dealing with the backlog in house and the quality of reporting was being altered. When a benefit was processed, the LGPS national insurance number database had to be checked to see if there were other benefits due to the members of the scheme and employers had to be contacted, which could lead to delays. It was hoped that the numbers would decrease in the following year.

It was hoped that the Fund’s Responsible Investment (RI) Policy would be signed off by the Pensions Committee in December. Work on the Property Strategy had just commenced and a pool led solution was being considered.

Alicia Bruce welcomed the detailed report and queried whether there was sufficient capacity within the service to meet the target dates of March/April 2022; a number of the delays seemed to be due to legalities. The Head of Pensions advised that the authority would be one of the first to go through this process and more resourcing would be required for the cloud remedy. A review was being undertaken of the structure and funding and investments would be merged for one manager post. The business as usual areas were of the greatest concern and 2 new officers had recently been recruited.

Julie Petrie enquired if the overheads charged from councils would be revisited and whether they could be challenged. In response, the Head of Pensions advised that the rates charged were still those decided by Northamptonshire County Council and it was expected that West Northamptonshire Council would review them in the following financial year. A line by line breakdown of the charges was provided and costs were benchmarked through CIPFA. There was currently an underspend on staff.

RESOLVED:  That the Local Pension Board noted the Business Plan Update to                    30 September 2021.