HERTFORDSHIRE COUNTY COUNCIL
Agenda Item
No:
PENSIONS COMMITTEE
THURSDAY 29 NOVEMBER 2012 AT 10AM
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ADMINISTERING AUTHORITY ADMINISTRATION REPORT
Report of the Director Resources and Performance
Author: Lyn Stainton, Finance Manager (Tel: 01992 555394)
1.
Purpose of the report
1.1
To provide the Pensions Committee with a quarterly report reviewing the
administration of the Pension Fund by the Administering Authority.
2.
Summary
2.1
This reports on the performance of the Administering Authority and Scheme
Employers in managing and administering the Pension Fund measured against
performance indicators set out in the Administration Strategy.
2.2
The performance of the London Pensions Fund Authority (LPFA), the Pension
Fund’s scheme administrator is reported separately on this agenda.
3.
Recommendations
3.1 That the Pensions Committee notes the content of this report.
4.
4.1
Background
Quarterly reports are provided to the Pensions Committee to:
 report performance data that is measured against agreed performance
indicators set out in the Administration Strategy; and
 provide commentary on key administration activities carried out by HCC.
4.2
This quarterly report covers the period 1 July to 30 September 2012.
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5.
Performance of the Administering Authority and Scheme Employers
5.1
Administering Authority Performance Indicators (appendix 1.1)
There were no breaches of the Administration Strategy by the Administering
Authority during the quarter.
5.2
During the period there was 1 complaint received against the Administering
Authority concerning the adjustment of pension payments for Guaranteed
Minimum Pension payments notified by Department for Works and Pensions. This
case relates to the work being carried out to correct pensioners’ membership
records under the Due Diligence and Data Improvement Project.
There were two complaints received concerning the LPFA’s pensions
administration service and delays in progressing cases. Further information about
these complaints is provided in a separate report presented to the Pensions
Committee in the LPFA Administration Report.
5.3
Scheme Employer Performance Indicators (appendix 1.2)
The Administration Strategy sets out a range of penalty charges that may be
incurred by scheme employers for non-compliance with targets and required
performance standards set out in the Strategy. Two penalty charges were raised
for the period to 30 September against one scheme employer for late payment of
contributions.
At the date of this report, seven penalty charges raised in previous quarters
remain unpaid. These penalty charges relate to three scheme employers and
officers are pressing for payment through the Authority’s debt management
procedures.
6.
HCC Pensions Team key administration activities
6.1
In addition to the routine activities carried out by the HCC Pensions Team for
administration of the Pension Fund, the following activities have taken place during
the quarter.
6.2
Audit Scrutiny of Report and Statement of Accounts
The Audit Commission audited the accounts and working papers during July and
August and issued the Annual Governance Report. This was presented in and
approved by the Pensions Committee at their September meeting.
6.3
Review and evaluation of Closedown
A review of closedown processes, procedures and working papers was carried out
in conjunction with the LPFA during September to identify areas for improvement
in closure of the 2012/13 accounts. An action plan has been produced identifying
areas for improvement, actions and owners and progress is monitored at the
monthly Contract Operations Group meetings.
6.4
Review and development of Risk Management
A review of the current risk management arrangements for the Pension Fund has
been carried out and identified areas for development and improvement with the
primary focus on managing Scheme Employer risk. A programme of work has
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been produced to implement an effective risk management policy and to overhaul
the Pension Fund’s policies and procedures. This is report to Members in a
separate report to this meeting.
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APPENDIX 1:
Review of Pension Fund Administration and Performance
Statistics
The following table is an analysis of performance data relating to the performance of the
Administering Authority and Scheme Employers in managing and administering the
Pension Fund measured against performance indicators set out in the Administration
Strategy.
1. Administering Authority Performance Indicators
Administering Authority Administration
The following indicators measure performance and compliance with statutory requirements
placed on Administering Authorities for the administration of pension funds.
Breaches of Administration Strategy
Measured by
Comments
Annual District Audit
During July and August, 2012, the Audit
Commission carried out their annual review of the
Pension Funds Report and Accounts and working
papers. The Annual Governance Report was
presented to the September meeting of the
Pensions Committee providing an unqualified
audit opinion. The report had minimal
recommendations.
Scheme Administration Complaints and Internal Disputes (IDs)
IDs may be raised by members where they are dissatisfied with a decision concerning their
membership benefits. IDs may be raised either against the Administering Authority, for
decisions relating to LGPS regulations, or, against the Employing Authority (for HCC staff)
where there is some discretion about the final decision.
Type
Issue
Resolution
Complaint –
Adjusted pension
1 complaint was received during the quarter from a
Administering
payment in relation to pensioner whose pension payments have been
Authority GMPs Guaranteed Minimum reduced to take account of Guaranteed Minimum
Pension
Pension. The complaint was not upheld since the
Administering Authority is obliged to ensure that
pensions in payment are accurate.
Complaint –
Delays in processing
A pensioner complained about delays in processing
LPFA Service
a final pension
a request for actioning a final pension payment in
payment in relation to relation to the death of a LGPS member. Case
the death of a LGPS
was delayed because the HMRC mislaid
member
information provided by the LPFA. An explanation
and apology was sent to pensioner.
Complaint –
Delays in processing
A pensioner complained about delays in processing
LPFA Service
revision to a pension
a revision to the pension payment. Case was
payment
delayed since LPFA were awaiting information from
the Government Actuary’s Department on the
factors to be applied to the pension payment. An
explanation was provided and an apology that the
pensioner was not kept informed of progress.
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2. Scheme Employer Performance Indicators
Scheme Employer Administration
The following indicator measures performance of scheme employers in the administration of
the LGPS against targets set out in the Administration Strategy where penalty charges are
raised for non-compliance of requirements set out in the Strategy.
Date
Scheme Employer
Reason for Penalty
Amount Date Paid
Invoiced
The following invoices remain outstanding from the previous quarter and these are being
progressed through the Authority’s debt management procedures.
Quantum Care
Late payment of contributions
06/01/12
£65.79
In dispute
Hertfordshire Careers
Service
Late payment of contributions
06/01/12
£77.49
In dispute
Quantum Care
Late payment of contributions
03/02/12
£106.29
In dispute
Quantum Care
Late payment of contributions
30/03/12
£53.14
In dispute
Late payment of contributions
2/4/2012
£50.02
In dispute
Late payment of contributions
21/6/2012
£51.57
In dispute
Late payment of contributions
21/6/2012
£50.01
In dispute
Watford Council for
Voluntary Services
Hertfordshire Careers
Service
Watford Council for
Voluntary Services
The following invoices were raised during the quarter to 30 September 2012
Hertfordshire Careers
Service
Hertfordshire Careers
Service
Three Rivers District
Council
Late payment of contributions
13/8/2012
£122.55
Dunning
Late payment of contributions
21/8/2012
£55.17
Dunning
Late payment of contributions
21/8/2012
£56.04
3/9/2012
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