Decision details

The Board considered a report setting out details of Part I reports recently considered by the Pension Fund Committee at its meetings on 10 June 2016.

Particular reference was made to the following:

-  The Your Pension Service Annual Administration Report 2015/16 report set out the performance of the service against the key performance indicators. The Board felt it would be helpful to see some contextual information around each target and that, following the establishment of LPPL, it might now be an appropriate time to review the targets. It was suggested that additional feedback from employers/employees would be helpful, e.g. a short survey at the end of each telephone call made to the service. A survey of employers would assist with employer engagement;

-  It was felt that individuals should receive information on the performance of the Fund, e.g. as part of their annual benefit statements and that those starting employment should be made more aware of the benefits of joining the scheme, e.g. the value of employer contributions. The administration charge per member made by Your Pension Service to the Fund was £21.08 for 2015/16 which was below the benchmark of £22.00. It was reported that this was a national set benchmark but the Head of Fund would check if this was an average figure;

-  The Board agreed that it should receive assurance that each of Fund's key documents was fit for purpose and up to date and that it should be recommended that the Pension Fund Committee submits an annual report to the Board to that effect;

-  The Head of Fund reported on the progress of the valuation of the Fund and the proposed changes in methodology from gilts to CPI plus 2.5. The Board considered that the deficit recovery period needed to be balanced with affordability and noted the concerns of employers about affordability;

-  In terms of responsible investment, there was a balance to be struck whilst recognising that this area was increasing in importance, evidenced, for example, by the new investment regulations which were currently the subject of consultation. The Board's role would be to monitor the strategy set by the Pension Fund Committee rather than have a direct involvement.

Resolved: - That:

(i)  The report, now presented, be noted;

(ii)  The Head of Fund raise the issues, set out above, with the Head of Your Pension Service.