Agenda item

The Committee received the minutes of the Pension Administration Sub-Committee from its meeting on 6 February 2013. 

It was noted that the Sub-Committee had considered reports on:

·  The transfer of Your Pension Service to One Connect Limited

·  Membership of Local Government Pension Scheme and Auto-enrolment

·  Statutory Consultation on the new Local Government Pension Scheme 2014 and related proposals 

The Committee's attention was particularly drawn to the following:

1.  The transfer of Your Pension Service to One Connect Limited

The Sub-Committee had requested that assurances from One Connect Limited with regard to maintaining the quality of the Service and the security of information be brought to the attention of the Committee.

The Committee was informed that the following statement had been provided to give assurance to the Committee that the high quality of the existing service to members and their families as set out in the current Service Level Agreement would be maintained.  Specifically, One Connect Limited undertook to ensure that:

·  Any expansion of the Service would not affect current service standards. 

·  The Service would continue to be cost effective; and

·  The integrity of the service, including data integrity, would remain secure.

The Committee also noted that the transfer would enable Your Pension Service to benefit from One Connect Limited's commercial skills, as well as its ongoing focus on high performance, continuous service improvement and placing the customer at the heart of the organisation. The transfer would see benefits arising from One Connect Limited's systems expertise which would enhance, improve and grow existing and future business without detriment to current levels of service.

In summary, the future delivery of the Service would remain in line with current standards and performance targets as set out within the existing Service Level Agreement. 

There was a lengthy discussion on this matter and some further concerns were expressed about the transfer of the Service particularly around the need to maintain data security and also the high level of service to members and their families.  The Committee was informed that existing staff would continue to deliver the same high quality service and that security of information would not be compromised.  It was also noted that the County Treasurer would continue to be accountable for the delivery of the Service under the terms of the Service Level Agreement.  Any examples of data breaches should immediately be brought to the attention of the County Treasurer. 

It was reported that the transfer of Your Pension Service had been included on the original list of council services to be transferred to One Connect Limited.

Mr Harvey asked that his opposition to the transfer of Your Pension Service be recorded

2.  Membership of Local Government Pension Scheme and Auto-enrolment

The Sub-Committee requested a further break-down of County Council employee opt-outs following auto-enrolment on 1 January 2013. 

The Committee was informed that as at end of February the opt out rate was 37% (opt out target was less than 50%). A detailed breakdown of the opt outs by job groups, postcode, gender, age salary and fulltime/part time was presented.  The Committee was also informed that the number of County Council employees in the Lancashire County Pension had increased by 7% (target increase was 5%).

The Committee also received an update on the situation in Cyprus. It was reported that on 19 March 2013, due to the banking crisis in Cyprus, the Chancellor of the Exchequer decided that all public sector pension payments to Cypriot bank accounts should be temporarily halted.  

Members were informed that Your Pension Service currently processed pension payments for 32 pensioners who currently had a Cyprus address location, of which 17 pensioners had a UK bank account. However, 15 pensioners were paid via Citibank, who processed overseas payments on behalf of Your Pension Service. Citibank had confirmed that these payments had been frozen. The Service had contacted all 15 affected pensioners to ask them if they would like their payments redirected to a UK bank account. Six pensioners had chosen to have their payments redirected whilst the rest had decided to leave their payments frozen until the situation had been  resolved.

Resolved: 

1.  That theminutes of the Pension Fund Administration Sub-Committee   meeting held on 6 February 2013 be noted.

2.  That the update on the situation in Cyprus, as mentioned above, be   noted.