Agenda item

Report of the Town Clerk.

The Board considered a report of the Town Clerk which provided information regarding a range of areas within the Corporation’s Pensions Scheme, as had been requested by the Board at last meeting.

Annual Schedule of Events

The Board noted the annual schedule of events for the Pensions Scheme. The Chamberlain explained that this would be provided to future meetings, and future versions would include the publication of the Pensions Scheme Annual Report (in September) and the issue of Pensions Saving Statements (October), along with a note regarding reporting of the triennial valuation of the Pension Fund.

Communication with Scheme Members

The Board noted the information provided by the Chamberlain regarding the communications which were provided to Scheme Members. The Board commented that the quality of communications with the Members was excellent.

Members commented that it was important that information regarding Pensions was provided during the induction process for new employees, and the Chamberlain and Town Clerk agreed to discuss this with Human Resources.

The Board agreed that the next Newsletter should include information regarding the Board and its Members, so that Scheme Members were aware of the Board and its role.

With regard to the information sent to Members regarding opting out of the Scheme, the Chairman suggested that it would be beneficial for the sentence “You may wish to take financial advice before making a decision to opt out” to be in bold type.

The Chairman asked for clarification whether Scheme Members on deferred benefits had been advised of the changes to the calculation of benefits in the event of late retirement. The Chamberlain explained that he did not think that they would have been, but would confirm this. He explained that there would be very few Scheme Members to whom this applied.

Scheme Risk Register

The Board considered the proposed Risk Register for the Pensions Scheme. The Town Clerk explained that, if the Board was satisfied with the proposed risks, these would be scored using the Corporation’s risk scoring matrix. The Board was informed that, following this, control measures and targets to reduce the risk level would be developed, with the full register being submitted to the next meeting and all meetings thereafter.

Members commented that:

-       The risk in relation to Pensions Scheme Administration should include “data accuracy” and “lack of resources” among the potential causes;

-       In relation to succession planning, it would be beneficial for the Board to be provided with details of the structure of the pensions administration team. The Chamberlain agreed that this could be circulated to the Board alongside the minutes of this meeting; and

-       The Board should be provided with the Financial Investment Board’s (FIB’s) risk register, so that it could be satisfied that FIB was taking an appropriate approach to risk management in relation to the Pension Fund.

Ms Allen commented that a risk should also be added in relation to the employee covenant, in the event that an admitted or scheduled body employer to the Scheme ceased to exist.

Disputes

The Board commented that the majority of disputes under the Pensions Scheme appeared to be in relation to ill health. The Chamberlain and Ms Allen explained that this was the case in most Pensions Schemes.

RESOLVED – That the Board notes the report.