The Local Pension Board of Havering Council met on Tuesday 8 April 2025 to review the performance of the pension administration service, discuss the budget for the upcoming financial year, and consider communication plans. Key discussions included updates on pension administration, the proposed budget for 2025/26, and the effectiveness of communication strategies for both members and employers.

Pensions Administration Update

The Board received an update on the performance of the Local Pensions Partnership Administration (LPPA) for the period October to December 2024. Caroline Guyon, Pensions Projects and Contracts Manager, presented the report, highlighting a reduction in the elapsed time for retirement cases and complaints. This reduction was partly attributed to a change in the complaints procedure, where operational teams now handle complaints with oversight from senior officers, rather than a standalone team.

A spike in death cases was noted in the third quarter, coinciding with team sickness. However, officers confirmed that these cases were being processed and there was no cause for concern. Members expressed concern about the low return rate of satisfaction surveys, noting that only scores were provided without comments. Officers clarified that this was due to the survey being exclusively set for retirement cases and not illness retirements.

The report also detailed LPPA's focus on three key areas for improvement: Automation, Monthly Returns, and Portal Enhancements. These initiatives aim to improve the process for uploading information to the portal, enhance the user interface, and develop better online forms. Members were pleased to see that manual quotes had become significantly quicker, with the fastest taking just 48 seconds, compared to a target of five working days. The satisfaction rate for the automated system was reported as positive. A discrepancy in the number of total processed cases between pages 42 and 44 of the agenda was noted, with LPPA unable to provide an immediate explanation and promising to follow up at a later date.

Pensions Administration Budget Update

The Board reviewed the proposed Pensions Administration Budget for 2025/26. Officers noted that there were some incorrect dates within the report, which would be amended before presentation to the Pensions Committee. The proposed budget of £0.74 million represents a 14.14% increase on the 2024/25 budget. This increase is attributed to a 3% rise in average wages, a 2.4% increase in costs, and a 3% rise in National Insurance contributions. Efficiencies are anticipated through investment, but initial expenditure will be required. Members noted that a budget had been allocated for training and development. The new Pensions Dashboard is scheduled to be publicly accessible from October 2026. Board members questioned whether Havering Council's (LBH) costs were shared with LPPA costs, and officers agreed to investigate and confirm this at a later date.

Pensions Fund Communications Plan

The Board received the Pension Fund Communications Plan, which reviewed the previous year's activities and outlined the plan for the upcoming year. Officers reported a positive response to emails and good reach to scheme members. One member raised a concern about the formatting of some communications not being compatible with schools, and offered to provide an example for investigation. The number of hard to reach members is low, but the team is aware of this demographic, and the current system is under review. Some messaging relies on line managers to disseminate information to their teams. Members confirmed that the volume and level of information provided were appropriate.

Pensions Papers Review

The Board received a review of recent Pensions Committee meetings. Two Committee meetings had taken place since the last Board meeting, and officers provided details of the discussions. It was noted that there had been a significant number of staff changes within the London Collective Investment Vehicle (LCIV), and that investment management functions might be transferred to the LCIV.

Training Update

The Board received an update on training progress, noting that more modules had been completed. However, officers reiterated the reminder for members to complete all LOLA modules. The Chairman noted that their training was completed in Sutton, and that Sussex would need to be corrected on the report. Members also requested a footnote to indicate that one member had left. There was a general consensus among members that the format and usability of the training were poor. Officers stated there were no immediate plans to change the training but that the feedback would be passed to Hymans Robertson for consideration.

Risk Register

The Board reviewed the risk register. Members questioned whether they should receive the strategic or operational register. The Chairman indicated that they would communicate the Board's views to the Council's Chief Finance Officer, with a preference for focusing on the strategic register.