The Sutton Council Pension Board met to discuss pension administration performance and projects, governance and risk, and to review the pension committee papers. The board noted the improved performance of the benefits team, particularly in reducing the backlog of outstanding cases. They also discussed challenges related to the McCloud remedy¹ project and the government's consultation on access and fairness within the Local Government Pension Scheme (LGPS).

Pension Administration Performance

The board noted the update on the performance of the Shared Pensions Administration Service. Tom, the Permanent Head of Pension Administration, reported a significant reduction in outstanding processes, from 1,447 to 1,028, and a decrease in overdue cases of three months or more, from 75 to 11. He indicated that reports run on Monday morning showed that overdue cases were down to two, and that the team was on track to clear the backlog by the end of July.

Councillor Sunita Gordon, Lead Member for Resources, congratulated the team on bringing the numbers down, and other board members echoed this sentiment. There was some discussion of the impact of the backlog reduction on service level agreements (SLAs), with the understanding that some SLAs might be affected in the short term while the backlog is cleared.

Tom also mentioned a complaint received through the Ombudsman regarding a death grant payment from 2020. He explained that the fund had followed the correct process and sought external legal advice, so he did not anticipate any concerns.

Pension Administration Projects

Tom provided an update on various projects, including the annual return exercise, the pensions dashboard project, the triennial valuation, and the McCloud remedy project.

• Annual Return Exercise: All data was received on time from employers, and has been validated and loaded.
• Pensions Dashboard Project: The project is progressing, with the digital architecture live and consumer testing scheduled for summer 2026. The public availability of the dashboard is expected in autumn 2026. The fund has procured an integrated service provider (ISP) and is working on data readiness.
• Triennial Valuation: All data for Sutton has been loaded onto the Hyman's valuation portal, and the fund expects to have results by the end of August.
• McCloud Remedy Project: The fund is behind on the project, and it is unlikely to be fully compliant by the deadline of 31 August 2025. The board discussed the possibility of reporting a breach of the law to the pension regulator. Tom reassured the board that many funds across the country are in a similar position. He also noted that the software upgrades from Civica² have been delayed, and the fund is working with the provider to resolve the issues.

Anthony Kramer asked about a realistic date for compliance, and Tom responded that the fund is revising its project plan and looking at third-party support options. Jonathan Bunt, Chair of the Pension Board, raised the issue of value for money, considering the risk of a penalty from the regulator and the benefit to scheme members of having a compliant statement issued earlier. Tom stated that the regulator is willing to work with funds that report themselves early with a clear project plan.

Kirstie Martin asked about the possibility of the provider supplementing some of the costs due to the delays, and Tom confirmed that the fund is looking into terms of the contract to see if there is any provision to recover costs. Councillor Gordon expressed concerns about Civica's delivery and accountability.

Governance and Risk

The board reviewed the fund's risk register, focusing on the red risk related to software providers and software delivery, particularly the failure of Civica to deliver the McCloud remedy. Tom also provided updates on the government's new access and fairness consultation, which addresses age and gender discrimination within the LGPS. He noted that the Local Government Association (LGA) supports the consultation but has concerns about the administrative burden.

Tom reported that there have been no additional administration charges levied over the last quarter, indicating that the fund's policy is working. Councillor Gordon raised a question about high earners opting out of the pension scheme due to taxation, and Tom clarified the rules around annual and lifetime allowances.

Work Programme

The board reviewed the work programme and noted the upcoming in-person training session on 23 July. They also discussed the agenda for the next board meeting, which will include the annual report and accounts and a pension committee update, including the triennial valuation. Jonathan suggested that the triennial valuation be a separate agenda item, and Tom agreed to do that.

Review of Pension Committee Papers

Vicky Goddard, Director of Finance, provided a review of the pension committee papers, including the quarterly investment performance report, the London CIV update, and the petition on investments in occupied Palestinian territories.

The board discussed the investment performance, which remains below the benchmark. Vicky noted that the London CIV are aware of the issue and are monitoring their fund managers. Councillor Gordon asked about the Palestinian group's presentation to the pensions committee, and Vicky confirmed that the fund is following the correct process and balancing the fiduciary duty with the fund's beliefs.

Jonathan raised concerns about the asset allocation being outside the strategic range, and Vicky agreed to provide more information on the timetable for bringing it back into compliance.