Agenda item

The Head of Pensions Administration provided Members with an update on key initiatives undertaken by the administration team of the NYPF. The report included, as an Appendix, the report that was provided to the PFC at their September 2025 meeting.

 

The following issues were highlighted:-

 

PFC Report

 

The PFC report from 25 September 2025 meeting was provided as an Appendix.

 

Breaches Log

 

Three breaches had occurred since the previous meeting of the Board. The issuing of Annual Benefit Statements had not met the 100% required by the 31 August 2025, with 106 not having been issued prior to the deadline. Further details and an update would be provided later in this report. The other two breaches were data protection related with details sent to the wrong recipient. These issues had been reported to Veritau who had concluded that the matters were low risk and there was no need for these to be reported further. These issues were due to human error, rather than being systemic.

 

Annual Benefit Statements

 

Deferred member statements were all issued by the 30 June 2025. There were 106 Active member statements that had not been issued by the deadline of 31 August, hence the breach detailed above. As of the end of September this had been reduced to 64, and at the time of this meeting there were two waiting to be issued. Members noted that this was the best position that had been achieved for many years, and that, unless the Administration Team were satisfied that the data was fully correct they would not issue a statement. The Team were congratulated by Board Members for the hard work undertaken to achieve this position.

 

Triennial Valuation

 

The Valuation was progressing well with the Fund currently 119% funded. Initial discussions with some employers regarding draft contribution rates had already taken place. The Fund had carefully considered the level of prudence to apply in the valuation, and any surplus over 110% would be used to reduce contribution rates.

 

Each employer would have a four week consultation period when they received their draft contribution rates. In addition, the actuary would be presenting the whole of fund results at an online employer forum on 13 November. It was noted that around 40 employers had signed up to take part in the Forum and an Employer Representative on the Board agreed to further publicise the importance of attending this.

 

General Code of Practice

 

The NYPF was generally compliant with the new Code and a review would be undertaken to coincide with the Governance Review next year. Monitoring would  continue to determine any anomalies in the interim.

 

McCloud

 

Data continued to be checked to rectify pensions in accordance with the ruling. Documentation was being developed ahead of benefits being paid. A number of issues had to be checked before the payment process could commence. It was noted that widows’ pensions would be taken account of within the process.

 

It was asked whether administration resources were particularly stretched given issues such as McCloud. It was emphasised that the Team were coping but issues such as McCloud did put pressure on achieving deadlines as resources were limited. Priorities i.e. paying pensions remained in place.

 

No guidance had been issued by the Local Government Association in relation to McCloud, therefore, the administration team were taking a pragmatic approach to how this was implemented. Action would be undertaken and reported back to the PFC and the Board in terms of how this was progressing. Any additional funding required for pensioners, due to McCloud, would automatically be paid.

 

Dashboard

 

This had now been completed and was waiting for the ‘switch on’ date of 31 October. A public connection date had yet to be announced. There was a chance that the system could be tested without the knowledge of the Fund as testing would be undertaken randomly. Any results from the testing would be fed back to the NYPF, which would be shared with the Board and PFC. Information on the use of the Dashboard would be provided via the NYPF website but there would be no direct communications with members.

 

LGPS Bulletins

 

Details of the bulletins were provided. Actions were undertaken where required.

 

Resolved –

 

(i)            That the contents of the report be noted.

(ii)           That the contents of the Breaches Log be noted, and it be recommended to the PFC that no further action was required in respect of the breaches.