The Assistant Director – Pensions presented the Pensions Administration Performance Update for Quarter 4 2024/25.

The Independent Adviser asked for clarification on the backlog and the target for clearing it. The Assistant Director – Pensions explained that the target was to clear 100% of the backlog by 31 December 2025. It was requested the next report give a clearer visual representation on what has been cleared and when, what percentage of work remained and the current target for full clearance.

The Vice Chair noted that a lot of the outstanding work involved deferment settlements and aggregation settlements and asked why this was. The Assistant Director – Pensions explained that this was down to the sheer number and the amount of work needed to process these types of cases and the fact that the team were having to clear the backlog alongside processing incoming work to try to avoid a further backlog. It was also explained that aggregation settlements can be very time consuming by generating further work once they started to be processed delaying progress on those cases. It was explained that a suitable internal “taskforce” team within the Administration team was being identified to target the backlog in order to allocate staff in the most efficient way and clear outstanding work by the target date.

The Independent Adviser noted that Civica, the provider of the Pension Administration Software was implementing a release the morning of 24 April 2025 and asked when the next one was scheduled. The Assistant Director – Pensions explained that the next software release was due late May 2025 and that Civica had been struggling with staffing levels but that they have been reconfiguring their workforce in order to catch up and deliver the software developments urgently.

The Chair noted that the Corporate Action – System Improvements was not on target and asked for further detail. The Assistant Director – Pensions explained that this was due to the delay from Civica which was stalling system developments and providing constraints to progression. The Director added that the software needed to be in place before improvements could be made.

The Vice Chair asked for more details on the revised release dates and revised delivery plan. The Assistant Director – Pensions explained that the revised delivery plan was a portal allowing SYPA to see the progress they are making with delivery of the software and to see the dates and targets in real time.

Members noted that an onsite visit was currently being arranged to appraise options and agree matching criteria with Civica regarding connecting to the Pensions Dashboards and asked for further details. The Service Manager – Customer Services explained that this was scheduled for May 2025 to follow a demonstration to clients.

Members asked how employers would know if they had queries outstanding as listed in the data in the Employer Performance section of the report. The Assistant Director - Pensions explained that limited access to the data was maintained for security reasons but employers could be informed individually, and this issue would be raised with the Service Manager – Employer Services.

Members asked for definition of the term “fettering” used in the Improvement plan. The Assistant Director – Pensions explained that this related to employers’ Discretionary Policies and the need to ensure employers do not ‘fetter’ their use of discretion by making statements that potentially put their policies at risk and make it difficult for employers to demonstrate that all their decisions regarding the policies are demonstrably reasonable in law. The Director added that SYPA is to publish all employer Discretionary Policies (or a link to the policy on the employer’s website) on the Authority website in order to ascertain that each employer has one and allow members access to them. It was explained that the Improvement Plan will support employers with producing these functional policies via training webinars.

Members asked for clarification on case rejection data. The Director explained that all work of the Administration team was checked and that it was ‘rejected’ if incorrect and that this case rejection data allowed managers to identify and target specific areas of work or staff that may need additional or refresher training therefore improving overall quality of output by ensuring work is correct first time.

Members noted the negative feedback from scheme members regarding the New Joiner Survey. The Assistant Director – Pensions explained that the team was working with the IT provider to look at improving customer service particularly in regard to the online portal.

Members queried how often scheme members tended to use the online portal. The Director explained that there were peaks in use dependent on when Annual Benefit Statements and P60 forms were issued and the Assistant Director – Pensions agreed to add data of scheme member access to the Portal to the next quarterly Administration report.

The Chair noted that the deadline to produce and issue Annual Benefit Statements that include the McCloud Underpin was 31 August 2025 and asked about the consequences for not meeting this deadline. The Director explained that the guidelines for implementation had been written so that administering authorities would not be in regulatory breach for missing the deadlines if The Pensions Regulator was aware. It was explained that it was imperative to maintain open and transparent communication with The Pensions Regulator regarding any delays and plans to resolve them and it was noted that The Pensions Regulator was aware of the software development delays due to the provider, Civica, and that SYPA was not the only administering authority affected by delays.

The Vice Chair brought attention to the Appeals, Breaches and Complaints section of the report and the 11 breaches concerning AVCs not being paid at the same time as the main scheme and asked how this could be improved. The Assistant Director – Pensions explained that better processes and more experienced and trained staff were needed to ensure there were no similar breaches going forward but explained that these 11 incidences related to historic breaches that had been discovered when data cleansing in house AVC contributors in readiness for Pensions Dashboards and were not expected to reoccur.

Members asked about Ill-Health retirement and whether there were standard guidelines employers needed to follow. The Assistant Director – Pensions explained that regulations regarding Ill-Health retirement were very clear and did not vary by employer. It was explained that the criteria for qualification was very strict and that employers could not use discretion on economic grounds to deny the claim. The Director added that employers are not always aware of the steps they need to take when issued with an Ill-Health claim and can cause unnecessary delay and appeals due to failed processes making targeted training to educate employers on their responsibilities, essential.

RESOLVED: Members noted the contents of the report.