Agenda item

A report for the Board’s ongoing oversight of:

·       Scheme, Regulatory, Legal, and Fund Update

·       Risk Register

·       Administration KPI update – 1 October 2023 to 31 December 2023

a)    Key business plan items – Aggregation Backlogs / i-Connect & Controls / Resourcing

b)    Outsourcing updates

c)    Business Plan 2024/27 summary

·       Audit update 2023/24

a)      SWAP Audit KPI 2023/24

b)      SWAP Audit KFC 2023/24 

Jennifer Devine, Head of Wiltshire Pension Fund, presented the Headlines and Monitoring (HAM) report which provided information highlighting key issues and developments to enable to the Board to fulfil its monitoring role.

The report detailed updates in the following areas:

·       Scheme, Regulatory, Legal, and Fund Update

·       Risk Register

·       Administration KPI Update – 1 October to 31 December 2023

a)    Key Business Plan Items – Aggregation Backlogs/i-Connect and Controls/Resourcing

b)    Outsourcing Updates

c)    Business Plan 2024-27 Summary

·       Audit Update

a)    SWAP Audit KPI – 2023-24

b)    SWAP Audit KFC – 2023-24

Officers began by drawing attention to Paragraphs 5 and 6 of the report which detailed the significant resourcing issues being experienced by the Fund which was negatively impacting on officers’ ability to deliver the Business Plan priorities, increasing strain on staff, and workloads for managers who were required to act down. Recruitment campaigns were still ongoing, and Members were reassured that they would be updated on any progress.

Two presentations were then delivered by Nat Harrison, Employer Services Work Management Officer, and Matt Thorpe, Service Improvement Lead Analyst, with the first focussing on updating Members on the i-Connect project.

The different resources and actions that had been undertaken and introduced for employers and Fund officers were detailed, including:

·       Updated online resources.

·       New i-Connect user request forms.

·       Publication of a new i-Connect Guide with FAQs.

·       Development of an i-Connect Common Errors page.

·       Further internal training and the development of a site containing all relevant training documents and updated process and procedure notes.

·       Creation of a training log detailing personal training and development plans.

Further controls had been implemented such as the development of a mandatory pre-onboarding checklist, and monthly meetings on employer data and contributions. Additionally, both the Employer Data Quality Categorisation Policy and Employer Data Quality Checking Guide had been approved in January 2024 and it was confirmed that all policies and guides had been aligned.

Future projects were detailed including an i-Connect Online Return video which would set out the process for employers, and a Knowledge Test to help employers both improve their knowledge of i-Connect for internal staff training, and to ensure that those people responsible for the i-Connect submission within their organisations had a certain level of knowledge. Furthermore, officers were looking to introduce a system in which employers could manually upload documents themselves instead of emailing to officers, thus reducing processing and administration time for Fund officers.

In response to questions, it was explained that if an employer did not pass the Knowledge Test first time, officers would engage with them to improve understanding until the point of passing. It was confirmed that positive feedback had been received from employers with regard to the changes implemented and that just under 140 employers had been onboarded, with officers continuing to work with the remaining employers due to either the complexity of their organisations or resistance to the changes.

The second presentation focused on the different service improvements that had been undertaken through the Service Improvement Team (SIT) to simplify processes for members and officers. The process of identifying areas for upcoming projects was briefly detailed in which it was explained that suitable staff would be seconded from the wider team based on their strengths and would solely focus on the work being undertaken in the SIT. Feedback from seconded staff had noted that they left with a wider understanding of the Fund’s vision.

It was explained that several new bulk processes had been introduced which aimed at increasing efficiencies, ensuring accurate and up-to-date records, and creating a more fluid member journey. Examples of future projects were then detailed such as implementing a smarter communications system to work at reducing direct officer enquiries through more regular correspondence, email automation, and chatbots.

Officers then highlighted Paragraph 12 of the report which listed the main updates as result of the new tPR (The Pensions Regulator) General Code of Practice being introduced. Members were informed that as the new Code was based on the Code of Practice 14 template, the changes required would have minimal impact on the Fund. The material movements to the Risk Register that had occurred between September and December 2023 were then highlighted as per Paragraph 15 of the report, and the Chairman noted that he felt that Investment and Performance movements in the report should be considered under Agenda Items 13 and 19. Finally, officers briefly detailed Paragraphs 18 to 25 which outlined the results of the SWAP KPI and KFC Audits 2023-24.

Members queried if any contractual retenders had been affected as per the Fund Governance Risk Section. Officers acknowledged that Procurement had experienced a few challenges due to resourcing levels, however as the Fund operated through the Local Government Pension Scheme (LGPS) National Framework, retenders could be appropriately made in the assurance that they were subject to specific processes and would therefore ensure transparency and offer strong relationships with contractors.

Members highlighted an error with regard to some of the figures presented in the Administration KPI reports and sought reassurance as to their accuracy. Officers reiterated the resourcing issues being experienced but noted that the area was subject to an improvement plan and would be an area of focus during the coming months.

Officers were thanked for their presentations and hard work in the face of the challenges taking place.

Resolved:

1)    The Board noted the Fund updates and progress against the Business Plan 2023-24 key priorities.

2)    The Board did not endorse the change to the Compliance and Regulations Risk Section, but recommended endorsement to the Wiltshire Pension Fund Committee for the rest of the Risk Register in Appendix 2 and the summary of the risk changes since the last review as a true and fair view of the risks currently being experienced by the Fund.

3)    The Board noted the Committee’s approval of the KPI audit recommendations.

4)    The Board endorsed the SWAP KFC audit review report in Appendix 5a and recommended the report to the Wiltshire Pension Fund Committee as a true reflection of the progress made.

(The decision number 2 above, was made later in the meeting under Agenda Item 19)