Agenda item

The Committee considered the report that provided the Pension Fund Committee with an update on the current administration performance, Annual Benefit Statement (ABS), Remediation Plan and GMP reconciliation.  Members’ further noted that the transfer of the administration service from Capita to West Yorkshire Pension Fund from November 2020.  

Mr Mark Fox noted that there had been errors in the annual benefit statements that had been sent to scheme members of the fund due to incorrect payroll information.    Members of the Committee noted that 1,600 annual benefits statements would be re-issued.

Members of the Committee raised a number of concerns in respect to the performance levels of Capita.    Councillor Alison Moore was given the opportunity to make a representation, in doing so she outlined a number of points relating to the underperformance of the administrating authority, Capita.   She said that there had been multiple areas where mistakes had been made and therefore, she noted that alarm bells should be ringing in regards to the management of the contract with Capita.   She further noted that there had been costs to LB Barnet and she sought clarification on the management of payroll.   Mr George Bruce said that the Council were discussing the payroll issues with Capita and seeking assurances on the necessary control improvements.    He added that due to the LB Barnet Officer’s and their experience they had identified a resolutions to a number of issues that would aid the hand over of the administration of the pension’s fund to West Yorkshire Pension Fund.   Mr Bruce said that the authority were in a better position than it was 12 months ago and was confident that the performance would improve following the transition.    Mr Bruce said that undue reliance had been placed on outsourced providers to monitor the pension administration contract due to low levels of staff in comparison to other authorities.  The Committee noted that part of the data remediation costs were being met by the LB Barnet Pension Fund.      Councillor Peter Zinkin said that he supported the views of Councillor Moore and said that the errors in regard to the Annual Benefit Statements was unforgivable.  He noted that Members across a number of Committees had noted that there had been inadequate pension resources to manage pensions.   He concluded that a lot of work had been performed to remedy this matter of the last year.     Mr Bruce said that West Yorkshire will be invited to the next meeting to provide an update and assurance to the Committee.   The Chairman requested a written update before end of the year. 

Councillor Kathy Levine requested that a report be submitted to Members that outlined what compensation the Council was to receive.   Councillor Moore summed up her views on the item and supported Councillor Lavine’s request for a report.  He said that there are a repeated number of errors and underlining issues and challenges and requested a formal request from the Pension Fund Committee to outline the underperformance and costs incurred to the Pension Fund/Council.     Councillor Kathy Levine moved for a report to be received that outlines the cost incurred and what compensation the Council would receive following the underperformance from Capita.     Councillor Finn said that this was heavy handed.     The attending Governance Officer outline the process of the proceedings.   Therefore, Councillor Zinkin outlined that he agreed with the proposal and suggested the following:

That the Pension Fund Committee request that a report be submitted in regard to the arrangements that have been made in respect to the financial arrangements relating to the termination of the Capita contract and the transfer to West Yorkshire.  That the report includes all matters relating to the performance and in particular any costs associated to the pension fund.

The Chairman requested that this be voted on and therefore it was unanimously agreed

It was further noted that the Members gave instructions that this report be submitted to the Pension Fund Committee however it was noted that this report be of interest to the Finance, Contracts and performance Committee. 

Having considered the report, the Pension Fund Committee:

Resolved:

·       The Pension Fund Committee noted the current performance levels and the update on Annual Benefit Statements.

·       That the Pension Fund Committee request that a report be submitted in regard to the financial arrangements relating to the termination of the Capita contract for pension administration.  That the report includes reference to costs incurred by the pension fund due to poor performance by the administrator.