To consider the Risk Register, Breach Reporting, Administering Authority Decisions and the Pension Administration Strategy.

The Deputy Pension Fund Manager informed the Panel that the report under consideration covered the four areas where the administering authority had by statute to have policies; they were:

• Pension Administration Strategy (Annex 1)
• Administering Authority Decisions (Annex 2)
• Risk Assessment and Risk Register  (Annex 3)
• Reporting of Breaches of the Law (Annex 4)

With regards to the Pension Administration Strategy the Panel were informed that the Pensions Regulator now had responsibility for ensuring that an Administering Authority of a Local Government Pension Fund was compliant with certain standards relating to all areas of governance and administration.  Officers were seeking the approval of the strategy document (Annex 1) to support them in formulating and delivering to scheme employers, training with regard to their statutory obligations contained within the service level agreement.

Councillor Hilton asked for an update to the i-Connect.  The  Pension Administration Manager informed the Panel that RBWM had agreed to implement the system and inform the Berkshire Treasurers of progress; the Head of Finance informed that this would be done in a couple of weeks.  Reading Borough Council was the only authority that had not expressed an interest.  The Chairman asked Cllr Tickner if she knew why and was informed that she would make enquiries.

Cllr Law mentioned that the recommendation did not mention that I-Connect was a pilot and by agreeing to the document they would be agreeing to its implementation.  Cllr Hilton responded that the policy was supporting the implementation of I-Connect; it would be for the other authorities to decide if they wished to install it. 

As the recommendation was for the Panel to approve the strategy for implementation after consultation it was approved to change the recommendation to ‘subject to changes made as a consequence of the consultation’.

With regards to Administering Authority Decisions (Annex 2) the Panel were informed that there were many occasions where the administering authority had certain discretion as to how the regulations could be applied.

Annex 2 to the report set out each of the individual regulations where an administering authority decision was required along with a brief explanation of what each regulation meant, policy options and a recommendation as to which policy should be adopted to each regulation.

The Panel considered each option contained in Annex 2 of the report page 39 to 49 of the agenda pack and all the recommended options within the report were approved.

With regards to the Risk Assessment and Risk register (Annex 3) the Panel were informed that the Scheme Manager had a legal duty to establish and operate internal controls and thus was recommending the appendix as an appropriate risk assessment and register.  The document was in line with the RBWM register.

Cllr Stanton reported that he welcomed the document and asked if all major pieces of work had been risk assessed.  The Panel were informed that they were and that they were being asked if they wished to see risk reported by exception or the whole register.

Cllr Tickner replied that she would like to see just the ‘dashboard’ for every meeting with further information being supplied on risks reporting ‘Red’.    The Panel were informed that during the summer consultants were being used to look at risk and get a dashboard focused on the Pension Fund rather then operational risks. 

It was noted that ‘Pooling’ had not been added as a risk as there was insufficient information to put in mitigating actions. 

It was agreed that the full list, as appended,  would come to Panel for a final decision and that any further comments to be emailed to the Chairman and the Pension Fund Manager.

With regards to reporting breaches of the law (Annex 4) the Panel were informed that the document set out the reporting process.  The Annex was noted and the Chairman said that any comments to be sent to the Deputy Pension Fund Manager.

Resolved unanimously: That the Panel:

i.              Considered the pension administration strategy at Annex 1 and agreed to its implementation from 1 April 2016 subject to changes made as a consequence of the consultation;

ii.            adopted the administering authority decisions matrix as set out in Annex 2;

iii.           noted the risk assessment and risk register as set out in Annex 3; and

iv.           accepted the guide to reporting breaches of the law including the traffic light framework for reporting breaches as set out in Annex 4.