London Borough of Hammersmith & Fulham PENSIONS BOARD 13 SEPTEMBER 2017

PENSIONS BUSINESS PLAN
Report of the Strategic Finance Director
Open Report
Classification: For review and comment Key Decision: No
Wards Affected: None
Accountable Director: Peter Worth, Interim Director of Pensions and Treasury
Report Author: Peter Worth, Interim Director of Pensions and Treasury	Contact Details: Tel: 07714 333240 E-mail: pworth@westminster.gov.uk

EXECUTIVE SUMMARY

It is Best Practice for Council Services to have business plans that set out to the objectives of the Service, how this is being delivered, and highlighting issues and how these are to be mitigated.

As a Tri-borough Service, it is equally important to ensure that there is as much standardisation and compliance as is possible across the three Councils to ensure economies of scales and associated savings can be delivered.

This report and associated Appendix sets out the Tri-Borough Pensions Business Plan.

RECOMMENDATIONS

That the Pensions Board note the Shared Service Pensions Business Plan.

REASONS FOR DECISION

It is best practice to have meaningful and deliverable Business Plans to which all Stakeholders are aligned when delivering services.

This reports sets out the Shared Service Pensions Business Plan for Stakeholders to acknowledge the deliverable of the Pensions Service.

PROPOSAL AND ISSUES

The Tri-Borough Pensions Business Plan is attached as Appendix A. This business plan sets out:

4.1.1. The terms of reference;

4.1.2. The size of Funds being managed (From a Monetary and staffing number basis);

4.1.3. The aims and purposes of the Funds;

4.1.4. What key documents are and where they are located;

4.1.5. The resources deployed to deliver fund activities.

In addition, as a final section, the Business Plan sets out the Tri-Borough Pension Funds Action Plan for the upcoming period. This action plan is based around three theme’s:

4.2.1. Operational improvements which will streamline existing working practices and work towards a consistent set of outputs to be delivered by the team;

4.2.2. Assurance improvements which highlight ways of demonstrating the Funds are being managed effectively and within the regulatory framework; and

4.2.3. Financial proposals which will ensure the costs of delivering the scheme administration are understood and minimised.

The objectives of the improvements were identified as follows:

Operational (doing things better):

4.4.1. To ensure Pension Committees and Local Pension Boards are fully supported;

4.4.2. To better understand, manage and monitor the risks of the Funds;

4.4.3. To support an improvement in the quality of communications with Employers and Fund.

Assurance (doing things right):

4.5.1. To ensure the most effective governance arrangements are in place;

4.5.2. To improve the level of controls assurance and reporting frameworks;

4.5.3. To ensure the Fund is efficiently managed and complies with relevant regulations.

4.6. Financial (being cost efficient):

4.6.1. To fully understand the Funds’ current and expected financial position;

4.6.2. To optimise the procurement of services utilised by the Funds;

4.6.3. To minimise the cost of administering the Funds locally;

4.6.4. To improve the quality and transparency of financial reporting.

The final section of the Business Plan sets out the 17 actions being followed.

CONSULTATION

The Business Plan was reported to the Pensions Sub-Committee on 20th June 2017.

EQUALITY IMPLICATIONS

Not applicable.

LEGAL IMPLICATIONS

None.

FINANCIAL IMPLICATIONS

None.

IMPLICATIONS FOR BUSINESS

None.

BACKGROUND PAPERS USED IN PREPARING THIS REPORT

None.

LIST OF APPENDICES:

Appendix 1 - Pensions Business Plan