Agenda item

This paper provides a summary of activity in key areas of pension administration for the Hammersmith and Fulham Pension Fund.

Eleanor Dennis (Head of Pensions) presented the report which provided a summary of activity in key areas of pension administration for the Hammersmith and Fulham Pension Fund (HFPF). She confirmed that the rate of abandoned helpdesk calls was 3%.

Councillor Nikos Souslous expressed concern that the LPPA no longer recorded call data in respect of the London Borough of Hammersmith and Fulham (LBHF). Echoing his disappointment, Eleanor Dennis noted that after sharing this concern to the LPPA’s Managing Director (MD), they had hoped to re-introduce the feature and make available data on calls per client in the future. 

In reply to Councillor Souslous’ question about the monthly submission process, Eleanor Dennis noted that about 78% of LBHF’s employers had attended the relevant online training sessions offered by LPPA. The Fund employers would be engaged in submitting monthly returns following the “end of year” process due by 28^th of April. On the Chair’s further enquiry about the number of outstanding submissions after the deadline, Eleanor Dennis explained that the switch from annual to monthly returns would help enhance data quality.  David Hughes (Director of Audit, Fraud, Risk and Insurance) added that the Pension Administration team was working together with the Fund employers to push forward this monthly submission initiative with a view to improving data quality.

William O’Connell noted from his portal account that his Annual Benefit Statement for the year 2020/21 which should have been issued by the previous administrator was missing. Eleanor Dennis agreed to follow up.

ACTION: Eleanor Dennis

Noting from the report that the LPPA had acknowledged their unsatisfactory service but were committed to improving the service going forward with initiatives such as the introduction of a client relationship manager, a centralised mailbox and client forums in 2023, the Chair asked about the progress of these initiatives. Eleanor Dennis noted that the initiatives did not work out as expected, for example, the client relationship function was not effective and the centralised mailbox framework was pre-mature.  Her team needed to process some issues/cases directly with the respective teams rather than via the client management forum such as those related to transfers.  David Hughes added that feedback had been made during the meetings with the LPPA’s MD.

With reference to the frustration expressed by PFC members about increasing the budget for the pension administration service despite its poor performance, the Chair was concerned whether the LBHF could challenge the LPPA’s proposed increase of 2022/23 budget from £384,000 to £399,000. Eleanor Dennis responded that PFC members had also raised concerns about the significant rising cost per member.  However, LPPA was a non-profit making organisation which had lost 32% resources due to staff turnover and had difficulties in recruiting experienced staff, and the costs were increasing due to increased IT costs and costs for additional resources as well as to retain staff. While striving to meet the increased IT/system costs.  She stressed that in paying the additional fee for LPPA’s service, the LBHF had sought to challenge its under-performance and express dissatisfaction through the formal letter highlighting the areas that needed improvement.

David Hughes remarked that LBHF was one of the partners among all the LPPA clients who were sharing the increased costs. He stressed that service feedback would be made through the regular meetings with the LPPA’s MD to ensure service improvements.

Councillor Souslous asked how did the LPPA’s increased budget compare with that of other service providers in the sector. Eleanor Dennis undertook to provide the information.

ACTION: Eleanor Dennis

Noting from the report that there was no outstanding backlog with LPPA of LBHF cases, William O’Connell referred to his enquiry which was outstanding for about 10 weeks.   Eleanor Dennis noted that both the inherited backlogs as well as those created in the past two quarters had been cleared. Nevertheless, she undertook to follow up his enquiry case to see how her team could give the necessary support.

ACTION: Eleanor Dennis

William O’Connell asked whether LPAA would take new clients in the coming year as it had in 2022/23.  Eleanor Dennis clarified that LPPA had not taken on new clients but migrating clients to the new system.  All phases of the project had now been completed, with all clients using the same system which allowed more cohesion and became a better place to deliver the Key Performance Indicators (KPIs). 

William O’Connell noted that a friend who got an account on the online portal did not receive the pensioners’ newsletter.  Eleanor Dennis understood that the pensioners’ newsletter was either sent to the direct email address or uploaded to the accounts of the portal which should contain all historical information for individual members. She added that the newsletter was despatched electronically except individual requests for hardcopies.

RESOLVED

The Board noted the contents of the report.