Agenda item

[To receive an update on performance against key performance indicators (KPIs), the forecast outturn for the year against operating budgets and quarterly accounts as at the end of June 2017]

David Kane, Head of Finance presented the report on performance against the Fund’s key performance indicators (KPIs), the forecast outturn for the year against operating budgets and the position on the quarterly accounts for the West Midlands Pension Fund (the Main Fund) and the West Midlands Integrated Transport Authority (WMITA) Pension Fund for the period end of June 2017.

Councillor Paul Sigh welcomed the report, particularly the increase in the value of the Main Fund and the WMITA Fund during the quarter and the forecast underspend against operating budgets.

The Chair reiterated the praise for the projected forecasted underspend. In relation to the Fund’s internal spend, he wanted to have the right staff and the right number of staff in place to carry out the Fund’s business.  Rachel Brothwood, Director of Pensions reported that there was currently a high level of activity within both the Fund and LGPS Central.  The Fund was recruiting and continued to review its teams to ensure they are equipped and resourced. The Fund needed to strike the right a balance between developing its own staff and recruiting to bring in specialised knowledge and skills, noting this would bring sustainable and efficient resource.

Councillor Peter Bilson noted that cost savings achieved were from external management costs, which was one of the concerns from Birmingham City Council.  He commended the Fund for the savings achieved in this area.

Malcolm Cantello expressed concern at the statistics noted on the performance indicator ‘retirement options to members in 15 days’.  He also asked whether there was a calculator on the Fund’s website that scheme members could access to assist them in considering their pensions options. The Director responded stating that there had been a delay in receiving a number of factors from Government which had caused a delay in updating the Fund’s software systems. This in turn impacted the Fund’s ability to calculate retirement benefits and increasing requests to data queries and delay from late issue of calculation factors which were all being addressed. The Director of Pensions stated that extra resource was being allocated in this area and that the Fund were working through a number of national groups to encourage DCLG to issue the revaluation orders sooner. In terms of an on-line calculator, the Fund’s new web portal had recently been launched.  The Fund was keen to look at the online services it offered to members and its ability to develop and provide scheme members with more information.

Resolved:

1.    That the performance against the Fund’s key performance indicators as at the end of June 2017 be noted.

2.    That the forecast outturn against operating budgets as at the end of June 2017, which is an under spend of £8.8 million be noted:

3.    That it be noted that the quarterly accounts for the period ending 30 June 2017, show that:

a.    the value of West Midlands Pension Fund at this date was £15.1 billion, an increase of £855.5 million from 31 March 2017;

b.  the value of West Midlands ITA Pension Fund at this date was £517.4 million, an increase of £14.5 million from 31 March 2017.