Agenda item

PENSIONS ADMINISTRATION SERVICE

To consider a report of the Pensions Committee on the future of the Pensions Administration Serice (attached).

Decision:

Four questions asked and responded to on report. Report AGREED without division.

Minutes:

A report of the Pensions Committee set out options for the future of the Pensions Administration Service. This proposed entering into an arrangement under section 101 of the Local Government act 1972 for the discharge by Lancashire County Council of the functions of Havering Council in respect of pensions administration from 1st October 2017 for a rolling annual period.

 

In response to questions on the report submitted by the Residents’ Group, the Cabinet Member stated the following:

 

The proposed new provider (LPP) had a pool of more than 150 pensions administration staff working for multiple clients across the UK. This allowed the flexibility to address pressure points and still meeting targets in Service Level Agreements and Key Performance Indicators.

 

The proposals would secure the resilience of the service for broadly similar costs. It would not be sustainable to continue with the existing model in the medium term and the proposals would also mitigate against future cost pressures. The Council would work with LPP to identify further potential savings and opportunities to increase the income stream and generate local employment opportunities.

 

The agreement had a 12 month notice period on either side and shared services had been operated by LPP for more than 20 years. This was a proven model of operation that was used by Bexley and Newham Councils and separate IT contracts were not required.

 

Recruitment for the contract and project officer post would be in accordance with Havering HR policies. This was not a joint post with Newham knowledge etc would be shared.

 

The report was AGREED without division and it was RESOLVED:

 

1.    Option 4, of the attached report including exempt information be agreed, (subject to agreement by Lancashire County Council) that Havering Council enter into an arrangement under section 101 of the Local Government Act 1972 for the discharge by Lancashire County Council of the functions of Havering Council in respect of pensions administration from 1st October 2017 for a rolling annual period.

 

2.    That authority be delegated to the Managing Director of oneSource, after consultation with the Cabinet Member for Financial Management, to agree the final terms of the arrangements with Lancashire County Council and incorporate those into an agreement subject to those terms being in the best interests of Havering Council.

 

3.    That, power be delegated to the Managing Director of oneSource after consultation with the Cabinet Member for Financial Management, to agree the final terms of the arrangements with Lancashire County Council and incorporate those into an agreement subject to those terms being in the best interests of Havering Council.

 

4.    That the recruitment of a Projects and Contract Manager be agreed and it be noted that over a 5 year period, the total cost of the service to the Pension Fund is estimated to decrease by £76,900 and will deliver a robust and resilient and future proofed service. This will include the recruitment of a Projects and Contract Manager for Havering at annual cost of up to £57,791 to be funded by the Pension Fund budget.

 

5.    Thar it be noted that project implementation costs of the new arrangements will be £78,240 to be financed from the Pension Fund budget.

 

 

 

Supporting documents: