Report attached.

Contact: Vicky Jenks 01743 252192

The Board received the report of the Pensions Administration Manager which provided Members with the latest administration and regulatory updates affecting the Local Government Pension Scheme.

The Pensions Administration Manager introduced and amplified her report which updated Members on the work undertaken by the pensions administration team  

She reported that the KPI chart in Appendix A reflected performance from April 2025 to March 2026, with good averages across most KPIs. However, some areas, particularly transfers, required improvement. The team had shifted from a multifunctional approach to a skillset-targeted model, which was still embedding. The current focus was on clearing older cases, and improvements in KPI outcomes were expected once this backlog had been addressed.

It was noted that increased staff turnover had necessitated frequent recruitment and training, which had temporarily impacted process efficiency.

Significant regulatory changes effective from April required the team to review retrospective cases and ensure new rules were applied to benefit calculations. A team day was scheduled to gather feedback on training needs and process preferences for handling retrospective work.

The help desk continued to receive a high volume of calls and emails. Registrations for My Pension Online had reached nearly 60%, facilitating easier digital communication. However, 40% of members not online would require paper communications for regulatory disclosures.

Employer data submissions were generally timely and accurate, with occasional delays linked to payroll provider changes. These issues were actively managed to prevent recurring problems.

The team has completed the fund valuation, was preparing for the pensions dashboard rollout (expected next year), had applied pension increases effective from April, and were working on projects related to new regulatory requirements.

During the discussion, questions were raised regarding the decision to develop "Penny the Pension Bot" independently rather than in partnership with other organisations. It was explained that the bot was developed in collaboration with Shropshire Council’s ICT team, but its current version was limited in sophistication, relying on a static information bank. The Council was developing a more advanced bot, which the pension team would consider adopting when available. The team also evaluated customer service tools from their pension software provider, balancing cost and functionality.

A follow-up question asked whether Shropshire members’ questions differ from those in other local pension schemes. It was confirmed that while questions were generally similar, phrasing varies, and the bot’s effectiveness depended on how questions were asked. The team supplemented the bot with website signposting and a help desk for more complex queries.

Further clarification was sought on the bot’s operation. It was confirmed that it functioned similarly to a bank’s chat assistant, matching keywords to a static information bank, and that more sophisticated bots could search more widely for answers.

It was also asked whether the bot reduced help desk workload. It was confirmed that it helped with generic questions but that complex cases were still referred to the help desk for personalised support.

A question was raised about collaboration with South Yorkshire on dashboard policy. It was confirmed that ongoing collaboration was taking place, with teams across the country sharing workload and best practices, especially regarding the pensions dashboard.

RESOLVED:

That the contents of the report be noted.