Triennial Valuation
"The Fund under the Cheshire West & Chester Council is subject to a triennial valuation. The latest employer meeting took place in 2019, ensuring transparency and accountability in fund management. Stay informed about updates and decisions affecting the Fund's performance and beneficiaries."
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Presentation Transcript
Triennial Valuation The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 1
Valuation Next Steps November/December 2019 FSS consultation November 2019 Employer results issued November 2019 December 2019 1-2-1 employer meetings 17 January 2020 FSS consultation closes 31 January 2020 CPF response 31 March 2020 Final Valuation Report and Rates & Adjustments Certificate March 2020 Final FSS signed off 1 April 2020 Revised Rates Payable The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 2
Funding Strategy Statement consultation Sets out: How employer pension liabilities are measured The pace at which these liabilities are funded How employers or groups of employers pay for their own liabilities How the Administering Authority has balanced the aims of: affordability of employer contributions transparency of processes stability of employers contributions over time, and prudence in the funding basis The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 3
Significant Changes in FSS Academies treat as group rather than following ceding LEA FE/HE sector move from public to private sector Contractors Fixed rates ( pass through ) for new contracts The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 4
Fund Employer Update Nick Jones The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 5
Good Governance Review The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 6
Good Governance Review Hymans Robertson commissioned to Examine effectiveness of current LGPS Governance models Consider alternatives or enhancements Any models considered must maintain strong links to local democracy The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 7
Good Governance Review Models Considered Model 2 Model 1 Model 1 plus greater ring fencing with existing structures Improved Practice Model 3 Creation of Joint Committee Model 4 Separate Local Authority Body The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 8
Good Governance Review: Approach Engagement via online survey Models evaluated against Standards Conflict Representation Clarity Consistency Cost The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 9
Good Governance Review Models Considered Model 2 Model 1 Model 1 plus greater ring fencing with existing structures Improved Practice Model 3 Creation of Joint Committee Model 4 Separate Local Authority Body The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 10
Good Governance Review: Conclusions Outcomes based approach setting minimum standards Critical features of outcome based approach Role clarity and robust conflict management Assurances of sufficiency of administration resources Explanation of policy on scheme member and employer engagement and representation in governance Regular independent review of governance Enhanced training requirements for Pension Committees and s151 Officers Update relevant regulatory and CIPFA guidance The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 11
Good Governance Review Next steps SAB set up two working groups 1. Defining good governance outcomes 2. How to assess and monitor governance outcomes Further feedback expected by end of 2019 The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 12
MHCLG &HMT Consultation Updates The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 13
Recent Consultations Restriction of Public Sector Exit Payments Regulations 2019 - not yet in force 95k cap on early exit payments (age 55+) Includes non statutory redundancy, severance, ex gratia payments plus pension strain cost If 95k cap exceeded, employee benefits reduced New Fair Deal Outsourced staff guaranteed access to LGPS Removes broadly comparable option Encourage pass- through arrangements Deemed employer status Ceding employer remains employer for LGPS purposes The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 14
Recent Consultations 4-year valuation cycle Including proposals for interim valuations Flexibility for dealing with exiting employers Phasing exit payments Deferred employer status (allowing employers to exit the scheme but keep on paying in as if they were still an employer) Modifications to exit credits Removing the requirement for FE and 6th form college corporations to offer LGPS to new entrants The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 15
Pensions Regulator Update The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 16
Survey of Public Sector Pension Schemes Key Issues Governance Record keeping Member communications Cyber Security Data Quality Annual Benefit Statements The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 17
The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 18
Operations Update Heidi Catherall The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 19
Monthly Interfacing (MI) The Fund is administered by Cheshire West & Chester Council 2020202020 Employer Meeting 2019
MI Benefits Reduced effort on data exchange Improve data quality Reduce the number of per member queries More timely resolution of queries Improved customer experience Eliminate year-end returns (LGS50) The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 21
Who, What, When, How ? All employers to be live on MI by 31 March 2020 Dedicated MI Team Process: Data cleanse Employee Membership Number (EMN) Create the MI extract Web registration Mid-year LGS50 Load first file . The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 22
Current Position No of Employers No of Members 315 35,047 Total active members (88) (26,910) Working with largest employers 227 8,137 42 1,559 Live on MI 185 6,578 Not yet Live on MI The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 23
When can you go live? Have you completed the data cleanse? Have you received your EMNs? Have you created the extract file? Have you been set up on the web portal? Have you completed a mid-year LGS50? When can you go live? Nov Dec Jan Feb Mar Largest Employers ??? ??? The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 24
Contacting the MI Team Image result for contact us Team Email address: cheshirepfinbox@cheshirewestandchester.gov.uk Image result for contact us Office Contact Number: 01244 976000 (Option 1 then option 2) The MI Team John Coombes (MI Team Senior Lead) john.coombes@cheshirewestandchester.gov.uk 0752 351 5441 Lee Shenton (MI Team Project Lead) lee.shenton@cheshirewestandchester.gov.uk 0791 229 3485 Chris Jennings (MI Team Member) christopher.jennings@cheshirewestandchester.gov.uk 0787 911 3380 John McGuinness (MI Team Member) john.mcguinness@cheshirewestandchester.gov.uk 0790 993 2216 Johannes Eagling(MI Team Member) johannes.eagling@cheshirewestandchester.gov.uk Image result for contact us 0752 223 2117 Anthony Phillips(MI Team Member) anthony.phillips2@cheshirewestandchester.gov.uk 0782 787 7666 The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 25
The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 26
Annual Benefit Statements - feedback The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 27
Annual Benefit Statements Legal requirement to send 100% by 31 August each year The Pensions Regulator Duty to report a breach if 100% not sent Provide Improvement Plan Reasonable timeframe The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 28
2019 Position 2019 % 2018 % Active members (current employees) Eligible to receive an ABS Received an ABS on time Did not received an ABS on time 32,677 (27,633) 5,044 31,402 85 (24,136) 77 7,266 c3,400 more members received a statement on time BUT 5,044 members did not receive their ABS 158 have no current address 4,886 to be sent out The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 29
2019 ABS - Next Steps Issue 5,044 by end November 2019 Resolve all data queries with help from employers. Most queries relate to Missing data e.g. pay info Inconsistent data Incorrect data The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 30
ABS Mop-Up progress Type Number Fixed - ABS ready 2,400 Leavers 1,000 Duplicate member records 550 Query with Employer 1,094 Total 5,044 The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 31
How can MI Help the ABS process? Many data queries result from annual year end data extract LGS50 process Data due end April many late / not returned ABS deadline early August Short deadline to resolve Monthly Interfacing can help: Validation avoid omissions Timely info resolve queries in year Starters/Leavers Increase in % of ABS provided to meet statutory target and improve member service The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 32
The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 33
Investment Update Maggie Sheppard/ Steve Wilcock The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 34
How the Fund works Pension Fund invests contributions Pension Fund pay benefits to members Employer pays contributions Benefits Contri- bution Asset returns The valuation Lower returns = Higher contributions
Portfolio Structure Total assets 5.476bn Growth Defensive 1.440bn 1.606bn 0.770bn 0.996bn 0.664bn The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 36
Manager Allocations 35 30 25 % of assets 20 15 10 5 0 The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 37
Investment Performance 40.0 Portfolio Returns 35.0 Benchmark 30.0 CPI Cumulative Performance % 25.0 Valuation 20.0 15.0 10.0 5.0 0.0 Period ending The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 38
LGPS Central Partner Funds 40bn The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 39
Pooling Progress 90% 85% 80% 70% 60% % of Assets 50% 39% 40% 33% 30% 20% 14% 15% 11% 12% 10% 2% 0% FUND 1 FUND 2 FUND 3 CHESHIRE FUND 5 FUND 6 FUND 7 FUND 8 The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 40
Other key changes New Climate Fund investment Sustainable Equity Fund Cost savings Transparency Update to Investment Strategy The Fund is administered by Cheshire West & Chester Council Employer Meeting 2019 41
