Issue - meetings

The Risk Register had the following five high risks:

1)    Systems failure/lack of disaster recovery plan/Cybercrime attack (Risk No.13)

2)    Fund assets insufficient to meet liabilities (Risk No.20)

3)    LGPS Central Limited related underperformance of investment returns (Risk No.31)

4)    Insufficient cyber-liability insurance relating to the pensions administration system (Risk No.42)

5)    Impact of McCloud judgement on administration (Risk No.46)

All of the high-level risks were discussed in detail. In relation to Risk No.20, the Head of Pension Fund made reference to the current ongoing actuarial valuation. As part of the valuation exercise, the Pension Fund’s Funding Strategy Statement was reviewed to ensure that an appropriate strategy was in place. A consultation on the Fund’s draft updated FSS had been launched in December 2022 and would close on 31 January 2023. A report on the outcomes of the consultation would be brought to the Committee in March.

A consultation on draft updated regulations to implement the McCloud remedy in the LGPS was expected to be launched in quarter 1 2023, with regulations expected to come into force on 1 October 2023. Members expressed their frustration at the length of time this process had already taken and were concerned by the enormous challenge that would be faced by the pension administration team.

No risks had been added to or removed from the Risk Register since it had last been presented to Committee in October 2022 and there had been no changes to existing risk scores. The narrative for a number of risks had been updated and these were highlighted.

RESOLVED:

That the Committee notes the risk items identified in the Risk Register.