Bring back Barnet Pension service in-house now
The following email was sent to all Barnet Councillors:
Dear Councillors
I am writing to all of you on behalf of all of my members who are part of the Local Government Pension Scheme (LGPS).
I am writing to all of you for help.
The latest debacle with the failing Pension Administration run by Capita should have been the final straw.
The failings have been well documented in Barnet Council Committee meetings over the last four years. The problems are not going away. Some do then others rear their head.
The service is out of control.
Have you not noticed a pattern?
Capita are always contrite and happy to agree to action plan after action plan.
But year on year, another damning report or comment emerges from either internal or external audit and now the risk to the Triannual Valuation of our Pension Scheme.
The Chair of the Local Pensions Board has gone on record in their Committee meeting and recently at the Pension Fund Committee on 25 March 2019 to say the Pensions Administration service is “appalling”.
Now the Actuaries have joined the ever growing numbers of concerned people who are warning Barnet Council of the serious risks of a failing Pension Administration service.
The Actuaries warned the Council three years ago.
Yet here on the eve of the deadline for the Pensions Regulator (31 March 2019) the serious critically flawed pension data issue has not gone away.
I have listened to the recent Pension Fund Committee (26 March 2019). I did appear to me that the scale of the risk was reflected in the discussions.
I note with concern a quote below from Dan Taylor, director at third-party administrator Trafalgar House.
“The more poor data you have, the bigger that assumption gets, and the further away you get from the actual known liability position, which could involve employers, sponsors paying more than they have to”
Barnet Council has recently agreed at the Budget Council meeting on 5 March 2019, a Five Year Budget cuts programme, looking to make £70 million of cuts by 2024.
I find it inconceivable that Councillors would not be concerned that as a result of serious failing Pension Administration the Council and other employers would have to contribute more money to the LGPS.
Money that should be spend on vital public services.
Barnet UNISON has over the past five years dealt with some of the following issues impacting directly on our members
- 2015 Annual Benefit Statements not sent to all by statutory deadline
- 2016 Annual Benefit Statements not sent to all by statutory deadline
- 2015 Annual Benefit Statements not all correct – CARE benefit incorrectly based on taxable pay rather than pensionable pay
- 2016 Annual Benefit Statements not all correct – CARE benefit incorrectly based on taxable pay rather than pensionable pay
- 2017 Annual Benefit Statements not all accurate – missing previous LGPS membership, more than one statement, CARE benefit based on part pensionable pay
- Barnet Pension communicated on another local authority’s letterhead showing two different e-mail addresses for communication with them
- Insufficient details provided for pension calculations to check accuracy
Yet our active members are still experiencing problems.
I am sure all Councillors will have a work or private Pension.
You will all expect that when it is your time to take your pension it should be a stress free experience.
I have to say that is not the experience in Barnet.
The ongoing issues mean that until our members have had their Pension checked by UNISON and it is paid correctly into their bank the stress levels for those retiring are extraordinary high.
Contrary to some comments I have heard councillors make at Committee, we simply did not have these problems with the in-house Pension Administration Team. It is a matter of fact not opinion.
I know many believe that Barnet Council will not end this contract because it would be seen as a major climb down and an admission that the One Barnet Programme has failed.
That is possibly true. However I know there are still quite a few Councillors who were deeply involved in the One Barnet programme. Whilst I and my union disagreed with Barnet Council on One Barnet I do not believe that those voting for One Barnet would have envisaged this happening to the Pension Administration service.
But is has happened.
No amount of action plans will restore the service to the level of excellence it was operating before it was privatised in 2013.
Finally, I am not allowed to address most of the Committees but if I did I would ask Barnet Council “Why are you defending the indefensible?”. Barnet Council needs to instruct senior officers to terminate the Capita contract for Pension Administration and begin the process of bringing the service back in-house before there is further damage to the service and the reputation of the Council.
Background:
- Ongoing data problems spark valuation concerns at Barnet http://www.pensions-expert.com/DB-Derisking/Ongoing-data-problems-spark-valuation-concerns-at-Barnet
- Barnet in TPR breach as Capita misses payments http://www.pensions-expert.com/DB-Derisking/Barnet-in-TPR-breach-as-Capita-misses-payments
- Barnet grapples with data difficulties http://www.pensions-expert.com/DB-Derisking/Barnet-grapples-with-data-difficulties
- Regulator fines Barnet over pension failings https://www.ftadviser.com/pensions/2017/07/27/regulator-fines-barnet-over-pension-failings/
Best wishes
John Burgess
Branch Secretary.
Barnet UNISON
0208 359 2088