All Milestones Achieved and Project Within Budget

Paper BSO 39/2015

To: BSO Board

From: Director of Operations

Subject: HSC Pension Reform Project Update

Status: For Noting

Date of Meeting: 26 March 2015 Paper BSO 39/2015 HSC Pension Reform Project

Overall status at 19/03/15 All milestones achieved and project within budget. o Payments for System Upgrade milestones 1 & 2 paid - £325k each o System Upgrade milestone 3 part 1 invoiced and to be paid by 31/03/2015 - £150k

Whilst the delays with the payroll interface is adding difficulties it will not prevent implementation of the CARE scheme and therefore not cause HMRC fines for non-compliance.

Key milestones and achievements to date  System Upgrade Milestones 1 & 2 achieved by target completion date and includes o PID and Product Control Sheet o Project Plan and Communication Plans o Test Strategy Document o Installation of new TEST service for Pension Reform QAT o Delivery of CARE screen calculation  Regulations and amending regulations made and laid within timeframe and 21 day rule achieved.  New Scheme registered with HMRC on 11/03/2015  Annual Benefit Statement confirmed as available to view on Member Self Service  Updated Communication Strategy encompassing Pension Reform o Website o eLearning models and Member Self Serve (MSS) o ½ day workshops & Adhoc sessions o HR Directors & Employers o GP Practice staff workshops o ETU and other newsletters o IT Service Reviews o DHSSPS Policy & Pension meetings o Fortnightly Project Team Meetings

Remaining milestones for 15/16  System Upgrade Milestone 3 is currently in line to deliver on time.  Rollout of Choice 2 exercise Sept – Dec 2015  Opt out of Protection exercise – date of roll out to be advised by Departmental Policy Unit

Key Issues / risks  Public Service Pension Scheme History (PSPSH) exercise o Delayed - Awaiting update of member data from Payroll Interface  Inform employers of date of allocation to 2015 scheme for all members o Delayed - Awaiting update of member data from Payroll Interface o Recent unavailability of the payroll testing environment

Mitigating actions Interface between HCL Axon (Payroll) and HSC Pension Service still not operational, creating a risk of affecting correct member allocation to schemes. Intensive resource allocated to testing of the Interface in partnership with Payroll. has further delayed the process.