PERFORMANCE MEASURES

Performance Standards

In May 1997, the Management Committee first approved a set of service standards for the activities carried out by the Committee. Since then, these standards have been reviewed annually and are monitored by the Committee. Compliance with the performance standards for 2010/11 and the reporting system was tested by the internal auditor, ASM Horwarth, on a random sample basis.

The following is a summary of the standards achieved during 2010/11.

Task	Standard	Within Standard %	Number of tasks
Lump sum retirement payments	10 days	88%	1465
Death grant payments	10 days	76%	85
Leaver options notifications	20 days	43%	2240
Refund payments	10 days	87%	167
Provisional transfer out quotations	20 days	43%	230
Transfer out payments	10 days	84%	168
Inward transfer quotation requests	10 days	14%	298
Inward transfer credit notifications	20 days	22%	245
New entrants certificates	20 days	86%	4683
Letters answered or acknowledged	10 days	95%	12486
Benefit quotation requests	10 days	51%	2753
Issue members' annual report	by 30 November	100%	Approx. 90000
Issue members' annual benefit statement	Within two months of receipt of valid data	100%	Approx. 62000
Pensions paid each month	Last banking day of month	100%	Approx. 26000
P60s issued to all pensioners	By 31 May	100%	Approx. 26000

During the 2009/10 year there was a 34% increase in total incoming work with a consequent impact on achievement of performance standards. In March 2010, the Committee agreed anincrease in the staffing level of the Pensions Administration Department to deal with the increased workloads and a recruitment exercise was undertaken in April / May 2010. Following training of the new staff there has been improved performance standards across all areas.

Transfer factors were suspended by HM Treasury on 6 July 2010 as the basis used for setting the discount rate needed revised as pension indexation had changed to the Consumer Prices  Index. All transfer and divorce quotations were suspended and work could not resume until the Government Actuary’s Department(GAD) issued new factors effective from 1 October 2010.These new factors were implemented and transfer and divorce calculations resumed. This four month suspension had a negative impact on the performance standards achieved for transfers and some benefit quotations as this work could not be processed until the newfactors were provided by GAD.

Cost per Member

Despite a continuing increase in scheme membership, NILGOSC has managed to keep a constant cost per member in real terms. The table below shows administration expenses per scheme member, together with the ratio of members to staff. 

Year ended	Total	Number	Members/	Admin Expenses	Cost/ Member	Cost adjusted for
31 March	Members	Of Staff	Staff	£’000	£	Inflation £
2002	66,643	33	2019	1,288	19.32	19.92
2003	68,936	36	1915	1,495	21.69	22.26
2004	71,399	40.5	1763	1,685	23.60	24.35
2005	73,995	41	1805	1,835	24.80	25.39
2006	74,688	43	1737	1,771	23.71	24.85
2007	78,511	41	1915	2,032	25.87	26.84
2008	82,716	41	2017	2,062	24.94	24.84
2009	86,612	46	1887	2,353	27.10	28.31
2010	88,568	50	1771	2,659	30.02	31.62
2011	90,667	50	1813	1,950	21.51*	21.51*

* In accordance with IAS19, Admin Expenses include a negative Past Service Cost of £868,000 arising from the change from RPI to CPI in uprating index-linked features of post employment benefits.The Cost per member excluding the negative Past Service Cost of £868,000 is £31.08.