The report of the Director, West Yorkshire Pension Fund, (Document “D”) summarises the total costs of administering pensions and investments in 2017/2018.

Recommended –

That the West Yorkshire Pension Fund total cost for 2017/18 reported in Document D be noted.

(Ola Ajala – 01274 434534)

Resolved –

1.    That the West Yorkshire Pension Fund total cost for 2017/18 reported in Document D be noted.

2.    That the achievement of the Director, West Yorkshire Pension Fund, and officers, in achieving the favourable  cost per member be acknowledged and the appreciation of the WYPF JAG be relayed.

ACTION: Director, West Yorkshire Pension Fund

                                                                                          (Ola Ajala – 01274 434534)

The report of the Director, West Yorkshire Pension Fund, (Document “D”) summarised the total costs of administering pensions and investments in 2017/2018.

The report included analyses of WYPF total cost of operations for 2017/18 showing a variance between 2017/18 revised budget and costs.  A Member queried the variance between the outturn and estimates and it was also questioned if the overspend on ‘other running costs’ was expected to continue.

In response it was explained that in a normal valuation year an annual budget of £200k was set and that each third year that provision would be increased to £300k.  WYPF had, however, now moved to a more regular process of looking at data for valuation on a monthly basis.  This was to ensure that any action required could be taken in a timely manner and prevent costly commissioning of work further down the line.  The variance was, therefore, due to a compilation of the fund working with the actuary to look at the final costs and measures undertaken to reduce those costs.

Changes to the way that investment transaction charges were recorded had also affected the variance as investment costs such as stamp duty, previously recorded as capital expenses were now categorised as revenue.

A substantial reduction in oversight and governance in the costs per member 2017/18 were queried.  Members were advised that guidance had been received indicating that some costs were wrongly apportioned and should not be included in the oversight and governance category. The refinement of those costs had led to the reduction in that category.

Resolved –

1.    That the West Yorkshire Pension Fund total cost for 2017/18 reported in Document D be noted.

2.    That the achievement of the Director, West Yorkshire Pension Fund, and officers, in achieving the favourable cost per member be acknowledged and the appreciation of the WYPF JAG be relayed.

ACTION: Director, West Yorkshire Pension Fund