The report of the Director, West Yorkshire Pension Fund, (Document “E”) presents the WYPF unaudited Report and Accounts for the financial year 2017/18.   

The unaudited Report and Accounts provide a summary of West Yorkshire Pension Fund’s financial position for the year ended 31 March 2018. The accounts have been prepared in accordance with:

·         CIPFA Code of Practice on Local Authority Accounting in the United Kingdom 2017/18.

·         CIPFA Guidance on Accounting for Local Government Pension Scheme Management Costs.

·         Pensions Statement of Recommended Practice 2007.

·         International Financial Reporting Standards (IFRS), as amended for the UK public sector.

Recommended –

1.    That the unaudited WYPF Report and Accounts for the financial year ended 31 March 2018 be noted.

2.    That the planned transfer of custody to Northern Pool, as outlined in Document “E” be noted.

3.    That the planned extension and review of banking services for West Yorkshire Pension Fund, at outlined in Document “E” be noted.

(Ola Ajala – 01274 434534)

Resolved –

1.    That the unaudited WYPF Report and Accounts for the financial year ended 31 March 2018 be noted.

2.    That the planned transfer of custody to Northern Pool, as outlined in Document “E” be noted.

3.    That the planned extension and review of banking services for West Yorkshire Pension Fund, at outlined in Document “E” be noted.

ACTION: Director, West Yorkshire Pension Fund

(Ola Ajala – 01274 434534)

The report of the Director, West Yorkshire Pension Fund, (Document “E”) presented the WYPF unaudited Report and Accounts for the financial year 2017/18.  

The unaudited Report and Accounts provided a summary of West Yorkshire Pension Fund’s financial position for the year ended 31 March 2018. The accounts had been prepared in accordance with:

·         CIPFA Code of Practice on Local Authority Accounting in the United Kingdom 2017/18.

·         CIPFA Guidance on Accounting for Local Government Pension Scheme Management Costs.

·         Pensions Statement of Recommended Practice 2007.

·         International Financial Reporting Standards (IFRS), as amended for the UK public sector.

It was reported that the value of the Fund as at 31 March 2018 was £13,566.6m, a net decrease of £65.7m, 0.5%, compared to the asset value at 31 March 2017 of £13,632.3m. The reduction in value was mainly due to a large scale bulk transfer in October 2017 of assets estimated at £450m to Greater Manchester Pension Fund (GMPF) for First Group West Yorkshire. There was a corresponding transfer of liabilities (which did not appear on the balance sheet) estimated at £482m, the net impact was an improved funding position for WYPF.

The actuarial valuation at 31 March 2016 had determined that the funding level was 94% and was one of the highest funding levels within LGPS in the last valuation. Following the large transfer of assets and liabilities to GMPF, an updated funding report at 31 March 2018 was requested from Aon plc, which indicated that the fund was now 107% funded. The improvement was principally due to the strong financial markets since the 2016 valuation. As this was merely an updated funding level it would not provide any cash flow benefit to employers.  If the markets remained steady to 31 March 2019 it should result in employers’ contributions continuing at current levels, however investment markets may rise or fall. 

Members were advised that the accounts were subject to audit but would be presented to the Governance and Audit Committee on Monday 30 July 2018.

Resolved –

1.    That the unaudited WYPF Report and Accounts for the financial year ended 31 March 2018 be noted.

2.    That the planned transfer of custody to Northern Trust, as outlined in Document “E” be noted.

3.    That the planned extension and review of banking services for West Yorkshire Pension Fund, as outlined in Document “E” be noted.

ACTION: Director, West Yorkshire Pension Fund