The Director, West Yorkshire Pension Fund, will present a report

(Document “Q”) which presents the revised estimates 2018/2019 and the original estimates 2019/2020. 

Recommended –

1.    That the projected outturn of £12.96m against a revised estimate of £13.64m for 2018/2019 be noted.

2.    That the original estimate of £14.63m be approved for 2019/20.

3.    That the total pension cost per member of £36.45, making West Yorkshire Pension Fund the lowest cost LGPS scheme for 2017/2018, be noted.

(Ola Ajala – 01274 434534)

Resolved –

1.    That the projected outturn of £12.96m against a revised estimate of £13.64m for 2018/2019 be noted.

2.    That the original estimate of £14.63m be approved for 2019/20.

3.    That the total pension cost per member of £36.45, making West Yorkshire Pension Fund the lowest cost LGPS scheme for 2017/2018, be noted.

ACTION:       Director, West Yorkshire Pension Fund

The report of the Director, West Yorkshire Pension Fund,(Document “Q”) presented the revised estimates 2018/2019 and the original estimates 2019/2020.    The report provided the opportunity for Members to receive an updated projection against the budget approved in November 2018.

The report summary advised Members that, in accordance with Local Government Pension Scheme Regulations, costs of managing LGPS pension funds must be charged to pension fund accounts and not to local authorities’ general fund accounts. The cost of services reported in the report would be charged to WYPF accounts. The budget proposals in the report would deliver pension administration services to over 428,000 (402,000 for 2018/19) pension scheme members, made up of 302,000 WYPF and 126,000 shared service partner members. The WYPF supported over 800 active employers. The same resource would be used to manage over £14 billion WYPF investment assets. The number in the pension shared cost service had increased from 7 to 16 by October 2018, with more expected to join in 2019/20.

It was revealed that WYPF’s performance, using comparative data for local government pension schemes collected by DCLG, showed that for 2017/18 WYPF total cost of £36.45 was the lowest total cost within LGPS funds in England and Wales. Whilst the average cost for all funds had gone up from £186.75 to £205.25 between 2016/17 and 2017/18 to £205.25, the WYPF cost had gone down by £1.58 from £38.03 to £36.45.

Members questioned if an increase in costs was due to the pooling arrangements and it was explained that the three funds had agreed that the pools establishment would not substantially increase costs.  Expenditure was required to establish the pool structure but no significant increase in costs had occurred.  The expense of the set up of the GLIL and NPEP investment vehicles would be more than recovered through lower investment costs.

It was explained that the partners in the Northern Pool were working together to make savings, however, if the Pool was to operate as prescriptively as the Government were suggesting additional costs would be incurred.  It was agreed that Members would be informed should such measures be imposed.

Resolved –

1.    That the projected outturn of £12.96m against a revised estimate of £13.64m for 2018/2019 be noted.

2.    That the original estimate of £14.63m be approved for 2019/20.

3.    That the total pension cost per member of £36.45, making West Yorkshire Pension Fund the lowest cost LGPS scheme for 2017/2018, be noted.

ACTION:       Director, West Yorkshire Pension Fund