The report of the Director, West Yorkshire Pension Fund, will present a report, (Document “J”) which advises Members that the current Funding Strategy Statement and require updating for two reasons.

The first effects how the funding target (liabilities) is calculated for employers subject to what is referred to as the scheduled and subsumption body funding target.

The second effects how the liabilities will be calculated for employers exiting the West Yorkshire Pension Fund.

Recommended –

1.    That the proposed increase of the probability of funding success to 75%; the proposed 1% increase to be added to liabilities on exit to take into account the potential increase in liabilities for both McCloud and GMP equalisation and the resulting changes to the Funding Strategy Statement be noted.

2.    That the postponement of the employer consultation exercise, agreed in January 2019 in relation to updates to LSPG Regulation 64 pending the outcome of the national consultation and potential changes to the regulations, be noted.

(Caroline Blackburn – 01274 434523)

Resolved –

1.    That the proposed increase of the probability of funding success to 75%; the proposed 1% increase to be added to liabilities on exit to take into account the potential increase in liabilities for both McCloud and GMP equalisation and the resulting changes to the Funding Strategy Statement be approved.

2.    That the postponement of the employer consultation exercise, agreed in January 2019 in relation to updates to LGPS Regulation 64 pending the outcome of the national consultation and potential changes to the regulations, be noted.

ACTION:       Director, West Yorkshire Pension Fund

The report of the Director, West Yorkshire Pension Fund, presented a report, (Document “J”) which advised Members that the current Funding Strategy Statement required updating for two reasons.

The first effected how the funding target (liabilities) would be calculated for employers subject to what was referred to as the scheduled and subsumption body funding target. The funding target applied to all long-term employers such as the councils; police and fire; academies and any admission bodies whose liabilities would fall back to one of those bodies should the admission body cease to participate in the Fund.

The second effected how the liabilities would be calculated for employers exiting the West Yorkshire Pension Fund.

A Member queried the proposed changes to 5.5.1 regarding solvency targets in the Draft Funding Strategy Statement appended to Document “J”.   In response it was explained that clarification on that point would be obtained from the Fund’s Actuary and further details would be provided to members. Members were advised that a further consultation on the Funding Strategy would be undertaken later in the year once the Actuary had carried out the initial results of the actuarial valuation as at 31 March 2019 and the Joint Advisory Group had agreed its approach to setting employer contributions.  If, at that point, members required a change to 5.5.1 amendments could be made.

Resolved –

1.    That the proposed increase of the probability of funding success to 75%; the proposed 1% increase to be added to liabilities on exit to take into account the potential increase in liabilities for both McCloud and GMP equalisation and the resulting changes to the Funding Strategy Statement be approved.

2.    That the postponement of the employer consultation exercise, agreed in January 2019 in relation to updates to LGPS Regulation 64 pending the outcome of the national consultation and potential changes to the regulations, be noted.

ACTION:       Director, West Yorkshire Pension Fund