24 WEST YORKSHIRE PENSION FUND 2019/20 REVISED ESTIMATES AND 2020/21 ORIGINAL ESTIMATES 
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The Director, West Yorkshire Pension Fund, will present
Document “P” which reports 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 Document “P” will be charged to WYPF accounts. The budget proposals in Document “P” will deliver pension administration services to over 430,000 pension scheme members, made up of 293,000 WYPF and 126,000 shared service partner members. We support over 800 active employers. The same resource will be used to manage over £15bn WYPF investment assets.
The number of partners in our pension shared cost service continue to grow it has increased from 7 two years ago to 19 (WYPF, Lincolnshire, Hounslow LGPS and 16 fire services). More plan to join us in 2020/21. Our service strategy is to maintain our service quality and cost performance, not necessarily the lowest cost in all areas, but a balance of cost and performance, as the quality of service is important to both employers and individual members.
Recommended
1. That the projected outturn of £14.51m against budget of £14.61m be noted for 2019/20.
2. That a budget of £14.85m be approved for 2020/21.
3. That the total pension cost per member of £34.46 for 2018/19 (2017/18 £36.45) making WYPF the lowest cost LGPS scheme for 2018/19 be noted.
(Ola Ajala – 01274 434534)
Decision:
Resolved -
1. That the projected outturn of £14.51m against budget of £14.61m be noted for 2019/20.
2. That a budget of £14.85m be approved for 2020/21.
3. That the total pension cost per member of £34.46 for 2018/19 (2017/18 £36.45) making WYPF the lowest cost LGPS scheme for 2018/19 be noted.
ACTION: Director, West Yorkshire Pension Fund
Minutes:
The Director, West Yorkshire Pension Fund, presented Document “P” which reported 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.
Document “P” revealed that the cost of services reported would be charged to the pension fund in the shared service partnership. The budget proposals in Document “P” would deliver pension administration services to over 430,000 pension scheme members, made up of 293,000 WYPF and 126,000 shared service partner members. WYPF supported over 800 active employers and the same resource would be used to manage over £15bn WYPF investment assets.
It was explained that the number of partners in the pension shared cost service continued to grow and had increased from 7 two years ago to 19 (WYPF, Lincolnshire, Hounslow LGPS and 16 fire services). More planned to join in 2020/21. The service strategy was to maintain service quality and cost performance, not necessarily the lowest cost in all areas, but a balance of cost and performance, as the quality of service is important to both employers and individual members.
A Member questioned the inclusion of a contingency of £378,000 in a summary of the 2020/21 revenue account. He was advised that Pension Funds were facing increasing statutory demands from regulators. The contingency had been allocated to meet the potential demands from forthcoming regulations. Demand was difficult to judge and the contingency would be closely monitored and regularly assessed. In response to questions about approval for the contingency it was confirmed that tight control would be exercised over any expenditure to be met from the contingency and would be included in reports to the Joint Advisory Group.
Resolved –
1. That the projected outturn of £14.51m against budget of £14.61m be noted for 2019/20.
2. That a budget of £14.85m be approved for 2020/21.
3. That the total pension cost per member of £34.46 for 2018/19 (2017/18 £36.45) making WYPF the lowest cost LGPS scheme for 2018/19 be noted.
ACTION: Director, West Yorkshire Pension Fund
