The report of the Director, West Yorkshire Pension Fund, (Document “E”) reminds 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.
It is confirmed, in Document “E” that the cost of services reported will be charged to WYPF accounts. The budgets in the report 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. The fund supports over 800 active employers. The same resource will be used to manage over £13bn WYPF investment assets.
Recommended –
1. That the total service budget of £14.85m approved for 2020/21 by the Joint Advisory in January 2020 be noted.
2. 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 total service budget of £14.85m approved for 2020/21 by the Joint Advisory Group in January 2020 be noted.
2. 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 report of the Director, West Yorkshire Pension Fund, (Document “E”) reminded 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.
It was confirmed that the cost of services reported would be charged to WYPF accounts. The budgets outlined in the report 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. The fund supported over 800 active employers. The same resource would be used to manage over £13bn WYPF investment assets.
It was reported that in order to maintain WYPF’s cost performance a number of cost savings activities, to manage cost down to £43 per member, had been considered. The outcome of that work was detailed in Document “E” and had resulted in the budget of £14.85m which was presented to the WYPF Joint Advisory Group. Savings activities had reduced printing costs and increased the use of digital technology to increase capacity, service efficiency and reduce costs.
The report revealed that the latest government data for 2018/19 showed WYPF as having the lowest total cost at £34.46. The 2nd lowest LGPS fund was Nottinghamshire at £65.91. The latest WYPF project cost per member of £41.40 would still be £24 below Nottinghamshire (39% cheaper than Nottinghamshire). Based on that analysis WYPF would likely retain the 1st spot in 2019/20 and 2020/21.
It was explained that key cost pressures included the need to revise investment strategies and the expansion of shared services to provide additional resources. Investments in digital services had been made to prepare for the future and had included enhanced technology to facilitate mobile and agile work practices. It was predicted that cost pressures would increase and confirmed that they would be reviewed shortly.
Resolved -
1. That the total service budget of £14.85m approved for 2020/21 by the Joint Advisory Group in January 2020 be noted.
2. 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
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