Agenda, decisions and minutes

West Yorkshire Pension Fund Pension Board
Tuesday, 24th March, 2020 10.00 am

Contact: Jane Lythgow 

Items
No. Item

34.

DISCLOSURES OF INTEREST

(Members Code of Conduct - Part 4A of the Constitution)

 

To receive disclosures of interests from members and co-opted members on matters to be considered at the meeting. The disclosure must include the nature of the interest.

 

An interest must also be disclosed in the meeting when it becomes apparent to the member during the meeting.

 

Notes:

 

(1)       Members may remain in the meeting and take part fully in discussion and voting unless the interest is a disclosable pecuniary interest or an interest which the Member feels would call into question their compliance with the wider principles set out in the Code of Conduct.  Disclosable pecuniary interests relate to the Member concerned or their spouse/partner.

 

(2)       Members in arrears of Council Tax by more than two months must not vote in decisions on, or which might affect, budget calculations, and must disclose at the meeting that this restriction applies to them.  A failure to comply with these requirements is a criminal offence under section 106 of the Local Government Finance Act 1992. 

 

(3)       Members are also welcome to disclose interests which are not disclosable pecuniary interests but which they consider should be made in the interest of clarity.

 

(4)       Officers must disclose interests in accordance with Council Standing Order 44.

 

Minutes:

All those present who were members or beneficiaries of the West Yorkshire Pension Fund disclosed, in the interests of transparency, an interest in all relevant business under consideration.

 

Action: City Solicitor

 

35.

MINUTES

Recommended –

 

That the minutes of the meeting held on 17 December 2019 be signed as a correct record (previously circulated).

 

(Jane Lythgow – 01274 432270)

Minutes:

Resolved –

 

That the minutes of the meeting held on 17 December 2019 be signed as a correct record.

 

36.

INSPECTION OF REPORTS AND BACKGROUND PAPERS

(Access to Information Procedure Rules – Part 3B of the Constitution)

 

Reports and background papers for agenda items may be inspected by contacting the person shown after each agenda item.  Certain reports and background papers may be restricted. 

 

Any request to remove the restriction on a report or background paper should be made to the relevant Strategic Director or Assistant Director whose name is shown on the front page of the report. 

 

If that request is refused, there is a right of appeal to this meeting. 

 

Please contact the officer shown below in advance of the meeting if you wish to appeal. 

 

(Jane Lythgow - 01274 432270)

 

Minutes:

There were no appeals submitted by the public to review decisions to restrict documents.

 

37.

MINUTES OF THE WEST YORKSHIRE PENSION FUND JOINT ADVISORY GROUP (JAG) 30 JANUARY 2020 pdf icon PDF 71 KB

The report of the Director, West Yorkshire Pension Fund, (Document “X”) reminds Members that the role of The Pension Board, as defined by sections 5(1) and (2) of the Public Service Pensions Act 2013 is to assist the Council as Scheme Manager in ensuring the effective and efficient governance and administration of the Local Government Pension Scheme (LGPS) including securing compliance with the LGPS regulations and any other legislation relating to the governance and administration of the LGPS; securing compliance with the requirements imposed in relation to the LGPS by the Pensions Regulator; and any other such matters as the LGPS regulations may specify. 

 

The Minutes of meeting of WYPF Joint Advisory Group are submitted to the Pension Board to enable the Board to ensure effective and efficient governance and administration of the LGPS.

 

Recommended –

 

Members are requested to review the minutes of the WYPF JAG meeting held on 30 January 2020.

 

(Rodney Barton - 1274 432317)

 

Additional documents:

Minutes:

The report of the Director, West Yorkshire Pension Fund, (Document “X”) reminded Members that the role of The Pension Board, as defined by sections 5(1) and (2) of the Public Service Pensions Act 2013 was to assist the Council as Scheme Manager in ensuring the effective and efficient governance and administration of the Local Government Pension Scheme (LGPS) including securing compliance with the LGPS regulations and any other legislation relating to the governance and administration of the LGPS; securing compliance with the requirements imposed in relation to the LGPS by the Pensions Regulator; and any other such matters as the LGPS regulations may specify. 

 

The Minutes of meeting of WYPF Joint Advisory Group were submitted to the Pension Board to enable the Board to ensure effective and efficient governance and administration of the LGPS.

 

It was acknowledged that Members were to be updated on budget issues, contained in the minutes, during the presentation on the Funding Strategy Statement later in the meeting.  It was agreed that the Director, West Yorkshire Pension Fund, would respond in detail during discussions on that item.

 

 Resolved –

 

That the minutes of the WYPF JAG meeting held on 30 January 2020 be noted.

 

ACTION: Director, West Yorkshire Pension Fund

 

38.

2019 ACTUARIAL VALUATION AND CONSULTATION ON THE FUNDING STRATEGY STATEMENT pdf icon PDF 100 KB

The report of the Director, West Yorkshire Pension Fund (Document “Y”) explains that the next triennial actuarial valuation of the Fund is being prepared based on the situation at 31 March 2019, and will determine the level of employers’ contributions from 1 April 2020 to 31 March 2023.

 

The indications are that WYPF will be 106% funded compared to the situation at 31 March 2016 when it was 94% funded.  As a result each of the five district councils will see a slight reduction in their employer contributions..

 

Recommended –

 

That the report be noted.

 

                                   (Caroline Blackburn – 01274 432317)

 

Minutes:

The report of the Director, West Yorkshire Pension Fund (Document “Y”) explained that the next triennial actuarial valuation of the Fund was being prepared based on the situation at 31 March 2019, and would determine the level of employers’ contributions from 1 April 2020 to 31 March 2023.

 

It was confirmed that that at 31 March 2020 WYPF was 106% funded compared to the situation at 31 March 2016 when it was 94% funded.  As a result, each of the five district councils saw a very slight reduction in their employer contributions rate which had been welcomed.

 

The report detailed that a consultation had been undertaken on the Funding Strategy Statement (FSS) according to the regulations and the main changes to the FSS at that time were to bring into the statement the assumptions that had been used at the valuation.   All stakeholders had been consulted on the FSS and no changes had been made.  The FSS had been taken to the Joint Advisory Group in January 2020 where it was approved.

 

Resolved –

 

That the report be noted.

 

ACTION: Director, West Yorkshire Pension Fund

 

39.

PENSIONS ADMINISTRATION STRATEGY 2020/21 pdf icon PDF 67 KB

The report of the Director, West Yorkshire Pension Fund, (Document “Z”) explains that, as part compliance with the LGPS Regulations 2013, WYPF prepare a written statement of the authority’s policies in relation to such matters as it considers appropriate in relation to the levels of performance which the employers and WYPF are expected to achieve.

 

The Pension Administration Strategy is reviewed each year particularly if there are any new regulations and revisions to working practices. 

 

The Pensions Administration Strategy is appended to Document “Z”.

 

Recommended –

 

That the report be noted.

 

                                                              (Yunus Gajra – 01274 434343)

 

Additional documents:

Minutes:

The report of the Director, West Yorkshire Pension Fund, (Document “Z”) explained that, as part compliance with the LGPS Regulations 2013, WYPF prepare a written statement of the authority’s policies in relation to such matters as it considers appropriate in relation to the levels of performance which the employers and WYPF are expected to achieve.

 

In accordance with LGPS regulations the Pension Administration Strategy was reviewed each year, and particularly if there were any new regulations and revisions to working practices.  It outlined processes and procedures that the fund worked towards and highlighted the employers’ responsibilities and obligations and also those of administering authorities.  The strategy related to all three LGPS funds and included the London Borough of Hounslow. 

 

The Pensions Administration Strategy was appended to Document “Z”.

 

Resolved –

 

That the report be noted.

 

ACTION: Director, West Yorkshire Pension Fund

 

40.

COMMUNICATIONS POLICY 2020/21 pdf icon PDF 67 KB

The Director, West Yorkshire Pension Fund, will present Document “AA” which reports that as part compliance with the LGPS Regulations 2013 WYPF prepare, maintain and publish a written statement setting out its policy concerning communications with:-

 

a)    Members

b)    Representatives of Members

c)    Prospective Members

d)    Scheme Employers

 

WYPF’s Communication Policy is updated each year to reflect the engagement planned with the various stakeholders and the forma of that engagement. 

 

The Communications Policy is appended to Document ”AA”.

 

Recommended –

 

That the Pension Communication Policy, appended to Document “AA” be noted.

 

(Yunus Gajra – 01274 434343)

Additional documents:

Minutes:

The Director, West Yorkshire Pension Fund, presented Document “AA” which reported that as part compliance with the LGPS Regulations 2013 WYPF prepare, maintain and publish a written statement setting out its policy concerning communications with:-

 

a)    Members

b)    Representatives of Members

c)    Prospective Members

d)    Scheme Employers

 

WYPF’s Communication Policy was updated each year to reflect the engagement planned with the various stakeholders and the form of that engagement.  It was explained that the policy would need to be reviewed again in light of the COVID-19 situation and the need to consider how services would be delivered. 

 

The report revealed that a key element of the strategy was employee training and it was explained that, due to the current social distancing requirements, alternative methods to face to face training were being developed and would be factored into the strategy.  It was reported that the Member Portal would be one of the main communication channels with members and that the current year would be the last year that Annual Benefit Statements would be issued in paper format.  In future those statements and newsletters would be provided via the Member Portal.

 

Members were advised that the Contact Centre was currently closed to personal visitors and all members were encouraged to raise enquiries by telephone.

 

The Communications Policy was appended to Document ”AA”.

 

Resolved –

 

That the Pension Communication Policy, appended to Document “AA”,  report be noted.

 

ACTION: Director, West Yorkshire Pension Fund

 

41.

REGISTER OF BREACHES OF LAW pdf icon PDF 83 KB

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

(Document “AB”) which informs Members that, in accordance with the

Public Service Pensions Act 2013, from April 2015 all Public Service

Pension Schemes  come under the remit of the Pensions Regulator.

 

Section 70 of the Pensions Act 2004 (the Act) imposes a requirement to report a matter to the Pensions Regulator as soon as it is reasonably

practicable where that person has reason to believe that:

 

(a)  A legal duty relating to the administration of the scheme has not been or is not being complied with, and

(b)  The failure to comply is likely to be of material significance to The Pensions Regulator in the exercise of any of its functions.

 

A register of any Breaches of Law is, therefore, maintained in accordance with the Pensions Regulators requirements and WYPF Breaches Procedure. 

 

Recommended –

 

That the entries on the Register of Breaches of Law be noted. 

 

(Caroline Blackburn – 01274 434523)

 

Additional documents:

Minutes:

The Director, West Yorkshire Pension Fund, presented a report

(Document “AB”) which informed Members that, in accordance with the

Public Service Pensions Act 2013, from April 2015 all Public Service

Pension Schemes come under the remit of the Pensions Regulator.

 

Section 70 of the Pensions Act 2004 (the Act) imposed a requirement to report a matter to the Pensions Regulator as soon as it was reasonably

practicable where that person had reason to believe that:

 

(a)  A legal duty relating to the administration of the scheme has not been or is not being complied with, and

(b)  The failure to comply is likely to be of material significance to The Pensions Regulator in the exercise of any of its functions.

 

A register of any Breaches of Law was, therefore, maintained in accordance with the Pensions Regulators’ requirements and WYPF Breaches Procedure. It was acknowledged that the register was being discussed at the meeting to be held at the conclusion of the current meeting and it was agreed that the updated version could be considered in more detail at that time. 

 

Resolved –

 

That the entries on the Register of Breaches of Law be noted.

 

ACTION: Director, West Yorkshire Pension Fund

 

42.

WYPF DATA IMPROVEMENT PLAN pdf icon PDF 88 KB

The report of the Director, West Yorkshire Pension Fund (WYPF),

Document AC”,  informs members that The Pension Regulator’s (TPR) Code of Practice 14 and The Public Service Pensions (Record Keeping & Miscellaneous Amendments) Regulations 2014 set out the requirements for public sector pension funds to maintain comprehensive and accurate data on their members and their members’ pension contributions.

 

Recommended –

 

That the report be noted.

 

(Caroline Blackburn – 01274 434523)

 

Additional documents:

Minutes:

The report of the Director, West Yorkshire Pension Fund (WYPF),

Document AC”, informed members that The Pension Regulator’s (TPR) Code of Practice 14 and The Public Service Pensions (Record Keeping & Miscellaneous Amendments) Regulations 2014 set out the requirements for public sector pension funds to maintain comprehensive and accurate data on their members and their members’ pension contributions.

 

The report revealed the data scores at November 2019 and plans to improve that data and to prioritise and challenge. It was explained that the data was reviewed on a quarterly basis and it was aimed to demonstrate that improvements were being made.

 

Resolved –

 

That the report be noted.

 

ACTION: Director, West Yorkshire Pension Fund

 

43.

WEST YORKSHIRE PENSION FUND RISK REGISTER pdf icon PDF 75 KB

The report of the Director, West Yorkshire Pension Fund (Document “AD”) informs members that West Yorkshire Pension Fund  maintains a Risk Register which contains 44 risks that have been identified and framed into scenarios. The risks have been rated and 21 of these are above their acceptable tolerance level and 23 are below the tolerance line. 

 

A presentation on five risks from the  21 above their tolerance level identified in Document “AD” will be provided so that members can ensure that adequate Management Action Plans are in place to monitor those risks.

 

Recommended –

 

That the five risks and action plans to manage and mitigate those risks contained in Document “AD” be noted.

 

(Yunus Gajra – 01274 432343)

Additional documents:

Minutes:

The report of the Director, West Yorkshire Pension Fund (Document “AD”) informed members that West Yorkshire Pension Fund maintained a Risk Register which contained 44 risks that had been identified and framed into scenarios. The risks had been rated and 21 of these were above their acceptable tolerance level and 23 were below the tolerance line. 

 

A presentation on five risks from the 21 above their tolerance level identified in Document “AD” was  provided so that members could ensure that adequate Management Action Plans were in place to monitor those risks.

 

Resolved –

 

That the five risks and action plans to manage and mitigate those risks, contained in Document “AD” be noted.

 

ACTION: Director, West Yorkshire Pension Fund

 

44.

WYPF PENSION BOARD WORK PLAN pdf icon PDF 71 KB

The report of the Director, West Yorkshire Pension Fund, (Document “AE”) reminds Members that the role of the Pension Board, as defined by sections 5(1) and (2) of the Public Service Pensions Act 2013 is to assist the Council as Scheme Manager in ensuring the effective and efficient governance and administration of the Local Government Pension Scheme (LGPS) including securing compliance with the LGPS regulations and any other legislation relating to the governance and administration of the LGPS; securing compliance with the requirements imposed in relation to the LGPS by the Pensions Regulator; and any other such matters as the LGPS regulations may specify.

 

A Work Plan of the regular reports presented to the Pension Board has been produced and is appended to Document “AE””.

 

Additional reports can be requested by the Pension Board in addition to the regular items.  Additional reports can be requested by Members of the Pension  Board at a preceding meeting or can be requested to be included on the agenda at the next meeting by contacting the Technical and Development Manager.

 

Recommended –

 

That the work plan of regular reports, appended to Document “AE”, be approved.

 

(Caroline Blackburn – 01274 434523)

Additional documents:

Minutes:

The report of the Director, West Yorkshire Pension Fund, (Document “AE”) reminded Members that the role of the Pension Board, as defined by sections 5(1) and (2) of the Public Service Pensions Act 2013 was to assist the Council as Scheme Manager in ensuring the effective and efficient governance and administration of the Local Government Pension Scheme (LGPS) including securing compliance with the LGPS regulations and any other legislation relating to the governance and administration of the LGPS; securing compliance with the requirements imposed in relation to the LGPS by the Pensions Regulator; and any other such matters as the LGPS regulations may specify.

 

At item that had been raised by Members at the meeting was a request for clarity over what agenda items at each meeting would be and how they could be aware of items which would be considered on a regular basis.  In response a Work Plan had been developed and was appended to Document “AE””.

 

Members were reminded that additional reports could be requested by Members of the Pension Board in addition to the regular items.  Those reports could be requested by Members of the Pension  Board at a preceding meeting or could be requested to be included on the agenda at the next meeting by contacting the Technical and Development Manager.

 

Resolved –

 

That the work plan of regular reports appended to Document “AE” be approved.

 

ACTION: Director, West Yorkshire Pension Fund

 

45.

TRAINING, CONFERENCES AND SEMINARS pdf icon PDF 75 KB

Members are reminded that training to understand their responsibilities and the issues they will be dealing with is a very high priority.

 

The report of the Director, West Yorkshire Pension Fund, (Document “AF”) informs Members of training courses, conferences and seminars which may be of assistance. 

 

Recommended -

 

That consideration is given by Board Members at the events in Section 1 of Document “AF” and Members note the requirement to complete the Pension Regulators toolkit training.

 

(Caroline Blackburn – 01274 434523)

Minutes:

Members were reminded that training to understand their responsibilities and the issues they will be dealing with was a very high priority.

 

The report of the Director, West Yorkshire Pension Fund, (Document “AF”) informed Members of training courses, conferences and seminars which may be of assistance. 

 

It was acknowledged that due to the current COVID-19 pandemic training was being delivered very differently and as the report had been prepared on the situation in March 2020 the conferences; training and seminars may no longer be available.  

 

No resolution was passed on this item.

 

46.

EXCLUSION OF THE PUBLIC

 Members are asked to consider if the item relating to the West Yorkshire Pension Fund Investment Advisory Panel (NOT FOR PUBLICATION Document  AG”) should be considered in the absence of the public and, if so, to approve the following recommendation:-

 

Recommended –

 

That the public be excluded from the meeting during consideration of the item relating to minutes of the West Yorkshire Pension Fund Investment Advisory Panel meetings held on 7 November 2019 and 30 January 2020 because information would be disclosed which is considered to be exempt information within paragraph 3 (Financial or Business Affairs) of Schedule 12A of the Local Government Act 1972 (as amended).

 

It is considered that, in all the circumstances, the public interest in maintaining this exemption outweighs the public interest in disclosing this information as it is in the overriding interest of proper administration that Members are made aware of the financial implications of any decision without prejudicing the financial position of the West Yorkshire Pension Fund.

 

Minutes:

Resolved –

 

That the public be excluded from the meeting during consideration of the item relating to minutes of the West Yorkshire Pension Fund Investment Advisory Panel meetings held on 7 November 2019 and 30 January 2020 because information would be disclosed which is considered to be exempt information within paragraph 3 (Financial or Business Affairs) of Schedule 12A of the Local Government Act 1972 (as amended).

 

It is considered that, in all the circumstances, the public interest in maintaining this exemption outweighs the public interest in disclosing this information as it is in the overriding interest of proper administration that Members are made aware of the financial implications of any decision without prejudicing the financial position of the West Yorkshire Pension Fund.

 

47.

MINUTES OF THE WEST YORKSHIRE PENSION FUND INVESTMENT ADVISORY PANEL 7 NOVEMBER 2019 AND 30 JANUARY 2020

The report of the Director, West Yorkshire Pension Fund, (NOT FOR PUBLICATION Document “AG” reminds Members that the role of the Pension Board, as defined by sections 5(1) and (2) of the Public Service Pensions Act 2013 is to assist the Council as Scheme Manager in ensuring the effective and efficient governance and administration of the Local Government Pension Scheme (LGPS) including securing compliance with the LGPS regulations and any other legislation relating to the governance and administration of the LGPS; securing compliance with the requirements imposed in relation to the LGPS by the Pensions Regulator; and any other such matters as the LGPS regulations may specify.

 

The minutes of the meeting of WYPF Investment Advisory Panel are submitted to the Pension Board to enable the Board to ensure effective and efficient governance and administration of the LGPS.

 

Members are requested to review the Not for Publication minutes of the Investment Advisory Panels held on 7 November 2019 and 30 January 2020 appended to NOT FOR PUBLICATION Document “AG”.

 

(Rodney Barton – 01274 432317)

Minutes:

Resolved –

 

That the Not for Publication minutes of the Investment Advisory Panel on 7 November 2019 and 30 January 2020 contained in Not for Publication Document “AG” be noted.

 

ACTION: Director, West Yorkshire Pension Fund

48.

EXCLUSION OF THE PUBLIC

Members are asked to consider if the item relating to Cyber Security  (NOT FOR PUBLICATION Document “AH”) should be considered in the absence of the public and, if so, to approve the following recommendation:-

 

Recommended –

 

That the public be excluded from the meeting during consideration of the item relating to Cyber Security because information would be disclosed which is considered to be exempt information within paragraph 3 (Financial or Business Affairs) of Schedule 12A of the Local Government Act 1972 (as amended).

 

It is considered that, in all the circumstances, the public interest in maintaining this exemption outweighs the public interest in disclosing this information as it is in the overriding interest of proper administration that Members are made aware of the business implications of any decision without prejudicing the business position of the West Yorkshire Pension Fund.

 

 

Minutes:

Resolved –

 

That the public be excluded from the meeting during consideration of the item relating to Cyber Security because information would be disclosed which is considered to be exempt information within paragraph 3 (Financial or Business Affairs) of Schedule 12A of the Local Government Act 1972 (as amended).

 

It is considered that, in all the circumstances, the public interest in maintaining this exemption outweighs the public interest in disclosing this information as it is in the overriding interest of proper administration that Members are made aware of the business implications of any decision without prejudicing the business position of the West Yorkshire Pension Fund.

 

49.

CYBER SECURITY

The report of the Director, West Yorkshire Pension Fund, (NOT FOR PUBLICATION Document “AH”) informs Members of the impact of cyber attacks on organisations that store financial information and personal identifiable information about individuals as is the case for WYPF. 

 

The report identifies the impact of cyber attacks on Bradford systems and actions undertaken to support essential services.

 

Recommended –

 

That the report be noted.

 

(Yunus Gajra – 01274 432343)

Minutes:

Resolved –

 

That Not for Publication Document “AH” be noted.

 

ACTION: Director, West Yorkshire Pension Fund