To appoint a Chair for the Municipal Year 2024/2025.

Resolved –

That Councillor Thornton be appointed Chair of the West Yorkshire Pension Fund Joint Advisory Group for the municipal year 2024/2025.

To be actioned by: Interim Director of Legal and Governance

To appoint a Deputy Chair for the Municipal Year 2024/2025.

(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 must consider their interests, and act according to the following:

(2)      Disclosable pecuniary interests relate to the Member concerned or their spouse/partner.

(3)      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. 

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

Order 44.

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.

In the interest of transparency, David Pickersgill declared that he was a representative to the YPO Procurement Holdings Ltd on behalf of Wakefield Council.

Those interests were not prejudicial, and Members stayed in the meeting during consideration and voting on all items.

Recommended –

That the minutes of the meeting held on 25 January 2024, adjourned and reconvened on 25 April 2024, be signed as a correct record (previously circulated).

(Jane Lythgow/Su Booth – 01274 432270/07814 073884)

Resolved –

That the minutes of the meeting held on 25 January 2024 be signed as a correct record.

(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/Su Booth – 01274 432270/07814 073884)

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

The report of the Managing Director, West Yorkshire Pension Fund

(Document “A”) advises Members that there is a growing need for LGPS funds to demonstrate that members have an adequate level of knowledge to carry out their roles effectively.

A training presentation will be provided which gives Members an overview of the options offered by West Yorkshire Pension Fund and the administrative complexities which can arise in respect of members who have made AVCs. Slides from the presentation will be distributed post meeting.

Recommended –

That the report be noted.

(Matt Mott - 07815 476877)

The report of the Managing Director, West Yorkshire Pension Fund (Document “A”) advised Members that there was a growing need for Local Government Pension Scheme (LGPS) funds to demonstrate that members had an adequate level of knowledge to carry out their role effectively.

A training power point presentation was provided which gave Members an overview of the options offered by West Yorkshire Pension Fund and the administrative complexities which could arise in respect of members who had made Additional Voluntary Contributions (AVCs) and Additional Pension Contributions (APCs). 

It was reported that under Regulations 16 and 17 of the LGPS Regulations 2013 there is a requirement for administering authorities to give members the option to pay Additional Contributions to obtain additional benefits on retirement/death.

AVCs allowed members to pay more to build up extra savings for retirement and Members pay money into a separate AVC plan in addition to the main LGPS scheme. AVC contributions were taken directly from pay before tax to the AVC provider. The member chose how the money in their AVC plan was invested (with a default option if no was choice made).

Value of the AVC pot could go up and down so members may not get back more than they put in. AVCs became payable when the member took their main LGPS benefits and any new WYPF AVC contracts were offered through Prudential and Scottish Widows.

The trainer provided details on how much members could pay up to and their options at retirement. If a member died before taking the AVC it would be paid as a lump sum to the beneficiaries. The AVC provider would make payment to WYPF, and WYPF would make payments in accordance with scheme rules.

Death on pension, the benefits payable would depend on how the AVC had been paid. On retirement, AVC life cover contributions cease, therefore, the additional cover would cease, AVC life cover was payable on death in service only.

A member queried about the process after an individual left employment, in response the trainer advised, if a person left within two years of employment, their contributions were returned to them with no tax relief on any lump sums.

Resolved –

That the report be noted.

The Managing Director, West Yorkshire Pension Fund, will present a report  (Document “B”) which informs Members that since April 2015 West Yorkshire Pension Fund has hosted shared service pensions administration arrangements for a number of LGPS Funds and Fire Pension Authorities. Document “B” summarises the operation and governance of the shared service arrangements.

Recommended –

That the report be noted and the Managing Director, West Yorkshire Pension Fund, be requested to continue to work closely with all shared service partners to provide an efficient and effective service to all stakeholders within the Fund.

(Euan Miller - 01274) 43 2317)

The Managing Director, West Yorkshire Pension Fund, presented a report (Document “B”) which informed Members that since April 2015 WYPF had hosted shared service pensions administration arrangements for a number of LGPS Funds and Fire Pensions Authorities. The report summarised the operation and governance of the shared service arrangement.

A member questioned if there was a case for a more focussed cost, in response it was reported that it would be difficult to analyse different costs per head as the Fire Scheme was more complicated than the Local Government Pension Scheme, however, factual evidence of each member/employer cost made the simplicity of the charge easier to understand.

Resolved –

That the report (Document “B”) be noted and the Managing Director, West Yorkshire Pension Fund, be requested to continue to work closely with all shared service partners to provide an efficient and effective service to all stakeholders within the Fund.

To be actioned by: Managing Director, West Yorkshire Pension Fund

The report of the Managing Director, West Yorkshire Pension Fund (WYPF), Document “C”, gives an update on WYPF pensions administration activities for the period 1 January 2024 to 30 June 2024.

Recommended –

That the report be noted.

(Yunus Gajra – 01274 432343)

The report of the Managing Director, West Yorkshire Pension Fund (WYPF) (Document “C”) provided an update on WYPF pensions administration activities for the period 1 January 2024 to 30 June 2024.

It was reported that as well as providing pensions administration for WYPF scheme members, WYPF provided a full administration service to Lincolnshire Pension Fund, the London Borough of Hounslow, the London Borough of Barnet and to 23 Fire Authorities. This included pensioner payroll (except for the London Borough of Hounslow), all member and scheme level events, reporting to statutory bodies, provision of data to external bodies such as actuaries and local authorities for the production of the scheme accounts.

It was further reported that all training had moved to online and had been working well since the pandemic. With regards to recruitment, various appointments had been made but the service would continue to make further recruitments. Extensive engagement had been carried out with members to identify issues with the website and most issues reported will be addressed when the website was redeveloped.

A member queried what process was in place to address absences at work particularly mental health related, in response to this it was reported that some cases were unrelated to work but HR would engage with managers and employee health and wellbeing to address mental health absences.

Resolved –

That the report (Document C”) be noted.

The report of the Managing Director West Yorkshire Pension Fund

(Document “D”) presents the West Yorkshire Pension Fund (WYPF) 2023/24 financial outturn, financial and service performance and the draft 2023/24 annual report and accounts (WYPF accounts).

1.    Recommended –

2.    That the content of the 2023/24 annual report and account be noted and any improvements be suggested.

3.    That that Yorkshire Pension Fund total net expenditure actual spend of £14.42m for 2023/24 be noted.

4.    That the latest Government statistics “Sf3” showed WYPF total cost per member of £42.68 for 2022/23 as the lowest LGPS cost per member, and that this is also supported by strong service performance and quality.be noted.

(Ola Ajala - 01274 434 534)

The report of the Managing Director West Yorkshire Pension Fund (Document “D”) presented the WYPF 2023/24 financial outturn, financial and service performance and the draft WYPF 2023/24 annual report and accounts.

There were no questions raised by members.

Resolved –

1. That the content of the 2023/24 annual report and account be noted.

2. That that Yorkshire Pension Fund total net expenditure actual spend of £14.42m for 2023/24 be noted.

3. That the latest Government statistics “Sf3” showed WYPF total cost per member of £42.68 for 2022/23 as the lowest LGPS cost per member, and that this is also supported by strong service performance and quality be noted.

At the previous Joint Advisory Group meeting it was suggested that the Group would benefit from greater visibility of the work undertaken by the WYPF Local Pension Board.

In response to that request, attached as an appendix to Document “E” are the minutes of the Local Pension Board meeting which took place on 20 March 2024.

Members are invited to ask any questions they may have on the work undertaken by the WYPF Local Pension Board.

Recommended –

That the report be noted.

Matt Mott - 07815 476877

The report of the Managing Director West Yorkshire Pension Fund (Document “E”) provided Members with minutes of the West Yorkshire Pension Fund Local Pension Board meeting minutes which took place on 20 March 2024 to provide Members with a greater visibility of work undertaken by the WYPF Local Pension Board.

A member asked if there was an update on the Governance review, in response it was reported there had been delays on this due to various reasons. There was some duplication on the Pension Board and the Joint Advisory Group therefore it would help to have the same people on both boards.

Resolved –

That the report (Document “E) be noted.

The report of the Managing Director, West Yorkshire Pension Fund, (Document “F”) updates Members on changes to the Local Government Pension Scheme (LGPS) 2014 and provides information on associated matters.

Recommended –

That the report be noted.

(Tracy Weaver – 01274 433571)

The report of the Managing Director, West Yorkshire Pension Fund, (Document “F”) provided Members on changes to the Local Government Pension Scheme (LGPS) 2014 and provided information associated matters.

A member asked for an update on the Pensions dashboard, in response to this it was reported that the service was pleased with the progress. The framework for dashboards would remain unchanged, although DWP would legislate to provide new connection deadlines and further information on the revised timeline would be made available following an agreement on the delivery plan.

A member requested for an update on McCloud remedy, in response it was reported that significant amount of work was still required as all areas needed to be revisited, members were assured work was being carried out.

Resolved –

That the report (Document “F”) be noted.

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

(Document “G”) including Appendix A which provides a funding update as at 31 March 2024 provided by WYPF’s actuary.

Document “G” is provided for information purposes. The next triennial actuarial valuation will take place at 31 March 2025, where contributions rates will be set for the period from 1 April 2026 to 31 March 2029.

Members are encouraged to raise any questions they may have about the funding update.

Recommended –

That the report be noted.

(Caroline Blackburn - 01274 434523)

The Managing Director, West Yorkshire Pension Fund, presented a report (Document “G”) which provided a funding update as at 31 March 2024 provided by WYPF’s actuary.

Document “G” was provided for information purposes. The next triennial actuarial valuation would take place at 31 March 2025, where contribution rates would be set for the period 1 April 2026 to 31 March 2029.

No questions were raised by members.

Resolved –

That the report (Document “G”) be noted.

The report of the Managing Director, WYPF (Document “H”) will be presented to Members in accordance with the Public Service Pensions Act 2013, that from April 2015 all Public Service Pension Schemes come under the remit of The Pensions Regulator.

Section 70 of the Pensions Act 2004 imposes a requirement to report a matter to The Pensions Regulator, as soon as is reasonably practicable where that person has reasonable cause 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 maintained in accordance with West Yorkshire Pension Fund (WYPF) Breaches Procedure.

Recommended –

That the entries and action taken on the Register of Breaches be noted.

(Caroline Blackburn – 07790 343179)

Th report of the Managing Director, West Yorkshire Pension Fund, (Document “H”) was presented to Members in accordance with the Public Services Pensions Act 2013, that from April 2015 all Public Service Pension Schemes come under the remit of the Pensions Regulator.

No questions were raised by members.

Resolved–

That the entries and action taken on the Register of Breaches be noted.

City of Bradford Metropolitan District Council, as administering authority of the West Yorkshire Pension Fund (Fund) is required by the relevant Local Government Pension Scheme Regulations (LGPS) to appoint an Actuary to undertake certain actuarial calculations including the triennial valuation of the Fund.

The contract with the current Actuary is due to expire on the 31 October 2024. The report of the Managing Director, West Yorkshire Pension Fund (Document “I”) advises Members that the Fund has commenced a procurement exercise to appoint an actuarial provider using the National LGPS framework for a contract of nine years which will likely exceed £2million in total.

Recommended –

That the report be noted.

(Caroline Blackburn – 07790353179)

The report of the Managing Director, West Yorkshire Pension Fund (Document “I”) advises Members that the Fund has commenced a procurement exercise to appoint an actuarial provider using the National LGPS framework for a contract of nine years which will likely exceed £2million in total.

It was reported that the contract with the current Actuary, Aon was due to finish on 31 October 2024 and the new provider would be introduced at the next JAG (Joint Advisory Group) meeting.

A member queried about the decision-making process for appointing providers and suggested that the Joint Advisory Group should have an input in this. In response to this, it was reported that the suggestion would be considered.

Resolved –

That the report (Document “I”) be noted.

The report of the Managing Director, West Yorkshire Pension Fund (WYPF), Document “J”, presents the fund’s Risk Policy and Strategy. The purpose of the Policy and Strategy is to effectively mitigate risks which may otherwise impact on WYPF meeting its statutory responsibilities and strategic objectives. This is achieved by the development and maintenance of a comprehensive risk register. For each risk identified its likelihood of occurrence and materiality is considered and actions are identified in order to mitigate the risk.

The Risk Policy and Strategy is subject to regular review by the WYPF Investment Advisory Panel (IAP) and Joint Advisory Group (JAG).

Recommended –

That Members note and comment on the Risk Policy and Strategy and any of the risks set out in the Risk Register.

 (Yunus Gajra – 01274 432343)

The report of the Managing Director, West Yorkshire Pension Fund (WYPF), (Document “J”), presented the fund’s Risk Policy and Strategy. The purpose of the Policy and Strategy was to effectively mitigate risks which may otherwise impact on WYPF meeting its statutory responsibilities and strategic objectives. This was achieved by the development and maintenance of a comprehensive risk register. For each risk identified its likelihood of occurrence and materiality was considered and actions were identified in order to mitigate the risk.

A member was keen to understand elements used for the scoring system, in response to this, the presenting officer referred to page 11 of the report/page 567 of the agenda pack which provided a detailed description of the scoring system used.

A member asked what process was in place to mitigate risks to I.T and suggested that maybe a software that was less vulnerable to cyber-attacks should be used, in response to this the presenting officer referred to page 49 of the report/page 605 of the agenda pack which provided details of issues and actions carried out.

A member asked if an update on risk management could be provided at the next meeting.

Resolved -

That Members note and comment on the Risk Policy and Strategy and any of the risks set out in the Risk Register.

Members are reminded that there is a growing need for Local Government Pension Scheme funds to demonstrate that committee members have an adequate level of knowledge and understanding to carry out their roles effectively. With the introduction of a refreshed CIPFA Knowledge & Skills Framework, the Scheme Advisory Board’s Good Governance project (England and Wales) and increasing scrutiny from The Pensions Regulator (TPR), the expectation on funds and members in this are has never been greater.

The training and conferences listed in the report of the Managing Director, West Yorkshire Pension Fund, (Document “K”) are presented to assist Members in meeting the expected levels of knowledge and understanding.

Recommended –

1.    That it be recommended to Members that they undertake the TPR Toolkit online training and the Hymans Robertson online Learning Academy Training.

2.    That Members be  encouraged to attend external training events and conferences provided by PLSA, LGA, Actuaries, and other specialist organisations.

(Yunus Gajra – 01274 432343)

The training and conferences listed in the report of the Managing Director, West Yorkshire Pension Fund, (Document “K”) were presented to assist Members in meeting the expected levels of knowledge and understanding.

The presenting officer advised that there were a number of opportunities available to members, including online learning.

Members were expected to log onto the portal and complete the modules, which could be completed in bite size. Modules included:

·       Introduction to LGPS

·       Governance and Regulators

·       Administration and Management

·       Funding and Actuarial Matters

·       Investments

·       Current Issues

Members were expected to work through all modules as they had done with the existing learning plan.  Continued learning of both core and fund specific topics were expected from the Pension Regulator, Scheme Advisory Board, and other interested parties such as members and employers. It has always been the expectation that users would ‘redo’ the core learning plan at least annually or biennially. 

JAG members had been enrolled on the training and were expected to complete this in this financial year.  Progress would be monitored by Officers and reported at each future JAG meeting. Members were encouraged to pick up the training as soon as possible.

No questions were raised by members.

Resolved –

1. That Members undertake the TPR Toolkit online training and the Hymans Robertson online Learning Academy Training.

2. That Members be encouraged to attend external training events and conferences provided by PLSA, LGA, Actuaries, and other specialist organisations.