Agenda, decisions and minutes

West Yorkshire Pension Fund Pension Board
Tuesday, 8th October, 2019 10.00 am

Contact: Jane Lythgow 

Items
No. Item

9.

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

 

10.

MINUTES

Recommended –

 

That the minutes of the meeting held on 13 August 2019 be signed as a correct record (previously circulated).

 

(Jane Lythgow – 01274 432270)

Minutes:

Resolved –

 

That the minutes of the meeting held on 13 August 2019 be signed as a correct record.

 

11.

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.

 

12.

MINUTES OF THE WEST YORKSHIRE PENSION FUND JOINT ADVISORY GROUP (JAG) 25 JULY 2019 pdf icon PDF 56 KB

The report of the Director, West Yorkshire Pension Fund, (Document “F”) 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 25 July 2019.

 

(Rodney Barton - 1274 434523)

 

Additional documents:

Minutes:

The report of the Director, West Yorkshire Pension Fund, (Document “F”) 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.

 

The Director, West Yorkshire Pension Fund, reminded Members that there had been little progress on investment pooling as Government business had been dominated by the Brexit process.  It was confirmed, however, that the NLGPS continued to work well whilst making efficiencies and improving returns on unlisted investments.

 

Resolved –

 

That the minutes of the WYPF JAG meeting held on 25 July 2019 be  noted.

 

ACTION: Director, West Yorkshire Pension Fund

13.

WEST YORKSHIRE PENSION FUND AUDITED REPORT AND ACCOUNTS FOR 31 MARCH 2019 pdf icon PDF 130 KB

The report of the Director, West Yorkshire Pension Fund, (Document “G”) presents the WYPF audited Report and Accounts for the year ending 31 March 2019.   

 

The audited Report and Accounts provide a summary of West Yorkshire Pension Fund’s financial position. The accounts have been prepared in accordance with:

 

·         CIPFA Code of Practice on Local Authority Accounting in the United Kingdom 2018/19`.

·         CIPFA Guidance on Accounting for Local Government Pension Scheme Management Costs.

·         Pensions Statement of Recommended Practice 2007.

·         International Financial Reporting Standards (IFRS), as amended for the UK public sector.

 

Recommended –

 

That the audited report and accounts for 2018/19 be considered and noted.

 

(Ola Ajala – 01274 434534)

Additional documents:

Minutes:

The report of the Director, West Yorkshire Pension Fund, (Document “G”) presented the WYPF audited Report and Accounts for the year ending 31 March 2019.   

 

The audited Report and Accounts provided a summary of West Yorkshire Pension Fund’s financial position. The accounts had been prepared in accordance with:

 

·         CIPFA Code of Practice on Local Authority Accounting in the United Kingdom 2018/19`.

·         CIPFA Guidance on Accounting for Local Government Pension Scheme Management Costs.

·         Pensions Statement of Recommended Practice 2007.

·         International Financial Reporting Standards (IFRS), as amended for the UK public sector.

 

The report revealed a net increase of £796.41m (5.8%) from March 2018.  Asset values for the previous nine years were included in Document “G”.  A Member questioned if the value of assets might reduce in 2019/20 and he was advised that it was not possible to predict future markets on past performance.  The Director, WYPF, explained that the figures provided a snap shot at the end of the previous 9 years.  It was important to monitor the trend over that time; the value of assets was rising steadily and cash flow was positive. The employer contributions would be set based on the perception of future markets. 

 

A Member questioned how much additional contribution rates could be expected of employers and questioned if increases in contribution rates would be reasonable considering the current situation.  In response it was explained that following the 2016 valuation the fund was one of the most optimistic in its assumptions.. The Actuary had been concerned that the Government inspection might criticise that optimism but it had not.  The objective was to keep the funding level between 110 & 90% and keep contribution levels consistent.   When employer contributions were recalculated the aim would never to be above 110% or below 90% funded.  The calculations were CPI related and not as predictable as might be thought.  Future performance would be impacted by Brexit. 

 

The recovery of Academy debts was questioned and it was explained that invoices for one Academy group which had ceased were being sent to the Department for Education as they had underwritten all Academies.  Discussions were being held with the actuary and debts would be pursued through legal challenge if required.

 

The potential difficulties for lower paid members to purchase additional contributions were queried and Members were reassured that calculations did take account of the level of pay.  Members earning £20,000 would make a 5.8% contribution and those earning £30,000 would pay 6.5%, those on higher pay would pay as much as 12.5% for the same benefits. The option for all members to purchase Additional Voluntary Contributions (AVC) was discussed and the opportunity to pay 50/50 contributions was explained.

A Member who had been unable to attend the meeting had submitted written questions including concern about the rise in printing and postage costs and the following response was provided:-

 

·         An increase in printing and postage costs reflected in the management expenses forecast and outturn report was due to a large increase in partners.  ...  view the full minutes text for item 13.

14.

FIVE YEAR INTERNAL AUDIT PLAN FOR 2019/20 TO 2023/24 pdf icon PDF 113 KB

The report of the Director, West Yorkshire Pension Fund (Document “H”) presents the latest five year internal audit plan for West Yorkshire Pension Fund (WYPF). The plan is reviewed annually between WYPF finance team and CBMDC internal audit by carrying out a detailed assessment of WYPF business risks, pensions and investment regulatory compliance environments, and service developments.

 

Recommended –

 

That the report be noted.

 

(Ola Ajala – 01274 434534)

Minutes:

The report of the Director, West Yorkshire Pension Fund (Document “H”) presented the latest five year internal audit plan for West Yorkshire Pension Fund (WYPF). The plan was reviewed annually between WYPF finance team and CBMDC internal audit by carrying out a detailed assessment of WYPF business risks, pensions and investment regulatory compliance environments, and service developments.

 

The report revealed that during 2018/19 the fund had increased resources to allow Internal Audit to increase the number of staff working on service reviews which had translated into increased internal audit service quality and reviews for WYPF. There was now a monthly meeting with the Internal Audit Manager. To increase in depth service awareness and engagement with WYPF it was explained that the Internal audit Manager also attended Investment Advisory Panel, Joint Advisory Group and the Local Pension Board and was present at the meeting to talk on the report under consideration.

 

All internal audit recommendations in 2018/19 were delivered within agreed timescales. In addition to the five year plan a detailed resource plan for the financial year 2018/19 was also produced allowing CBMDC internal audit and WYPF service managers to deliver all internal audit reviews planned in the year. To conclude the audit each year the fund reviewed internal audit recommendations, which provided key governance information on risk management and control.

 

Key information provided in Document “H” included a five year internal audit plan 2019/20 – 2023/24 and the list of internal audits completed during 2018/19.

 

Members questioned the external audit procedure and queried how long the current provision had been in place. In response it was explained that Bradford Council was the scheme manager and that the fund must utilise their external audit provision.  Bradford Council did have processes to review and rotate auditors.  The external auditors, Mazars, had been appointed in 2013, a review had been carried out in 2017.  It had been decided that arrangements in place at that time be retained. Assurances were provided that partners from external auditors were rotated periodically. The first audit under the new arrangements was the 2018/19 accounts discussed at the meeting.  The audit partner was rotated in March 2019 for 2018/19 audit.  Members accepted that the fund was bound by the regulatory requirements of Bradford Council and it was agreed that information on those obligations be reported at the next meeting.

 

Members acknowledged that it was not the role of external auditors to look for incidents of fraud and questioned if there was an overarching programme for that purpose.  The Director provided assurances that external auditors would be criticised for failing to spot any issues of material fraud and that this was also an important element of the internal audit role. 

 

It was agreed that the management reports from internal audit could be circulated to Members for information and be discussed at subsequent meetings.  

 

Audit arrangements for the NLGPS were questioned and the Internal Audit Manager reported that collaborative arrangements were being discussed.  The Director WYPF explained that GLIL and NPEP,  ...  view the full minutes text for item 14.

15.

WEST YORKSHIRE PENSION FUND PENSIONS ADMINISTRATION REPORT pdf icon PDF 159 KB

The report of the Director, West Yorkshire Pension Fund, (Document “I”) provides an update on West Yorkshire Pension Fund’s pensions administration activities.

 

Recommended –

 

That the report be noted.

 

(Yunus Gajra – 01274 432343

Additional documents:

Minutes:

The report of the Director, West Yorkshire Pension Fund, (Document “I”) provided an update on West Yorkshire Pension Fund’s pensions administration activities.

 

Document I revealed performance against key areas of work for the period 1 April 2019 to 31 August 2019 and that performance had been met or exceeded in the majority of areas.  It was explained that the target for pension estimates had been affected by the high level of requests.  As requests for estimates were made well in advance of retirement more immediate demands had been the focus of attention. 

 

The difficulty caused by members not advising the fund of changes to their personal details continued to be a challenge particularly for deferred members.  It was hoped that the introduction of the “My Pension” portal would help members to keep their details updated.

 

The total volume of work in progress, categorised into work groups, was revealed in the report and it was explained that work volumes did fluctuate.. 

Some of the larger volumes of work covered:

 

·         Current Members – changes to member records, changes to AVC’s, queries from monthly postings

·         Early Leavers – calculation of refunds, calculation of deferred benefits, contribution postings queries

·         Linkings – multiple employments where members could link those employments

·         Retirements -  Retirement quotes and actuals, deferred benefits into payment (quote and actual)

·         Transfers – Transfers in and out (quote and actual), AVC transfers, Divorce

Membership of all schemes administered by WYPF was reported as 422,177 and a full breakdown between the different Funds and Schemes was appended to the report. 

 

As part of the fund’s commitment to improving services random surveys of customers who had contacted the fund were undertaken and the results of those surveys were also appended to the report.

 

Appendices also reported feedback from employer training sessions conducted between January to March 2019.

 

Internal dispute resolution procedure was discussed and the determination of two Pensions Ombudsman cases reported.

 

A staffing update included in the report revealed sickness absence at the fund compared favourably with that of Bradford Council.  Recruitment and retention was good and a detailed breakdown of the experience of staff was provided.   Staff qualifications were discussed and it was confirmed that staff surveys were conducted by Bradford Council.

 

Assurances were provided that fund employees were encouraged to progress and progression schemes to encourage them to pursue additional qualifications were in place. 

 

The utilisation of apprentice schemes was questioned and it was confirmed that the apprentice programme was actively supported.  Apprenticeships in the IT department were discussed and it was confirmed that the suitability of all vacancies arising were considered to ascertain if they would be suitable for an apprentice opportunity.  All apprentices recruited to the fund would receive pension specific training. 

 

Appraisal schemes were questioned and whilst there was no specific information contained in the report Members were assured that regular appraisals were conducted and details could be provided in a future report.  Staff progression through pay grades was dependant on regular assessment and evaluation. 

 

Resolved –

 

That  ...  view the full minutes text for item 15.

16.

FEEDBACK FROM 2019 ANNUAL BENEFIT STATEMENT EXERCISE pdf icon PDF 213 KB

The report of the Director, West Yorkshire Pension Fund (Document “J”) indicated that since a change in the pension regulations resulted in an increase in requests for pension estimates from age 55, WYPF changed the information provided on its Annual Benefit Statement (ABS) to include figures for retirement from age 55, 60, 65 and state pension age. This feedback demonstrates the effects which the change brought about for WYPF administration in its working practices, and the benefits for members of the pension scheme.

 

Recommended –

 

That the Pension Board

·         notes the work undertaken to implement improvements to the ABS’s for scheme members in order to provide more details of retirement figures

·         notes that the range of benefit calculations provided in one statement enables members to be better financially informed about retirement options

·         notes the improvements and increases in work production following the application of functionalised working methods in the Service Centre

 

(Grace Kitchen – 01274 434266)

Minutes:

The report of the Director, West Yorkshire Pension Fund (Document “J”) explained that on 14 May 2017 an amendment to the regulations was issued allowing deferred members to take reduced benefits from age 55.   Roughly 56,500 members were aged over 55 in December 2018 which accounted for about a quarter of all members.  In response to concern that the fund would not be able to maintain its high standard of service delivery with the ever increasing requests for estimates, it was decided to work towards providing figures at different ages for members on their ABS.  The information provided on Annual Benefit Statement (ABS) was amended to include figures for retirement from age 55, 60, 65 and state pension age.

 

The report explained that officers in the Service Centre team provided all the immediate pension calculations and services to current, deferred and retired members.  Changes had previously been made to how those staff members worked and dealt with the different areas of pension work.  The work was functionalised into teams and resources allocated according to demand.  As surges in any type of work were experienced work was rotated to meet that demand.   That system was utilised to ensure that demand resulting from  regulation changes and from members could be managed.  Statistics to reflect changes in work patterns were contained in Document J.

 

In response to questions about the response to the new arrangements it was reported that feedback from the Pension Liaison Group and members had been favourable.

 

Following discussions about investment in information technology it was confirmed that IT was crucial to the provision of member information.  Whilst the information would be basic the implementation of the “My Pension” portal would allow members to calculate their own estimates.

 

 

Resolved –

 

1.    That the work undertaken to implement improvements to the ABS’s for scheme members in order to provide more details of retirement figures be noted.

 

2.    That the range of benefit calculations provided in one statement enables members to be better financially informed about retirement options be noted.

 

3.    That the improvements and increases in work production following the application of functionalised working methods in the Service Centre be noted.

 

ACTION: Director, West Yorkshire Pension Fund

 

17.

LOCAL GOVERNMENT PENSION SCHEME REGULATION UPDATES pdf icon PDF 75 KB

The report of the Director, West Yorkshire Pension Fund (Document “K”) updates the Local Pension Board 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)

Minutes:

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

 

Members acknowledged that the effect of the Brexit proposals had resulted in little movement on those regulations and matters.

 

Resolved –

 

That the report be noted.

 

ACTION: Director, West Yorkshire Pension Fund

 

18.

REGISTER OF BREACHES OF LAW pdf icon PDF 66 KB

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

(Document “L”) 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) impose 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 the Pensions Code of Practice is 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 “L”) which informed Members that, in accordance with the

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

Pension Schemes came 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 had not been or was not being complied with, and

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

 

A register of any breaches of the Pensions Code of Practice was maintained in accordance with the Pensions Regulators requirements and WYPF

Breaches Procedure. 

 

The report revealed that the entries on the Register of Breaches for 2019/20 related to the late payment of contributions and Annual Benefit Statements not issued by 31 August 2019.  An amendment to the report explained that the reference to 99.6% of Annual Benefit Statements issued should state that the target was by 31 August 2019.  All payments referred to in Appendix A had now been paid.

 

As the breaches outlined in Document L had not been regarded as material they had not been reported to The Pensions Regulator.

 

Resolved –

 

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

 

ACTION: Director, West Yorkshire Pension Fund

 

 

19.

2019 ACTUARIAL VALUATION pdf icon PDF 70 KB

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

 

Recommended –

 

That the report be noted.

 

(Caroline Blackburn – 01274 434523)

Minutes:

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

 

Members were reminded that in accordance with the Local Government Pension Scheme Regulations the Fund was subject to an actuarial valuation by its appointed consulting actuary at 31 March 2019.

 

The main aims of carrying out an actuarial valuation of the Fund were to review the financial position of the fund; determine the employers’ contribution rates; and ensure that the legal requirements in relation to the actuarial valuation were met.

 

The report revealed that fund was working with the Fund’s Actuary to ensure, wherever possible, any changes to employer’s contributions were minimal. That approach was consistent with the Regulations, which specified that the actuary must have regard to the desirability of maintaining as nearly constant a common rate as possible.

 

Members were advised of progress which included that:-

 

The Terms of Reference for the Actuarial Valuation at 31 March 2019 had been agreed with the funds actuary ahead of time.

 

The actuary had completed the longevity analysis for the Fund, using data and experience from the last 5 years. That analysis indicates that there has been a slowdown in longevity improvements since the last valuation and this will be taken into account when agreeing the final demographic assumptions.

 

Data extracts for actives, deferreds, pensioners, preserved refunds and dependants records was supplied in early July and the validation of this information has been completed.

 

It was explained that a meeting had been held on the 23 September 2019 with the actuary, officers and the Chair of the Joint Advisory Group and Investment Panel to discuss and agree the final assumptions to be used for the Fund valuation.  As a result of that meeting the actuary was finalising the whole Fund result following which the individual employers’ results including the assets, liabilities, primary contribution rate and any deficits payments required would be produced.

 

It was anticipated that the Employer’s result would start to be provided from early November. The results for the 5 West Yorkshire Councils, West Yorkshire Police and West Yorkshire Fire and Rescue would be produced first, with the results for the other employers following.

 

The Fund’s Actuary would present an item on the 2019 Valuation at the Funds Employers annual meeting on the 7 November 2019.  It was not expected that the results for the majority of employers would be available before that meeting; however employers would have the opportunity to hear from the Actuary on the outlook for the valuation.

 

In response to questions it was explained that employers had not been advised of likely contribution rates but the 5 West Yorkshire Councils, West Yorkshire Police and West Yorkshire Fire and Rescue had been advised that the fund hoped to keep rates the same as in 2019.

 

Resolved –

 

That the report be  ...  view the full minutes text for item 19.

20.

UPDATE ON THE GUARANTEED MINIMUM PENSION (GMP) RECONCILIATION EXERCISE pdf icon PDF 79 KB

The report of the Director, West Yorkshire Pension Fund, (Document “N”) provides an update on the current position regarding the Guaranteed Minimum Pension (GMP) reconciliation exercise.

 

Recommended –

 

That the update contained in Document “N” be noted and the potential additional workloads anticipated from the Guaranteed Minimum Pension (GMP) exercise be acknowledged.

 

(Yunus Gajra – 01274 434266

Minutes:

The report of the Director, West Yorkshire Pension Fund, (Document “N”) provided an update on the current position regarding the Guaranteed Minimum Pension (GMP) reconciliation exercise.

 

The report detailed progress on the exercise to date and Members were advised that this was a long term process.  HMRC’s initial timescale of 31 December 2019 had been extended a number of times and it was expected that it would be again.  It was confirmed that WYPF was also undertaking the reconciliation work for Lincolnshire Pension Fund, Hounslow Pension Fund (at stage 3) and eleven of the fourteen Fire Authorities.

 

In response to questions it was explained that no funding was being received from HMRC to carry out the exercise.

 

Resolved –

 

That the update contained in Document “N” be noted and the potential additional workloads anticipated from the Guaranteed Minimum Pension (GMP) exercise be acknowledged.

 

ACTION: Director, West Yorkshire Pension Fund

 

21.

WYPF DATA IMPROVEMENT pdf icon PDF 72 KB

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

Document “O”,  informs members that The Pension Regulator’s (TPR) Code of Practice 14 and The Public Service Pensions (Record Keeping & Miscellaneous Amendments) Regulations 2014 sets 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 “O”, 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.

 

Document O reported that there were two types of data that should be measured: common data and scheme specific data. A definition of both categories was provided.  As a result of measuring the data a data score was calculated and that was the percentage of members in the scheme that had been assessed as having complete and accurate common or scheme specific data.

 

The latest version of the 2018/19 Data Improvement plan was appended to Document O and had been updated with the results for September 2019.

 

Members were advised that in 2018 the Local Government Association (LGA) started a project to develop a list of scheme specific data for the LGPS. Unfortunately that work was not completed until July 2019. As a result Funds were advised to assess what they thought were scheme specific data, and use that for 2018 tPR scheme return.  Work had now been completed by the LGA and a final list of scheme specific data to be used was issued on 8 July 2019.   That definition included additional categories and work was continuing to adjust the data quality reports to take into account the new scheme specific requirements. The Data quality score which would be provided for the Pension Regulator scheme return in autumn would be produced using the final list of scheme specific data.

 

A copy of the list of Scheme specific data the Fund was required to monitor against was appended to the report and it was reported that since the issue had been discussed at the last meeting a Governance Manager had been appointed and was dedicated to data improvement.

 

It was questioned if the deadline dates of November 2021 contained in the data improvement plan were achievable.  It was explained that it had been proposed to complete high risk data by November 2019; however, following the production of the final list of scheme specific data, there may be new criteria to be included.  A plan would be prepared annually and prioritised accordingly.

 

Resolved –

 

That the report be noted.

 

ACTION: Director, West Yorkshire Pension Fund

 

22.

WEST YORKSHIRE PENSION FUND RISK REGISTER pdf icon PDF 64 KB

The report of the Director, West Yorkshire Pension Fund (Document “P”) advises members that West Yorkshire Pension Fund  maintains a Risk Register which contains 45 risks that have been identified and framed into scenarios. The risks have been rated and 22 of these are above their acceptable tolerance level and 23 are below the tolerance line. 

 

Information on five risks from the 22 which are above their tolerance level is included in Document “S” 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 “P” be noted.

 

(Yunus Gajra – 01274 432343)

Additional documents:

Minutes:

The report of the Director, West Yorkshire Pension Fund (Document “P”) advised members that West Yorkshire Pension Fund maintained a Risk Register which contained 45 risks that had been identified and framed into scenarios. The risks had been rated and 22 of these ware above their acceptable tolerance level and 23 were below the tolerance line. 

 

Information on five risks from the 22 which were above their tolerance level was included in Document “S” so that members could ensure that adequate Management Action Plans were in place to monitor those risks.

 

A presentation on those risks was provided and included plans which were in place to mitigate those threats. 

A Member questioned measures to be taken in the event of an electrical power cut.  Assurances were provided that data was stored in the Council’s Britannia House offices where there were additional power generators in place; there were power generators available at the fund’s office in Aldermanbury House and that the data centre back up system would be implemented in such circumstances. 

 

Resolved –

 

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

 

ACTION: Director, West Yorkshire Pension Fund

23.

TRAINING, CONFERENCES, SEMINARS AND EVENTS pdf icon PDF 65 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 “Q”) 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 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 would be dealing with was a very high priority.

 

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

 

 

No resolution was passed on this item.

24.

EXCLUSION OF THE PUBLIC

Members are asked to consider if the item relating to the West Yorkshire Pension Fund Investment Advisory Panel (Document “R”) 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 meeting held on 25 July 2019 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:

Members were asked to consider if the item relating to the West Yorkshire Pension Fund Investment Advisory Panel (Document “R”) should be considered in the absence of the public and approved the following recommendation:-

 

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 meeting held on 25 July 2019 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.

 

25.

MINUTES OF THE WEST YORKSHIRE PENSION FUND INVESTMENT ADVISORY PANEL 25 JULY 2019

The report of the Director, West Yorkshire Pension Fund, (NOT FOR PUBLICATION Document “R”) 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 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 Panel on 25 July 2019 appended to Document “R”.

 

(Rodney Barton – 01274 432317

Minutes:

The report of the Director, West Yorkshire Pension Fund, (NOT FOR PUBLICATION Document “R”) 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 Investment Advisory Panel were submitted to the Pension Board to enable the Board to ensure effective and efficient governance and administration of the LGPS.

 

Resolved –

 

That the Not for Publication minutes of the Investment Advisory Panel on 25 July 2019 appended to Document “R” be noted.

 

ACTION: Director, West Yorkshire Pension Fund