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)

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.  The budget for communication had been reduced due to efforts to promote paperless communication.  The fund had invested in the “My Pension” website to be launched shortly which would improve digital communication and efforts were being pursued to issue digitally the Annual Benefit Statements to members.  It was agreed that the option to receive meeting papers digitally be available to Pension Board members.  The ability for members to produce their own estimates via the My Pension website was being pursued, however the ability to provide estimates on line were limited because of the necessity for these to be sent to secure email accounts.

Members agreed that the report revealed a successful year and officers were thanked for their hard work.

Resolved –

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

ACTION: Director, West Yorkshire Pension Fund