The Director, West Yorkshire Pension Fund (WYPF) will present

Document “M” which details the latest report and account for West Yorkshire Pension Fund, summarising financial activities and financial performance for the year 2019/20, the audited report is available on WYPF  website page:

 https://www.wypf.org.uk/media/3018/2019_20-wypf-audited-report-and-accounts.pdf

Recommended –

That the audited report and accounts for 2019/20 be considered and noted.

(Ola Ajala – 01274 434534)

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The Director,West Yorkshire Pension Fund, (WYPF) presented Document “M” which detailed the latest report and accounts for West Yorkshire Pension Fund, summarising financial activities and financial performance for the year 2019/20.  Members were advised that the audited report was available on the WYPF website and links to that page were provided.

Members were reminded that the unaudited report and accounts had been considered at the meeting in July 2020 when a number of comments had been received and noted. 

It was explained that the Government had provided an extended deadline for signature of the accounts of 30 November 2020.  Delays encountered because of the current pandemic had resulted in the accounts being signed on11 December.  The slight delay had been reported to the Ministry of Housing, Communities and Local Government (MHCLG) without issue.

Members were informed that the work on the report and accounts had provided a valuable opportunity to work with the auditor in light of the change in values and the need to examine the various investment values.  The work was extensive and it was confirmed that the report and accounts had been signed without any major issues or concerns.

The report revealed a reduction in value in the last year, however, it was reported that since the account was published the value of assets had increased to over £14 billion and the reduction published had been recouped.

It was confirmed that the Fund was 101% funded; that figure did not take account of the £14.5billion new valuation and, in light of the pandemic, it was felt that was good news.

The only new addition since the report had been considered in July 2020 was that the Government returns on cost per member for all LGPS had been received and it had been confirmed that WYPF presented the lowest cost for last year.  When the return had been sent to government the Fund was mid audit and the figure in the accounts was slightly lower than that sent to government by approximately 50p which made no significant difference.

A Member questioned the impact of COVID-19 on the funding position and whilst noting the sadness of the situation it was speculated that there would have been increased deaths which would have impacted the fund.  In response it was explained that the accounts did provide a point of emphasis on the pandemic and the impact on assets.  Reference was made to the asset being depressed and the uncertainty around the valuation of assets.

In terms of the liability valuations, as the accounts were prepared for the end of March 2020 it could not be amended to include additional impacts.  Auditors did work with the Actuary and there was a point of emphasis in the accounts and also in one of the notes to the accounts regarding COVID.  Efforts had been made to illuminate the impact of COVID, and the 2021 report from the Actuary would include more on the impact of the pandemic.  That topic would be addressed further in the net valuation at the end of March 2021. 

A Member noted that the minutes of the meeting held on 30 July 2020 (Minute 7) referred to the lively debate which had ensued whilst discussing climate change and investment in fossil fuels.  Whilst acknowledging that the foreword to the Audited Report and Accounts under discussion had been provided by the Chair it was suggested that more reference to that debate could have been included.

Resolved –

That the audited report and accounts for 2019/20 be noted.

ACTION: Director, West Yorkshire Pension Fund