The report of the Director, West Yorkshire Pension Fund (Document “M”) will be submitted to inform Members regarding the development of a five year business plan for the period 2022-2027.

Recommended –

That the report be noted.

(Yunus Gajra – 01274 432343)

The report of the Director, West Yorkshire Pension Fund (Document “M”) informed Members of the development of a five-year business plan for the period 2022-2027.

It was explained that the fund was working with actuary firm Aon to develop a five-year business plan for the period 2022-2027 which would outline the Fund’s goals and objectives over the medium term. Once completed, the business plan would be formally reviewed and agreed every year.

The purpose of the business plan was to –

·         Explain the objectives for the management of the WYPF.

·         Document the priorities and improvements to be implemented by the WYPF team during the next five years to help achieve those objectives.

·         Enable progress and performance to be monitored in relation to those priorities.

·         Provide staff, partners and customers with a clear vision for the next five years.

The plan would present a number of key objectives under the categories of governance, funding, investments, administration and communications 

Recent developments and changes impacting the fund were reported and included the fund’s responsible investment approach; expansion of the fund’s external customer base and changes to how the pensions administration software was used. This included enhancement to monthly employer data collection and online member and employer services.

It was explained that the business plan was at an early stage of production but would be brought to JAG at the July meeting to review.

A Member reported difficulties in accessing the on line platform.  He was advised that a number of enhancements had been made and a web developer, with the experience to redesign the platform, had been employed. It was explained that the system had been an on off the shelf product and the web developer would tailor it to the requirements of the fund.  It was believed that issues had decreased significantly and improvements had been seen by members.  Recent incidents in accessing the service were discussed and the member who had raised those issues agreed to act as a test user to assess future progress.  

A Member referred to the West Yorkshire Mayor’s request for an annual report on divestment in fossil fuels and questioned if the fund would respond to that request; the cost of that report and when it would be provided.

The Director, WYPF explained that the fund had a clear Environmental, Social and Governance (ESG) policy which was set by the Investment Advisory Panel which would be reporting regularly on the carbon footprint of the fund.  A report, produced by an independent firm, was about to the published and information provided to the West Yorkshire Mayor would be reported.

Members were advised that the fund would not divest from commodities until it was evident that change could not be made.  The intention was to influence change in companies which were owned by the fund. The final step would be to divest if no progress was made.  The success of that approach was questioned and it was explained, as an example, that Shell was installing more car charging points than other companies.   Members were advised that the website set out more detailed information on influences made.  The speed of such impacts was queried and it was explained that this was the beginning of an exponential transition.  Things had moved slowly, however, increasing pressures were enforcing rapid change and external events beyond the control of companies were having an impact.

It was questioned if the governance arrangements for the fund would change and a ‘Pensions Committee’ be created.  In response it was explained that the Pension Board had oversight of the fund whilst the Joint Advisory Group played a monitoring role. The legislation required the two roles to be kept separate. 

Resolved –

That the report be noted.

ACTION: Director, West Yorkshire Pension Fund