The Director, West Yorkshire Pension Fund (WYPF) will present a report, (Document “D”) which reports the latest WYPF spend for 2021/22 and forecasts for 2022/23. 

Recommended –

That the WYPF total net expenditure forecast of £10.46m for 2021/22 be noted.

That the net expenditure budget of £14.7 and forecast of £14.75m for 2022/23 be noted.

That the WYPF total cost per member of £33.63, supported by strong service performance and quality and as the lowest Local Government Pension Scheme cost per member, be noted.

(Ola Ajala – 01274 434534)

The Director, West Yorkshire Pension Fund (WYPF) presented a report, (Document “D”) which reported the latest WYPF spend for 2021/22 and forecasts for 2022/23.

A summary of the report revealed that Budget and expenditure monitoring was a routine monthly activity within WYPF and underpinned financial control, financial planning and financial risk management.  Detailed service activity analysis of expenditure, contracts, commitments, identified service risks, regulatory changes and service best practice was used on a monthly basis to produce budget monitoring reports for decision making and management information. That detailed process was also known as zero base budget management and provided the most effective financial control. Summarised results of the budget monitoring and review process were provided in the report for 2021/22 and 2022/23. 

The report also contained detail of the WYPF 2021/22 budget outturn; the WYPF 2022/23 budget; WYPF 2021/22 and 2022/23 cost performance and investment costs of management. 

The report detailed an underspend on salaries (£0.42m) and it was questioned if salaries were competitive.  In response it was explained that challenges were being experiences in staff recruitment.  It was confirmed that recruitment to senior and specialist roles had been particularly difficult on the legal and investment side of the fund.  The fund struggled to compete with the private sector which provided higher rates of pay.

Members were assured that investment was made in apprenticeships to develop the fund’s specialists staff internally.  The age profile of the workforce was discussed and challenges with staff preferring to work in London or Manchester were reported.

It was explained that a Local Government survey on recruitment and retention had confirmed that the fund’s pay was comparable with other pension funds and was why it had not lost staff to other pension funds in the public sector.  The issue was with a limited talent pool and the ability to work remotely resulting in specialist staff being able to work in various parts of the country without having to relocate.  In addition, the fund was tied to local authority pay scales and could not compete with large finance houses and pension pools.  The Council’s Human Resources officers were considering market supplements to entice staff, however, these were not guaranteed or permanent.

It was questioned if market supplements had been agreed with the trade unions and it was explained that the provision was not new but HR were reluctant to implement.   Market supplements could be removed so may not entice personnel from firms paying higher salaries and bonus payments.

It was stressed that it was critical that investment was made in employing specialist staff within the organisation as the alterative cost of employing specialist firms to carry out that work would be significantly high. 

A Member questioned if staff working remotely were compensated for utility costs.  In response it was confirmed that offices remained open and maintained so now costs were saved through remote working.  The costs of laptops; masks, hand sanitiser etc. had also been significant.  Officers were able to claim some costs from the government and did save on transportation, parking and time when working from home. The majority of staff felt that they had benefited from working remotely.

Resolved –

1. That the WYPF total net expenditure forecast of £10.46m for 2021/22 be noted.

2. That the net expenditure budget of £14.7 and forecast of £14.75m for 2022/23 be noted.

3. That the WYPF total cost per member of £33.63, supported by strong service performance and quality and as the lowest Local Government Pension Scheme cost per member, be noted.

Action: Director, West Yorkshire Pension Fund