The report of the Director, West Yorkshire Pension Fund (Document “A”) will be submitted to the Joint Advisory Group to provide Members with details relating to the identified risks which have been rated and plotted on a matrix and a risk tolerance line agreed in order to prioritise the risks. The risk matrix measures each risk for its likelihood and impact in terms of its potential for affecting the ability of WYPF to achieve its objectives.

Recommended –

That the report be noted.

(Yunus Gajra – 01274 432343)

The report of the Director, West Yorkshire Pension Fund (Document “A”) was presented to provide Members with details relating to the identified risks which had been rated and plotted on a matrix and a risk tolerance line agreed in order to prioritise the risks.

The risk matrix measured each risk for its likelihood and impact in terms of its potential for affecting the ability of WYPF to achieve its objectives.

Members expressed concern regarding the risk identified with recruitment and retention of experienced staff.  It was suggested that the structure of pay scales was an inhibitor to recruitment and retention and felt there was a disparity between the fund and private sector organisations.  It was suggested that the Council be put on notice that Members were deeply concerned about the risk and if something was not done quickly to rectify the issue they would take action.  It was expected that the Council should provide a thorough action plan including steps required to meet the challenges before the next meeting.

In response to questions about the likely consequences of the risk in the short term it was explained that the fund had struggled to recruit to a number of posts despite advertising two or three times.  Risks included that Key Performance Indicators may not be met.  The fund provided shared services to 23 fire authorities and three Local Government Pension Funds and must report to those services on a regular basis.  If performance was not met those contracts could be lost.

A risk to members through processes not completed on time or benefits paid was also a concern.  Additional pressure fell on existing employees during periods of holiday or staff sickness.  A lot of KPIs continued to be met but there were some that were not and shared partners focus on those indicators. 

A Member questioned changes the changes to inflation rates could have on the triannual valuation of the fund which had taken place.  It was explained that the valuation was taking place currently and positive results were expected.  There would be no need for a revaluation but Inflation rate increases were recognised as an issue going forward.  The fund was currently 100% funded and there was a need to maintain stable contributions for employers so there would be no reductions in employer contributions made. 

It was questioned how much the job market and how much host authority requirements impacted on recruitment and retention issues.  It was explained that there was a significant host authority issue.  External consultants had reviewed pay grades and that review been accepted by Bradford Council.  Issues had arisen as the Council had stated that WYPF personnel could not be paid on different grades to other Council employees.  The fund was feeling the repercussions of that decision. 

Comparisons had been reviewed between private and public sector organisations in the review undertaken.  The Local Government Association had also compared regional pay and the results were currently being analysed.  Recruitment and retention issues were faced across the whole pensions sector and it was felt that this was because there were some many issues in the pension arena currently. All funds were competing for expertise to deal with the McCloud remedy; Good Governance; Pensions Dashboard and other requirements.

Resolved –

That the report be noted.

Action: Director, West Yorkshire Pension  Fund