The report of the Director, West Yorkshire Pension Fund, (Document “O”) sets out developments within the Fund in the last year covering changes in employers, membership, Performance and Benchmarking, Employer and Customer Service Surveys, Internal Dispute Resolution Procedure Cases and External Business.

Recommended –

That the report be noted.

(Yunus Gajra – 01274 432343)

The report of the Director, West Yorkshire Pension Fund, (Document “O”) set out developments within the Fund in the last year covering changes in employers, membership, Performance and Benchmarking, Employer and Customer Service Surveys, Internal Dispute Resolution Procedure Cases and External Business.

The report revealed that during the past year there had been 89 employers admitted as new employers and that 48 employers had ceased their participation.  It was explained that a number of those ceasing participation were single academies converting to multi academy trusts already participating in the scheme and the true number of ‘leavers’ was 13.

Membership changes revealed that there were a number of  ‘undecided’ and ‘frozen’ members and in response to questions it was explained that the term undecided referred to people who had left the scheme but not yet decided if they wished to transfer from the scheme or receive deferred benefits.  Frozen referred to very old cases where people were entitled to refunds but the fund did not have any contact details.  There were only a very few of those cases, usually involving small amounts, and efforts were being made to contact those people.   In response to a request it was agreed that the value of those deferred and frozen members would be provided in a future report.

The number of active members in the 50/50 scheme was discussed and it was reported that in West Yorkshire and nationally the numbers were very low.  It was explained that the majority of those 50/50 members were in the high paid bracket and that was not the intention of the initiative. A survey had been conducted and it was found that very few members were aware of the 50/50 option.  If those people were not members of WYPF the fund was unable to contact them and it was the responsibility of employers to tell their staff that for those on low pay this was an attractive way to enter the scheme.  The Trade Union Representatives reported that they would be interested in any support the fund could provide to promote the 50/50 option to their members. 

It was questioned how many of scheme Members leaving had done so because of redundancy.  That information was not available at the meeting but it was agreed that this could be provided if required. It was confirmed that employers met the cost for early retirement payments.

Performance and benchmarking statistics revealed that the majority of targets were exceeded.  The reasons for any underperformance were explained. Death in Service, although treated as a very high priority, could encounter delays because of employers’ involvement.  Death of deferred Members could encounter holdups if it was difficult to trace the next of kin.  

The results of Member and Employer surveys conducted October 2016 to September 2017 measured satisfaction at 87% and it was explained that any negative comments were because of delays attributable to employers.  It was also explained that the fund communicated to members in plan English but as pensions were a complex subject inevitably some members did not understand the issues.

The report explained the Internal Dispute Resolution Procedure and although increases in Stage 1 appeals were shown it was explained that all those disputes had been rejected which demonstrated that WYPF had robust systems and processes in place.  A pack had been prepared to enable employers to understand the procedures.  A member questioned if that document could be made available to him and it was agreed to provide the document to those who would like a copy.

It was explained that the Consumer Price Index (CPI) for September 2017 was at 3% and that pensions would increase by that percentage from April 2018. 

Document “O” reported that the Scheme Advisory Board for the LGPS in England and Wales had appointed Aon Hewitt to help them in a review of Tier 3 employers in the LGPS.  Tier 3 Employers were those receiving no tax- payer backing and were usually colleges, universities, housing associations, charities and admission bodies with no guarantee from a tax-payer backed employer.  An Employer representative expressed concern that a rise in contributions could have a detrimental impact on those organisations.  In response it was explained that it was timely to conduct that review at the moment as the fund was performing well.  It was also confirmed that potential increases would affect employer and not employee contributions.

A Member questioned the procedure for employers to take payment holidays and was advised that the option was only available for short term employers.  Refund payments were not available for employers in surplus when they left the scheme and a potential surplus was the reason that some short term employers were able to halt their payments. 

Document “O” presented changes to the State Pension Age (SPA) and it was it was questioned if those changes would affect the ability for fund members to access their pensions at the earlier age of 55.  Members were advised that earliest retirement was not linked to the Government review although it had been normal practice for the earliest age retirement could be accessed to be 10 years prior to SPA.  It was thought that amendments to the 55 year rule could be applied in the future.

The Pension Regulator had published information on roles and responsibilities and appended to Document “O” were details about the role of scheme managers, pension boards and others involved in governing public service schemes.

Members were advised that WYPF were winners of the Scheme Governance Award on 19 September 2017 and were shortlisted in a number of other categories.

It was reported that external business continued to increase and that WYPF continued to act as Adjudicator for Stage 1 Appeals for a number of Administering and ‘Employing Authorities outside of the West Yorkshire area.  In response to questions it was confirmed that additional employment opportunities resulted and that all money made would be put back into the fund reducing costs for all. 

Members questioned if an audit of data was conducted prior to accepting new business and raised concern about the quality of data from some London boroughs.  It was explained that charges were made for work required to put data in good order.  The discussions currently taking place with London Borough of Hounslow specify that the data must be of reasonable quality.  The requirement of the Pension Regulator for data quality scores to be compiled would also help the fund to identify the quality of data in future business.

Resolved –

That the report be noted and the staff be thanked for their hard work in maintaining the high standards demonstrated in Document “O”.

ACTION: Director, West Yorkshire Pension Fund.