I would like to thank the administration and investment staff for their continued hard work and excellent performance in what has been a most challenging year, as well as the members of the Investment Advisory Panel, the Joint Advisory Group and the Local Pension Board for their contribution Theirs. M Stevens Marian George (from October 2020) Philip Hebson (from October 2020) Representatives from the finance directors of West Yorkshire councils.
Annual Report of the West Yorkshire
Pension Fund Pension Board 2020/2021
Training undertaken by pension board members over the past year includes the following events. In addition, all pension board members are encouraged to undertake the Pensions Regulator's Tools training, which is an online learning program aimed at administrators of occupational pension schemes.
Councillor Shakeela Lal Chair of WYPF Pension
The LGPS is a statutory scheme and benefits are paid in accordance with the provisions of the Local Authority Pension Schemes Regulations 2013, the Local Authority Pension Schemes (Transitional Provisions, Savings and Amendments) Regulations 2014 and other applicable legislation. The Government issues guidelines and regulations on the Local Government Pension Scheme through the Department of Housing, Communities and Local Government, and as such they have the force of law.
Administering authority
HMRC registration
Covid-19
Annual meetings
Employer Training
Member engagement
Pension Increase
Pension administration and cost
Shared Service
Data Quality
Communications
MyPension
Pension Age Awards
Disaster recovery and risk management monitoring
Social media
Stoodley Pike, Calderdale
The following table identifies movements in the Fund account based on expenditures between March 31, 2020 and March 31, 2021 and provides reasons for deviations. The information collected monthly includes details of members and contributions paid to the fund.
PARTICIPATING EMPLOYERS
PRIESTHORPE SCHOOL TRUST SPRINGWELL ACADEMY LEEDS (left 31/03/20) PRIMARY SCHOOL THORP ARCH LADY ELIZABETH HASTINGS C E (VA) PRIMARY SCHOOL. OUTLOOK SERVICES (BRADFORD 3) ST AUGUSTINES CATHOLIC PRIMARY SCHOOL WITH HOUSING ASSOCIATION LTD (PENNINE) PROV CARLTON BOLLING COLLEGE ST EDWARDS CATHOLIC (VA) PRIMARY SCHOOL TONG LEADERSHIP ACADEMY.
Fraud prevention – National Fraud Initiative
Every effort is being made to recover them, while managing the financial and social consequences for overpaid pensioners. The internal audit function for the West Yorkshire Pension Fund is carried out by Bradford Council; an agreed number of planned audits of financial systems and procedures throughout the organization are carried out each year.
Transfer of Custodial Arrangements
Pensioners Payroll
New Pensions and Lump Sums Flexible Retirements
Transfers Out
Review of the West Yorkshire Pension Fund 2019/20 Accounts
New Pensions and Lump Sums Fire and Rescue Authorities
Equities
Treasury Management
GLIL
WYPF Quality Management ISO 9001:2015
WYPF quality policy
Quality management system
Information Security Management System ISO 27001
Our key performance indicators during the year, measured against our objectives, are shown in the table below.
Jowett vehicles at Bradford Industrial Museum
2020/21 WYPF Cost per member
2019/20 Administration cost per member
2019/20 Investment management cost per member
2019/20 Oversight and governance cost per member
2019/20 Total cost per member
Leeds waterfront
There is a long-term review of staff resources required for the effective management of the Fund's investments. Experience of the past 12 months confirms increased volatility in markets and in the immediate future.
WYPF quarterly private equity activity (incl. NPEP)
WYPF's private equity portfolio remains well diversified across industry sectors, geographies, vintages, funding stages and managers. For the 10-year period to 31 March 2021, the Private Equity portfolio in Sterling delivered annualized returns of 15.0%.
WYPF quarterly infrastructure activity (incl. GLIL)
In addition to the above, investment was boosted by a further £67.6m due to WYPF's commitment to GLIL. This compares with the agreed benchmark WYPF All Property Funds Index, which returned 0.7%.
Percentage sector returns for 12 months to 31 March 2021
Key results for the 12 months to 31 March 2021
As the level of online retail sales increased during the pandemic, so did the amount of warehouse space required. During the year, and as part of the LGPS Northern Commitment, WYPF increased its exposure to 'other' properties with a £25m subscription to the UK Affordable Housing Fund.
Report on the financial statements
Independent auditor's report to members of Bradford City Metropolitan District Council on the financial statements of the pension fund contained in the annual report of the West Yorkshire Pension Fund.
Opinion
Respective responsibilities of the Director of Finance and the auditor
Use of this auditor’s statement
Statement of accounts
This statement shows the net value of assets owned by the fund, the actuarial calculation of the present value of promised pension benefits is given in note 9.
Chris Chapman
Notes to the accounts
- Operations and Membership
- March
- Actuary’s Report
- Accounting policies Basis of preparation
This Statement has been prepared by the Actuary to the Fund, Aon, for inclusion in the accounts of the Fund. It provides a summary of the results of the actuarial valuation carried out on 31 March 2019.
Administrative expenses
Oversight and Governance costs
Investment management expenses
Interest income
Property related income
Dividend income
Distribution from pooled funds
Critical judgements in applying accounting policies
The preparation of the fund's financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, income and costs. Important sources of estimation uncertainty in these financial statements, which together are considered critical to the fund's performance and financial position, are explained below.
Fair value of financial instruments
Impact of Covid-19
Retirement benefit obligations
- Events after the balance sheet date
- Transfers in from other pension funds
- Non-statutory pensions increase and recharges
- Benefits payable
- Payments to and on account of leavers
- AVC Scheme – Equitable Life, Scottish Widows and Prudential
- Actuarial present value of promised retirement benefits
- March 2019 experience
- Management expenses
- Investment expenses
- Investment income
- Direct property holdings
- Investments
- Fair value – basis of valuation
- Financial instruments – classification
- Current liabilities – creditors
- Related party transactions
The actuarial present value of the benefit-based obligation per 31 March 2019 includes an estimated liability in relation to the McCloud/Sargeant judgment of £33.15m. The most recent full three-year actuarial valuation of the fund's liabilities was carried out per 31 March 2019.
Employers
Bradford Metropolitan District Council is a related party in its role as the governing body for the West Yorkshire Pension Fund. In 2020/21, Bradford Metropolitan Borough Council billed the West Yorkshire Pension Fund for £444k in relation to support services provided (£444k in 2019/20).
Members
Nature and extent of risks arising from financial instruments Risk and risk management
The fund is exposed to market risk as a result of its investment activities, mainly through its equity positions. Essentially, the fund's entire investment portfolio is exposed to some form of credit risk.
Accounting developments
Undrawn liabilities relate to outstanding call payments on unlisted limited partnership funds held in the private equity, real estate and infrastructure portions of the portfolio.
Investment Strategy Statement
The Pensions Advisory Service (TPAS) can also help resolve disputes if both stages of the PDP have not provided an agreement. The Pensions Regulator has issued a code of practice for the governance and administration of public service pension schemes, which provides practical guidance on the exercise of functions under relevant pension legislation and sets out the standards of conduct and practice expected of those exercising these functions.
Company information
Glossary of terms
Active member
Actuarial valuation
Additional voluntary contributions (AVCs)
Admission body
Asset allocation
Best Value
Brent oil price
Career average revalued earnings (CARE) pension
Cash equivalent value (CEV)
Consumer Price Index (CPI)
Contracted out
Commutation
Convertible shares
Custodian
Data governance
Death grant
Deferred pensioner
Deficit payments
Denomination
Designating body
Discretion
Direct property
Eligible councillor
Employer covenant
Equity risk premium
Financial instruments
Fixed income securities
Fund of funds (FoF)
Guaranteed minimum pension (GMP)
General partners
Index-linked bonds
Internal rates of return (IRR)
Local government
Myners’ principles
Ordinary shares
Pension board
Pension liberation fraud
Personal pension
Policy statement
Pooled funds
Private equity
Quality management
Quantitative easing
Related party transactions
Retail Prices Index
Rule of 85
Scheduled body
State Earnings Related Pension Scheme (SERPS)
Spot rate
Stakeholder pension
State pension age
State Second Pension (S2P)
Statutory compliance
Stock lending
Subsumption
Transfer value
Transferred service
Treasury management
Unitised funds
Voting policy
Contents
- Regulatory framework and purpose 2. Review of the strategy
- Liaison and communication
- Employer duties and responsibilities 5. Payments and charges
- Administering authority duties and responsibilities 7. Unsatisfactory performance
- Appendices
- Regulatory framework and purpose
- The regulations
- Purpose
- Review of the strategy
- Authorised contacts for employers
- Liaison and communication with employers
- Employer duties and responsibilities
- Events for notification
- Responsibilities
- Discretionary powers
- Member contribution bands
- Internal dispute resolution procedure (IDRP)
- Payments and charges
- Payments by employing authorities
- Paying contributions
- AVC deductions
- Late payment
- Payment method
- Early retirement and augmentation costs
- Interest on late payment
- Employer contributions
- Actuarial valuation
- Administration charges
- Administering authority duties and responsibilities
- Scheme administration
- Discretionary powers
- Internal dispute resolution procedure (IDRP)
- Fund performance levels
- Unsatisfactory performance
- Measuring performance
- Unsatisfactory performance
An actuarial valuation of the fund is carried out every three years by the fund actuary. In the performance of their functions, the WYPF will take into account the current version of the strategy.
Main contact registration form
Authorised user list
Early leavers information If submitted via monthly data, WYPF will fail to provide appropriate information, process data within 2 weeks after resulting in significant work, will result in monthly data submission, otherwise within 6 Administration Fees (at Pension Officer Level I) weeks after the date of leaving. Additional work caused by the reproduction of invoices will result in an administration charge (at pension officer level I) of £96 + VAT per day.
Funding Strategy Statement (FSS)
Introduction
Purpose of Funding Strategy Statement (FSS)
Views will be taken on what is reasonable and appropriate for employer contributions and therefore the degree of risk inherent within the funding targets and associated periods for the recovery of deficits or the return of surpluses. While the position of all employers will be referenced in the FSS, its focus must at all times be on those actions that are in the best long-term interests of the Fund.
Aims and Purpose of the Pension Fund
The FSS must therefore remain a comprehensive strategy that the managing authority can implement and maintain.
Responsibilities of Key Parties
Solvency Issues, Target Funding Levels and Long-term Cost Efficiency
Decisions on these issues will take into account the management body's views on the strength of the employer's commitment, its membership profile and its expected future period of participation in the fund. On the one hand, the administrative body requires that all receiving bodies are fully financed by themselves, so that other employers in the Fund do not bear the costs due to the participation of these receiving bodies.
Link to investment policy set out in the Investment Strategy Statement (ISS)
Identification of risks and counter-measures
If the Administering Authority becomes aware of any material changes in population mortality which may also be reflected in the Fund's experience, it will ask the Fund Actuary to report on the effect on the funding position and employer contributions. The Administrative Authority will, as far as is practical, monitor changes in the age profile of the Fund Membership early retirements, layoffs and ill-health early retirements in the Fund, and, if any changes are considered material, ask the Fund Actuary to report. about its effect on the funding position and employer contributions.
Monitoring and Review
The costs for future accrual (primary contribution rate) will be calculated according to the same actuarial method and assumptions as used to calculate the funding target. The contributions to be paid under the recovery plan are calculated based on the same assumptions as those used to calculate the funding target.
Background
New Employers
This assessment must be to the satisfaction of the scheme employer (ie the contracting employer) and. In the case of unpaid obligations upon termination of admission, the rate of the employer's contributions from the scheme to the fund would be adjusted accordingly.
Cessation of participation
Other relevant circumstances as determined by the Administrative Authority on the advice of the Fund Actuary and after discussion with the ceding employer as appropriate. In that case, the Administrative Authority will instruct the Fund Actuary to allocate the assets and liabilities of the retiring academy over the remaining employers in the MAT.
Responsibilities of employers in the Fund
Where academies transfer between multi-academy trusts, for example when a MAT ceases to exist and its academies are transferred to different MATs (whether existing MATs within the Trust or newly established MATs), the governing body may direct the trust's actuary to carry out the evaluation. the obligations of any academy moving between MATs and all academies within the exiting MAT. In this case, the Fund will inform the employer of the withdrawal amount calculated by the actuary and give the employer a written notice of termination.
Governance Compliance Statement
- Governance and Audit Committee
- WYPF Investment Advisory Panel
- WYPF Joint Advisory Group
- WYPF Pension Board
- Annual meetings
- Training/expenses/facility time
- Register of interests
Each of West Yorkshire's five district councils has two councilor representatives on the panel. A Bradford councilor on the panel will also be a member of the Governance and Audit Committee.
Communications Policy 2020/21
Contact Center 8.45 to 4.30 Monday to Friday Face-to-face/phone email Pension advice As and when net pension varies. Contact Center 8.45 to 4.30 Monday to Friday Face-to-face/phone/email Pension advice As and when net pension varies.
Investment Strategy Statement
- Investment decision making process
- Variety of investments to be held
- Suitability of particular types of investment
- Risk
- Expected return on investments
- Collaborative investment and pooling
- Transaction costs
- Environmental, social and corporate governance policy
- Exercise of rights attached to investments
- Myners’ Report
- Effective decision-making
- Clear objectives
- Risk and liabilities
- Performance assessment
- Responsible ownership
- Transparency and reporting
- Aims and objectives
- Application of this policy
- Legislative and related context
- Other administering authority requirements
- What is a conflict or potential conflict and how will it be managed?
- Responsibility
- Operational procedures
- Operational procedures for advisers
- Monitoring and reporting
- Key risks
- Costs
Details of the fund's voting policy, and its voting activities, are published on the fund's website. Details of the fund's voting policy and voting activities are also published on the website.
WYPF Risk Management Report
Risk identification
10 Improved pension and investment systems have not been developed and adopted 12 Lack of information sharing with employers. 2 The valuation still shows a deficit in the pension fund 4 Reduction in the proportion of active members.
Risk management and monitoring
13 C2 Disaster recovery A disaster recovery plan is in place at Bradford Council for Pensions and Investment Schemes (see Business Continuity Plan). Staff enabled to work from home with access to all systems. a disaster recovery plan in place that allows the business to operate as usual during any disaster.
Future review and revision of risks
Risks register
Unable to provide service main objective not achieved. surplus of surpluses Maximizing the return on external investment of any surplus of the Council's cash surplus. The level of funding of the General Fund is a basic guide to the solvency of the Fund. The maturity of the scheme affects the investment strategy adopted.
