Agenda item

(To receive a report by Yunus Gajra, Business Development Manager for West Yorkshire Pension Fund, which provides a quarterly update on current administration issues)

The Chair of the Board welcomed Yunus Gajra (Business Development Manager, West Yorkshire Pension Fund) to the meeting and invited him to introduce the report which provided a quarterly update on current administration issues.

Mr Gajra introduced the report and highlighted the following areas to noted:-

·       The reasons for underperforming KPIs:

o       Deferred Benefits set up on leave – underperformance was given a low priority due to the volumes.  Members were informed in writing that they would receive details of their benefits as soon as possible;

o       Change to Bank Details – 20 days were allocated to ensure changes were actioned and, although usually prioritised, some were missed;

o       Monthly Posting – internal processes needed to be improved as this showed the performance of employers performance which was the information received by them and not from WYPF.  This could result in the figures being low due to the information received and although WYPF aim to process all information within 10 days, the information has to be accurate.

·       The deadline to submit the Scheme Return (noted on page 27) was 27 October 2017 but this had been submitted in early October;

·       Consultation was underway regarding the development of a member-led national Cross Pool Information Forum (CPF) for the LGPS in England and Wales.  Consideration was being given to the membership as part of the consultation and it would be made up of Pension Committee members as opposed to officers;

·       As a result of the Supreme Court rulings (detailed on pages 29 and 30), the Board was advised that all records were being reviewed in order to identify where payment entitlement was required;

·       The Government had published their response to the pension scams consultation which confirmed that the plan would proceed with all three measures to tackle pension scams.  Measures included introduction of a ban on cold-calling in relation to pensions; limitation of the statutory right to transfer so that individuals only have the right to transfer to certain schemes; and to allow only active companies to register a pension scheme except in legitimate circumstances.

During discussion, the following points were noted:-

·       As there was no longer the compulsion to retire at the age of 65 the fund had 43 active members over the age of 70;

·       WYPF indicated that they would only be concerned about the satisfaction rate if it were to drop below 75%;

·       The Chair of the Board noted that the figure of 24196 quoted on page 23 for total active members did not mirror the figure of 21196 quoted on page 28 of active Annual Benefit Statements.  WYPF was asked to provide clarification of the difference in the two figures;

·       It was explained that some academies were paying less than local authority schools but some were paying more.  At the 2013 valuation academies were given the option to remain on the LCC rate and to not take their true rate until the anticipated guidance from the Department for Education (DfE) had been received.  That guidance had not materialised and at the latest valuation (2016) the option to remain on the LCC rate had been removed which had resulted in a considerable increase to those schools who had previously chosen to remain on the lower rate;

·       In relation to exit payments, it was reported that the cap would be £95,000;

·       Although the report noted, at paragraph 7.1, that the projected target cost per member would be £15.05, it was not anticipated that this would increase from the current cost per member of £13.85.

The Board asked that their congratulations be taken back to WYPF for their recent achievement in winning the Scheme Governance Award, hosted by the LAPF Investment Awards, on 19 September 2017.

RESOLVED

          That the report be noted.