1.0 The regulations

1.1 The Pension Administration Strategy is concerned with ensuring that WYPF runs smoothly for its members employer organisations and WYPF.

1.2 The Pension Administration Strategy is made in accordance with Regulation 65 of the Local Government Pension Scheme (Administration) Regulations 2008 which provides amongst other things that:

(1) An administering authority may prepare a written statement of the authority's policies in relation to such of the matters mentioned in paragraph (2) as it considers appropriate ('its pension administration strategy') and, where it does so, paragraphs (3) to (7) apply.

(2) The matters are:

• (a) procedures for liaison and communication with employing authorities in relation to which it is the administering authority ('its employing authorities');
  
  
• (b) the establishment of levels of performance which the administering authority and its employing authorities are expected to achieve in carrying out their Scheme functions by:
• 1. the setting of performance targets,
     
     
  2. the making of agreements about levels of performance and associated matters, or
     
     
  3. such other means as the administering authority considers appropriate;
  
  
• (c) procedures which aim to secure that the administering authority and its employing authorities comply with statutory requirements in respect of those functions and with any agreement about levels of performance;
  
  
• (d)  procedures for improving the communication by the administering authority and its employing authorities to each other of information relating to those functions;
  
  
• (e)  the circumstances in which the administering authority may consider giving written notice to any of its employing authorities under regulation 43(2) on account of that authority's unsatisfactory performance in carrying out its Scheme functions when measured against levels of performance established under sub-paragraph (b);
  
  
• (f)  the publication by the administering authority of annual reports dealing with:
  
• 1. the extent to which that authority and its employing authorities have achieved the levels of performance established under sub-paragraph (b), and
     
     
  2. such other matters arising from its pension administration strategy as it considers appropriate; and
  
  
• (g)  such other matters as appear to the administering authority, after consulting its employing authorities and such other persons as it considers appropriate, to be suitable for inclusion in that strategy.

1.3 The Pension Administration Strategy is published to WYPF's employing authorities and to the Secretary of State.


2 The strategy

2.1 Procedures for liaison and communication with employing authorities

2.1.1 The employer will nominate a person to act as the 'employer representative' and WYPF's primary contact. The employer will notify WYPF who that person is and ensure that changes of nominated person are notified to WYPF immediately.

2.1.2 WYPF employs a multi-channel approach to liaison and communication with employing authorities to ensure that employer needs are constantly and consistently met.

2.1.3 Channels include:

• The secure 'WYPF Employers Web Site', www.wypfemployers.org.uk, gives access to:
  
  
• • information about WYPF and the Local Government Pension Scheme
    
    
  • administration forms to download, print and use as needed
    
    
  • contact information for key WYPF representatives who can advise employers on the scheme and its application to individual cases, troubleshooting where necessary
  
  
• 'Pension Matters', which is WYPF's monthly journal for employing authority employees who contribute to the smooth operation of the scheme. Pension Matters is delivered direct to employer representatives by e-mail and is published on the WYPF employer web site
  
  
• WYPF news by e-mail highlight up to the minute information and scheme developments direct to employer representatives
  
  
• Employer representatives can distribute pension information to employees who contribute to the smooth operation of the scheme within their organisation as they wish
  
• Employer update seminars are held as and when required covering scheme development issues
  
  
• An Annual Meeting for Employers is held.
  
  
• WYPF will issue an annual report showing the extent to which we and employing authorities have achieved the levels of performance established under this strategy and such other matters arising from the pension administration strategy as we consider appropriate.

2.2 Levels of performance

2.2.1 WYPF and employing authorities must have regard to the current version of the Pension Administration Strategy when carrying out their functions.

Levels of performance for employing authorities

2.2.2 The employer must supply notifications (or approved alternatives) to WYPF as follows:

1. New starters (NM1 form): within 6 weeks of the employee joining.
   
   
2. Change in member's details (RM forms): within 6 weeks of the event.
   
   
3. Early leavers (LV1 form): within 6 weeks of the employee leaving.
   
   
4. Retirement Notifications (RT2 form and all other required documents) must be received by WYPF at least 10 working days before the last day of employment.
   
   
5. Death in membership (Form D1): within 3 working days of the death of the member.

2.2.3 The Occupational Pension Schemes (Disclosure of Information) Regulations 1996 require that for retirements before age 65 the member must receive their benefits no later than two months after retirement and for retirements at age 65 no later than one month after the date of retirement.

2.2.4 Employers will provide WYPF with a year-end data return as at 31 March each year in an approved format no later than 31 May of that year or the next working day.

2.2.5 The employer will ensure that member and employer contributions are deducted at the correct rate, including contributions due on leave of absence with reduced or no pay, maternity leave and any additional contributions WYPF request the employer to collect.

2.2.6 The employer is responsible for exercising the discretionary powers given to employers by the regulations. The employer is also responsible for publishing its policy in respect of the key discretions as required by the regulations to its employees.

2.2.7 WYPF is not responsible for verifying the accuracy of any information provided by the employer for the purpose of calculating benefits under the provisions of the Local Government Pension Scheme and the Discretionary Payments Regulations. That responsibility rests with the employer.

2.2.8 Any over-payment resulting from inaccurate information supplied by the employer shall be recovered from the employer.

2.2.9 In the event of WYPF being fined by The Pensions Regulator, this fine will be passed on to the relevant employer where that employer's action or inaction (e.g. the failure to notify a retirement within the time limits described above), cause the fine.

2.2.10 Under the Data Protection Act 1998, the employer will protect from improper disclosure any information about a member contained (where applicable) on any item sent from WYPF. It will also only use information supplied or made available by WYPF for the operation of the Local Government Pension Scheme. Levels of performance for WYPF

2.2.11 WYPF will issue forms, newsletters, booklets and such other materials as are necessary for the administration of the Scheme.

2.2.12 WYPF will support employers in running the Local Government Pension Scheme by:

1. providing a WYPF representative to give information advice and assistance on the scheme and its administration.
   
   
2. distributing regular technical information.

2.2.13 Working co-operatively with employers WYPF aims to:

1. pay the retirement grant into the member's bank account on the first day of retirement.
   
   
2. supply all new employees eligible to join the Local Government Pension Scheme with a copy of the employees' guide to the pension scheme within 2 months of becoming employed.
   
   
3. accept the member contribution rate that is determined by the employer

2.2.14 WYPF will produce benefit illustrations for members each year where the employer has submitted useable and accurate year-end financial data.

2.2.15 WYPF will supply any information to employers necessary to ensure the smooth running of the pension fund.

2.2.16 WYPF will work with employers to ensure that retirement is as smooth a process as possible for the member and employer.

2.2.17 Under the Data Protection Act 1998, WYPF will protect from improper disclosure any information held about a member. Information held will be used by WYPF for the operation of the Local Government Pension Scheme.

2.2.18 WYPF is responsible for exercising the discretionary powers given to it by the regulations. WYPF is also responsible for publishing its policy to its members in respect of the key discretions as required by the regulations.

2.2.19 WYPF aims to provide a service to members that meet the requirements of the Occupational Pension Schemes (Disclosure of Information) Regulations 1996. WYPF uses the Quality Standard ISO 9001:2000 in pursuit of this aim.

2.3 Payments by employing authorities to WYPF

2.3.1 Employing authorities will make all payments required under the Local Government Pension Scheme, and any related legislation, promptly to WYPF and/or its Additional Voluntary Contribution providers (Scottish Widows/Equitable Life) as appropriate.

• Payment Dates
  Contributions can be paid over at any time but the latest date is the 19th of the month immediately following the month in which deductions were made. For example contributions deducted in April must be received by WYPF by 19th May at the latest. Where the 19th falls on a weekend or Bank Holiday, the due date becomes the last working day prior to the 19th. The employer will pay additional voluntary contributions to the relevant AVC Provider within one week of them being deducted.

• Late Payment
  The employer is reported to The Pensions Regulator where contributions are received late in accordance with the regulators code of practice.

• Payment Method
  Contributions (but not Additional Voluntary Contributions) should be paid to WYPF on a monthly basis by cheque payable to 'West Yorkshire Pension Fund' or direct to WYPF's bank account by BACS payment.

• Remittance Advices
  The employer must submit an advice with their payment stating the month and the amount of the payment split between Employees' and the Employer's contributions.
  

2.4 Additional costs incurred as a result of employing authority's level of performance

2.4.1 Where additional costs have been incurred by WYPF because of the employing authority's level of performance in carrying out its functions under the LGPS, the additional costs will be recovered from that employing authority.

2.4.2 WYPF will give written notice to the employing authority stating -

• (a) the reasons for the additional cost incurred;
  
  
• (b) that the employing authority should pay the additional costs attributable to that authority's level of performance;
  
  
• (c) the basis on which the specified amount is calculated; and
  
  
• (d) the relevant provisions of the Pension Administration Strategy under which the additional costs have arisen.

2.4.3 Any disagreement regarding the amount of additional cost being recovered will be decided by the Secretary of State who will have regard to -

• (a) the provisions of the pension administration strategy that are relevant to the case; and
  
  
• (b) the extent to which WYPF and the employing authority have complied with those provisions in carrying out their functions under these Regulations.

2.5 Interest on late payments

2.5.1 In accordance with the LGPS Regulations, interest will be charged on any amount overdue from an employing authority by more than one month.

2.5.2 Interest will be calculated at one percentage point above base rate on a day to day basis from the due date to the date of payment and compounded with three-monthly rests.


3 Review of the pension administration strategy

3.1 The Pension Administration Strategy will be kept under review by WYPF.

3.2 WYPF will constantly seek to improve communications between itself employing authorities.

3.3 Employers may make suggestions to improve the Pension Administration Strategy for consideration by WYPF at any time.

3.4 WYPF will revise the Pension Administration Strategy after consulting employing authorities and any other persons considered appropriate following a material change in any policy covered in the strategy. The revised Pension Administration Strategy is published to WYPF's employing authorities and to the Secretary of State.

3.5 Employers are welcome to discuss any aspect of the Pension Administration Strategy with WYPF at any time. Employers are welcome to visit WYPF at any time, subject to notice.


4 Employer contribution rates and administration costs

4.1 Employers' contribution rates are not fixed. Employers are required to pay whatever is necessary to ensure that the portion of the fund relating to their organisation is sufficient to meet its liabilities.

4.2 WYPF has an actuarial valuation undertaken every three years by the Fund's actuary. The actuary balances the funds assets and liabilities in respect of each employer, and assesses the appropriate contribution rate for each employer to be applied for the subsequent three years.

4.3 The cost of running WYPF is charged directly to the Fund, and the actuary takes these costs into account in assessing the employers' contribution rates.

4.4 If an employer wishes WYPF to carry out work not attributable to administration they will be charged directly for the cost of that work.

Stuart Imeson
Director - WYPF
Date: April 2008