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Governance Policy Statement
1.Introduction
1.1 The Governance Policy Statement has been prepared in accordance with the requirements of the provisions of the Local Government Pension Scheme (England and Wales)(Amendment)(No.2) Regulations 2005.
1.2 City of Bradford Metropolitan District Council, as administering authority for West Yorkshire Pension Fund (WYPF), has delegated legal and strategic responsibility for the WYPF to the Corporate Governance and Audit Committee. The Council has established two bodies to assist and support the Corporate Governance and Audit Committee in overseeing the Fund, namely the WYPF Investment Advisory Panel and the WYPF Joint Advisory Group. The Director - West Yorkshire Pension Fund has day to day responsibility for the management of the Fund. The Strategic Director (Corporate Services) at Bradford Council, as the Council's Section 151 Officer, has responsibility for the preparation of the Fund's year-end accounts.
2. WYPF Investment Advisory Panel
2.1. The WYPF Investment Advisory Panel (hereinafter referred to as 'the Panel') comprises nineteen representatives. WYPF covers the geographical areas of five metropolitan authorities, namely the West Yorkshire District Councils of Bradford (administering authority), Calderdale, Kirklees, Leeds and Wakefield. Each of the five West Yorkshire District Councils has two councillor representatives on the Panel.
2.2 The other nine representatives on the Panel comprise three Trade Union representatives (two from UNISON and one from GMB), two external investment advisers, two scheme members, the Director - West Yorkshire Pension Fund, and a Chief Finance Officer from the West Yorkshire District Councils on a two year rotational basis. A facility also exists for an additional councillor representative to be co-opted onto the Panel each year in the event that one of the three largest political groups in West Yorkshire is not represented on the Panel through the ten councillors nominated by the five District Councils. The co-opted councillor will be from Bradford Council as administering authority.
2.3 All nineteen representatives on the Panel have voting rights.
2.4 For each municipal year a Chair of the Panel is elected from the two Bradford Council representatives on the Panel, and a Deputy Chair is elected from other members on the Panel.
2.5 The Panel meets on a quarterly basis in January, April, July and October each year. The Panel may hold a 'special' meeting at any time in the year to deal with any urgent or specific areas of business. There is no required quorum for a meeting of the Panel.
2.6 The Panel has overall responsibility for overseeing and monitoring the management of WYPF's investment portfolio and investment activity.
2.7 In this capacity, the Panel will be responsible for formulating the broad future policy for investment. Not only will it be necessary to ensure that monies accruing to the Fund are invested to greatest advantage, it will also have responsibility for monitoring the progress of all existing investments. As with all trustees, members of the Panel should not allow their own personal interests and social, moral or political views to influence their decisions.
2.8 At the meetings of the Panel the overall investment portfolio will be reviewed and any necessary adjustments to the spread of investments made as well as decisions taken about the investment of new money.
2.9 Prior to each meeting, the Director - West Yorkshire Pension Fund will arrange to supply all members of the Panel with various information to enable these tasks to be undertaken. This will include a current distribution of the assets of the Fund, schedules of all investments purchased or sold since the previous Panel meeting, views from the Fund's external investment advisers, and a complete list and up-to-date valuation of the investment portfolio.
2.10 Decisions are taken on how the new money available for investment is to be allocated to major asset classes on the portfolio. However, the Panel having once determined the level of overall investment, the specific selection of the individual securities will be left at the discretion of the in-house investment managers in the light of market conditions.
2.11 The external investment advisers on the Panel will be able to guide other members of the Panel in their investment adjudication.
2.12 In the event of conflict of opinions arising at Panel meetings relating to any investment proposal, the proposal will be put to the vote.
2.13 The Corporate Governance and Audit Committee shall have the right, in accordance with Financial Regulations, to overrule any decision taken by the Panel if, in its opinion, the decision is not in the best interests of the WYPF.
3. WYPF Joint Advisory Group
3.1 The WYPF Joint Advisory Group (hereinafter referred to as 'the Group') comprises twenty representatives. There are three councillor representatives from each of the five West Yorkshire District Councils, three Trades Union representatives, and two Scheme members. All twenty representatives on the Group have voting rights.
3.2 There is no set pattern for meetings of the Group, and the Group will meet on such days as they may determine.
3.3 For each municipal year, a Chair is elected from amongst the Bradford Council representatives and a Deputy Chair is elected from amongst the members from the five constituent Councils.
3.4 The Group has overall responsibility for overseeing and monitoring the WYPF's Pensions Administration function, and for reviewing and responding to proposed changes to the Local Government Pension Scheme. In addition the Group will approve the budget estimates for the Pensions Administration and Investment Management functions of WYPF, and also receive the WYPF's Annual Report and Accounts.
3.5 In terms of quorum arrangements, no business shall be transacted at any Group meeting unless at least five councillor representatives are present representing not less than four constituent Councils.
3.6 The Corporate Governance and Audit Committee shall have the right, in accordance with Financial Regulations, to overrule any decision taken by the Group if, in its opinion, the decision is not in the best interests of the WYPF.
July 2007
1.Introduction
1.1 The Governance Policy Statement has been prepared in accordance with the requirements of the provisions of the Local Government Pension Scheme (England and Wales)(Amendment)(No.2) Regulations 2005.
1.2 City of Bradford Metropolitan District Council, as administering authority for West Yorkshire Pension Fund (WYPF), has delegated legal and strategic responsibility for the WYPF to the Corporate Governance and Audit Committee. The Council has established two bodies to assist and support the Corporate Governance and Audit Committee in overseeing the Fund, namely the WYPF Investment Advisory Panel and the WYPF Joint Advisory Group. The Director - West Yorkshire Pension Fund has day to day responsibility for the management of the Fund. The Strategic Director (Corporate Services) at Bradford Council, as the Council's Section 151 Officer, has responsibility for the preparation of the Fund's year-end accounts.
2. WYPF Investment Advisory Panel
2.1. The WYPF Investment Advisory Panel (hereinafter referred to as 'the Panel') comprises nineteen representatives. WYPF covers the geographical areas of five metropolitan authorities, namely the West Yorkshire District Councils of Bradford (administering authority), Calderdale, Kirklees, Leeds and Wakefield. Each of the five West Yorkshire District Councils has two councillor representatives on the Panel.
2.2 The other nine representatives on the Panel comprise three Trade Union representatives (two from UNISON and one from GMB), two external investment advisers, two scheme members, the Director - West Yorkshire Pension Fund, and a Chief Finance Officer from the West Yorkshire District Councils on a two year rotational basis. A facility also exists for an additional councillor representative to be co-opted onto the Panel each year in the event that one of the three largest political groups in West Yorkshire is not represented on the Panel through the ten councillors nominated by the five District Councils. The co-opted councillor will be from Bradford Council as administering authority.
2.3 All nineteen representatives on the Panel have voting rights.
2.4 For each municipal year a Chair of the Panel is elected from the two Bradford Council representatives on the Panel, and a Deputy Chair is elected from other members on the Panel.
2.5 The Panel meets on a quarterly basis in January, April, July and October each year. The Panel may hold a 'special' meeting at any time in the year to deal with any urgent or specific areas of business. There is no required quorum for a meeting of the Panel.
2.6 The Panel has overall responsibility for overseeing and monitoring the management of WYPF's investment portfolio and investment activity.
2.7 In this capacity, the Panel will be responsible for formulating the broad future policy for investment. Not only will it be necessary to ensure that monies accruing to the Fund are invested to greatest advantage, it will also have responsibility for monitoring the progress of all existing investments. As with all trustees, members of the Panel should not allow their own personal interests and social, moral or political views to influence their decisions.
2.8 At the meetings of the Panel the overall investment portfolio will be reviewed and any necessary adjustments to the spread of investments made as well as decisions taken about the investment of new money.
2.9 Prior to each meeting, the Director - West Yorkshire Pension Fund will arrange to supply all members of the Panel with various information to enable these tasks to be undertaken. This will include a current distribution of the assets of the Fund, schedules of all investments purchased or sold since the previous Panel meeting, views from the Fund's external investment advisers, and a complete list and up-to-date valuation of the investment portfolio.
2.10 Decisions are taken on how the new money available for investment is to be allocated to major asset classes on the portfolio. However, the Panel having once determined the level of overall investment, the specific selection of the individual securities will be left at the discretion of the in-house investment managers in the light of market conditions.
2.11 The external investment advisers on the Panel will be able to guide other members of the Panel in their investment adjudication.
2.12 In the event of conflict of opinions arising at Panel meetings relating to any investment proposal, the proposal will be put to the vote.
2.13 The Corporate Governance and Audit Committee shall have the right, in accordance with Financial Regulations, to overrule any decision taken by the Panel if, in its opinion, the decision is not in the best interests of the WYPF.
3. WYPF Joint Advisory Group
3.1 The WYPF Joint Advisory Group (hereinafter referred to as 'the Group') comprises twenty representatives. There are three councillor representatives from each of the five West Yorkshire District Councils, three Trades Union representatives, and two Scheme members. All twenty representatives on the Group have voting rights.
3.2 There is no set pattern for meetings of the Group, and the Group will meet on such days as they may determine.
3.3 For each municipal year, a Chair is elected from amongst the Bradford Council representatives and a Deputy Chair is elected from amongst the members from the five constituent Councils.
3.4 The Group has overall responsibility for overseeing and monitoring the WYPF's Pensions Administration function, and for reviewing and responding to proposed changes to the Local Government Pension Scheme. In addition the Group will approve the budget estimates for the Pensions Administration and Investment Management functions of WYPF, and also receive the WYPF's Annual Report and Accounts.
3.5 In terms of quorum arrangements, no business shall be transacted at any Group meeting unless at least five councillor representatives are present representing not less than four constituent Councils.
3.6 The Corporate Governance and Audit Committee shall have the right, in accordance with Financial Regulations, to overrule any decision taken by the Group if, in its opinion, the decision is not in the best interests of the WYPF.
July 2007
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