1. West Yorkshire Pension Fund Councillor Ian Greenwood Chair of West Yorkshire Pension Fund Joint Advisory Group and Investment Advisory Panel

2. West Yorkshire Pension Fund – Funding Levels

3. Factors Affecting Valuation Outcome Liabilities Gilt Yields Inflation Increase in Earnings Mortality AssumptionsAssets Expected Investment Returns Employers’ Contributions Future Service Assumptions Deficit/Surplus Position Recovery Period Phasing-In of Changes in Level of Contributions

4. Valuation 200120042007 March 2008 October 2008 £m Assets4,6664,5637,3067,2725,700 Liabilities4,3535,5558,1029,5189,100 (Deficit)/Surplus313(992)(796)(2,246)(3,400) Funding Level107%82%90%76%63% West Yorkshire Pension Fund Assets and Liabilities

5. 2007 Actuarial Valuation The analysis of the change in deficit between 2004 and 2007 is as follows: Analysis£m Deficit as at 31 March 2004-992 Investment Gain versus valuation assumptions 1,359 Change in gilt yields-618 Change in assumptions (e.g. mortality) -393 Impact of smoothing and phasing of contributions -202 Other factors (e.g. membership movements) +50 Deficit as at 31 March 2007-796

6. 2007/082006/072005/062004/05 £m Contributions Employers206.0190.2156.5132.5 Employees93.690.284.678.6 299.6280.4241.1211.1 Benefits Payable Pensions207.8192.0179.2168.3 Lump Sums76.766.537.136.9 15.121.924.85.9 Investment Income219.7196.6183.5155.0 Positive Cash Flow234.8218.5208.3160.9 West Yorkshire Pension Fund Positive Cash flow

7. 7 Mercer

8. 8

9. 9

10. 10 Mercer

11. UK Equity Risk Premium

12. Valuation of the US Stock Market

13. 2001 Valuation2004 Valuation2007 Valuation Future Service11.310.213.2 Recover (Surplus)/Deficit(2.7)3.82.6 8.614.015.8 West Yorkshire Pension Fund Average Employers’ Contribution Rate