The Worcestershire Pension Board is scheduled to convene on Friday, 19 June 2026, to review a range of important financial and governance matters concerning the Worcestershire Pension Fund. Key discussions are expected to centre on the Fund's Business Plan, Risk Register, and the unaudited annual accounts for the 2025/26 financial year. The Board will also receive updates on governance, compliance, communications, and training initiatives.

Business Plan

The Board is set to review the Worcestershire Pension Fund's Business Plan for 2026/2027. This plan outlines the Fund's priorities and planned activities for the upcoming year, detailing how services will be delivered and maintained to a high standard while meeting regulatory requirements and stakeholder expectations. The report highlights ongoing projects such as the McCloud remedy, the Pensions Dashboard Programme, and the AVC review. It also details the Fund's performance monitoring through Key Performance Indicators (KPIs), noting that while most KPIs meet or exceed targets, two measures have fallen below the internal benchmark of 90% over the last quarter. These relate to the notification of the date of joining for new starters and the processing of letters detailing transfer-in quotes.

Risk Register

A review of the Worcestershire Pension Fund's Risk Register is scheduled. This document is kept under regular review and has been updated following an officers' review in May 2026. Three changes have been identified from the previous iteration, with internal controls added to Compliance and Legal Risk 4, and the failure to undertake or implement findings from Independent Governance Reviews added to Compliance and Legal Risk 5. Operational and Technological Risk 8 has been updated to reflect an increase in administration work due to Local Government Reorganisation and survivor benefit remediation. Mitigating actions for these risks have also been updated.

Governance and Compliance Update

The Board will receive an update on governance and compliance matters within the LGPS England and Wales. This includes information on the Pensions Schemes Act 2026, Access and Fairness reforms, and the LGPS (Amendment) Regulations 2026, which introduce governance changes including the requirement to appoint a Senior LGPS Officer by October 2026. The Board will also review the Pensions Administration Strategy and the Risk Management Policy. The report notes that senior officers have reviewed declared conflicts of interest and are satisfied that no conflicts requiring action have been identified.

Pension Fund Unaudited Annual Accounts 2025/26

The unaudited Pension Fund Annual Accounts for 2025/26 will be presented for review. Key highlights from the accounts indicate a revenue surplus of £17.7 million before net investment returns, driven by an increase in membership and market value of investments. The net assets of the Fund available to pay benefits at the end of the financial year are £4.553 billion. The report also details the process for valuing Level 3 investments, which are considered the most illiquid and hardest to value, and notes that differences in valuation each year are typically below the auditors' materiality levels.

UK Stewardship Code 2026 Updated Submission

The Board will be informed about the submission of Worcestershire Pension Fund's application for signatory status under the UK Stewardship Code 2026. This updated Code places greater emphasis on demonstrating tangible stewardship outcomes, strengthening accountability, and providing clearer evidence of how stewardship activities support long-term value creation. The submission covers the reporting period to 31 December 2025 and highlights the Fund's approach to integrating stewardship into its investment strategy, governance, and risk management. The Fund expects to learn the outcome of its latest submission in August 2026.

LGPS Central Update and Draft Investment Strategy Statement

The Board is scheduled to receive an update on LGPS Central, the investment pooling vehicle for several LGPS funds. Additionally, a draft Investment Strategy Statement is to be presented. This statement outlines the Fund's approach to managing its investments to achieve long-term financial sustainability and meet pension liabilities.

Communications and Training Update

An update on communications and training activities will be provided. This includes insights into website usage, member portal registration levels, and training delivered to active members, the pensions team, and Board and Committee members. The report highlights the positive feedback received for the Pensions Basics training sessions and details upcoming training opportunities and conferences.

Forward Plan

Finally, the Board will review and comment on the proposed Forward Plan, which outlines anticipated future reporting items. This plan may be subject to change due to forthcoming regulatory changes to the LGPS.