The Pension Fund Committee met on Thursday 18 June 2026 to discuss upcoming legislative changes to the Local Government Pension Scheme (LGPS), review the fund's risk management, and receive updates on administration and investment performance. Key discussions included noting the implications of the Fit for the Future update and considering a recommendation for an exit credit payment.

Fit for the Future Update

The committee received an update on significant legislative and regulatory changes affecting the LGPS, primarily stemming from the Pension Schemes Act 2026, which were due to come into effect on 30 June 2026. These changes necessitate the appointment of a senior LGPS officer and an independent person by 31 December 2026, and the publication of an investment strategy by 31 March 2027. The fund is already compliant with the requirement for assets to be under pooled management, having signed an agreement with London CIV in May 2026. The committee noted the implications of these changes and considered the key areas the fund needs to address for compliance. A councillor raised concerns about the increasing complexity and cost of managing the pension fund due to new legislative obligations. Officers explained that efforts are being made to assign new roles to existing staff to avoid creating new posts and to find cost-effective solutions.

Risk Management Review

The committee reviewed the fund's updated administration and governance risk registers. These registers detail the risks associated with managing the scheme, including current assessments and planned mitigation actions. Key administration risks identified were data quality and administration, cyber security and fraud, and the failure of employers to collect or pay pension contributions. Governance risks included the knowledge and understanding of committee members and officers regarding the new Fit for the Future regulations. The committee noted the updated risk registers, with a plan to merge them into a single, more accessible document in the future.

Administration, Legislative and Exit Credit Update

An update was provided on the administration performance by West Yorkshire Pension Fund (WYPF), which manages the Barnet Fund's administration. Overall performance remained strong, with over 95% of cases completed within target. Progress was noted on reducing backlog cases, with all historic leaver cases now completed. The report also detailed legislative updates, including the increase in the normal minimum pension age to 57 in April 2028 and the new regulations allowing councillors and mayors to opt into the LGPS from 11 May 2026, with approximately 60% of councillors having done so. The committee was asked to note a recommendation for an exit credit payment to be made to an exiting employer, Re Enterprises Limited, as detailed in an exempt appendix.

Investment Performance Report

The committee received a quarterly report on the Pension Fund's investment performance for the quarter ending 31 March 2026. The fund's total value was £1.86 billion, with a net negative return of -0.8% over the quarter, underperforming its benchmark by -0.4%. The report highlighted that the fund is now fully pooled and compliant with government requirements following the signing of an Investment Management Agreement with London CIV in May 2026. The strategic asset allocation was updated to reflect the new Investment Strategy Statement approved in March 2025. Key investment activities included the transition of a secured finance allocation, with proceeds expected at the end of June 2026 for reinvestment by London CIV. The committee noted the fund's investment performance and activities for the quarter.