The Pension Fund Panel of Hounslow Council met on Thursday 18 June 2026 to review the fund's performance, administration, and risk management. Discussions were scheduled to cover the Annual Business Plan, quarterly performance reports, the Pension Fund Risk Register, and updates on investment advice and administration.

Annual Business Plan 2026/27 and Training Update

The panel was scheduled to consider the proposed work programme for the Pension Fund Panel for the year 2026/27. This plan indicated an increased number of policy and strategy documents to be presented for approval, a consequence of changes to the Local Government Pension Scheme (LGPS) Regulations. These regulations have strengthened the knowledge and skills required of Pension Fund Panel members, necessitating active engagement in structured learning. The report pack included a training log detailing training undertaken by members of the Pension Board, Pension Fund Panel, and officers, as well as upcoming training opportunities. The LGPS (Amendment) Regulations 2026 require existing policies to be updated and new policy documents to be developed. Panel members were asked to respond to a training email regarding attendance at the Local Government Pension Scheme (LGPS) fundamentals training, delivered by the Local Government Association (LGA).

Quarterly Overview and General Matters

This report provided an overview of the investment performance and value of the fund as at 31 March 2026, along with general administrative and regulatory matters. The net assets of the fund were reported as £1,395.9 million, a decrease of £82.8 million from the previous quarter. The report highlighted the successful implementation of system improvements to include McCloud remedy information in the 2026 Annual Benefit Statements, addressing a prior limitation. The fund had also connected to the national Pensions Dashboard Programme. An update was also provided on the Government's response to two LGPS consultations: Access & Fairness and Access & Protections.

The investment performance for the quarter ending 31 March 2026 showed an overall fund return of -5.3%, underperforming the benchmark of -1.2%. The market value of the fund's investments at this date was £1,389.5 million. The report noted that some actual allocations were outside strategic targets as the new investment strategy was still being implemented, with an overweight position in equity and underweights in diversifying assets.

The PIRC (Pensions & Investment Research Consultants) voting report for Q1 2026 indicated that the fund participated in 68 company meetings, casting votes on 974 resolutions. Opposition was concentrated around executive pay schemes, remuneration reports, and certain auditor appointments.

The report also detailed the Pension Fund's net dealing with members from 2022/23 to 2025/26, showing an increase in total member income and total expenditure on members. The net dealings with members for 2025/26 were a deficit of £19,422,356.

Updates were provided on administration and regulatory matters, including the Breaches Register, which indicated that late contribution payments had been assessed as not material and therefore not reported to The Pensions Regulator. The McCloud remedy information would be included in the 2026 Annual Benefit Statements due to a system update. The fund had successfully connected to the Pensions Dashboard Programme. The report also summarised the Government's response to the LGPS consultations on Access & Fairness and Access & Protections, noting that councillors would have access to the LGPS from 11 May 2026, requiring them to opt in.

Pension Fund Administration Performance Report and Regulatory Update

This report from West Yorkshire Pension Fund (WYPF), which administers the Hounslow Pension Fund, covered performance and benchmarking for the period 1 January 2026 to 31 March 2026. Key Performance Indicators (KPIs) for Priority 1 work areas, such as retirement quotes and actuals, and death processes, were presented. While retirement quotes and actuals consistently exceeded targets, death processes showed improved performance but inconsistent trends requiring ongoing monitoring. The McCloud remedy, workload volumes, and staffing levels were noted as impacting performance in medium and low priority work areas, with manual calculations and software limitations identified as bottlenecks.

The report detailed the number of outstanding processes by aging, showing a decrease in the total number of open processes to 1,214 by 31 March 2026. Information on the Internal Dispute Resolution Procedure (IDRP) and cases referred to the Pensions Ombudsman was also included. Customer survey results indicated a 3.4% return rate, with a mix of positive comments and suggestions for improvement, particularly regarding digitalisation and communication clarity. Current technical issues and web registrations were also outlined.

Pension Fund Risk Register

The Pension Fund Panel was scheduled to review the updated risk register for the period ending 31 March 2026. This report detailed the main risks affecting the Hounslow Pension Fund and the mitigations in place. A new risk, Geopolitical Risk, had been added to the register to discretely assess and monitor the impact of ongoing global political tensions on the fund. The register categorised risks under Funding and Investment, Cyber risk, Administration Risk, and Resources and Skills. The report outlined the methodology for assigning risk ratings based on impact and likelihood, with definitions and examples provided for each category.

Investment Adviser's Quarterly Report

The panel was scheduled to receive the Investment Adviser's Quarterly Report, which would provide an update on the fund's investments. This report, prepared by Aon Investments Limited, would detail investment performance and strategic positioning.

Other Scheduled Items

The meeting agenda also included the confirmation of minutes from previous meetings, the exclusion of press and public for confidential items, and the date of the next meeting.