The Pension Fund Committee and Pension Board of Scottish Borders Council are scheduled to meet on Thursday 18 June 2026. The meeting's agenda includes a review of the Pension Fund's investment performance, financial outturn for the past year, and future business plans. Several reports are scheduled for consideration, covering areas such as internal audit, risk management, governance policies, and administrative performance.

Pension Fund Investment and Performance Sub-Committee

The committee will consider the minutes from the Pension Fund Investment and Performance Sub-Committee meeting held on 23 February 2026. This sub-committee is responsible for reviewing investment strategy and monitoring investment performance.

Internal Audit Annual Assurance Report 2025/26

A report by the Chief Officer Audit & Risk, Jill Stacey, will be presented, offering an independent assurance opinion on the adequacy and effectiveness of the SBC Pension Fund's governance, risk management, and internal control environment for the 2025/26 financial year. The report is expected to confirm that the systems in place are appropriate and effective, with improvements noted during the year.

Pension Fund Risk Register Update

The committee will receive an update on the Pension Fund Risk Register, focusing on the Administration category of risks. This report, prepared by Chief Officer Audit & Risk, Jill Stacey, will detail the outcomes of a review session held on 20 May 2026. It will provide specific updates on risks such as over-reliance on key officers, failure to process payments on time, failure to collect and account for contributions, data management, and cyber security.

Governance Policy and Compliance Statement 2026

The Director of Finance, Suzy Douglas, will present the revised Governance Policy and Compliance Statement for the Scottish Borders Council Pension Fund for 2026. This statement is reviewed annually and will be included in the Pension Fund's Annual Report and Accounts 2025/26, demonstrating compliance with published best practice guidance.

General Code of Practice Compliance Tracker

This report by the Director of Finance, Suzy Douglas, presents the General Code Compliance Tracker for approval. Following the introduction of The Pension Regulator's (TPR) General Code in March 2024, Pension Fund Officers have completed a compliance tracker. The report indicates that the Scottish Borders Council Pension Fund demonstrates good governance and follows best practice guidelines set out in the new code. Outstanding actions related to the Business Continuity Plan, Data Readiness and Information Asset Review, and the Cyber Security Policy's Incident Response Plan are noted, with completion dates set for June and September 2026.

Business Plan 2026/27 - 2028/29

The Director of Finance, Suzy Douglas, will present the Business Plan for the Pension Fund for the period 2026/27 to 2028/29. This plan identifies actions to be delivered over the next three years to support the Fund's aims and objectives, aligning with the Myners Principle relating to effective decision-making. The report will also note completed actions for 2025/26.

Pensions Administration Performance 2025/26

The Director of People Performance and Change, Clair Hepburn, will present the Pensions Administration Performance for 2025/26. The report highlights that all payments, lump sums, and monthly pensions were made on time. Key projects completed during the year include connection to the Pensions Dashboard Ecosystem and the implementation of a new Member Self Service system with enhanced security. The report will be submitted for approval for inclusion in the Fund's Annual Report and Accounts.

Attendance 2025/26 and Training Plan 2026/27

This report by the Director of Finance, Suzy Douglas, compares the actual meeting and training attendance for Pension Fund Committee and Board members against the requirements of the current Training Policy. It also proposes key training areas for 2026/27, focusing on Financial Markets and Products Knowledge, Actuarial Valuations, Pension Administration, and Responsible Investment, based on a knowledge and skills self-assessment.

Pension Fund Budget Outturn to 31 March 2026

The Director of Finance, Suzy Douglas, will present the final out-turn position of the Pension Fund for 2025/26 and the approved budget for 2026/27. The report indicates a budget underspend of £309k for 2025/26, primarily due to reduced investment management fees and lower administration fees. The report will also provide an update on the Fund's cashflow position, demonstrating its ability to meet benefit payments.

Draft Annual Report and Accounts 2025/26

The Director of Finance, Jill Murray, will present the draft Annual Report and Accounts for the Pension Fund for 2025/26. This report is for scrutiny and approval by the committee and board before submission to the External Auditors, Audit Scotland, by the statutory deadline of 30 June 2026. The report will be subject to audit, and any amendments will be presented to the committee and board before final publication.

Information Update

This briefing paper by the Director of Finance, Jill Murray, provides updates on several monitored areas and ongoing work. It includes feedback from the Independent Professional Observer, Andy Todd, updates on responsible investment activities, changes in Pension Board and Investment Sub-Committee membership, and information on the Scheme Advisory Board (SAB) actions and working groups. It also highlights the launch of the National LGPS Procurement Framework for Cost Transparency and Benchmarking Services and lists upcoming training opportunities and future meeting dates.

Local Government Pension Scheme (LGPS) Vision Statement

The Director of Finance, Jill Murray, will present a report seeking committee approval to collaborate with other Scottish LGPS Funds on a proposed Vision Statement. This statement outlines opportunities for collaboration in investment pooling, sharing expertise, improving efficiency, and enhancing collective governance. The report also requests approval for officers to engage in developing a detailed Memorandum of Understanding (MoU) for future collaboration.

The meeting will also address private business items, including minutes from previous meetings and reports on investment monitoring and specific fund recommendations. These items are scheduled to be taken in private session.