The Pension Fund Committee of Kent Council is scheduled to convene on Tuesday, 23 June 2026. The meeting's agenda includes discussions on the fund's governance, administration, and investments, as well as the implications of local government reorganisation.

Fund Governance and Administration Updates

The committee is set to receive updates on the overall governance of the Kent Pension Fund. This includes a review of the draft budget outturn for 2025/26, which is projecting an increase in costs primarily due to higher investment management expenses. The report also details policy updates, including branding changes to ensure consistency across the Kent Pension Fund (KPF) website, with the understanding that further material changes may be required once new regulatory and statutory guidance is released.

Significant attention is also scheduled for the administration of the pension fund. A detailed report will cover operations, engagement, and systems, technical and training matters, and the handling of IDRPs (Independent Designated Pension Scheme Representatives), complaints, compliments, and comments. This section of the report highlights ongoing demand across various communication channels, with a continued shift towards digital interaction. It also addresses data quality, noting a significant decline in scheme-specific data that requires remediation. The report will also cover the progress of the McCloud implementation and the impact of new regulations concerning survivor benefits and death grants.

Furthermore, the committee will consider updates on employer governance matters. This includes statistics on the total number of employers in the fund, contribution income, and the timeliness of contribution receipts. The report will also provide an update on the completed triennial valuation as at 31 March 2025 and the recently published Funding Strategy Statement (FSS). Discussions are also scheduled regarding new employer admission cases and associated matters that have been agreed under delegated authority.

Local Government Reorganisation and Kent Pension Fund

A significant item on the agenda concerns the implications of Local Government Reorganisation (LGR) for the Kent Pension Fund. The report outlines the proposed process and indicative timelines for analysing options for a new host authority for the fund. This will involve a transition from its current administrative home within Kent County Council to new arrangements, with a focus on ensuring continuity of service delivery and uninterrupted pension payments. The report details that Sevenoaks and Ashford Borough Councils have been assigned responsibility for considering options for the fund's future. Two primary options are considered most likely: administration by one of the new unitary authorities on behalf of all Kent and Medway authorities, or administration by a new arm's-length organisation, a Single Purpose Pension Authority. The ultimate decision on how the fund will be administered will rest with the Secretary of State.

Investments and Projects

The committee's agenda also includes an update on the fund's investment activities and projects. This will likely cover performance, rebalancing, and the implementation of the investment strategy, including updates from the Investment Sub-Group and the Border to Coast Pension Partnership (BCPP). Discussions are also expected regarding responsible investment. A separate item will address project updates, including planning for the procurement of a new pensions administration system, scheduled for 2028. The report notes that early preparation is crucial for a successful transfer, and the Oracle Cloud system is expected to enhance efficiency.

Fund Governance and Legislation

Further discussions are scheduled regarding fund governance, including the appointment of an Independent Person for the Pension Fund Committee. This role is intended to support the committee in scrutinising and challenging advice received. The report will also cover legislative updates, specifically the Pensions Schemes Act and associated regulations, which are set to come into force on 30 June 2026. These regulations introduce new requirements for LGPS funds, including the appointment of a Senior LGPS Officer and an Independent Person by 31 December 2026, and the publication of the first Investment Strategy Statement (ISS) by 31 March 2027.

The committee will also review the Committee Work Plan and Action Log, providing an overview of key items planned for future meetings and tracking actions arising from previous meetings. An update from the Pension Board is also scheduled.

The meeting will also address exempt items, which are likely to involve discussions on projects, investments, and matters relating to Local Government Reorganisation and the Kent Pension Fund, where the press and public may be excluded.