The LGPS Local Pension Board of Lincolnshire Council met on Thursday 16 July 2026 to review the fund's effectiveness, financial performance, and compliance with regulations. Key decisions included approving changes to the Board's terms of reference and noting the pension fund update, which highlighted a faster-than-anticipated movement of assets into the Border to Coast UK Real Estate Fund.

Board Effectiveness Review

The Board reviewed its effectiveness and approved proposed changes to its core functions and reporting schedule. These changes aim to simplify and strengthen the Board's responsibilities, grouping them under four key themes: governance, investments and funding, administration, and communication. A key enhancement is the introduction of a quarterly compliance report to provide greater visibility of fund activity and decisions.

Pension Fund Update

Jo Kempton, Head of Lincolnshire Pension Fund, provided an update on fund matters for the quarter ending 31 March 2026. The risk register remained unchanged. An update on asset pooling through Border to Coast Pensions Partnership highlighted the integration work with seven new partner funds and the first meeting of the joint committee with all 18 partners. The 2025-26 pension fund budget outturn showed an underspend in administration costs, largely due to lower-than-anticipated staffing and IT costs, but an overspend in investment management expenses. This overspend was primarily attributed to higher-than-budgeted costs associated with the faster-than-expected movement of assets into the Border to Coast UK Real Estate Fund and higher transition costs within the Global Equity Alpha sub-fund due to a change in underlying external managers.

Compliance Report

The Board received an update on the fund's compliance with regulations and procedures. There were no material breaches reported to the Pensions Regulator. Two new non-material breaches were recorded: a late receipt of new employer contributions and late payment of contributions, neither of which required reporting to the Pensions Regulator. Updates were provided on Fit for the Future compliance, Pensions Committee meetings, the tender for actuarial, benefits, and governance services, and the draft Investment Strategy Statement (ISS). The Board was asked to provide feedback on the draft ISS before it undergoes a wider consultation. Lincolnshire was reported as compliant in all areas of the Scheme Advisory Board's annual report on compliance.

Pensions Administration Report

Matt Mott from West Yorkshire Pension Fund presented the quarterly administration report. Several key performance indicators (KPIs) were not met, primarily due to backlogs related to the McCloud remedy and system limitations. Efforts are underway to address these, including recruitment and automation. Membership numbers showed a slight increase in active and pensioner members, with a decrease in deferred members. The report detailed ongoing employer training initiatives and a low number of Internal Dispute Resolution Procedure (IDRP) cases and Pension Ombudsman matters. Recruitment efforts were ongoing to address staffing shortages. The report also highlighted the progress of the Pensions Dashboard connection and the launch of a new member portal.

The Pensions Regulator (TPR) Data Quality Report

The Board was updated on the data quality scores for Lincolnshire Pension Fund, which are reported annually to the Pensions Regulator. The scores for common data were 96.47% and for scheme-specific data were 93.81% when including legacy data. When considering current data only, these scores increased to 98.32% and 99.40% respectively. Areas for improvement included missing addresses for deferred members and inconsistencies in start dates. A data improvement plan has been developed by WYPF to address these issues, with ongoing work to cleanse and update records.

Annual Report and Accounts 2025/26

Claire Machej, Accounting, Investment and Governance Manager, presented the draft Pension Fund Accounts for 2025/26 and the External Auditor's Plan and Strategy. The accounts detailed the fund's income, expenditure, and investment assets. The Board was asked to review and approve the draft Pension Board Annual Report for 2025/26, which would be included in the overall Fund Annual Report. KPMG's audit plan and strategy were also presented, with the external audit work underway.

TPR General Code

Jo Kempton provided an annual update on the Fund's compliance with the Pensions Regulator's General Code of Practice. Overall, the Fund was found to be generally compliant. An essential action identified was the updating of the scheme of delegation, which is underway and expected to be completed in 2026. The Fund also has a Cyber Security Policy, agreed in January 2026. The report noted that the Fit for the Future reforms might lead to updates to the General Code, which will be incorporated into ongoing monitoring.

Work Plan and Training Needs

The Board reviewed its future work programme and training needs. A training assessment questionnaire, delayed due to the Fit for the Future guidance, will be circulated over the summer, with the revised training strategy and plan to be presented in October. All current Board members have completed mandatory induction and LOLA training, with refreshers due at various points over the next few years. The Board was encouraged to share feedback from any external training attended.

Consideration of Exempt Information

The Board resolved to exclude the press and public from the meeting for the consideration of an exempt report concerning the Pensions Administration Shared Service Update, as it was deemed to contain exempt information.

Pensions Administration Shared Service Update

An exempt report was presented, introducing an information session from Euan Miller, West Yorkshire Pension Fund, on the shared service agreement.

Notes of the previous informal meeting

The notes of the previous informal meeting held on 19 March 2026 were noted.