The Pension Fund Panel met to elect its Chair and Vice-Chair for the municipal year and to review the performance of the Fund's investments and administration. Key decisions included noting the positive performance of the pension administrator, LPPA, and approving the draft Pension Fund Annual Report for 2025/26.

Election of Chair and Vice-Chair

Councillor Ian Kingston was elected Chair of the Pension Fund Panel for the municipal year, and Councillor Yvonne Johnson was appointed Vice-Chair.

Pensions Administration - Monitoring and Contract Arrangements Update

The Panel received an update on the performance of the Local Pensions Partnership Administration (LPPA), the external contractor responsible for pension administration. LPPA achieved an overall Service Level Agreement (SLA) performance of 99% for Q4 2025-26, exceeding the 95% target. The report highlighted a significant increase in digital engagement, with LPPA's online portal, PensionPoint, nearing 10,000 members.

However, the report also flagged late notifications for retirements received in Q4, which can impact the timely processing of calculations and payments. This is an area the pensions team intends to address in more detail, working with HR to improve communication channels to employers and members regarding retirement notice periods. Retirement satisfaction scores improved to 75% for active members and 80% for deferred members in Q4.

A data cleanse project is ongoing, aiming to align the council's payroll system with LPPA's administration system. Of the 2,018 members affected by the project, 1,370 reviews have been completed, resulting in 264 underpayments totalling £315,544.95 and 57 overpayments totalling £37,786.12.

The reintroduction of Local Government Pension Scheme (LGPS) membership for eligible councillors and mayors from 11 May 2026 has seen positive initial uptake, with over 50 councillors electing to join the scheme. LPPA is making system changes to accommodate this data.

Concerns were raised about the accessibility of digital services for all members, particularly older individuals or those with limited digital expertise. David Hodgson, Pensions Manager, assured the Panel that multiple communication channels are available, including a dedicated phone line and in-person meetings. LPPA also issues letters by post and online, and offers two 90-minute online training sessions for members.

Pension Fund Performance Monitor Update for Quarter ended 31 March 2026

Bridget Uku, Investment Manager, presented the Pension Fund Performance Monitor Update. The Fund underperformed its benchmark in Q4 2025-26, returning -1.64% against a benchmark of -0.32%. The overall value of the Fund's investments decreased by 1.4% to £1,915.1m as at 31 March 2026.

The report detailed updates on the liquidation of the Lothbury Property Trust and Federated Hermes property funds. The Lothbury Property Trust has now fully liquidated, with the Fund receiving approximately 99.2% of the capital value. The Federated Hermes fund has transferred to a new manager.

The Pension Schemes Act 2026 has received Royal Assent, placing asset pooling on a statutory footing. From 1 July 2026, Ealing Pension Fund's investments will be managed through the London CIV, the Fund's investment pool. The Panel will retain a strategic role in setting the Strategic Asset Allocation, while the CIV will be responsible for day-to-day implementation and manager appointments.

The Panel was informed that the Fund's property allocation had underperformed, with specific issues noted regarding UK commercial properties such as high street shops and offices, impacted by the shift to online shopping and remote working. Student accommodation, particularly newer buildings, was performing better.

The Panel discussed the upcoming requirement to appoint a Senior LGPS Officer and an Independent Person by 31 December 2026, as mandated by new regulations. The job description for the Senior Responsible Officer was not yet drawn up, but the Scheme Advisory Board is expected to provide guidance.

2025/26 Pension Fund Annual Report

The Panel reviewed the draft Pension Fund Annual Report for 2025/26, which includes the Fund Accounts. The report highlighted a strong funding position, with the 2025 triennial actuarial valuation showing a funding level of 112%, a significant improvement from 96% in 2022. This has enabled a reduction in average employer contribution rates from 18.5% to 16.7% of pay, effective from 1 April 2026.

The report also detailed the Fund's investment performance, which achieved a return of 12.30% for the year to 31 March 2026, exceeding its benchmark return of 12.00%. The Fund's assets increased to £1.915 billion.

The Panel was asked to note the draft report and approve the Pension Fund newsletter for circulation to members. Authority was also sought to delegate to the Strategic Director, Resources, to finalise the Annual Report following consultation with the Chair and Deputy Chair of the PFP.

Training Strategy

The Panel reviewed the draft Ealing Pension Fund Training Strategy 2026-2028, which outlines a framework for developing, assessing, monitoring, and maintaining the knowledge and skills of individuals involved in the governance and management of the Fund. The strategy identifies nine core competency areas, including LGPS legislative and regulatory framework, governance, fiduciary duty, funding and actuarial matters, investment strategy, asset pooling, responsible investment, pension administration, financial management, and risk management. The strategy includes a training programme for July 2026 onwards, covering topics such as LGPS Fundamentals and Strategic Asset Allocation.

Other Matters

The meeting also included the approval of the minutes from the previous meeting and a private session for training. Apologies for absence were noted, and no declarations of interest were made.