The Pension Fund Committee of Westminster Council met on Thursday 20 June 2024 to discuss the quarterly performance of the pension fund, updates on administrative services, and the admission of a new body to the pension scheme. Key decisions were made regarding the fund's performance and the inclusion of a new admitted body.

Quarterly Fund Performance

The committee reviewed the Quarterly Fund Performance report. The report highlighted the fund's performance over the first quarter of 2024, noting both positive returns and areas of concern. The committee discussed the impact of market volatility on the fund's investments and strategies to mitigate risks. Councillors debated the merits of diversifying the investment portfolio further to safeguard against future market fluctuations. Ultimately, it was decided to maintain the current investment strategy while closely monitoring market conditions.

Administrative Services Update

An update on the administrative services was provided, focusing on improvements in processing times and member satisfaction. The report detailed enhancements in the digital infrastructure used to manage the pension fund, which have led to more efficient service delivery. The committee praised the progress made but also highlighted the need for continuous improvement to meet the growing demands of fund members.

Admission of New Body

The committee considered the admission of a new body to the pension scheme, as outlined in the Pension Committee Admitted Body Draft. The new body, a local charity, applied for admission to provide its employees with access to the pension scheme. Arguments in favour of the admission included the charity's alignment with the council's community support objectives and the financial stability it would bring to the pension fund. Some concerns were raised about the potential administrative burden, but these were addressed by assurances of streamlined processes. The committee voted in favour of admitting the new body.

Risk Management

The committee reviewed the Risk Matrix and Risk Register documents, which outline the key risks facing the pension fund and the measures in place to mitigate them. Discussions focused on the importance of robust risk management practices to ensure the long-term sustainability of the fund. The committee agreed to adopt the updated risk management framework and to conduct regular reviews to adapt to changing circumstances.

Funding Update

An update on the funding status of the pension fund as of 31 March 2024 was presented in Appendix 3. The report showed a healthy funding level, with assets exceeding liabilities. The committee discussed the implications of this positive funding status for future contribution rates and benefit payments. It was decided to maintain the current contribution rates while continuing to monitor the fund's financial health.

For further details, the full Public Reports Pack is available online.