The Local Pension Board of Leicestershire Council met on Wednesday 29 July 2026 to discuss the Pension Fund Administration Report, the Fit for the Future update, and the Pension Fund Annual Report and Accounts. Key discussions included the increasing administrative workload due to external factors, the implementation of new regulatory requirements for pension funds, and the financial performance and governance of the Leicestershire Pension Fund.

Pension Fund Administration Report

The Board received an update on the Pension Fund Administration Report for April to June 2026. Ian Howe, Pensions Manager, presented the report, highlighting that while overall member satisfaction with communication and treatment remained high, there were slight dips in the percentage of members finding information clear and their experience good compared to the previous quarter.

Several Key Performance Indicators (KPIs) related to casework showed areas for improvement. For instance, only 29% of deferred benefit communications were issued within the target 30 working days, and only 70% of transfers out were completed within 15 working days. Officers noted that these figures were being refined to more accurately reflect processing times and that automation was being explored to improve efficiency.

Concerns were raised about the workload pressures on the Pensions Section, particularly with the ongoing implementation of the McCloud remedy and preparations for the Pension Dashboards Programme. Simone Hines, Assistant Director Finance, Strategic Property and Commissioning, acknowledged these pressures and stated that additional resources had been secured to support the team.

The report also detailed the progress on the McCloud remedy, with retrospective work on retirements nearing completion, though deaths and transfers out remained ongoing. Preparations for the Pension Dashboards Programme were also progressing, with initial consumer testing showing some user activity.

Fit for the Future Update

Cat Tuohy, Responsible Investment Analyst, provided an update on the Fit for the Future regulatory changes impacting the Local Government Pension Scheme (LGPS). These reforms, which became law on 30 June 2026, introduce new requirements for pension funds, including the appointment of a Senior LGPS Officer and an Independent Person by 31 December 2026. Funds will also be required to undertake an independent governance review every three years.

The report outlined that Leicestershire Pension Fund, as a co-owner of LGPS Central, was already compliant with many of the new requirements, having updated several strategies in anticipation of the changes. The Fund was progressing with the appointment process for the Independent Person, with the role advertised on the pension fund website and LinkedIn. Discussions were ongoing regarding the structure and responsibilities of the Senior LGPS Officer role, with a proposal expected to be brought to the committee in September.

Councillor Andrew Innes CC sought clarification on the Senior LGPS Officer role, specifically its independence from other responsibilities. Simone Hines explained that this role would be an officer of the council, part of the pension fund team, and would need to dedicate the majority of its time to LGPS responsibilities, not being combined with other senior leadership positions.

Pension Fund Annual Report and Accounts 2025/26

Simone Hines presented the draft Pension Fund Annual Report and Accounts for 2025/26. The report detailed the Fund's financial performance, with total assets valued at just over £7.4 billion, an increase from £6.5 billion the previous year. The triennial valuation showed a funding position of 140%.

The report included extensive financial performance information, investment performance data, and administrative KPIs. An underspend was noted for the year, primarily due to lower manager performance fees. The draft statutory accounts were being audited by Grant Thornton LLP.

Board members discussed the length and complexity of the report, with a suggestion made to include a more concise executive summary in future. Dr. Dee North CC requested trend analysis within the report, which Simone Hines confirmed was present in the statutory accounts and investment performance sections, but agreed to explore how this could be better highlighted, potentially within an executive summary.

The Board noted the report and provided feedback. The recommendation was for the Board to note the contents of the report and provide comments and feedback to the Local Pension Committee.

Annual Board Report 2025/2026

Mr. Manjit Singh Saroya, Chairman of the Local Pension Board, presented the Annual Board Report for 2025/2026. He highlighted the Fund's substantial scale, supporting over 111,000 members with assets of £7.4 billion. The Board had monitored compliance with LGPS regulations, supported effective governance, and reviewed reports on administration, performance, complaints, and major projects. Key areas of focus included the 2025 actuarial valuation and the draft Funding Strategy Statement. Mr. Saroya reported that the Board had identified no significant issues of concern but would continue to monitor service pressures and regulatory changes. The Board approved its Annual Report for 2025-2026.

Risk Management and Internal Controls

Ian Howe presented the Risk Register, which covers both administration and investment risks. The register is reviewed quarterly and categorised into investments, liability, employer, governance, operational, and regulatory risks. All risks were currently rated as amber or green, with no red risks identified. A specific point was made regarding Risk 15, concerning the upcoming National Fraud Initiative data matching exercise in October, where the Fund's data on deaths would be checked. The Fund continues to conduct monthly death checks with a private company.

Dr. Dee North CC raised concerns about the absence of red risks, questioning if the assessment was entirely fair given known target and deadline challenges, particularly concerning regulatory compliance and the cumulative delivery risk of ongoing transformation programs like McCloud and Pension Dashboards. Ian Howe acknowledged the point, explaining that risks were often scored based on the impact on the whole fund rather than individual employers. He agreed that the cumulative delivery risk might need to be considered as a separate entity. Simone Hines suggested that a deep dive into specific risks at each meeting could provide greater assurance, a proposal welcomed by the Board.

Future Meetings

The Board noted the dates for future meetings, scheduled for 14 October 2026, 3 February 2027, 19 May 2027, 28 July 2027, and 17 November 2027.

The meeting concluded with thanks from the Chair to all attendees for their contributions.