The Local Pension Board of Leicestershire Council met on Wednesday 29 July 2026 to discuss a range of important administrative and governance matters concerning the Leicestershire Pension Fund. Key topics included a comprehensive review of the fund's administration performance, updates on regulatory changes like the Fit for the Future reforms, and the adoption of the annual report and accounts. The Board also addressed significant risks and controls within the fund's operations.

Pension Fund Administration Report, April to June 2026 - Quarter One

The Board received the Pension Fund Administration Report for the first quarter of 2026, covering April to June. Stuart Wells, Pensions Project Manager, presented the report, highlighting the introduction of new Key Performance Indicators (KPIs) designed to align with the requirements of the Pension Fund Annual Report. These new KPIs cover a broader range of areas, including deferred benefits, refunds, estimates, and transfers. The Board supported the proposal to simplify workload reporting by presenting information on a quarterly basis rather than monthly.

A key discussion point was the timeline for issuing acknowledgements of notifications. Officers explained that automated acknowledgements were being explored, particularly for deferred benefit and death cases, although current system functionality did not support immediate, automatic acknowledgements across all processes. Members requested that future reports include explanatory commentary where performance percentages appeared low, to provide context on prioritisation decisions or the nature of the work involved.

The Board also received an update on the McCloud remedy, with officers confirming that while the majority of retrospective cases were nearing completion, the Fund would not meet the national deadline of 31 August 2026 for all outstanding work. A position statement would be submitted to The Pensions Regulator to ensure transparency. Significant discussion also took place regarding administrative workload pressures, the increasing requirements for employer onboarding, and the impact of employers changing payroll providers. Members expressed concern about the growing volume and complexity of work and urged officers to adopt a firmer approach with employers who failed to meet their obligations. In response, officers explained that while resources had been strengthened, the Fund continued to face pressures from McCloud, Access and Fairness initiatives, employer onboarding, and the forthcoming Local Government Reorganisation. The Board requested a future report detailing workload trends, resource implications, value-for-money indicators, and future service pressures, and suggested a workshop to discuss future service delivery and employer engagement.

The Board resolved to note the report, requested officers to provide a future report on workload trends and resource requirements, and referred members' comments on KPI reporting, employer engagement, and service pressures to the Local Pension Committee.

Fit for the Future Update

The Board considered a report providing an update on progress with regulatory changes in the Local Government Pension Scheme (LGPS) under the Fit for the Future reforms. Kat Tiri, Responsible Investment Analyst, explained that these reforms, which became law on 30 June 2026, include requirements for appointing a Senior LGPS Officer and an Independent Person by 31 December 2026. The Senior LGPS Officer will provide strategic leadership across administration, investments, and governance, while the Independent Person will offer objective challenge and expertise. Recruitment for the Independent Person role was underway, with advertisements placed on the pension fund website and LinkedIn. The Fund will also be required to undertake an independent governance review every three years, with the first due by 31 March 2028. The Board resolved to note the report.

Pension Fund Annual Report and Accounts 2025/26

Simone Hines, Assistant Director of Finance, Transformation and Commissioning, presented the draft Pension Fund Annual Report and Accounts for 2025/26, seeking comments from the Board. The report, which is a statutory requirement, summarises the fund's activities over the past 12 months. The fund was valued at just over £7.4 billion at the end of the year, with over 100,000 members and almost 200 employers. Significant activity during the year included the triennial valuation, which resulted in an overall funding position of 140%. The report also detailed financial performance, investment performance against benchmarks, and administrative KPIs.

Members sought clarification on the report's audience and use, with officers explaining its dual role as a statutory requirement and a source of assurance. Suggestions were made for a more concise executive summary in future reports, and for the inclusion of trend analysis to enhance accessibility. Clarification was provided regarding investment performance against benchmarks, with officers explaining that benchmarks were set at a challenging level and that overall returns remained comfortably ahead of those required to meet funding objectives. The Board resolved to note the report and provide comments to the Local Pension Committee, and agreed to the production of an executive summary in future reports.

Annual Board Report 2025/2026

Manjit Singh-Sroyer, Chair of the Pension Board, presented the Local Pension Board Annual Report for 2025/26. The report detailed the Board's oversight activities throughout the year, including monitoring governance, administration, the McCloud remedy implementation, pension dashboards, employer monitoring, and actuarial valuation activity. The Chair thanked Board members and officers for their commitment and professionalism. The Board resolved to approve the Local Pension Board Annual Report for 2025/26.

Risk Management and Internal Controls

Ian Howe, Pensions Manager, presented the Risk Management and Internal Controls report. He highlighted that the risk register, which covers both administration and investment, is reviewed quarterly. Risks are scored based on current and residual impact, and categorised as red, amber, or green. The report noted that the next National Fraud Initiative data matching exercise, which includes death monitoring, would take place in October 2026. Members questioned whether the current RAG ratings fully reflected the risks associated with failing to meet regulatory deadlines, and officers explained that risks were assessed at a whole-fund level. Members also requested greater visibility of programme and delivery risks associated with major projects. Officers agreed to consider broader reporting on delivery risk and the possibility of undertaking periodic deep dives into specific risks at future meetings. The Board resolved to note the report.

Dates of Future Meetings

The Board noted the dates for future meetings, which had already been circulated.

Other Items

There were no urgent items to be taken.

The Chair concluded the meeting by thanking all attendees for their contributions and attendance, acknowledging the busy diaries of the members. The Chair described the meeting as positive, with much information shared and potential changes to be delivered collaboratively.

Attendees:

• Stuart Wells, Pensions Project Manager
• Simone Hines, Assistant Director of Finance, Transformation and Commissioning
• Joanne Twomey
• Anthony Cross, Employee Representative
• Cllr. Elly Cutkelvin, Employer Representative
• Manjit Singh Saroya, Chair of the Pension Board
• Andrew Stewart, Employee Representative
• Bhulesh Kachra, Finance Manager, Office of the Fund
• Ian Howe, Pensions Manager
• Declan Keegan, Director of Corporate Resources
• Angie Smith, Democratic Services Officer
• Andrew Innes CC, Employer Representative
• Dr. Dee North CC, Vice Chair of the Pension Board