The Pension Fund Committee is scheduled to meet on Wednesday 17 June 2026 to review the administration of the council's Local Government Pension Scheme (LGPS) function and to receive an update on the Pension Fund's investment performance up to 31 March 2026.

Administration of the Councils LGPS Function

The committee is scheduled to consider a report detailing the administration of the council's Local Government Pension Scheme (LGPS) function for the period ending 31 March 2026. The report outlines the responsibilities of the pension administration team, which includes calculating and processing pension payments, collecting contributions, and maintaining pension records. The team currently comprises 12.25 full-time equivalents, with efforts underway to fill a vacancy.

Key areas of the current work programme include the ongoing migration from Member Self Service (MSS) to Engage, with positive feedback received from users who have successfully registered. The report also notes that pensioners will now receive payslips and other documents via email, a move to comply with the council's digital programme. A review of the council's discretion policies, which are ten years old, is also scheduled.

Significant topical issues to be discussed include the ongoing work to identify members in scope for the McCloud judgement remedy, which involves running necessary reports to apply the remedy to eligible members. Councillors have been granted access to the LGPS again, with two members of the pensions team attending induction sessions to explain the scheme's details and benefits.

The report also addresses the upcoming LGPS (Pooling, Management and Investment of Funds) Regulations 2026 and the LGPS (Amendment) Regulations 2026, which come into effect from 30 June 2026. These regulations mandate participation in an asset pool and introduce new governance requirements, including the publication of strategies and policies, and the appointment of specific roles. A full report on these Fit for the Future requirements will be presented at the next committee meeting.

Additionally, the committee is scheduled to be informed about changes to SCAPE¹ discount rates announced by the Minister for Pensions, which will necessitate the suspension of certain calculations until revised rates are available. The report also confirms that data is now being loaded automatically to the national pension dashboard daily in preparation for its go-live in October.

The report includes performance data for the administration team, showing that three targets were met during the quarter. The risk to the administration of the scheme is identified as the council failing to meet regulatory requirements, which is mitigated by robust policy statements, internal controls, and appropriate officer training. The report also details fairness implications, including equality and diversity considerations, in line with Section 149 of the Equality Act 2010².

Pension Fund Quarterly Update to 31 March 2026

The committee is also scheduled to review the Pension Fund's investment performance for the quarter ending 31 March 2026. This report, which is partially exempt from public disclosure, provides an update on the total value of the Fund, which stood at £1,160 million at the end of the quarter, a decrease of £21 million from the previous quarter.

The Fund underperformed its benchmark over the reporting quarter, delivering a return of (1.47)% compared to the benchmark's (0.25)%. Over the twelve-month period, the Fund also lagged its benchmark by (0.54)%. However, over longer periods, the Fund has shown stronger performance, with an annual return of 6.74% over ten years, outperforming its benchmark by 0.29% per annum.

The report details that four out of ten investment mandates met or exceeded their respective benchmarks during the quarter. Global equities declined due to geopolitical events in the Middle East, impacting investor sentiment and oil supplies, which contributed to inflation concerns. US and European equities also saw declines, while the Japanese and Pacific ex-Japan markets performed strongly. The UK economy expanded modestly, and the Bank of England maintained interest rates.

Government bond yields rose across developed markets, with UK gilt yields increasing significantly. The report notes that the Fund's asset allocation is broadly aligned with its strategic benchmark, although some mandates are slightly overweight due to market volatility. The total value of the Fund by investment mandate as of 31 March 2026 is provided, along with comparisons to strategic asset allocation.

The report also covers cash balances, which stood at £8.985 million at 31 March 2026. It outlines the income and expenditure over the past twelve months, including pension payments, contributions, and investment income. The most significant risk identified for the Fund is the failure to generate sufficient returns to meet liabilities, which is being managed through a diversified asset allocation policy and the employment of multiple investment managers. Fairness implications, including equality and diversity considerations, are also addressed in line with the Equality Act 2010.