The Pensions Board of Lambeth Council met on Thursday 16 July 2026 to discuss the work programme for the upcoming year, review the quarterly performance of Lambeth Pension Administration, and examine the fund's risk register. Key decisions included noting the work programme and approving the quarterly performance update.

Work Programme and Pension Administration Performance

The Board noted the proposed work plan for 2026-27, which will evolve throughout the year due to potential new requirements and legislative developments. Linda de Souza, Assistant Director for Payment Administration, presented the quarterly performance update for January to March 2026. The administration team completed over a thousand cases, with an overall performance of 98.4% within the target timescale. This strong performance was achieved despite significant work on the McCloud remedy and the Pensions Dashboard project.

Councillor Chris Nicholson raised a question about comparing performance with other local authorities. Ms. de Souza explained that the Scheme Advisory Board is developing standard performance indicators, which will facilitate such comparisons in the future. The Board also discussed the upcoming Pensions Dashboard, a national initiative designed to allow individuals to view all their pension entitlements online. While the dashboard is still in testing, Lambeth Pensions is actively cleansing and enriching its data in preparation for its eventual launch, potentially in 2028.

The Board also noted updates on employer engagement, including the finalisation of the Actuarial Valuation and the Funding Strategy Statement. A bulletin was issued to employers detailing legislative changes from April 2026, affecting payroll and employer communications. The 'Engage' platform, a member self-service portal, has seen an increase in registered users, with a targeted campaign encouraging more members to sign up.

Risk Register Update

The Board reviewed the Lambeth Pension Fund Risk Register. Linda de Souza and Robert Browning, Acting Assistant Director of Finance, presented the report, noting that there were no red-rated risks and seven amber-rated risks. These included:

• PA1: Insufficient resource to support the requirements and demands of the Pension Committee and Board. This is being addressed through a structural review and the recruitment of permanent resources, with interim support from London CIV (LCIV) in the meantime.
• PA2: Insufficient knowledge and understanding of Pension Board/Committee members in line with legislative requirements. This risk is expected to improve as new members undertake training.
• PA12: The risk that pay and price inflation is significantly more than anticipated. This risk reflects current pressures on the Fund from a high inflationary environment.
• PA15: Investment risk. This reflects heightened investment risk due to increased interest rates, fluctuating currencies, and shocks to the global banking system.
• PA16: Investment underperformance. This amber rating reflects short-term underperformance that may impact longer-term results if not resolved.
• PA19: Climate change. Despite existing and planned mitigations, climate change poses a significant risk to the Fund.
• PA22: Qualified audit opinion of the Fund's financial statements. This risk rating has deteriorated due to issues identified in the 2024/25 audit, relating to historic balances and supporting evidence for cash transactions.

The Board discussed the fund's exposure to private credit and potential market volatility arising from geopolitical instability. Officers confirmed that these risks would be considered as part of ongoing risk register reviews and broader investment monitoring.

Draft Business Plan 2026/27

The Board reviewed the draft Business Plan for 2026/27, which outlines key objectives and milestones across six categories: Administration and Governance, Communication, Actuarial/Funding, Pensions Committee and Board, Financial and Risk Management, and Investment and Strategy. Key objectives include the appointment of a Senior LGPS Officer and an Independent Person by 31 December 2026, in line with new regulatory requirements. The plan also details actions related to implementing mandatory asset pooling, developing a training strategy, and managing financial and risk management processes.

General Update

Tim Mpofu, Head of Partner Fund Solutions at London CIV, provided a general update. He explained the role of asset pools, such as London CIV, in managing LGPS assets on behalf of funds, emphasizing the goal of achieving scale and value by lowering investment costs. As of 31 March 2026, London CIV managed approximately £20.2 billion in-house, with total pooled assets under management reaching £38.1 billion.

The Fit for the Future agenda and the Pension Schemes Bill have introduced new regulations, including a requirement for all assets to be under pooled management within three months of the regulations coming into effect. London CIV has agreed on an Investment Management Agreement (IMA) with partner funds, which Lambeth is expected to enter into in July 2026. The deadline for publishing the Investment Strategy Statement has been extended to 31 March 2027.

The Board also received updates on private equity investments, with commitments made to Antler Funds, Schroders, and Future Planet Capital. The Pension Fund accounts for 2025/26 have been prepared and submitted, with ongoing work to ensure an appropriate audit trail. The report highlighted the availability of external training opportunities and the subscription to Hymans Robertson's Online Learning Academy (LOLA) for committee and board members.

The meeting concluded with the Board noting the general update and agreeing to the recommendations presented in the reports.