The Pensions Committee of Lambeth Council met on Wednesday 29 July 2026 to discuss the fund's administration, investment performance, and future business plan. Key decisions included noting the quarterly performance update and noting the draft business plan for 2026-27.

Lambeth Pension Administration – Quarterly Performance Update

The committee received an update on the administration of the Lambeth Pension Fund for the period January to March 2026. Overall performance of key performance indicators (KPIs) remained strong at 98.4%, with over 1,000 cases completed. The actuarial valuation was concluded, and employers were notified of their revised contribution rates. The 'Engage' member self-service platform saw continued growth in registered users. There were three employer breaches reported relating to late submission of contribution information, and one stage one appeal under the Internal Dispute Resolution Procedure (IDRP), which was not upheld. The McCloud remedy implementation is progressing, with most affected members reviewed, and the fund aims to complete remaining retrospective work by the end of the financial year. The Pensions Dashboard programme remains in testing, with ongoing data cleansing efforts. The opt-out rate for the scheme is in the 80% range. A query was raised regarding a potential inaccuracy in the self-service statistics table, which officers agreed to investigate and correct. The committee noted the pension administration service update.

Lambeth Pension Fund Risk Register

The committee reviewed the Lambeth Pension Fund Risk Register, which outlines identified risks and proposed mitigation strategies. Councillor Peter Woodward raised concerns about risks PA18 and PA20, specifically regarding investments in what he described as illegal settlements in the West Bank of Palestine and the reputational damage this could cause. He urged the committee to reverse previous decisions to invest in such areas. Councillor Alan Andrews expressed concern about the moral and ethical implications and significant risks arising from such investments. Officers confirmed that the risk register would be updated for the next meeting, taking into account new regulations and member comments. Discussions also touched upon climate change risks and the need to update the investment strategy and responsible investment strategy in light of new statutory guidance. The committee also discussed PA22, relating to the qualified audit opinion on the fund's financial statements. Jackie Moylan, Interim Director of Finance, explained the challenges with legacy balances and the timeline for moving towards an unqualified opinion, anticipating a qualified opinion for 2025-26 and an unqualified opinion for 2026-27. The committee noted the risk register and the proposed actions to mitigate risks.

Draft Business Plan Report 2026-27

The committee considered the draft business plan for the Lambeth Pension Fund for 2026-27. The plan outlines key objectives and priorities across six areas: administration and governance, communication, actuarial and funding, committee and board activity, financial and risk management, and investment strategy. Key objectives include the appointment of a Senior LGPS Officer and an Independent Person, and the development of a formal training strategy. The implementation of government asset pooling requirements and associated investment governance changes will also be a significant focus. Councillor Linda Bray inquired about the production of a newsletter for pensioners, deferred, and active members, which Linda D'Souza, Assistant Director of Payroll and Pensions, confirmed goes out annually and covers scheme changes and general fund topics. A discussion ensued regarding the ongoing status of certain actions within the business plan, such as member complaint handling and McCloud judgement remedies. The committee agreed that for clarity, interim deadlines could be set where appropriate, and that the business plan tracker would incorporate a red-amber-green (RAG) rating system. The committee also discussed the feasibility of including TCFD¹ (Task Force on Climate-related Financial Disclosures) and TNFD² (Task Force on Nature-related Financial Disclosures) reporting, with officers agreeing to provide a discussion paper on the feasibility and timescales for these. The committee noted the business plan, with comments to be reflected in its finalisation.

Lambeth Pension Fund – Investment Performance Review

The committee reviewed the investment performance of the Lambeth Pension Fund for the quarter ending 31 March 2026. The fund underperformed its benchmark, returning -1.8% against a benchmark of 0.2%. This underperformance was primarily driven by the global equity managers. Performance over the one, three, and five-year periods also fell short of their respective benchmarks. The report detailed the asset allocation, noting an overweight to global equities and cash, and an underweight to property and private equity. Discussions clarified that a significant cash balance was due to the redemption of an investment in the Invesco European Property Fund. The committee also discussed the allocation of these funds and the process for rebalancing the portfolio in line with the investment strategy, which is tied to the implementation of the Investment Management Agreement with London CIV³. Councillor Simon Hannah raised concerns about the potential AI bubble and its impact on investments, which was discussed in the context of market volatility and manager strategies. Councillor Peter Woodward questioned the fund's exposure to conflict zones, particularly the Iran conflict, and its impact on oil prices and defence manufacturers. It was clarified that the fund's responsible investment policies mean it has limited exposure to large oil companies, which impacted performance in the quarter but is considered beneficial for long-term carbon footprint reduction. The committee requested a comprehensive list of all companies the fund is invested in, and a list of how holdings have voted, particularly on controversial matters. The committee noted the report and the information in the accompanying appendix.

General Update

The committee received a general update on pensions-related matters. The Pension Schemes Bill had passed Parliament, with regulations coming into effect on 30 June 2026. The London CIV⁴ reported approximately £20.2bn of assets under direct management, with the Lambeth Fund having 66% of its assets invested directly in the pool. Deadlines for key appointments, such as the Senior LGPS Officer and Independent Person, were extended to 31 December 2026. The 2025/26 pension fund accounts had been prepared and submitted for audit, despite challenges with historic balances. Information on upcoming training opportunities was provided, including access to the Hymans Robertson Online Learning Academy (LOLA). The committee noted the contents of the report.