The Pension Fund Committee of Harrow Council met on Monday 7 September 2026 to discuss the administration of the pension fund, its financial health, and the governance of the Pension Board. Key decisions included noting the current administration performance, the fund's actuarial funding position, and the minutes and annual report of the Pension Board.

Pensions Administration Update with Key Performances

The committee received an update on the performance of the Pensions Administration Team for the quarter ending 30 June 2026. Patrick Kilgallen, Interim Head of Pensions and Treasury, presented the report, noting a decrease in performance from 72.95% to 65.16% of tasks completed within KPI targets. This decline was attributed to ongoing vacancies within the team, particularly at the supervisor level, making recruitment challenging. Despite this, there were no breaches of the Local Government Pension Scheme (LGPS) regulations during the quarter, although two complaints were received regarding delays in responding to queries.

A significant issue highlighted was the failure to meet the statutory deadline of 31 August 2026 for informing members about the McLeod remedy, an uplift in pensioners' payments. This breach, due to capacity issues, required the fund to report itself to the Pensions Regulator. The team is working with an external organisation to expedite these calculations.

The report also noted that 24 out of 56 councillors had opted into the LGPS since legislation allowed them to do so. The committee agreed to the recommendation to note this report.

Quarterly Actuarial Funding Position Update

The committee reviewed the quarterly actuarial funding position update for the Harrow Pension Fund as of 30 June 2026. The report indicated that the funding level remained stable at 108%, the same as the estimate from March 2025. The total value of the fund's assets had grown to £1.23 billion, with liabilities standing at £1.14 billion, resulting in a surplus of £0.08 billion.

Councillor Roger, an independent adviser, commented on the reduced investment return required to achieve 100% funding, which had fallen to under 5%. He also raised a query regarding an adjustment of 1.2% to liabilities related to inflation rate projections, which the responsible officer, Sharon Daniels, Strategic Director of Finance, agreed to investigate further. The committee agreed to note the report.

Pension Board Minutes and Annual Report

The committee received the minutes from the Pension Board meeting held on 30 July 2026, presented by Honorary Alderman Richard Romain, an Independent Adviser. The minutes detailed discussions on various governance and administration matters. A key point raised was the issue of the Pension Board being inquorate for some meetings due to a lack of attendance, which had been a challenge in the previous year. However, the board was now at full strength for the 2026-27 municipal year. The board also welcomed the ability to review confidential material presented to the Pension Fund Committee.

Following this, the committee reviewed the draft Pension Board Annual Report for 2025-26. Richard Romain, Chair of the Pension Board, explained that the report outlined the board's activities and governance responsibilities. He highlighted the challenges faced in the previous year due to inquorate meetings but confirmed that the board was now fully staffed. The report detailed the board's oversight of fund administration, compliance with regulations, and its advisory role. The committee agreed to note both the Pension Board minutes and the draft annual report.

Fund Valuation and Performance Monitoring Report June 2026

The committee was due to receive the Fund Valuation and Performance Monitoring Report for June 2026. However, the detailed discussion of this report, including confidential appendices, was moved to Part II of the meeting, which was not open to the public. Patrick Kilgallen, Interim Head of Pensions and Treasury, indicated that the report would be presented by different individuals, covering an independent advisor's quarterly report, a Mercer report on performance, and an equity manager performance update from the LSIV. The meeting was then adjourned to Part II.