The Pension Policy & Investment Committee of Enfield Council met on Tuesday 15 September 2026 to discuss significant reforms to the Local Government Pension Scheme (LGPS) and review the fund's investment performance. Key discussions included noting the final government guidance on Fit for the Future reforms, which mandate significant changes to LGPS governance, investment strategy, and pooling, and reviewing a refreshed training strategy for committee members to ensure compliance with these new regulations.

Fit for the Future Final Guidance and Plan to Achieve

The committee received an update on the final Fit for the Future guidance issued by the government on 30th June 2026. Ravi Lakhani, Head of Pension Fund & Senior LGPS Officer, explained that this guidance represents the most substantial reform to LGPS governance since 2016 and covers three main areas: Governance, Investment Strategy, and Pooling.

Under the new governance requirements, every pension fund must appoint a dedicated Head of Pension Fund by 31st December 2026, a role Enfield Council has already fulfilled. Additionally, an independent advisor with specific pensions experience, independent of the fund's existing advisors, must be appointed by the same deadline. The committee noted that the recruitment process for this role is advanced, with shortlisting completed and interviews arranged. Councillor Doug Taylor raised a point regarding the shortlisting process, suggesting the inclusion of a member from the Labour Party, which was agreed upon. Furthermore, an independent governance review must be completed by 31st March 2028, which will assess the committee's effectiveness and result in a rating of Gold, Green, Amber, or Red.

Regarding investment strategy, revised strategies must be approved by 31st March 2027, incorporating return objectives aligned with triennial valuations, risk objectives, cash-flow management, local investment, and responsible investment. The committee will continue to set high-level objectives and risk appetite, while the London Collective Investment Vehicle (LCIV) will be responsible for implementation.

The committee also discussed pooling, emphasizing the need for a clear understanding of the value for money case, particularly regarding lower management fees. It was noted that the fund will collaborate with LCIV on future value for money reporting.

Training Strategy

Ravi Lakhani also presented a report on refreshing the committee's training arrangements to comply with the Fit for the Future guidance. Training is now a regulatory requirement and must be ongoing, with new members needing to complete induction training within three months. The committee's training will focus on investment strategy and governance implications, while the Local Pension Board will focus on Key Performance Indicators, service standards, and administration legislation. The fund will maintain an annual record of training completed by each member, with non-attendance being made public. Councillor Doug Taylor suggested incorporating additional learning opportunities such as conferences and meetings organised by SAB, LAPFF, and London CIV.

Quarterly Investment Management Monitoring Report, Including Risk Register

The committee reviewed the quarterly investment management monitoring report, which was the first to be presented under the new advisors, LCIV. The report for the period ending 30th June 2026 indicated a fund gain of approximately £118 million, increasing the total fund value from £1.71 billion to £1.83 billion, representing a quarterly return of 7.22%. Despite positive returns, performance remained below the benchmark over one, three, and five-year periods. The fund was noted to be overweight in listed equities, credit, and property, while underweight in infrastructure and private credit. Approximately £30 million of surplus cash had been invested in UK government gilts, a decision LCIV was able to implement promptly under the pooling arrangements. Dagmar Dvorak from LCIV provided a market update, highlighting strong equity market performance but increased volatility due to inflation, oil prices, and market concentration in large technology companies. Diversification across asset classes and managers was stressed as remaining important.

Annual Report

Dan Menna, Finance Manager, presented the draft Enfield Pension Fund Annual Report for 2025/26. This statutory document covers the year ending 31st March 2026 and includes information on the fund's accounts, governance, training, pooling arrangements, and investment performance. Members raised concerns about approving a report with figures that might change before publication, but Dan Menna explained that these represented the best available information and any significant changes would be reported through the Council's Audit Committee. The committee acknowledged the detailed nature of the report and the statutory timetable, including the sector-wide audit backlog.

The committee also noted the dates of future meetings: 27th January 2027 and 24th March 2027. A resolution was passed to exclude the press and public from the meeting for the following item of business, which involved the likely disclosure of exempt information. This was followed by a private training session. The update on Pension Board and admin issues was not considered.