The Local Pension Board of Durham County Council met on Thursday 2 July 2026 to review the Pension Fund's administration, regulatory updates, and future service plans. The meeting's agenda included discussions on the Pension Fund Service Plan for 2026-27, the Local Pension Board's Annual Report for 2025/26, and its Work Plan for 2026/27.

Pension Administration Report

The Board was scheduled to consider a report on the Pension Fund's administration and service provision to its approximately 32,000 scheme members. This report was expected to include an update on Key Performance Indicators (KPIs), with a particular focus on the disclosure of retirements, which was noted as being at 81 percent, with most delays attributed to awaiting information from fund employers. The report also detailed the ongoing channel shift towards the online portal for member services.

Regulatory Update

A significant portion of the meeting was dedicated to a regulatory update, covering both Local Government Pension Scheme (LGPS) specific matters and other relevant developments. Key LGPS-specific changes scheduled for discussion included:

• The LGPS (Miscellaneous Amendments) (Member Benefits) Regulations 2026: These regulations, effective from April 2026 or with specified backdated effect, introduce several changes, including the equalisation of survivor benefits, removal of nomination requirements for cohabiting partners, lifting the age cap on death grants, and new rules for pension contributions during authorised unpaid leave. They also include updates to child-related and paternity leave definitions, gender pension gap reporting, and amendments related to the McCloud remedy.
• The Local Government Pension Scheme (Amendment) (Elected Member Pensions) Regulations 2026: These regulations, which came into force on 11 May 2026, allow councillors and mayors in England to opt into LGPS membership. Their basic allowance and special responsibility allowance are treated as pensionable pay, with specific conditions such as the requirement to opt-in and limitations on flexible retirement. Town and Parish councillors are not eligible.
• The Local Government Pension Scheme (Amendment) (Governance) Regulations 2026: These regulations, effective from 30 June 2026, mandate several requirements for LGPS administering authorities, including the appointment of a senior officer responsible for administration, governance, and investment, and the appointment of an independent person to support these functions. Authorities are also required to prepare and maintain a governance strategy, a training strategy, and a conflicts of interest policy. Furthermore, they must ensure relevant officers and committee members meet knowledge and understanding requirements and prepare a funding strategy statement and a pension administration strategy. Periodic governance reviews by an independent person are also required, with the first due by 31 March 2028.
• The Local Government Pension Scheme (Pooling, Management and Investment of Funds) Regulations 2026: Also effective from 30 June 2026, these regulations replace previous ones and include requirements for administering authorities to participate in only one asset pool, ensure the pool has appropriate Financial Conduct Authority authorisation, and formulate an investment strategy that covers a wide variety of investments, financial objectives, risk management, responsible investment, proxy voting policies, and local investment objectives.

The report also noted non-LGPS specific matters, including changes to SCAPE factors for public service pension schemes, which have led to the suspension of most transfer quotations and payments. The upcoming implementation of Pensions Dashboards, digital services for savers to view their pension information in one place, was also discussed, with a revised connection deadline of 31 October 2026.

Pension Fund Service Plan 2026-27

The Board was scheduled to review the Pension Fund's Service Plan for the three-year period from 2026/27 to 2028/29. This plan outlines the Fund's aims, objectives, and actions to support sustainable service delivery and operational resilience, acknowledging external factors such as changes in the pensions and investment industry, evolving working practices, and political and regulatory shifts. The plan highlights the Fund's commitment to operating sustainably and cost-effectively, managing approximately £4 billion of investments across over 100 employers and 67,000 members. Key areas of focus include administration, governance, and investment, with specific attention to the expanded Border to Coast Pensions Partnership, which now includes 18 Partner Funds.

Local Pension Board Annual Report 2025/26

The Board was to consider its Annual Report for 2025/26, which provides an overview of the work completed by the Board in assisting the Administering Authority to ensure compliance with regulations and the effective governance and administration of the LGPS. The report details the Board's activities, including reviewing pension administration performance, regulatory updates, and proposed changes to LGPS asset pools.

Local Pension Board Work Plan 2026/27

A revised work plan for the Local Pension Board for 2026/27 was scheduled for discussion. This plan aims to provide a structured programme of business to support the Board in its role of assisting the Council in securing compliance with scheme regulations and wider pensions legislation. The proposed approach includes standing assurance items, cyclical annual items, and thematic deep dives into areas such as General Code compliance, cyber security, data quality, and McCloud implementation. The work plan is intended to ensure the Board's time is directed towards the most significant governance and administration risks facing the Fund.

Observations and Feedback from Pension Fund Committee

The Board was also scheduled to receive observations and feedback from the Pension Fund Committee meeting held on 11 June 2026. This would provide insights into the Committee's discussions and decisions relevant to the Pension Fund's operations.