The Pensions Board of Islington Council met on Wednesday 29 July 2026 to review the performance of the Pension Fund, discuss its financial accounts, and consider the forward work programme. The meeting also addressed pension administration performance and the fund's risk register.

Pension Fund Performance

The Board was scheduled to review the performance of the Pension Fund for the period January to March 2026. This included an examination of the performance of various fund managers and their respective asset allocations. Reports detailed the performance of managers such as LCIV Sustainable EQ- RBC Exclu, LCIV -Newton, and Legal & General-Paris Aligned, among others. The overall fund performance for the quarter was reported as -1.9% against a benchmark of -1.06%. Over the 12 months to March 2026, the combined fund performance was 11.8% against a benchmark of 11.8%. The reports also provided details on the strategic allocation versus the current allocation across different asset classes, including equities, property, and private debt. Specific attention was given to the performance of individual mandates, such as the LCIV RBC Sustainability Exclusion Fund, which underperformed its benchmark, and the LCIV Newton Investment Management fund, which also showed underperformance. The performance of Amundi Emerging Equity Focus, Aviva (UK property), Columbia Threadneedle (UK commercial property), and Franklin Templeton (global property) were also detailed.

2025/26 Draft Pensions Fund Year End Accounts

The Board was presented with the draft 2025/26 year-end accounts for the Pension Fund. The accounts indicated an increase in net assets to £2,211 million. Employee contributions totalled £19.1 million, and employer contributions, including deficit contributions, amounted to £52.3 million. Pensions paid were £68.8 million. Investment management fees increased to £12.9 million. The report highlighted that income received (£93.5 million) exceeded expenditure (£117.8 million) before considering investment income, but the overall position remained positive due to investment returns. The draft accounts provided a detailed breakdown of income and expenditure, including contributions receivable, benefits payable, and management expenses. The net assets statement showed total investments valued at £2,198.5 million. The report also included notes on the description of the Fund, basis of preparation, significant accounting policies, and actuarial position, which indicated a funding level of 112% as at 31 March 2025.

Pension Administration Performance

An update was provided on the administration activities of the Council's Pensions Office for the period February to May 2026. The report detailed the membership profile, showing a slight shift from active to deferred and pensioner categories. Performance against key processes was reviewed, with an overall achievement rate of 77% within target days, a decrease from the previous period. Retirement benefits and pension estimates showed lower achievement rates. The report also covered the number of members auto-enrolled into the Local Government Pension Scheme (LGPS), with 139 starters and 8 opt-outs during the period. The Pensions Office received 17 communications of thanks and 5 complaints, with 3 related to the suspension of transfers-out due to delays in government guidance. An update was also given on regulatory matters, including the Fit for the Future reforms, changes to elected member pensions, and statements from the Scheme Advisory Board (SAB), the Pensions Ombudsman (TPO), and The Pensions Regulator (TPR). Progress on the Pensions Dashboard Programme was also noted, with the Pensions Office prioritising data quality improvements.

Risk Register

The Board reviewed the Pensions Risk Register (PRR), which outlines key risks in the administration of the Islington Pension Fund. The register had been revised to focus on strategic risks, such as resourcing, governance, and investment strategy, with operational risks moved to a separate Business Operations Risk Register. Updates were provided on specific risks, including Poor administration of pension fund leads to complaints, which saw an increased risk score due to recruitment delays. The risk associated with Pension Payroll Report - Creation and Maintenance saw its mitigated score reduced. A new risk, Failure to Provide Accurate Employee/Employer data, was introduced by consolidating previous risks. The implementation of the iConnect tool and the McCloud Remedy were also discussed, with updated risk assessments and mitigation plans. New strategic risks, Geopolitical Risk and Governance Risk (Pooling), were also highlighted. Risks related to Failure of Non-Public Sector Employers, Strong Financial and contract Management, and Inflation Risk had their scores reduced and were moved to the BORR or had their residual risk lowered. The risk associated with Sustainable Investment and Climate Actions remained classified as strategic due to external factors.

Pensions Board - Forward Work Programme 2026/27

The Board considered its forward work programme for the municipal year 2026/27. The programme outlined key areas of focus, including training, governance, risk review, and performance benchmarking, in line with guidance from the LGPS and The Pensions Regulator. Reports scheduled for future meetings included the draft annual report, governance updates, and budget considerations. The programme also detailed planned training sessions for Board members on topics such as actuarial reviews and net zero carbon transitions.

Membership, Terms of Reference and Dates of Meetings for the Pensions Board 2026/27

The Board was asked to note the membership, terms of reference, and dates of meetings for the upcoming municipal year. The report detailed the composition of the Board, including employer representatives, scheme member representatives, and an independent member. It was noted that the appointment of a Chair of the Board would be postponed to the next meeting. The terms of reference, as contained in Part 5 of the Council's Constitution, were also set out, outlining the Board's role in assisting the scheme manager in ensuring compliance with LGPS regulations and other relevant legislation. The scheduled dates for Board meetings in 2026/27 were also provided.