The Pensions Board of Islington Council met on Wednesday 29 July 2026 to review the performance of the Pension Fund, discuss draft financial accounts, and consider the forward work programme. The meeting also covered pension administration performance and the Pensions Risk Register.

Pension Fund Performance - January to March 2026

The Board was scheduled to review the performance of the Pension Fund for the period of 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 specific mandates, such as the LCIV Sustainable EQ- RBC Exclu, LCIV -Newton, and Legal & General-Paris Aligned, highlighting their returns against benchmarks. The overall market value of the fund at the end of March 2026 was £2,181.8 million.

2025/26 Draft Pension Fund Year-End Accounts

The meeting agenda included a review of the draft 2025/26 Pension Fund year-end accounts. These accounts indicated an increase in net assets of £173 million, bringing the total to £2,211 million. Employee contributions totalled £19.1 million, and employer contributions, including deficit contributions, amounted to £52.3 million. Pensions paid out were £68.8 million. Investment management fees increased to £12.9 million. The report noted that income received (£93.5 million) exceeded expenditure (£117.8 million), but this shortfall was covered by investment income.

Pension Administration Performance

An update was provided on the administration activities of the Council's Pensions Office for the period of February to May 2026. The report detailed the membership profile, showing a slight shift from active to deferred and pensioner categories. Performance data against various case types, such as deaths, retirements, and transfers, was presented, indicating that overall key processes achieved 77% within target days. The report also noted the number of members auto-enrolled into the Local Government Pension Scheme (LGPS), with a total of 139 starters and an opt-out rate of 5.76%. The Pensions Office received 17 communications of thanks and 5 complaints, all of which were resolved informally. An update on the National Fraud Initiative (NFI) identified one case referred for investigation concerning a member working concurrently for Islington Council and another local authority.

Pensions Risk Register

The Board was scheduled to review the Pensions Risk Register (PRR), which outlines potential risks in the administration of the Islington Pension Fund and measures to mitigate them. Recent revisions focused the register on strategic risks, such as resourcing, governance, and investment strategy, moving operational risks to a separate Business Operations Risk Register (BORR). Key risks discussed included Poor administration of pension fund leads to complaints, with an increased mitigated risk score due to recruitment delays, and Implementing the iConnect Tool, where delays were attributed to a lack of internal specialist coding knowledge. New risks such as Geopolitical Risk and Governance Risk (Pooling) were also noted. The register highlighted a reduction in risk scoring for Failure of Non-Public Sector Employers following the 2025 triennial valuation.

Pensions Board - Forward Work Programme 2026-27

The Board was presented with the proposed forward work programme for 2026-27, outlining agenda items for forthcoming meetings and training topics. This programme is designed to ensure compliance with LGPS regulations and the requirements of the Pensions Regulator, focusing on areas such as training, conflict of interest avoidance, fund governance, risk review, and member communications. The programme also includes the review of the Pension Fund's draft annual report, audited accounts, and triennial actuarial review.

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 scheduled meeting dates for the 2026-27 municipal year. The membership includes employer representatives, scheme member representatives, and an independent member. The terms of reference, as contained in Part 5 of the Council's Constitution, outline the Board's role in assisting the London Borough of Islington as scheme manager in securing compliance with LGPS regulations and other relevant legislation. The appointment of a Chair for the Board was scheduled to be postponed to the next meeting.