The Pensions Committee of Staffordshire Council met on Friday 25 September 2026 to review the Staffordshire Pension Fund's investment performance for the 2025/26 financial year, approve the draft annual report and accounts, and discuss significant governance and membership matters. Key decisions included the approval of the draft annual report and accounts, the cessation of membership in the Local Authority Pension Fund Forum (LAPFF), and the approval of a comprehensive governance review.

Staffordshire Pension Fund Investment Performance 2025/26

The committee received a report on the Staffordshire Pension Fund's investment performance for the year ending 31 March 2026. Northern Trust, the Fund's independent performance measurement service provider, presented an overview of the Fund's performance, including total fund performance, asset allocation over time, market intelligence, attribution analysis, and individual manager returns. The Fund achieved an 8.9% return over the fiscal year, with total assets valued at £8.4 billion. While long-term returns over five and ten years were reported as 6.8% and 8.6% per annum respectively, both ahead of the liability target, there was discussion regarding consistent underperformance against benchmarks. Scott Douglas and Sunil Julka from Northern Trust addressed concerns about benchmark challenges, particularly in active equity management, and the interpretation of low Information Ratios, undertaking to check specific figures. The committee noted the report and thanked the presenters.

Staffordshire Pension Fund Draft Annual Report & Accounts 2025/26

The committee approved the draft Staffordshire Pension Fund Annual Report and Accounts for 2025/26. It was noted that the external audit by KPMG was ongoing, and minor amendments might be necessary before final publication. The final version of the report will be signed off by the Director of Finance and Resources in consultation with the Chair of the Pensions Committee after the audit is complete. The statutory deadline for publishing the annual report is 1 December each year.

Local Authority Pension Fund Forum (LAPFF) Membership Review

Following a recommendation from the Pensions Panel, the committee voted to cease the Staffordshire Pension Fund's membership of the Local Authority Pension Fund Forum (LAPFF). The decision was made after a review of the benefits and disadvantages of membership, with a vote of five in favour and two against. Councillor Colin Greatorex expressed concern that the decision might be perceived as political and highlighted the Forum's value in providing guidance on responsible investment. However, Councillor Craig Humphreyson stated that the intention was to move away from what had become a political debate, and Councillor Sean Bagguley noted that the annual subscription of £12,500 should only be retained if it provided sufficient value. The withdrawal notice will be served to terminate membership at the earliest opportunity, which is April 2028.

LGPS Senior Officer Appointment

The committee noted the confirmation of the Assistant Director for Treasury and Pensions as the nominated LGPS Senior Officer for the Staffordshire Pension Fund. This appointment is a statutory requirement introduced by the Pension Schemes Act 2026, with a deadline of 31 December 2026. The Assistant Director for Treasury and Pensions already leads on all Pension Fund matters and reports to the Director of Finance and Resources, fulfilling the criteria for the role. The council's constitution will be amended to reflect this new statutory role.

LGPS Central Pool Governance

The committee received a report outlining the revised governance structure for the LGPS Central Pool, effective from 1 September 2026. This structure has been developed following a review by PricewaterhouseCoopers (PwC) and implements recommendations to ensure clear separation of shareholder and client functions, compliance with regulatory requirements, and oversight by elected members. The new structure includes an Oversight Board, a Shareholder Engagement Forum, a Client Forum, and a Partner Fund Officer Group. Staffordshire will be represented on these groups by the Chair of the Pensions Committee, the Director of Finance and Resources, and Pension Fund Officers respectively. The committee noted the report and the upcoming meeting schedule for the Oversight Board.

Training Update

A report was presented on the training update for Pensions Committee Members, highlighting the new statutory knowledge and understanding requirements introduced by the Local Government Pension Scheme (Amendment) (Governance) Regulations 2026. These regulations require individuals exercising delegated pension responsibilities to demonstrate their own understanding of pension matters. The Fund's training programme includes the LGPS Online Learning Academy, dedicated training days, and an annual knowledge assessment. Councillor Bagguley raised concerns about potential future issues if insufficient members undertook the required training, and the Assistant Director for Treasury and Pensions explained that the Fund would explore available powers and seek support to encourage participation. The committee noted the training update.

Pension Fund Governance Review

The committee received a report and presentation from Hymans Robertson regarding a proposed comprehensive review of the Fund's governance structures and processes. This review is intended to assess the Fund's preparedness for new regulatory requirements, including those stemming from the Pension Schemes Act 2026 and potential Local Government Reorganisation. The methodology includes a desktop review of documents, meeting observations, stakeholder surveys, and interviews. The review aims to identify areas for optimisation, improve efficiencies, ensure compliance, and future-proof the Fund. Councillor Holland questioned the necessity of the review given upcoming statutory independent governance reviews, but it was explained that this proposed review would be more fundamental and benchmarking-oriented. The committee approved the governance review, with the final decision deferred until after further consideration of related agenda items.