The Teesside Pension Board is scheduled to convene on Monday 2 November 2026, with a key focus on the proposed Draft Investment Strategy Statement. The meeting's agenda also includes updates on the work plan, a review of pension administration, and discussions on future work plan items.

Draft Investment Strategy Statement

A significant portion of the meeting is expected to be dedicated to the Draft Investment Strategy Statement (ISS) for the Teesside Pension Fund. This document outlines how the Fund's investments are intended to be managed to meet long-term pension obligations. The report pack details that the ISS is being drafted in accordance with new regulations stemming from the Pensions Act 2026 and the Local Government Pension Scheme (Pooling, Management and Investment of Funds) Regulations 2026.

The strategy is built upon a set of Investment Beliefs, which include a long-term view on investing, the benefits of diversification, the potential for active management to provide higher net returns, and the importance of engaging with companies, including on climate-related issues, to protect shareholder value. It also states a commitment to allocating a proportion of investments locally.

The proposed Investment Preferences aim to support domestic economic growth, manage investment risk through responsible investment, harness opportunities in less efficient markets, manage concentration risks, and reduce costs. The high-level investment objectives are to achieve a modelled expected long-term return exceeding 5.6% per annum over 20 years with a high probability, and to manage risk to ensure the funding level remains robust. A specific objective is to target an allocation of 0-5% of the Fund's portfolio in local investments, with a preferred target area of the North East Region.

The report pack also details the Strategic Asset Allocation (SAA), which is proposed to be 65% in Equity (Listed and Private), 10% in Credit, 15% in Infrastructure/Real Estate, 10% in UK Government Bonds, with 0% in Other Alternatives and Investment Cash. This represents a shift from the current allocation, with an increase in Credit and UK Government Bonds, and a reduction in Equity, Infrastructure/Real Estate, Other Alternatives, and Investment Cash. The transition to this new SAA is expected to take several years.

The document also outlines the Fund's approach to Responsible Investment (RI), focusing on financially material sustainability themes and the integration of ESG factors into the investment process. Stewardship activities, including engagement and voting, are to be undertaken by the Border to Coast Pensions Partnership (the Pool).

The report pack indicates that a formal consultation with employers, scheme members, the strategic mayoral authority, and the Local Pension Board is required before the final ISS is adopted.

Update on Work Plan Items

The Board is scheduled to receive an update on items within its work plan. A key focus for this meeting is the annual review of training arrangements for Board members and elected members and officers with delegated responsibilities. The report highlights the knowledge and understanding requirements for Board members under the Local Government Pension Scheme (LGPS) Regulations 2013 and the Pension Schemes Act 2026. It details various training resources available, including induction training, webinars, conferences, an online learning academy provided by Hymans Robertson, and a national knowledge assessment. A training log is being maintained for inclusion in the Annual Report.

Future Work Plan

The meeting will also consider a proposed future work plan for the Teesside Pension Board. This plan is being developed in consideration of guidance from The Pensions Regulator and the Scheme Advisory Board, as well as new statutory guidance issued under the Pension Schemes Act 2026. The proposed plan outlines areas of focus for future meetings, including conflicts of interest, risk management, record-keeping, communication with members, reporting breaches of the law, and the implications of the Pensions Act 2026, particularly concerning Independent Governance Reviews.

Pension Administration Report

An overview of the administration services provided to the Teesside Pension Fund by Tyne & Wear Pension Fund (TWPF) is scheduled for discussion. The report details that the administration transfer from XPS Group to TWPF was completed on 1 June 2025. It acknowledges that the early transition period presented challenges, particularly in data quality, performance against key performance indicators (KPIs), and front-line service delivery.

The report outlines a phased plan to address these issues, with a focus on correcting data issues in the short term, improving KPI performance in the medium term, and developing automation for long-term performance enhancement. Performance against LGPS Scheme Advisory Board (SAB) KPIs is presented, showing underperformance in several areas, attributed to ongoing issues with inherited data and the progression of 'out of date' cases. However, the report notes gradual improvement in performance during Quarter 2 and anticipates further improvement as backlogs and data issues are resolved.

Member engagement through online services shows continued growth, and the report details the issuance of Annual Benefit Statements and the content of Fund newsletters. Employer performance is monitored regarding the timely receipt of data, with improvements noted in Quarter 2, though performance remains below expected standards. The report also covers the progress of Monthly Data Collection (MDC) and employer training initiatives. The development of Pensions Dashboards is also mentioned, with the initial phase of connecting member records for Teesside and Tyne and Wear Pension Funds complete.

The report concludes that while challenges remain, particularly concerning inherited data issues, the shared-service model supports improved digital access and service delivery, with confidence expressed in further improvement. Appendices to the report provide detailed SAB Administration Key Performance Indicators, Disclosure Regulations Performance, the Teesside Pension Fund Data Improvement Plan, and information on Employer Admissions and Exits.