The Pensions Committee of the City of London Council met to discuss a range of issues, including the Local Government Pension Scheme, breaches of law policy, and a consultation on access and fairness. The committee was also scheduled to elect a chair and deputy chair. Additionally, the meeting included updates on the pension scheme, a review of accounts, and discussions on communication policies and government responses to consultations.

Here's a breakdown of the key topics that were scheduled for discussion:

Local Government Pension Scheme - Fit for the Future Consultation

The committee was scheduled to discuss the government's response to the Fit for the Future consultation. The consultation sought views on proposals relating to investments of the Local Government Pension Scheme (LGPS) and covered the areas of pooling, local and regional investment, and governance.

The government's response to the consultation included the following proposals:

• Requirement on AAs¹ to delegate the implementation of their investment strategy to their pool. The investment strategy set by AAs may include a high-level strategic asset allocation (SAA) that is no more detailed than the template which government intends to publish in guidance.
• Requirement on AAs to take their principal investment advice from the pool.
• Requirement for pools to be established as investment management companies authorised and regulated by the FCA², with the expertise and capacity to implement investment strategies.
• Requirement for AAs to transfer all assets to the management of their pool.

The government also intends to require AAs to set out their approach to local investment, including a target range for investment, in their Investment Strategy Statement, and to have regard to local growth plans and local economic priorities in setting their investment strategy.

The government's response also set out the intention to introduce a Pension Scheme Bill, which officers anticipated would receive royal assent ahead of the 31 March 2026 deadline for the transition of all LGPS assets to the 'management' of the Pool.

Access and Fairness Consultation

The committee was scheduled to discuss a consultation on the Local Government Pension Scheme entitled 'Local Government Pension Scheme in England and Wales: Access and fairness'. The consultation was seeking views on proposals intended to improve fairness in, and access to, the LGPS. The consultation also included questions on the potential impact on administration and the government's duty under the Public Sector Equality Duty³.

The consultation was seeking views on proposals which include:

• Addressing survivor pensions and deaths grants
• Addressing the Gender Pension Gap in the LGPS
• Collecting data on how many members opt out of the scheme and why
• Changes to forfeiture, aiming to tackle long-standing issues with forfeiture in the LGPS
• Several technical changes to how the McCloud remedy⁴ operates
• A number of other miscellaneous changes, including changes to five-year refunds, pre-2014 Additional Voluntary Contributions and small pot payments.

City of London Pension Fund Breaches of Law Policy

The committee was scheduled to review the City of London Pension Fund Breaches of Law Policy. The policy sets out the protocol and procedure for recording and reporting breaches of the law connected to the Public Service Pension Schemes for whom it is Scheme Manager.

The policy describes who has a legal requirement to report breaches, to whom and how they should report and provides processes to follow to assess and consider suspected breaches to ensure that they are reported appropriately. It takes account of the Pensions Regulator's (tPR) guidance and information issued in the General Code of Practice and their Public Service Toolkit.

The policy applies to both the Local Government Pension Scheme and the Police Pensions Scheme and was approved by the Local Government Pensions Board and the Police Pensions Board in April 2018 (prior to the formation of the Pensions Committee). The Policy should be reviewed every three years, it was last reviewed by Officers in 2022 to update contact details however was not brought back to Committee.

Local Government Pension Scheme - Communication Policy

The committee was scheduled to discuss the Communication Policy for the City of London Pension Fund. The report pack included a recommendation to update the Communications Policy with recommendations made by Barnett Waddingham following their General Code of Practice Compliance Review.

The code contains a module on Communications and disclosure: Information to members for which the Pension Fund received 'Green' ratings which means The Fund complies with the Code and no further action is required at this time .

Pension Scheme - Administrator's Update

The committee was scheduled to receive an update on the administration of the City of London Local Government Pension Scheme. The update included a summary of general information around a range of topics in relation to the administration of the Scheme since the last Committee meeting on 13 February 2025.

The update included information on:

• The annual schedule of events for the administration of the Pensions Scheme
• Information of Scheme Record Keeping
• Complaints or disputes under the Scheme's Internal Disputes Resolution Process (IDRP)
• Public Service Pensions - Reporting Breaches of Pension Law
• Any audit reports relating to the administration of the Scheme
• Any reports relating to the administration of the Pension Scheme which have been considered by other Committees
• Pension Administration System
• Pensions Office Communications
• Public Sector Pensions Legal Challenge
• Pension Committee Training
• Pensions Office Key Performance Indicators
• Pensions Dashboards

Statement of Accounts Update for City Fund, Pension Fund, and City's Estate

The committee was scheduled to receive an update on the production of the 2024-25 accounts and planning for the 2024-25 audit of the City Fund, City's Estate accounts. The report pack included the External Auditor's reports undertaking the audit of the City Fund and Pension Fund Accounts for 2024-25. In addition, the reports outline the work they will undertake to reach a Value for Money conclusion on the Authority's arrangements to secure economy, efficiency and effectiveness in the use of resources. The report also identifies specific risks and includes a statement of their fees.

The Audit and Risk Management Committee oversees the City of London Corporation's systems of internal control and makes recommendations to the Finance Committee relating to the approval of the City Fund Annual Statement of Accounts – this includes the Pension Fund accounts.

Decisions Taken Under Delegated Authority or Urgency Powers

The committee was scheduled to be advised of action taken by the Town Clerk in consultation with the Chairman and Deputy Chairman, in accordance with Standing Order No. 41(a) and 41(b) since the last meeting. This included approving the minutes of the inquorate meeting of the Pensions Committee on the 13 February 2025, approving the risk register, approving the Investment Consultant Review for 2024 and authorising the Chamberlain to sign the Compliance Statement, approving the City of London Pension Fund Training Policy, approving the City of London's Local Government Pension Scheme Administration and agreeing the non-public minutes of the Pensions Committee meeting on the 3 December 2024.