The Kent Pension Board met to discuss governance updates, pension administration, member training and investment performance. The board reviewed and noted updates to fund policies, the business plan and budget, and the recruitment process for an independent chair. Members also received updates on pension administration performance, investment activities, and responsible investment initiatives.

Governance Updates

The board received a governance update, including a review of the updated Communications Policy, which is contained in the Administration report. The updated Communications Policy did not make significant changes to the current policy, but was due for review. The board was informed that they would be asked to review the Funding Strategy Statement and Administration Strategy at future meetings in 2025.

The board also discussed the plan to appoint an Independent Chair of the Pension Board. Officers have undertaken research across the LGPS to support a Job Description for this role, and also to ascertain the appropriate level of compensation for the role. The draft Job Description is attached as an Appendix to this report which will be finalised after the meeting and the role advertised. The proposed timetable for the recruitment process is:

Timetable

Deadline for applications: 26 September 2025

Interviews (via Microsoft Teams): week commencing 13 October 2025

Panel to consist of Chair of Pension Fund Committee, member of the Pension Board, Head of Pensions and Treasury and Senior Pensions Programme Manager

First meeting of Pension Board as Chair: 25 November 2025

Pensions Administration

The board received an update on various aspects of pension administration, covering the period from 1 April to 30 June 2025. The report highlighted key activities and performance metrics, including the number of cases completed, recruitment efforts, complaints, compliments, overpayment write-offs, and updates from the Engagement and Systems Team, as well as the Technical and Training Team.

Key highlights

• The number of member cases completed exceeded the number received, reducing the number of outstanding cases.
• Good performance against high priority legal deadlines.
• 22 vacancies filled.
• 0 complaints received.
• Very small overpayment write-off resulting from an incorrect amount of overpaid pension quoted for recovery.
• End of year and Valuation on track.
• Deferred Annual Benefit Statements published to MyPension Online (MPO) for first time.
• 123 employers onboarded to iConnect.
• Final McCloud data expected from Lumera in August.
• Access & Fairness consultation responded to.

Matters to be closely monitored

• Review number of outstanding cases on Reply Due for Retirements, New Joiners and Opt-Outs. Ringfencing of backlog to allow more accurate reporting of performance on new cases received.
• High number of vacancies within Admin Team. Plan is being formulated to fill Recruitment commenced for these vacancies and ensure adequate Engagement & Support Officers. capacity for training and development.
• Some comments expressing dissatisfaction with communication to be investigated further.
• Internal Audit of overpayment recovery process.
• Valuation data queries.
• Increased demand on the team from MPO registration queries.
• Approval of revised Communications Policy by Pension Fund Committee.
• Significant amount of work required to implement McCloud – historical rectification and business as usual.
• Significant regulatory changes expected towards the end of 2025, into 2026 as a result of the recent consultation.

The board was also provided with a copy of the Access and Fairness LGPS Consultation response.

Member Training Update

The board received an update on member training, with a focus on supporting new members of the board and committee. The update outlined seven areas designed to support the Fund's new Members of Board and Committee in their training needs. The plans set out are based on the Fund's Training Strategy 2024 and previous successful initiatives to share skills and knowledge.

The seven areas outlined were:

• Induction Briefing for new Members
• Knowledge Assessment, development and delivery of a structured training programme based on results
• Training on Hot Topics, according to agenda items
• Online access to the training portal 'Enlighten'
• Completion of the Pension Regulator's E-Toolkit for Public Service Pensions
• Communications & messaging via the Fund's FileShare Site
• 'Fundamentals' Training from the Local Government Association (LGA)

Investment Update

The board received an Investment Update, which provided a summary of the Fund's investment strategy, asset allocation, performance, and responsible investment activity. The report also included a short update regarding the implementation of investment decisions following the completion of the intra asset class review which has taken place since the Board's last meeting in November 2024.

As of 30 June 2025, the Fund's value was £8.7bn compared to £8.4bn as at 31 March 2025 and £8.5bn on 31 December 2024. The current asset allocation is broadly aligned with the strategic asset allocation, and within approved tolerance bands. UK and global equities are marginally overweight whilst the alternatives assets (excluding absolute return) and the risk management framework are underweight.

The Fund's performance improved significantly during the quarter to 30 June 2025, achieving a return of 3.1% against a benchmark of 2.9%, compared to the negative return of 1.5% achieved in Q1. For the year ended 30 June 2025, the Fund slightly outperformed its benchmark of 5.1%, achieving an overall return of 5.4%. Over the three-year period, the Fund returned 4.7%, below the combined benchmark of 6.7%.

The Responsible Investment Working Group last met on 28 November 2024, as further work was paused as a result of a focus on pooling changes. The meeting focused on local investment and the Government's Fit for the Future consultation. Following the previous Board meeting, the Fund has also received its results of the PRI Assessment for 2024, with improved scores in policy, governance strategy, listed equity and fixed income are an indicator of the efforts of officers to improve the Fund's RI reporting. The ACCESS Pool have been approved by the Financial Reporting Council (FRC) as a signatory to the UK Stewardship Code 2020.