The Pension Fund Committee and Pension Board were scheduled to meet on 22 September 2025 to discuss a range of topics, including the annual report and accounts, budget monitoring, risk management, and compliance with the General Code of Practice. The meeting was also scheduled to cover updates on investment performance, contract renewals, and training opportunities for members.

Final Annual Report and Accounts 2024/25

The committee was scheduled to review and recommend for approval the final Annual Report and Accounts for 2024/25, prior to their submission to Scottish Borders Council. The report was scheduled to include a report on management and financial performance, a statement on investment policy, details of pension administration arrangements, an actuarial valuation statement, a governance compliance statement, the fund account and net asset statement, an annual report on the pension administration strategy, and details of where to access the current Funding Strategy Statement and Statement of Investment Principles.

The report noted that Audit Scotland had completed their audit and provided an unqualified independent audit opinion. The Annual Audit Report highlighted two new recommendations for improvement, as well as follow-up actions on two prior recommendations:

• To support capacity within the team to reduce the risk of self-review and key person dependency.
• To provide regular training for members in identifying conflicts of interest, including in relation to gifts and hospitality.

Pension Fund Risk Register Update

The committee was scheduled to consider a report by the Chief Officer Audit and Risk, providing an update on the review of the refreshed Pension Fund Risk Register. The report noted that effective risk management is one of the foundations of effective governance of the Pension Fund. The review was scheduled to cover the Governance and National Policy/Regulations category of Risks, as well as Administration Risk 305 (Cyber Security).

The report stated that since Live Borders' move to a Single Member Trust Model, staffing pressures have been a barrier to participation on the Pension Board. However, a representative from Live Borders was expected to attend the meeting.

The report also noted that a joint development session was held in May 2025 with members of the SBC Audit Committee, the Pension Fund Committee and the Integration Joint Board (IJB) Audit Committee, focusing on the new Global Internal Audit Standards (GIAS).

General Code of Practice Compliance Tracker

The committee was scheduled to consider a report presenting the General Code Compliance Tracker for approval. The report noted that the General Code of Practice consolidates ten existing codes of practice and provides guidance to those running occupational, personal, and public service pension schemes. The code contains new governance requirements and sets out TPR's expectations of how occupational pension schemes should be managed and the policies, practices and procedures that should be in place. All schemes should continually monitor and assess actions required to ensure compliance with the single code.

The report stated that the General Code Compliance Tracker supersedes the Governance Action Plan, and that all actions from the Governance Action Plan are now captured in the General Code Compliance Tracker.

The report also noted outstanding actions required to enable the Scottish Borders Pension Fund to be fully compliant with the TPR General Code (March 2024), including filling the Pension Board Vacancy for Live Borders, creating a Business Continuity Plan, Data Readiness and Information Asset Review, and Cyber Security Policy.

Adoption of Northern Trust Reporting for Pension Fund Annual Report & Accounts Preparation

The committee was scheduled to consider a report proposing the adoption of Northern Trust's general ledger reporting services to support the preparation of the Pension Fund Annual Report and Accounts. The report noted that following the year end audit of the Annual Report and Accounts 2024/25, Audit Scotland recommended the requirement to support capacity within the team to reduce risk of self-review and key-person dependency.

The report stated that Northern Trust offer a custom general ledger reporting service that builds on its standard reporting suite, enabling the generation of bespoke ledger outputs using the fund's own accounting codes and descriptions, fully aligned with its internal financial systems. The report recommended approving the use of Northern Trust's Custom General Ledger Reporting, and the associated additional cost of $15,000 per annum.

Conflicts of Interest Policy Update 2025

The committee was scheduled to consider a report proposing the review and approval of the updated Conflicts of Interest Policy for the Scottish Borders Council Pension Fund. The report noted that following the introduction of the General Code March 2024 it is now a requirement for LGPS to have their own policies and not depend on council policies. The Conflicts of Interest Policy for Scottish Borders Pension Fund was introduced and approved by the Committee and the Joint meeting of the Pension Fund Committee and Board in December 2024.

The report stated that the Conflicts of Interest policy notes any conflicts which should be disclosed and notes the Gifts and Entertainment policies which should be followed by Employees and Councillors. Officers, who are employees of the Scottish Borders Council, will follow the Code of Conduct for Employees of Scottish Borders Council. Elected members will follow the National Code of Conduct for Councillors.

The report also stated that the Conflicts of Interest Policy has been updated to reflect the requirement for members of the Pension Fund Committee to act solely in the best interests of the fund's beneficiaries and stakeholders, and that decisions must be made based on sound financial, fiduciary, and legal principles, and must not be influenced by personal political beliefs, party affiliations, or external political pressures.

Pension Fund Budget Monitoring to 30 June 2025

The committee was scheduled to consider a report providing an updated position on the Pension Fund budget to 30 June 2025, including projections to 31 March 2026. The report noted that the Local Government Pension Scheme (Scotland) Regulation 2014 requires Administering Authorities to ensure strong governance arrangements and sets out the standards they are to be measured against.

The report stated that the total expenditure to 30 June 2025 was £1.825m, with a projected total expenditure of £9.227m against a budget of £9.167m, projecting a budget variance of £60k, mainly comprised of £11k additional Oversight and Governance fee for Northern Trust reporting and £47k additional Administration fee for upgrade of Member self-service to Heywood Engage.

Information Update

The committee was scheduled to receive an information update covering several key matters. These included:

• The renewal of the SBCPF contract with Northern Trust until September 2027.
• The introduction of a post Investment Sub-Committee meeting review process, attended by the Director of Finance, Pensions, Investments and Accounting Manager, Chair of the Pension Fund, and one other elected member from Investment and Performance sub-committee.
• The appointment of Ross MacNay, Head of Finance at Live Borders, to the Pension Board vacancy.
• Internal Audit reviews of governance and compliance actions.
• The availability of Annual Benefit Statements for the year ended 31st March 2025 for all active and deferred members within the member Self Service portal.
• The addition of David Bell, the current Chair of the Scottish Borders Council Pension Board, as the Unite member to the Scottish LGPS SAB.
• SBCPF being shortlisted for LAPF Small Pension Fund of the Year 2025 and LGC Small Pension Fund of the Year 2025.
• One member who has not responded to the Life Certificate check, with their pension continuing to be suspended.
• Testing for the Pensions Dashboard being completed, with a go live date for September 2025 agreed with Heywood.
• Training opportunities, including the LGC Investment Seminar Scotland and the Pension Fund Training Day.