The Pension Fund Committee for Westminster Council convened to discuss fund performance, consider investment opportunities, and review fund management strategies. The agenda included a review of the annual report and updates on various projects and governance matters.

Actuarial Valuation

The committee was scheduled to review the initial findings of the 2025 triennial actuarial valuation¹ of the Westminster Pension Fund, as presented by Hymans Robertson. According to the report pack, the valuation showed an increase in the funding level from 128% in 2022 to 140% in 2025.

This has been driven by future expectations of higher inflation, together with a better investment outlook.

The report pack noted that the key change to the 2025 actuarial financial assumptions was a slight increase in the discount rate[^1]. The committee was expected to note the initial actuarial valuation results, with the final reports to follow.

Fund Financial Management

The committee was expected to discuss a report on fund financial management, including the top five risks for the Pension Fund. These included:

• Regulatory and compliance risk
• Asset and investment risk
• Liability risk

The report pack also included a review of the cashflow position for the Westminster Pension Fund bank account and cash held at custody, along with a rolling twelve-month forecast and a three-year forecast.

Quarterly Performance

The committee was scheduled to discuss the performance of the Pension Fund's investments up to 30 June 2025. According to the report pack, the total value of the Fund's invested assets stood at £2,171.3m as at 30 June 2025, an increase of £80.2m since 31 March 2025. The fund delivered a positive absolute return of 4.1% for the quarter, underperforming against its benchmark by 0.4%. The report pack noted that the underperformance was primarily due to the LCIV Global Equity Quality Fund. The report pack also noted several personnel changes across the funds, including LGIM, Baillie Gifford, Morgan Stanley, Pantheon and Ruffer.

Quinbrook Renewables Impact Fund

The committee was expected to consider whether to increase investment in the Quinbrook Renewables Impact Fund. The report pack presented two options:

• Increase investment by £140m to achieve a total Quinbrook allocation target of 8% by 2029
• Increase investment by £160m to achieve a total renewable infrastructure target of 11% by 2029

The report pack stated that any increase in investment would be funded primarily from the overweight global equity portfolio and supported by any excess cash at the custodian.

Pension Administration Update

The committee was scheduled to receive an update on pension administration, including key performance indicators (KPIs) for Hampshire Pension Services (HPS). The report pack stated that HPS reported 100% compliance within the agreed KPIs for each month from June 2025 to August 2025. The report pack also included an update on employer benchmarking, with a request to suspend Pension Administration Strategy (PAS) charges for three years of failing data quality.

Pension Projects and Governance Update

The committee was scheduled to receive an update on various projects and governance activities, including:

• The McCloud project²
• The Pension Dashboard Programme
• Cybersecurity, Business Continuity Plans, Data Protection and Retention
• Pension Communications and Engagement Programme

Pension Fund Annual Report and Statement of Accounts

The committee was expected to consider the draft Pension Fund Annual Report and Statement of Accounts for 2024/25. The report pack noted that the Pension Fund's net assets were £2.095bn at 31 March 2025, an increase of £81.8m. The Fund returned 4.8% over the financial year, underperforming its benchmark by 0.9%. The estimated funding level for the Westminster Pension Fund increased to 181% at 31 March 2025, compared with 163% at 31 March 2024.

Pension Fund Impact Investment Opportunity

The committee was scheduled to discuss an impact investment opportunity related to temporary accommodation. The proposal involved the Pension Fund providing a loan to a separate legal entity, which would then purchase temporary accommodation properties from the council and lease them back under a credit tenant lease structure. The report pack stated that this investment would provide the pension fund with secure, risk-adjusted returns, inflation protection, predictable cash flows, and impact benefits aligned with the fund's responsible investment beliefs.

Previous Committee Decisions

The report pack included the minutes from the Pension Fund Committee meeting held on 26 June 2025, and the extraordinary meeting held on 17 July 2025. The minutes from the 26 June 2025 meeting include discussion of:

• Pension administration update
• A proposal to introduce a Shared Cost Salary Sacrifice AVC (SCAVC)³
• Pension projects and governance update
• Fund financial management
• Quarterly performance report
• Fit for the Future LGPS pensions review - outcomes
• LCIV Global Alpha Growth Paris Aligned update
• London CIV B shares subscription

The minutes from the 17 July 2025 extraordinary meeting include discussion of:

• LCIV Global Alpha Growth Fund – Paris Aligned: proposed disinvestment and passive equity options