The Pension Fund Committee of Westminster Council met on Thursday 16 October 2025 to discuss the financial performance and management of the council's pension fund. Key topics included updates on pension administration, financial management, investment performance, and the results of the latest actuarial valuation.

Pension Administration Update

The committee was scheduled to receive an update on the administration of the pension fund. This included a review of key performance indicators (KPIs) for Hampshire Pension Services (HPS), the fund's administrators, which were reported to be meeting agreed targets. The report also detailed the progress of the member portal sign-up rate, which had increased to 53.46% by the end of August 2025. The committee was also to be informed about employer benchmarking, highlighting the number of queries received from employers regarding end-of-year returns. A recommendation was to be made to suspend Pension Administration Strategy (PAS) charges for three years of data quality issues, with a review of the charge design planned.

Pension Projects and Governance Update

An update was scheduled on various projects and governance activities related to the City of Westminster Pension Fund (COWPF). This included the McCloud Project, which was reported to be back on track, with most members expected to receive their underpin calculations on their annual benefits statements. The Pensions Dashboard Programme was also on track for its statutory deadline. The committee was to be updated on the development of a draft Cybersecurity Policy for the Fund and an upcoming Business Continuity Exercise. The Pension Communications and Engagement Programme was also to be discussed, with a report on a well-attended event focused on understanding the Annual Benefit Statement.

Pension Fund Annual Report and Statement of Accounts 2024/25

The committee was scheduled to review the draft Pension Fund Annual Report and Statement of Accounts for the year ended 31 March 2025. The report indicated that the Fund's net assets were £2.095 billion, with a net increase of £81.8 million during the financial year. The Fund's return for the year was 4.8%, underperforming its benchmark by 0.9%. The estimated funding level had increased to 181%. The report also noted a decrease in investment management costs by 32%. The committee was recommended to approve the draft annual report and delegate the final approval to the Tri-Borough Director of Treasury and Pensions in consultation with the Chair.

Fund Financial Management

This agenda item was scheduled to cover the monitoring of the Pension Fund's risk register, divided into governance (investment and funding) and pensions administration sections. The top five risks were to be highlighted, including regulatory and compliance risks, asset and investment risks, and liability risks. The committee was also to be updated on the cashflow position for the Pension Fund bank account and cash held at custody, including rolling 12-month and 3-year forecasts. The cashflow position was reported as stable, with withdrawals from cash at custody to maintain liquidity.

Quarterly Performance Report

The committee was scheduled to receive a report on the performance of the Pension Fund's investments up to 30 June 2025. The Fund delivered a positive absolute return of 4.1% over the quarter, underperforming its benchmark by 0.4%. Over the one-year and three-year periods, the Fund delivered positive absolute returns of 7.7% and 9.0% p.a. respectively, underperforming the benchmark. The report attributed relative underperformance primarily to the LCIV Global Equity Quality Fund. The committee was asked to note the performance of investments and the updated funding level as at 30 June 2025, and to approve that certain appendices containing financial or business affairs information would not be published.

Quinbrook Renewables Impact: Top-Up Considerations

This report was intended to outline details of the Fund's current and reference Quinbrook, the overall renewable infrastructure allocation relative to the agreed strategic target, and Quinbrook's track record. The committee was asked to consider whether to top up the Quinbrook Renewables mandate, with two options presented: a £140m top-up to achieve a total Quinbrook allocation target of 8% by 2029, or a £160m top-up to achieve a total renewable infrastructure target of 11% by 2029. Funding for any top-up was proposed to come primarily from the overweight global equity portfolio and excess cash.

Actuarial Valuation: Initial Outcome Results

The committee was scheduled to be introduced to the initial results of the 2025 triennial actuarial valuation for the Westminster Pension Fund. Key highlights indicated an improvement in the overall funding level to 140% from 128% in 2022, driven by expectations of higher inflation and a better investment outlook. A significant change noted was a slight increase in the discount rate. The committee was asked to note these initial results, with final reports and employer contribution rates to follow.

Pension Fund Impact Investment Opportunity: Temporary Accommodation

This report was to outline an investment opportunity to replicate a successful funding arrangement involving temporary accommodation properties. The proposal involved the Pension Fund providing a loan to a separate legal entity (likely an LLP) which would purchase properties from Westminster City Council and lease them back. This investment was presented as offering secure, risk-adjusted returns, inflation protection, predictable cash flows, and impact benefits aligned with the Fund's responsible investment beliefs. The committee was asked to approve the investment and delegate authority for its implementation.

The information provided is based on the documents made public regarding the meeting. The status of the meeting is PENDINGCOUNCILPUBLICATION, meaning that while the documents were available, the council has not yet published official information confirming the meeting was held or any decisions made.