The Pension Fund Committee met on 17 November 2025 to discuss the draft Funding Strategy Statement, updates on investment pooling and the Local Government Pension Scheme (LGPS), and compliance with the Pensions Regulator's Code of Practice. Key decisions included the approval of the draft Funding Strategy Statement and its proposed consultation, and the approval of the Draft Responsible Investment Policy.

Triennial Valuation - Draft Funding Strategy Statement

The committee received and approved the draft Funding Strategy Statement (FSS) for the 2025 triennial valuation. This document outlines how the Harrow Pension Fund will ensure it can meet its present and future liabilities. The FSS will now be subject to consultation with employers and other stakeholders, with an employers' forum scheduled for January 2026. The final valuation report and approval of the FSS are scheduled for the Pension Fund Committee meeting on 16 March 2026.

A significant change noted in the FSS is the approach to academies and colleges, which will now be treated similarly to the council. This means the Pension Fund will consult with the Department for Education on setting contribution rates for these educational bodies. In return for this alignment, the Department for Education has provided a guarantee to cover any deficit in the Pension Fund should a multi-academy trust or college fail. The contribution rate for the London Borough of Harrow will be set at 17% of pay from 1 April 2026, with annual movements capped at 1% up or down thereafter.

LCIV and LGPS Update

The committee received an update on the London Collective Investment Vehicle (LCIV) and the Local Government Pension Scheme (LGPS). Discussions touched upon the ongoing implementation of Fit for the future proposals, which aim to pool LGPS assets, and the expected government guidance on these changes. A consultation on access and fairness in the LGPS was also noted, which includes proposals to allow mayors and councillors to opt into the scheme.

Pension Board Minutes

The committee received the minutes from the Pension Board meeting held on 4 November 2025. An independent adviser raised a point regarding the availability of Part 2 minutes to Pension Board members and suggested the Chair of the Pension Board attend these private sessions.

Draft Annual Report of the Pension Board 24-25

The committee received the draft annual report of the Pension Board for 2024-25. The Chair of the Pension Board presented the report, noting that the Board's Terms of Reference require an annual report to be presented to Full Council. The Board had decided to present this report to the committee first.

Pension Fund Risk Register

The committee reviewed the Pension Fund Risk Register for Q2 2025/26. It was noted that there were no changes to the risk scores. An independent adviser expressed concern about the risk rating for investment strategy, suggesting it should be reverted to D2 from E2 due to the upcoming change in the principal investment strategy adviser from Mercer to the London CIV. The committee considered the risk register and commented accordingly.

TPR Code of Practice Compliance Update

The committee received an update on the Pension Regulator's (TPR) Code of Practice compliance. The report detailed areas where compliance was not complete and outlined the actions the Fund would take to address these. Key next steps include revising the Terms of Reference and procedure notes. The committee requested that a report be presented to the Pension Board for further scrutiny, with feedback to be provided to the committee if any concerns arose.

Draft Responsible Investment Policy

The committee approved the Draft Responsible Investment Policy, which had been revised for greater clarity following the previous meeting. The policy sets out the Fund's approach to integrating environmental, social, and governance (ESG) considerations into its investment processes and its commitment to a net zero target by 2050. The policy will be published on the Harrow Pension Fund website.

Investment Manager Performance September 2025

The committee received an exempt report on the Investments and Manager Performance Review for September 2025. The committee requested that the Chief Investment Officer of the London CIV be invited to their next meeting.