The Pension Fund Committee is scheduled to meet on Friday, 5 December 2025, to discuss the overall value and performance of the pension fund, review the annual report and accounts, and consider regulatory updates and policy statements. The meeting will also cover consultations on scheme improvements and a review of pension fund risks. Some items will be discussed in a closed session due to the confidential nature of the information.

Here is a summary of the topics scheduled for discussion:

• Review of Pension Fund Risks: The committee will review the LGPS Pension Fund risk register, following a review undertaken with the council's Risk and Governance Team. The report pack states that there are 16 risks on the register, nine medium risks and seven low risks. The areas assessed as medium risk are:

  • the pension fund assets may fail to grow in line with the developing cost of pension fund liabilities
  • inappropriate investment in breach of the Fund's environmental, social or governance principles, leading to reputational damage
  • risk that the amount of money needed to meet the fund's liabilities turns out to be greater than expected
  • risks associated with asset pooling through Border to Coast
  • poor standards of data quality, leading to disruption to the discharge of administering authority functions
  • serious breach of law regarding management of data/information, including an unauthorised release requiring notification to the Information Commissioner's Office, leading to disruption to the discharge of administering authority functions
  • a successful cyberattack, leading to disruption to the discharge of administering authority functions
  • McCloud Judgement extension to the implementation period requires all aspects of the implementation to be complete by 31 August 2026
  • Border to Coast Expansion

• Pensions Fund Annual Report and Accounts and Audit Completion Plan: The Committee will discuss the Durham County Council Pension Fund Annual Report and Accounts for the year ended 31 March 2025, as well as the audit completion plan. The annual report and accounts include:

  • Details of scheme management and advisors
  • A governance compliance statement
  • Details of attendance at the Pension Fund Committee
  • A governance compliance statement training review
  • A summary of work undertaken by the Pension Fund Committee and the Local Pension Board
  • Information on conflicts of interest
  • Information on LGPS asset pooling, oversight and governance of the asset pool
  • A management and financial performance report
  • The Durham County Council Pension Fund accounts
  • Notes to the Durham County Council Pension Fund accounts
  • Information on investments and funding
  • The investment strategy statement
  • Information on strategic asset allocation
  • Information on the fund's investment management arrangements and the risks, returns and management costs associated with the investment portfolio
  • Information on total fund performance
  • Information on investment managers' performance, including Alliance Bernstein, Border to Coast Pension Partnership, CB Richard Ellis Investors, and Legal & General Investment Management
  • Information on investment pooling
  • Information on management expenses
  • Information on LGPS pooling savings
  • Information on administration
  • Durham County Council Pension Fund Local Key Performance Indicators
  • LGPS Scheme Standard Key Performance Indicators
  • Information on the internal dispute resolution procedure
  • Information on the administration function and value for money
  • A statement of the actuary for the year ended 31 March 2025
  • Information on the actuarial position
  • Information on the independent review of governance arrangements
  • The independent auditor's statement
  • Additional information
  • Information on the pension fund exit policy
  • The communications policy statement
  • Information on participating bodies and contribution rates
  • Membership statistics
  • A glossary of terms
  • Contact information

• Regulatory Update: The Committee will receive an update on regulatory matters affecting the LGPS, including:

  • The Levelling Up White Paper and LGPS Local Investment Plans, noting the Fund's commitment to an impact investment in the North-East to support SME finance.
  • The MHCLG Consultation – LGPS: Next Steps on Investments, and the Fund's response.
  • HM Treasury's Pensions Review – Terms of Reference: Phase One, which will focus on defined contribution workplace schemes and the LGPS.
  • The LGPS 'Fit for the Future' Consultation and the proposed reforms to the eight existing LGPS asset pools in England and Wales.
  • The LGPS 'Access and fairness' Consultation and the proposed changes to improve fairness in and access to the LGPS.
  • The review of the LGPS 2022 Fund Valuations and looking ahead to 2025 Valuation.
  • Mandatory TCFD Reporting.
  • The Cost Control Mechanism & Review.
  • McCloud remedy.
  • The Department for Education (DfE) Guarantee.
  • The LGPS Scheme Advisory Board (SAB).
  • The UK Stewardship Code 2020.
  • Increasing the UK Minimum Pension Age.
  • The TPR Code of Practice.
  • Boycotts, Divestment and Sanctions.
  • Pension Scams and new Restrictions on Transfers.
  • Stronger Nudge.
  • Dashboard.
  • Changes to Pension Taxation.

• LGPS Consultation: Scheme Improvements (Access and Protections): The committee will discuss the MHCLG consultation on proposed improvements to the LGPS relating to access and protections. The consultation covers four key areas:

  • Normal Minimum Pension Age (NMPA) - Increase from 55 to 57 from April 2028, with Protected Pension Age (PPA) for members meeting specific conditions.
  • LGPS Access for Councillors and Mayors - Proposal to reinstate LGPS access for elected members in England, aligning with Scotland, Wales, and Northern Ireland.
  • Academy Consolidation - Introduces criteria for Multi-Academy Trusts (MATs) to consolidate LGPS membership into a single fund, aiming for administrative efficiency.
  • New Fair Deal - Removal of broadly comparable schemes; staff transferring under outsourcing arrangements to retain LGPS access.

• Review of Pension Fund Policy Documents - Funding Strategy Statement: The Committee will review and agree the revised Funding Strategy Statement. The FSS is reviewed at least every three years as part of the actuarial valuation process. The draft FSS was presented to the 5 September 2025 Committee and issued for consultation with all scheme employers. The FSS sets out key funding principles for adoption by the Fund, including the funding target, management of risk, main actuarial assumptions, setting of employer contributions and monitoring of employer covenant.

• Overall Value of Pension Fund Investments to 30 September 2025: The committee will receive an update on the overall value of the Pension Fund's investments as at 30 September 2025, the movement in the cash balance during the quarter, and rebalancing activity undertaken during the quarter. The report pack states that the value of the Fund at 30 September 2025 was £3.987 billion, compared to £3.843 billion at 30 June 2025. The report also states that the fund has made its first 2 subscriptions to the BCPP UK Real Estate; £32.54m on 31st July 2025 and a further £32.54m on 30th September 2025, both funded by redeeming assets for cash from AB.

• Performance Measurement of Pension Fund Investments to 30 September 2025: The Committee will receive an overview of the investment performance of the Pension Fund to 30 September 2025. The performance of the fund managers is measured against personalised benchmarks chosen at the inception of the fund. The performance report from Northern Trust shows:

  • The fund managers' benchmarks
  • The total fund performance for the quarter to 31 March 2025, plus the last 1, 3, 5 and 10 years and since inception
  • Individual fund managers' performance in absolute and relative terms against the relevant benchmarks, for the quarter to 31 March 2025, plus the last 1, 3, 5 and 10 years and since inception

• The agenda also includes the following items to be discussed in the closed session:

  • The minutes of the meeting held on 4 September 2025
  • Report of the Independent Adviser
  • Report of the Pension Fund Adviser
  • Annual Review of Private Markets
  • Investment Beliefs and Investment Strategy Next Steps
  • Actuarial Valuation Verbal Update
  • Responsible Investment Policy
  • Border to Coast Pensions Partnership Quarterly Performance Report
  • Report of Alliance Bernstein
  • Report of CBRE Global Investment Partners
  • Report of Foresight
  • Report of LGIM