The Pensions and Investments Committee was scheduled to meet to discuss the investment and stewardship of the Derbyshire Pension Fund, as well as proposed changes to the Local Government Pension Scheme (LGPS). The committee was also expected to review the results of the 2025 actuarial valuation¹ of the Derbyshire Pension Fund. A report on the stewardship activities of LGPS Central Limited (LGPSC) was also scheduled for discussion.

Derbyshire Pension Fund 2025 Actuarial Valuation

The committee was scheduled to discuss the Derbyshire Pension Fund 2025 Actuarial Valuation, and to approve the Fund's draft updated Funding Strategy Statement (FSS) for consultation with stakeholders. The report of the Director of Finance noted that under regulation 62 of the LGPS Regulations 2013, administering authorities of LGPS funds are required to obtain an actuarial valuation of the assets and liabilities of the pension fund every three years.

The report stated that the purpose of the actuarial valuation is for the Fund to determine:

• The expected cost of providing the benefits built up by members.
• The contributions needed to cover the cost of the benefits that active members will build up in the future (the Primary Contribution Rate).
• An adjustment for the difference between the Primary Contribution Rate and the actual contribution the employer needs to pay (the Secondary Contribution Rate).

The report also noted that the funding level of the Pension Fund was 135% as of October 2025.

As part of the valuation process, the Fund reviews the funding strategy in conjunction with the Pension Fund's actuary. The draft updated Funding Strategy Statement was included in the report pack, and the committee was expected to approve it for consultation with the Fund's stakeholders, including scheme employers and the Derbyshire Pension Board.

The report also included a draft updated Admission, Cessation and Bulk Transfer Policy, which sets out the Fund's approach to the admission of new employers, bulk transfers of members, and employers ceasing participation in the Fund.

Investment Report

The committee was scheduled to discuss the Investment Report, which included a review of the Fund's asset allocation, investment activity, and long-term performance analysis. The report also included a recommendation from the Director of Finance for the investment strategy, based on advice from the Fund's independent external advisor, Mr Anthony Fletcher.

According to the Investment Report, the value of the Fund's investment assets rose by £341 million (+4.8%) between 31 July 2025 and 31 October 2025 to £7,371 million.

The report noted that the Fund was overweight Growth Assets², Protection Assets³ and Cash, and underweight Income Assets⁴.

The Investment Report also included recommendations to:

• Reduce Growth Assets by 1.7% to 49.4% (0.6% underweight) (UK Equities -0.9% and Global Sustainable Equity -0.8%).
• Increase Income Assets by 1.0% to 26.4% (Property +1.0%).
• Increase Protection Assets by 0.8% to 20.0% (Conventional Bonds +0.6%; Index-Linked Bonds +0.1%; and Corporate Bonds +0.1%).
• Reduce Cash by -0.1%.

The report stated that these recommendations were subject to market conditions, liquidity, and product availability.

The Investment Report also included a report from Anthony Fletcher, Independent External Adviser to the Derbyshire Pension Fund. In his report, Mr Fletcher stated that global equity markets performed strongly in Q3 2025, while Gilts and sterling were weak. He also noted that sovereign credit risk rose sharply, with US Credit Default Swap (CDS) spreads increasing to levels comparable with BBB rated Sovereigns.

Mr Fletcher's report included the following recommendations:

• Maintain a neutral allocation in all sub-asset classes of Protection assets.
• Maintain a 1% underweight exposure to equity, holding the money in cash.

Stewardship Report

The committee was scheduled to receive an overview of the stewardship activity carried out by LGPS Central Limited (LGPSC). The Stewardship Report included the Q3 2025 LGPSC Stewardship Report, which provided an overview of the investment manager's current key stewardship themes and voting and engagement activity.

According to the report, LGPSC currently manages around £1.8 billion of assets (£2.0 billion on a committed basis) on behalf of the Fund through various sub-funds and limited partnership arrangements. LGPSC also provides oversight of the Fund's Legal & General Investment Management (LGIM) arrangements on an advisory basis, including the engagement and stewardship of the assets managed through LGIM pooled products.

The report noted that LGPSC's approach to Responsible Investment & Engagement carries two objectives:

• Support investment objectives
• Be an exemplar for responsible investment within the financial services industry, promote collaboration and raise standards across the marketplace

The report also included key takeaways from the OECD Corporate Governance Factbook 2025, which offered a snapshot of how stewardship and corporate governance practices are evolving across 52 jurisdictions.

Local Government Pension Scheme Scheme Improvements (Access and Protections) Consultation

The committee was scheduled to be informed about the publication by the Ministry for Housing, Communities and Local Government (MHCLG) of the 'Local Government Pension Scheme in England and Wales: Scheme improvements (access and protections)' consultation. The report sought approval for the delegation of the Pension Fund's response to the Consultation to the Director of Finance in consultation with the Chair of Committee.

The consultation covers a number of proposals relating to pension benefits in, and access to, the scheme, including:

• Amending the Normal Minimum Pension Age to age 57.
• Extending access to the scheme for councillors and mayors in England.
• Introducing criteria for applications for directions from Academies into legislation.
• Implementing New Fair Deal protections into the LGPS.