The Islington Pensions Committee is scheduled to meet on 8 December 2025 to discuss pension fund performance, the funding strategy, and the London CIV ¹ update. The committee will also review the forward work programme for 2025/26.

Actuarial Valuation and Funding Strategy Statement

The committee will receive a presentation from the Fund Actuary regarding the 2025 actuarial valuation and parameter considerations for the funding strategy statement consultation. The report pack states that the committee will be asked to agree on proposed funding strategy assumptions and parameters for consultation with employers between December and January 2026. The report pack also states that officers, alongside the Fund Actuary, will update the draft Funding Strategy Statement (FSS) for consultation with employers admitted into the Islington Pension Fund. The Funding Strategy Statement (FSS) is required to be prepared and published by the Administering Authority alongside each actuarial valuation, according to the Local Government Pension Scheme (LGPS) Regulations. The report pack notes that the key assumptions used by the Actuary are discount rates (expected return), inflation, and life expectancy. The proposed discount rates are CPI+2.8% (past service) and CPI+2.25% (future service). The long-term rate of inflation proposed is 2.6% per annum. The report pack lists a summary of funding strategy recommendations:

• For open, ongoing, employers in deficit, recovery periods will reduce by a maximum of 3 years, subject to a minimum of 12 years.
• Only those employers above 110% funded can potentially benefit from surplus contribution offsets, spread over a 12 year period.
• Maintain ill-health captive premium at 0.7% per annum of pay and administrative expenses allowance at 0.9% per annum of pay.
• The total required contribution rate for the council is expected to reduce by approximately 5-6% per annum of pay.
• It is expected that funding positions for a number of employers will show a surplus position and thus no further deficit contributions payable.
• Any Local Education Authority (LEA) schools converting to academy status after 31 March 2025 will also be allocated a share of the council's surplus.
• The use of surplus towards redundancy strain costs over the intervaluation period will be at the discretion of the Fund and subject to the employer meeting certain criteria that will be specified in the FSS. For the council, a reserve of £20m has been proposed.

The report pack states that, subject to the approval of the recommended actuarial valuation assumptions, the actuary has calculated the long-term average future employer contribution rate for the whole fund level to be 16.0% of pensionable pay and the funding level to be 112%, equivalent to a surplus of assets over liabilities of £215m.

Pension Fund Performance

The committee will be asked to note the performance of the fund from 1 July to 30 September 2025, as detailed in the BNY Mellon interactive performance report. The committee will also receive a presentation by Apex, independent investment advisers, on fund managers' quarterly performance. The report pack includes a table that details the performance of the fund managers:

The report pack notes that BNY Mellon provides the quarterly interactive performance report, and that copies of the latest quarter fund manager's reports are available to members for information if required.

London CIV Update

The committee will be asked to note the London CIV October 2025 newsletter and further updates on fund launches. The committee will also be asked to note the London CIV Bucks Business Case and agree delegated authority to the Corporate Director of Resources and Monitoring Officer to review and agree the London CIV Articles of Association and Shareholders Agreement. The report pack notes that Islington is one of 33 London local authorities who have become active participants in the London CIV programme, which has been constructed as a FCA regulated UK Authorised Contractual Scheme (ACS). The report pack states that Buckinghamshire Pension Fund have officially announced their preference to join London CIV as their pooling partner, and that all the existing shareholders have agreed to accept the transfer.

Pensions Committee Forward Work Programme

The committee will be asked to note Appendix A attached to the report pack, agree to make amendments to Appendix A where priorities have changed, and review any training requirements. The report pack notes that the Local Government Pension Scheme Regulations 2013 provide that the Pensions Board will have responsibility for assisting the administering authority in relation to compliance with the Pension Scheme Regulations, other legislation relating to the governance and administration of the LGPS, and the requirements imposed by the Pensions Regulator in relation to the LGPS. The report pack also notes that recent Fit for Future response from Government has also proposed, pension committee Members will be required to have enhanced knowledge and skills. The Fund's current training policy requires all new Members to undertake the 3-day Pension fundamental training course organised by the Local Government Association (LGA). Appendix A is the forward plan for future meeting agenda items.