The Pension Board of Kingston upon Thames Council met on Thursday 18 December 2025 to review updates on pension administration performance and projects, discuss governance and risk, and consider budget monitoring and investment strategy. The meeting also included a review of the work of the Pension Fund Panel.

Pension Administration Performance Update

The Board was scheduled to receive an update on the key administration activities of the Shared Pensions Administration Service. The report indicated a positive downward trend in the number of outstanding processes, with the historic backlog of cases overdue by more than three months remaining cleared. However, the total number of overdue cases had increased, primarily due to an anticipated annual rise in Leaver cases following the end of the academic year. Officers were actively managing this increase, with a focus on prioritising leaver processes to improve performance in the next reporting period. No breaches of law, internal dispute resolution procedure (IDRP) cases, or complaints had been reported since the last meeting.

Pension Administration Projects Update

An update on key projects within the Shared Pensions Administration Service was scheduled. The report highlighted the successful completion of the Fund's Pensions Dashboard project, connecting to the dashboard by the 31 October 2025 deadline and coming in under budget. The McCloud Remedy project was progressing according to its revised plan, with communications issued to all 3,483 in-scope members. The project remained on track for its 30 June 2026 completion date, although the primary risk identified was the timely delivery of final software patches from Civica. The report also noted the successful issuance of Pension Savings Statements (PSS) for the 2024/2025 tax year and the ongoing initiative to transition overseas pensioners to digital payslips and P60s.

Governance and Risk Update

The Board was set to review the Fund's risk register and key governance activities. The risk register had been formally reviewed quarterly, with one red risk remaining: Administration - Failure by software provider (Civica) to provide software compliant with LGPS Regulations. Officers recommended this rating remain unchanged due to outstanding issues with the software, despite recent progress on patches for the McCloud Remedy. The report also detailed the progress of the Triennial Valuation 2025, with formal consultation with scheme employers commencing. A consultation from the Ministry of Housing, Communities & Local Government (MHCLG) on Scheme improvements (access and protections) was also noted, covering proposals on the Normal Minimum Pension Age, the New Fair Deal, Academies, and access for Councillors and Mayors to the LGPS. A revised draft Conflict of Interest Policy was presented, introducing clearer definitions and a new operational procedure. The report also addressed the liquidation of Accurate Data Services Limited, the Fund's supplier for tracing and mortality screening, and the subsequent procurement exercise for a new supplier.

Review of the Work of the Pension Fund Panel

This item was scheduled to summarise the investment-related papers presented to the Royal Borough of Kingston upon Thames Pension Fund Panel in December 2025.

Budget Monitoring - 2024-25 Outturn vs Budget & 2025-26 Six Month Update

The Board was to receive the final outturn position against the budget for 2024-25 and a mid-year update for the 2025-26 budget. The final net outturn for 2024-25 was £2,147k against an approved budget of £869k, a variance of £1,277k, largely due to increased benefit payments. The mid-year update for 2025-26 forecasted a net outturn of £9,189k, compared to the original approved budget of £8,759k, with the increase primarily attributed to higher fund manager fees due to increased investment values and additional corporate charges.

Pension Fund Panel Update - Investment Strategy and Performance

This report was intended to summarise the investment-related papers presented to the Pension Fund Panel. Key points included the agreement of the work programme for the year ahead, the market value of the Fund's assets at £1,395m as of 30 September 2025, and a quarterly return of 4.8%, outperforming its benchmark. The report also detailed the Fund's asset allocation, highlighting areas outside strategic ranges, and provided an update from the London CIV, including progress on fund development, manager monitoring, and preparations for the Fit for the Future initiative.

Investment Strategy Review

The Pension Board was invited to note a report discussing the outcome of the Investment Strategy Review following the 2025 Triennial Valuation for the Royal Borough of Kingston upon Thames Pension Fund, including the revised Investment Strategy Statement (ISS).