The Pension Fund Committee of Barnet Council met on Tuesday 13 January 2026 to discuss administration updates, investment strategy, and risk management. Key decisions included the approval of new admission agreements for Capita Business Services Limited and HCL (Cromer Road School), and the adoption of new policies regarding cessations and prepayments. The committee also approved changes to the fund's strategic asset allocation and delegated authority for the finalisation of investment management agreements.

Administration and Legislative Updates

The committee received updates on the performance of West Yorkshire Pension Fund (WYPF), the council's administrator, which was reported as satisfactory. Progress was noted on the triennial valuation, with draft contribution rates issued to employers. Two new policies were approved: the Cessation Policy, which outlines the approach to employers leaving the fund, and the Prepayments Policy, detailing how employers can prepay contributions.

Updates were also provided on administrative and legislative matters, including the ongoing development of the Pensions Dashboard, which is now expected to be accessible to individuals in late 2026 or early 2027. The committee noted that the number of complaints and internal dispute resolution cases remained low. Compensation payments were discussed, with two new payments made since the last meeting.

Admissions and Cessations

The committee approved the admission of Capita Business Services Limited and HCL (Cromer Road School) into the Barnet Pension Fund. Admissions for Atlas (Ashmole Academy) and Apcoa were also approved. Progress on outstanding admission agreements was noted, with efforts being made to expedite the process using new electronic signature software. Two schools converting to academy status were also mentioned, with the actuary calculating their opening positions for transfer to their respective Multi-Academy Trusts.

Regarding cessations, four employers with outstanding cessation debts were being pursued by HB Law. Three new cessations had occurred since the last update.

Risk Management Review

The committee reviewed the updated administration and non-administration risk registers. Several risks had their scores reduced due to improved controls and processes. For instance, the risk of non-public sector employers failing was reduced due to a new pass-through basis for new admissions, meaning liabilities transfer to the ceding employer if an admitted body defaults. The risk associated with appropriate personnel in key roles was also reduced due to successful recruitment at WYPF. A new risk, Fit for the Future regulations, was added with a high-risk score due to the strict timescales involved.

Fit for the Future Update and Investment Strategy

Significant legislative and regulatory changes to the Local Government Pension Scheme (LGPS) were discussed, with new regulations set to come into effect from 1 April 2026. These changes, stemming from the Fit for the Future consultation, will require all assets to be controlled and managed by asset pools. The committee noted that approximately 64% of the Pension Fund's assets were already invested through the London CIV pool, with plans to transfer the remaining 36% by the deadline.

The committee delegated authority to the Executive Director of Resources to finalise and approve the Investment Management Agreement (IMA) with the London CIV, which is a contractual mechanism to facilitate the transfer of assets and ensure regulatory compliance. The IMA will set out the framework for investment strategy implementation and management.

Furthermore, the committee approved the admission of Buckinghamshire Pension Fund to the London CIV pool, following a unanimous agreement in principle from existing partner funds. The Executive Director of Resources was delegated authority to finalise the necessary approvals for this admission.

Investment Strategy Review and Asset Pooling

The committee reviewed the Pension Fund's strategic asset allocation as part of the triennial valuation process. Hymans Robertson, the investment consultants, presented an analysis comparing the current strategy with alternative options. The committee approved a change to the strategic asset allocation, adopting a Moderate de-risk strategy for Middlesex University, noting its impact on the overall fund allocation. Authority was delegated to the Executive Director of Resources to implement this change.

Further discussions focused on asset pooling. The committee approved the reallocation of the Secured Finance allocation to the LCIV MAC Fund and LCIV Private Debt II, aiming to meet new regulatory requirements. The current cash management strategy was also modified to align with pooling guidelines, with options to pool cash balances with London CIV being investigated.

Pension Fund Investment Performance Report

The committee received an update on the Pension Fund's investment performance for the quarter ending 30 September 2025. The total fund value was £1.79bn, with a net positive return of 3.4% over the quarter. While the fund has delivered consistent long-term positive returns, it had underperformed against its strategic benchmark over some longer-term reporting periods. The report detailed the asset allocation, manager performance, and market background. The transition of the Barings High Yield investment to the LCIV MAC Fund was completed, and commitments to the LCIV Private Debt II Fund were onboarded. The committee noted that approximately 64% of the fund's assets were directly invested through London CIV, with an additional 15% under pool management.

Risk Management Review

The committee reviewed the updated administration and non-administration risk registers. Several risks had their scores reduced due to improved controls and processes. For instance, the risk of non-public sector employers failing was reduced due to a new pass-through basis for new admissions, meaning liabilities transfer to the ceding employer if an admitted body defaults. The risk associated with appropriate personnel in key roles was also reduced due to successful recruitment at WYPF. A new risk, Fit for the Future regulations, was added with a high-risk score due to the strict timescales involved.

Pension Fund Committee Work Programme

The committee reviewed its work programme for January to June 2026, noting upcoming reports on administration, investment performance, risk management, pooling updates, and knowledge and understanding. The training strategy was highlighted as a key item for the next meeting, to ensure compliance with new regulations.