The Croydon Pension Board met on Thursday 12 February 2026 to discuss significant reforms to the Local Government Pension Scheme (LGPS) and the operational performance of the council's pensions administration team. Key decisions included noting updates on the Fit for the Future reforms and the arrangements with the London CIV, and reviewing the fund's risk register and breaches of the law log.

Local Government Pension Scheme 'Fit for the Future' Update

The Board received an update on the Government's Fit for the Future reforms to the LGPS, which propose mandatory participation in a single asset pool, delegation of investment implementation to these pools, and new statutory governance roles. Officers expressed concerns shared by the wider sector that these changes are operationally unrealistic and could risk diluting fiduciary responsibility and embed structural conflicts of interest. The report highlighted the need for clearer drafting, proportionate timelines, and detailed statutory guidance, while also outlining the legislative status of the Pension Schemes Bill. The Board was asked to provide comment and note the content of the draft regulations and guidance.

Arrangements between the Fund and the London CIV: Update

This report detailed developments in the relationship between the Croydon Pension Fund and the London CIV, a pooled investment vehicle for London local authorities. From 31 March 2026, legislation will require the Fund's assets to be transferred to pool management. The Board was advised of the contractual arrangements that must be in place by this date. The Pension Committee had previously delegated authority for implementing these arrangements to the Corporate Director of Resources (Section 151 Officer) and the Head of Pensions & Treasury. The Board was recommended to note the report and the delegation of authority for the agreement and signing of contractual arrangements with the London CIV.

Croydon Pensions Administration Team Key Performance Indicators and Pensions Dashboard Reporting for the Period September to November 2025

The Board reviewed the Key Performance Indicators (KPIs) for the Croydon Pensions Administration Team for the period September to November 2025. The report indicated that the team generally met targets, with some exceptions, notably in the calculation of deferred benefits. The team had seen a significant increase in sign-ups to the Member Self-Service Portal, with 4,315 new registrations in the quarter. The report also detailed progress on the Pensions Dashboard, with the team connecting to the Live Integrated Service Provider and setting up daily uploads of information. Challenges were noted regarding old deferred benefit cases, which are more complex and time-consuming to process, impacting overall performance metrics. A senior pensions officer had retired, and recruitment for a replacement was underway, creating a temporary staffing shortfall.

Review of Risk Register

The Pension Board reviewed the Pension Fund's Risk Register, which details significant risks relating to governance, funding, assets, liabilities, and operational matters. The register identified 17 risks, with 10 considered significant. Officers noted that with planned future controls, the number of significant risks could be reduced. A new risk concerning proposed changes to regulations allowing Multi-Academy Trusts (MATs) to consolidate under a single administering authority without Secretary of State approval was added. This could potentially add pressure to resources and impact the financial management of the Fund. The Board was invited to comment on the comprehensiveness of the register and the adequacy of existing and future controls.

Review of Breaches of the Law

The Board reviewed the Pension Fund's Breaches of the Law log. Officers reported that no new breaches had been added since the previous review, but six historic entries had been removed due to their age. The Board discussed a potential future breach related to the publication of the Pension Fund Annual Report, noting that current audit backstop arrangements meant the audit was unlikely to be completed before the statutory deadline. Members discussed the possibility of completing the Pension Fund audit work separately from the wider Council audit process to prevent future breaches. The Board reviewed and noted the contents of the log extract.

Local Government Pension Scheme Advisory Board / The Pensions Regulator Update

This report provided an update on matters being considered by the Local Government Pension Scheme Advisory Board (SAB) and The Pensions Regulator that are relevant to the Fund. Officers noted that many of the developments had already been covered in previous agenda items, particularly concerning the Fit for the Future reforms and the Pension Schemes Act 2026. The Board welcomed the report as a useful source of information on national developments affecting the LGPS and suggested that external providers could offer update webinars to support ongoing training and knowledge requirements. The Board agreed to note the contents of the report.