The Barnet Pension Fund Committee met on 16 March 2026, approving an updated training strategy and policy to meet new government reforms, and noting the external audit findings for the 2024/25 financial year. The committee also received updates on the Fit for the Future programme, investment performance, and the 2025 triennial valuation, which indicated a significant improvement in the Fund's funding level to 130%.

Training Strategy and Policy Approved

The committee approved an updated Training Strategy and Policy, a requirement stemming from the government's Fit for the Future reforms aimed at strengthening governance within the Local Government Pension Scheme (LGPS). This policy mandates training for all roles involved in fund governance, including committee members, officers, and advisors. It introduces mandatory core modules, tightened induction expectations, and an annual training needs analysis. An escalation route is established for non-completion of training, ranging from reminders to potential removal from a role. The policy is intended to enhance decision-making, improve governance outcomes, and help maintain the Fund's MiFID II professional investor status. Authority was delegated to the Executive Director of Finance, and subsequently the Senior Local Government Pension Service Officer, to implement the policy and maintain training records.

External Audit and Accounts Noted

The committee noted the signed Annual Report and Accounts for the 2024/25 financial year and the contents of Grant Thornton's Audit Findings Report. The accounts revealed that the pension fund's net assets increased by £74.2 million to £1.7 billion. However, Grant Thornton issued a disclaimer of opinion on the accounts for two main reasons: historical issues with opening balances from previous incomplete audits, and an inability to conclude work on membership data relating to the 2022 triennial valuation before the deadline. Management is taking steps to rectify the classification of employer contributions and other findings detailed in the audit report.

Fit for the Future Update

An update was provided on the Fit for the Future reforms, which aim to strengthen LGPS governance and introduce mandatory training. The report highlighted that the deadline for all assets to be transitioned to the pool was 31 March 2026. The pool has been working with partner funds, including Barnet Pension Fund, to ensure compliance. Key governance updates include the requirement for the appointment of a Senior LGPS Officer by 30 September 2026 and an Independent Person. The committee noted the report regarding proposed legislative and regulatory changes, subject to the passage of the Pension Schemes Bill, and the progress in transitioning assets to the London CIV.

Exit Credit Payments Approved

The committee approved a recommendation for an exit credit payment to be made to an exiting employer, as set out in Appendix B of the report. This decision aligns with the new cessation policy and actuarial approach, avoiding the transfer of risk to other employers.

Pension Fund Investment Performance Report Noted

The committee noted the Pension Fund's investment performance and activity for the quarter ending 31 December 2025. The Fund's assets were valued at £1.86 billion, an increase of 3.1% over the quarter, outperforming its benchmark. The report also detailed progress on implementing previous committee decisions regarding investment strategy, including a 4% increase in index-linked gilts.

2025 Triennial Valuation Results and Funding Strategy Statement Approved

The committee noted the final results of the 2025 triennial valuation, which confirmed a significant improvement in the Fund's funding level to 130%, a substantial increase from 95% funded at the 2022 valuation. This improvement is primarily attributed to higher assumed future investment returns. The committee also approved the updated Funding Strategy Statement (FSS) for the period 1 April 2026 to 31 March 2029. The FSS has been revised to include wording on Gender Pension Gap reporting. The valuation results indicated a reduction in average employer contribution rates over the next three years, with the primary rate decreasing due to the increased asset return expectations.

Investment Strategy Statement Approved

The committee approved the updated draft Investment Strategy Statement (ISS) for Barnet Pension Fund, following the 2025 Investment Strategy Review. The ISS has been updated to align with draft LGPS regulations and statutory guidance, including higher-level investment objectives, strategic asset allocation aligned to nine asset class categories, tolerance ranges, and an approach to local and responsible investment. A key change is a 4% increase in index-linked gilts. Authority was delegated to the Executive Director of Resources to finalise the ISS following consultation and publish it on the Pension Fund website.

Committee Work Programme Noted

The committee noted the proposed work programme for the upcoming year, with items to be allocated for future meetings.

The meeting concluded with thanks to the officers for their work throughout the year.