The Hertfordshire Fire Pension Board met on Friday 24 April 2026 to discuss the Firefighters' Pension Fund Risk Register, the LPPA performance report for Q3 2025/26, and updates on age discrimination remedies and the firefighters' compensation scheme. Key decisions included noting the contents of these reports and agreeing to the proposed dates for future meetings.

Pension Fund Risk Register

The Board reviewed the Hertfordshire Fire Pension Scheme Risk Register for the period 1 October to 31 December 2025. The report, presented by Alyson Sharpe, Lead Pensions Governance Officer, highlighted three risks that were above the tolerated threshold:

• Risk A1: Ineffective management (governance) of the scheme. This risk is elevated due to the impending retirement of the Head of Pensions at the end of March 2026. Recruitment for this role is underway.
• Risk A2: Skills or knowledge gaps at the Scheme Manager (Committee/Board/officers). This risk is also linked to the retirement of the Head of Pensions and the ongoing recruitment process.
• Risk E1: Poor administration, including failures/delays in implementing regulatory changes. This risk is attributed to ongoing delays with McCloud Immediate Choice – Retrospective Service Statement (IC-RSS) payments. While progress has been made, there are still 34 IC-RSSs outstanding, primarily due to data issues. Two specific cohorts, ill-health and deaths, are particularly challenging as the software provider, Civica, will not provide system functionality for these cases, requiring significant manual work. The remaining IC-RSSs are expected to be issued by the end of June 2026.

The Board noted that these risks were above the tolerated threshold and that recruitment for the Head of Pensions role was in progress. The recommendation to review and note the report was agreed.

Hertfordshire FPS Q3 2025/26 LPPA Performance Report

Scott delivered the Hertfordshire Fire Pension Scheme (FPS) Q3 2025/26 LPPA performance report. The report detailed membership changes, with a small increase in deferred and pensioner categories and a slight decrease in active members. The overall service level was consistent at 97.2%. A single case of retirement from deferred status fell below the service level due to queries.

The contact centre averaged a wait time of three minutes and ten seconds, with a spike in October attributed to unexpected absences due to seasonal sickness. Customer satisfaction scores showed that 70% of overall responses were positive, and 90% were positive regarding individual contact centre agents. However, response rates for surveys on retirement journeys were low, making it difficult to draw firm conclusions.

Online portal usage showed good registration rates, with 60% of pensioners and just under 62% of active members registered on PensionPoint. Deferred members had a lower registration rate of 47.83%.

Significant effort was made in member communication, particularly targeting those who had not yet returned their McCloud immediate choice remedial service statement elections. An online claim form was introduced in January to streamline this process. Data scores at the end of the quarter were 97.4% for common scheme targets and 88.7% for scheme-specific targets, with the latter being impacted by members not yet receiving annual benefit statements due to outstanding functionality for the retained modified scheme.

The Board discussed the manual effort involved in processing McCloud remedy cases, with Scott explaining that while calculations are semi-automated, individual complexities require manual review. Mark Barber observed that members still prefer physical interaction but acknowledged the potential for increased engagement with online tools like calculators. John Boulter shared positive feedback from a visit to the LPPA offices in Preston, highlighting their strategy of leveraging people and technology, with a significant reduction in staff turnover from 30% to 10% over three years. The Board noted the report's content.

Report on Age Discrimination and Remedy

Rachel Wilson, Senior HR Officer, Pay & Reward, presented an update on the age discrimination (McCloud) remedy. Active retirements affected by McCloud are continuing smoothly, with 32 out of 36 cases paid and 4 pending. Contingent decisions are also being processed, with three out of four issued statements outstanding. Contribution adjustments have ceased, with seven requests for 1992 scheme adjustments and two refund requests for the 2006 scheme processed.

Of the 19 Immediate Choice Remedial Service Statements (IC-RSS) remaining, 12 are for Matthews modified members awaiting functionality, and six have validation errors requiring case-by-case resolution. All unprotected and tapered members with a 31 March deadline responded to their elections. Payments to pensioners are largely up to date, with only a few outstanding due to missing information. The Board noted the report's contents.

Report on Second Options Exercise for Retained Firefighters

Rachel Wilson also provided an update on the second options exercise for retained firefighters, relating to the Matthews 2 exercise. Expressions of interest are still being received, and contact has been made with individuals still in service. Quotes are being processed, and LPPA is up to date with pension payments. The Matthews amendments, which came into force on 1 April 2026, allow previously deferred members to convert standard service to special service and buy back opted-out service. The team is preparing for these changes, awaiting a calculator release in June. Quarterly reporting to the LGA is up to date. Mark Barber thanked Rachel and Jenny for their efforts in contacting retired members, noting that their team's efforts were significantly more extensive than those in other services. The Board noted the report's contents.

Firefighters' Compensation Scheme Review

Rachel Wilson presented information on the LGA's informal consultation regarding the Firefighters' Compensation Scheme (FCS). The scheme, which compensates firefighters for injury, illness, or death on duty, has not had a major review since 2006. The consultation identified several areas for reform, including outdated definitions, inequities in award calculations, outdated survivor benefits, governance inconsistencies, and sustainability concerns regarding local funding. The LGA is gathering stakeholder views to inform potential future recommendations to the government. The Board noted the report's contents.

Firefighters Pension Fund Accounts 2024/25

Robert Winterton, Finance Manager, presented the Firefighters' Pension Fund accounts for the financial year 2024/25. The accounts showed a deficit of £7.3 million, which was met by a central government top-up grant, bringing the account back to a nil balance. Employer contributions increased by £2.2 million to £7.8 million, and employee contributions increased by £0.5 million to £3 million. Total benefits paid increased by £1.6 million to £18.2 million. The net asset statement indicated that any assets held are repayable to the government, and liabilities will be paid by the government. The Board noted and commented on the report.

Dates of Future Meetings

The Board was invited to note the dates of future meetings for 2025/26, with the next meeting scheduled for 20 July 2026 at 10:00 AM.

The meeting then moved into Part II, where the press and public were excluded due to the likely disclosure of exempt information.