The Pensions Board of Islington Council met on 24 March 2026 to discuss the performance of the Pension Fund, review the draft Funding Strategy Statement, and consider the forward work programme. The meeting also covered pension administration performance, the pension risk register, and the 3-year forecast for pension fund administration costs.

Pension Fund Performance

The Board was scheduled to review the performance of the Pension Fund for the period of October to December 2025. This included an examination of the performance of various fund managers across different asset classes, such as global equities, emerging equities, renewable infrastructure, UK property, corporate bonds, and private debt. The report detailed the asset allocation, asset value, mandate, and performance of each fund manager, comparing their portfolio performance against benchmarks. The overall fund performance for the quarter and the 12 months to December 2025 was also presented, alongside the total fund position over one, three, and five-year periods. Specific attention was given to the performance of individual funds like the LCIV RBC Sustainability Exclusion Fund, LCIV Newton Investment Management, and the Legal and General Paris Aligned ESG Passive Index. The performance of property investments managed by Aviva and Columbia Threadneedle, as well as global property managed by Franklin Templeton, was also on the agenda. Infrastructure investments with Quinbrook and Pantheon, and private debt mandates with Permira, Churchill, and Crescent were also scheduled for review.

Funding Strategy Statement Consultation Results

A significant portion of the meeting was dedicated to the 2025 Actuarial Valuation and the draft Funding Strategy Statement (FSS) consultation results. The Board was asked to consider the draft FSS, which outlines the funding strategy for the Islington Council Pension Fund, and to note the employer comments received during the consultation period. The report detailed the key funding principles, including the funding target, actuarial assumptions for investment returns, inflation, and life expectancy, as well as deficit recovery periods and surplus reserve mechanisms. The FSS also covered policies on employer types, admission agreements, academies, and termination policies. The Board was to review the proposed changes to the FSS, which included updates to real discount rates, the surplus management policy, and deficit recovery plans. The report also highlighted the potential impacts of climate change on funding levels under various transition scenarios.

Investment Strategy Consultation Update

The Board was scheduled to receive an update on the progress of the consultation regarding the Pension Fund's Responsible Investment Policy and Investment Strategy Statement (ISS). This consultation, which began with a pilot phase, aimed to gather member views on specific issues, including the Fund's approach to companies with human rights concerns, divestment from companies involved in the Occupied Palestinian Territories, and the Fund's holding in Palantir Technologies. The report outlined the consultation process, including the timeline for the pilot and the full consultation, and the methodology for engaging with a representative sample of members. The Board was to be presented with a decision to approve the investment strategy statement and responsible investment policy following the consultation process.

Pension Administration Performance

The Board was to review the performance of the Pension Administration for the period of November 2025 to January 2026. This included noting the number of members auto-enrolled into the Local Government Pension Scheme (LGPS), information on the Internal Dispute Resolution Procedure (IDRP), compliments, and complaints. The report provided performance data for key administration processes, such as deaths, retirement benefits, pension estimates, and transfers, comparing actual performance against targets. Updates from various industry bodies, including the Scheme Advisory Board (SAB), Pensions Administration Standards Association (PASA), Local Government Association (LGA), the Pensions Ombudsman (TPO), and the Pensions Regulator (TPR), were also scheduled for review. Additionally, updates on the Pensions Dashboard Project and the McCloud Remedy were to be presented, along with information on changes in Pension Office resourcing.

LGPS – Pensions Risk Register

The Board was to review the Pensions Risk Register (PRR), which outlines potential risks in the administration of the Islington Pension Fund and the mitigation measures in place. The report summarised the assessment of risks, including those related to data loss, inaccurate data, poor administration leading to complaints, and the creation and maintenance of pension payroll reports. The register also covered risks associated with member understanding of the LGPS, the McCloud Remedy, and the Pensions Dashboard. The report detailed the inherent and mitigated risk scores for each identified risk and the trend of those risks.

Pensions Board 2026/27 Forward Work Programme

Finally, the Board was scheduled to review and agree the forward work programme for the Pensions Board for the period of December 2026 to June 2027. The proposed programme, detailed in Appendix A, outlined agenda items for forthcoming meetings and training topics, focusing on ensuring compliance with LGPS regulations and the Pensions Regulator's guidance. The Board was to consider its priorities for the next 12 months, including reviewing fund governance, risks, external advisors, member record keeping, contributions, administration, performance benchmarking, fraud prevention, and member communications. The report also highlighted the Board's role in assisting the Pensions Committee and the potential need for external consultancy resources.