The Gloucestershire Pension Board's meeting on 28 April 2026 was scheduled to cover updates on the fund's governance, operations, funding, and investments. Key discussions were expected to include the implications of government reforms on pension pooling and governance, the fund's financial performance, and the business plan for the upcoming year. The meeting also aimed to review the outcomes of the 2025 triennial valuation and the fund's cashflow projections.

Gloucestershire Pension Fund Update – Governance & Operations

The board was scheduled to receive an update on the governance and operational matters of the Gloucestershire Pension Fund. This included noting the minutes from the Pension Committee meeting on 26 February 2026 and proposed amendments to the Pensions Committee's Terms of Reference. These amendments are intended to align the committee's responsibilities with government-led changes to LGPS investment pooling and the fund's transition from the Brunel Pension Partnership to LGPS Central.

The report was also set to detail updates on consultations regarding LGPS scheme improvements, including changes to the Normal Minimum Pension Age, access for councillors and mayors, academies, and the Fair Deal policy. A technical consultation on the LGPS Fit for the Future reforms, covering pooling, management, and investment of funds, as well as governance, was also on the agenda.

Furthermore, the board was to be updated on the Pension Schemes Bill, which aims to accelerate LGPS asset pooling, enhance governance, and stimulate UK investment. The report was expected to include a review of the Risk Register, highlighting any amendments and risks that remain above target, particularly concerning governance and funding & investment. The approved Cash Management Strategy for 2026/27 was also to be presented.

In terms of operations, the board was to review Key Performance Indicators (KPIs) for the fund, noting that performance had remained above the 90% threshold for most KPIs on a rolling 12-month basis. The report was also to provide an update on the 2025/26 Business Plan and budget forecast position, noting a projected overspend primarily due to investment management expenses related to the LGPS pooling reforms.

Gloucestershire Pension Fund Business Update - Funding & Investment

This agenda item was scheduled to provide the board with an update on the fund's funding position, market value, asset allocation, and investment performance as of 31 December 2025. It was noted that the usual quarterly funding update would not be available during the 2025 triennial valuation process.

The report was expected to detail the fund's market value increase to £4,025.495m by 31 December 2025. Over the preceding 12 months, the fund's assets had underperformed the strategic benchmark by 1.1%, with a return of 10.8%. Performance over the three years to 31 December 2025 was reported as 10.40% annualised, slightly behind the strategic benchmark by 0.9%.

Investment activities during the quarter included calls into private market asset classes such as infrastructure, social and affordable housing, private equity, and private debt, totalling approximately £29.6m. The report was to present the current Strategic Asset Allocation (SAA), noting that overall strategic allocations remained outside target allocations, primarily due to strong equity market performance. Rebalancing was being approached cautiously to manage transition costs.

The board was also to receive an update on responsible investment activities, including the LAPFF Quarterly Engagement Report and the fund's signatory status to the Net Zero Asset Managers (NZAM) initiative. A case study on supporting the NZAM initiative's relaunch was to be presented, highlighting the benefits of reinforcing expectations for investment managers on climate risk management and enhancing the fund's position in the responsible investment community.

The review of the fund's investment beliefs, Investment Strategy Statement (ISS), and Responsible Investment Policy was also scheduled, in anticipation of new regulatory requirements. This process included stakeholder consultation and was intended to ensure the fund remained compliant and aligned with evolving LGPS expectations.

Finally, the board was to be updated on the Stewardship Code, noting the transition to the 2026 UK Stewardship Code and the fund's renewal submission for the period 1 January – 31 December 2025.

Gloucestershire Pension Fund Business Plan 2026/27

This report was scheduled to provide details on the fund's objectives, key areas of activity, and operational budget for 2026/27. The business plan is structured around the fund's strategic goals across Investment, Funding, Administration, and Governance.

Key challenges and influences for the 2026/27 year were expected to include the government's pooling reforms, requiring the transition of assets from Brunel Pension Partnership to LGPS Central. The evolving economic environment, increasing regulatory complexity, and the ongoing development of the Pensions Dashboard were also highlighted.

Five core projects for 2026/27 were to be presented: Asset Pool Transition, Fit for the Future Reforms, Benefits Regulatory Reforms, Cyber Security/Business Continuity, and the i-Connect Employer Portal Roll-out. The proposed budget was intended to ensure sufficient resources to meet service demands, deliver these core projects, and support the transition in pooling arrangements. The budget included an increase in staff costs to reflect the planned expansion of the Pensions Team by six new posts to meet increasing regulatory, operational, and governance obligations.

2025 Triennial Valuation

The board was scheduled to receive the final report on the actuarial valuation of the Gloucestershire Pension Fund as at 31 March 2025. This valuation sets employer contribution rates for the period 1 April 2026 to 31 March 2029 and provides an updated whole fund funding position.

Headline results indicated an improvement in the funding level from 110% at 31 March 2022 to 152% at 31 March 2025. This improvement was attributed to higher assumed future investment returns, strong asset performance, and lower than expected pensioner liability growth. Primary contribution rates were projected to decrease on average from 21.8% to 17.4% of pay, largely driven by higher expected future returns, partially offset by increased prudence in the funding strategy.

The report was also to present the Funding Strategy Statement (FSS) and associated policies on Cessation, Contribution Rate Reviews, and Prepayment of Contributions, which had been approved for consultation with employers.

Cashflow Monitoring

This agenda item was scheduled to present updated cashflow projections prepared by the Fund Actuary, Hymans Robertson LLP. The report was expected to summarise key findings, risks, and recommended next steps for cashflow management following the 2025 valuation.

The updated modelling indicated that the fund was likely to become cashflow negative from 2026/27, a material shift from previous projections. The report was to explore different inflation scenarios and their impact on benefit outflows and contribution income. It was noted that the fund's cashflow position is sensitive to inflation, salary growth, future contribution rate changes, demographic experience, and other factors. The implications for the fund's funding strategy, investment strategy, and operational cash management were to be discussed.