The Pension Fund Panel of Kingston upon Thames Council met on Wednesday 11 March 2026 to discuss the Pension Fund's Responsible Investment Policy, administration performance, and the triennial valuation results. The meeting also covered the Fund's business plan and budget for the upcoming years, as well as investment performance and governance updates.

Responsible Investment and Stewardship Update

A key item scheduled for discussion was the update of the Pension Fund's Responsible Investment Policy. The Panel was to be provided with further information on this updated policy and was asked to approve it. Additionally, an update was scheduled on the recommendations from the Pension Fund Task and Finish Group. This included a review of the policy, consideration of divestment options from companies on the UN OHCHR List, and the publication of an Annual Stewardship Report. The report was expected to detail how the Fund's responsible investment policy has been implemented in practice.

Pension Administration Performance Update

The Panel was scheduled to receive an update on the key administration activities of the Shared Pensions Administration Service. This included information on the number of outstanding processes, which had reportedly fallen significantly, and the clearing of a historic backlog of cases overdue by more than three months. New Key Performance Indicators (KPIs) were to be introduced following sustained positive performance. The report indicated that no breach of law incidents had been reported, and there were no open Internal Dispute Resolution Procedure (IDRP) cases.

Pension Administration Projects Update

An update on the key projects of the Shared Pensions Administration Service was also scheduled. This included information on the Fund's data quality, with Scheme Specific Data scores improving significantly following targeted data cleansing. The Data Improvement Policy was to be presented for approval, updated to align with new regulations and prepare for Pensions Dashboards. The McCloud Remedy project was reported to be on track for completion by 30 June 2026. Other updates covered the annual pensions increase, year-end data returns, the Pension Dashboard Programme, pensioner P60s, digital payslips, and FRS/IAS accounting.

Governance and Risk Update

The meeting agenda included an update on key governance activities and a review of the Fund's risk register. The Risk Register had been streamlined, and a new reporting format was introduced to focus on strategic issues. A new training plan for 2026/27 was designed to support the Panel following upcoming local elections. Target Professional Services had been appointed as the new tracing and mortality screening provider, restoring important governance controls. A significant risk identified was the potential failure by the software provider, Civica, to deliver software compliant with LGPS Regulations, which remained rated as high risk.

Pension Fund Business Plan 2026-29 and Budget 2026-27

The Panel was presented with the draft business plan for 2026-29 and the draft budget for 2026-27. The business plan introduced a distinction between core statutory duties and strategic change, with priorities including the re-procurement of administration software, completion of the McCloud Remedy, and implementation of 'Fit for the Future' governance reforms. The proposed 2026/27 budget was £15.4m, reflecting transparency on investment management costs and a planned reduction in contribution income following the 2025 Triennial Valuation.

Triennial Valuation and Funding Strategy Statement Update

The final results of the 31 March 2025 triennial valuation were presented, confirming a significant improvement in the Fund's overall funding position, with the Fund in a strong surplus. The Panel was asked to approve the resulting draft Funding Strategy Statement (FSS), which had been reviewed and updated to align with new guidance. The consultation with scheme employers on the draft FSS had concluded, with responses primarily focusing on the treatment of surplus upon academy conversion and comparative employer outcomes.

Work Programme Update

A proposed programme of work for Pension Panel meetings for the year ahead was set out for the Panel to note. This included indicative agenda items for meetings in June, September, December 2026, and March 2027, covering training, administration updates, governance, investment performance, and financial reviews.

2024-25 Pension Fund Accounts Audit Outcomes Report

The Panel was scheduled to receive the Annual Auditors Report for the 2024/25 Pension Fund Accounts, completed by KPMG. The report indicated that the audit was complete and an unmodified opinion was intended. The report noted the current lack of a formal two-step, system-based authorisation process for journal approvals, a risk mitigated by a manual process, with a system-enforced process planned for a software upgrade in 2026/27. Two recommendations from the 2023/24 audit had been fully addressed.

Pension Fund Investment Performance and LCIV Update

The report was to provide an update on the performance of the Royal Borough of Kingston upon Thames Pension Fund investments for the period ending 31 December 2025. The Fund's assets were reported to be £1,428m, with a positive return of 2.1% over the quarter, outperforming its benchmark. The report also included an update on the London Collective Investment Vehicle (LCIV), detailing progress towards 'Fit for the Future' reforms, asset transition plans, and governance updates.

Investment Strategy Implementation Plan

This report was scheduled to set out the implementation plan for the agreed Investment Strategy, which had been reviewed following the 2025 triennial valuation and approved at the December Pension Panel.

The agenda also included standard items such as apologies for absence, declarations of interest, and confirmation of minutes, as well as a potential exclusion of the press and public if exempt matters were to be considered.