The Local Pension Board of Leicestershire County Council was scheduled to discuss a range of important matters concerning the administration and governance of the Pension Fund. Key topics included the internal audit arrangements and plan, a comprehensive report on the Pension Fund's administration for the fourth quarter of 2025-26, and an update on the Fit for the Future initiative. The meeting was also set to review risk management and internal controls, alongside the ongoing progress of the Fit for the Future programme.

Internal Audit Arrangements and Plan

The Board was scheduled to receive an update on the internal audit arrangements for the Leicestershire County Council Pension Fund and LGPS Central Limited. This included a summary of the audits conducted during the 2025-26 financial year and the proposed internal audit plan for 2026-27. The report detailed the adoption of new internal audit standards, the GIAS UK (Public Sector) , and the development of key governance documents such as the Internal Audit Charter, the Code of Practice for the Governance of Internal Audit, and the Internal Audit Strategy. The report indicated that the overall assurance grading for the 2025-26 work was positive, with no high-importance recommendations. It also outlined the ongoing collaborative work with partner fund internal auditors for LGPS Central Limited, including a four-year cyclical programme of audits. The planned internal audit work for 2026-27 was also detailed, with an estimated cost of £29K to £31K.

Pension Fund Administration Report: January to March 2026 - Quarter Four

A report was scheduled to inform the Board about the main administrative actions during the fourth quarter of the 2025-26 financial year. This included an overview of the performance of the Pensions Section against its key performance indicators (KPIs). The report indicated that all business process KPIs met their targets for the quarter, with significant improvements noted compared to the previous year. The report also detailed general workloads across various areas, such as preserved benefits, aggregations, and transfers, with a RAG rating system used to highlight areas requiring attention. The Board was to be updated on efforts to address workload pressures, including the recruitment of temporary resources. The report also covered governance matters, including internal dispute resolution procedures, with one new Stage 2 IDRP during the quarter. A review of the Fund's breaches log for 2025-26 was also to be presented, noting no material breaches reported during the quarter. Furthermore, two new Internal Audit reports were to be discussed: one on the Pension Dashboards Programme (Phase 2), which gave substantial assurance that the fund's progress was on track, and another on the checking and authorisation of payments and transfers, which also provided substantial assurance with one recommendation to remind staff to complete checklists. Updates on the new pension websites, the McCloud remedy, and the Pension Dashboards Programme were also on the agenda. The report also detailed new contracts for address tracing and mortality screening services, an updated PDP timetable, and requirements for the year-end 2025-2026 pension information. Employer onboarding progress and potential options for improvement, such as regular training sessions, were also to be discussed. Finally, changes to the LGPS scheme effective from April and May 2026, relating to unpaid leave and access for elected councillors and mayors, were to be outlined.

Fit for the Future Update

The Board was scheduled to receive an update on progress regarding regulatory changes in the Local Government Pension Scheme (LGPS) under the Fit for the Future initiative. This report focused on the implications of legislative and regulatory changes that were expected to take effect from 1 April 2026. While final regulations and timescales were pending, the government had communicated adjustments to key implementation milestones, including extensions for the publication of investment strategies and the period for assets to be under pool management. The report highlighted that LGPS Central had met the 1 April implementation date, onboarding new partner funds and completing a governance review. The report also outlined next steps for the Fund, including reviewing existing governance arrangements, continuing work with LGPS Central on asset transition, and preparing for the appointment of an independent advisor and a Senior LGPS Officer, pending final guidance.

Risk Management and Internal Controls and Fit for the Future Update

This report was intended to inform the Board of any changes relating to the risk management and internal controls of the Pension Fund, as stipulated by the Pension Regulator's Code of Practice. The report detailed the Fund's risk register, which categorises 19 risks into six areas: Investment, Liability, Employer, Governance, Operational, and Regulatory. The report highlighted one change to risk scores and some content revisions to the risk register, including considerations for the Fit for the Future initiative. Specific updates were provided for several risks, including those related to market returns, investment strategy, employer data, contribution accuracy, and the resolution of the McCloud case. The report also noted the implementation of new controls for identifying pensioner deaths and the progress on the national dashboard project. The risk register and a risk scoring matrix were attached to the report for the Board's review.