The Pension Fund Panel of Kingston upon Thames Council met on Thursday 20 June 2024 to discuss various updates and reports related to the administration and performance of the pension fund. Key decisions included the approval of the Pension Administration Strategy Update and the review of the council's fossil fuel exposure in its investments.

Pension Administration Strategy Update

The panel reviewed and approved the Pension Administration Strategy Update. This update aims to improve the efficiency and effectiveness of pension administration. The strategy outlines measures to enhance member communication, streamline processes, and ensure compliance with regulatory requirements. The panel discussed the importance of these improvements in providing better service to pension scheme members.

Fossil Fuel Exposure in Investments

A significant portion of the meeting was dedicated to discussing the council's exposure to fossil fuels in its pension fund investments. The RBK Fossil Fuel Exposure report revealed the extent of investments in fossil fuel companies as of 31 March 2024. Councillors debated the ethical and financial implications of these investments. One councillor argued, Divesting from fossil fuels aligns with our commitment to sustainability and reduces financial risk associated with the declining fossil fuel industry. Others raised concerns about the potential impact on investment returns. Ultimately, the panel decided to further investigate the feasibility of divesting from fossil fuels.

Governance and Risk Update

The Governance and Risk Update was presented to the panel, highlighting key risks and governance issues affecting the pension fund. The update included an assessment of the fund's compliance with regulatory standards and identified areas for improvement. The panel acknowledged the importance of robust governance in safeguarding the fund's assets and ensuring long-term sustainability.

Investment Performance Report

The panel reviewed the Investment Performance Report for the quarter ending 31 March 2024. The report provided an overview of the fund's performance, including returns on investments and comparisons with benchmarks. The panel discussed the need to balance risk and return in the investment strategy, considering both short-term performance and long-term objectives.

Work Programme Update

An update on the Work Programme was provided, outlining the key activities and priorities for the upcoming months. The panel discussed the importance of staying on track with the work programme to ensure timely completion of key projects and initiatives.

Pension Administration Performance Update

The Pension Administration Performance Update was reviewed, highlighting the performance metrics and service standards achieved over the past quarter. The panel noted improvements in processing times and member satisfaction, attributing these gains to the implementation of the updated administration strategy.

Pension Administration Projects Update

The panel also received an update on ongoing Pension Administration Projects. These projects aim to enhance the overall administration of the pension fund through technological upgrades and process improvements. The panel discussed the progress of these projects and the anticipated benefits for scheme members.