The Pension Fund Committee of Redbridge Council met on Wednesday 23 September 2026 to discuss the administration of the Local Government Pension Scheme (LGPS), reforms to LGPS governance and pooling, and the performance of the pension fund's investments. The committee noted updates on administration performance, received a presentation from London CIV, and reviewed the fund's investment performance for the quarter ending 30 June 2026.

Administration Performance and Team Update

The committee received an update on the pension administration function for the quarter ending 30 June 2026. The report highlighted the team's work on business as usual tasks, including retirement cases, transfers, and deaths. It also detailed a team restructure aimed at strengthening succession planning and retention, and the successful migration from the Member Self Service (MSS) platform to Engage, which has seen 1,125 members register. The report also noted that the council's discretions policies are due for review. Significant work has been undertaken regarding the McCloud Remedy, with the administration team prioritising data validation and reporting to identify affected members and ensure accurate remedy calculations. Annual Benefit Statements for 2026 were issued incorporating the McCloud Remedy outcomes. Councillors have been granted access to the LGPS again, with induction sessions provided. The report also mentioned the implementation of the LGPS (Amendment) (Governance) Regulations 2026, which introduce enhanced governance requirements, including the appointment of a Senior LGPS Officer. Changes to SCAPE discount rates were also noted, with some case types temporarily suspended pending updated guidance and calculation factors. The first batches of revised factors have been issued, and system upgrades are planned to ensure correct factors are applied. Data is being automatically loaded to the national pension dashboard daily in preparation for its go-live in October. The administration team met their targets for PEN02, PEN03, and PEN04 performance indicators, with ongoing work to improve PEN01.

LGPS Governance and Pooling Reforms: Implementation Update and Workplan

The committee was updated on the implementation of the government's Fit for the Future reforms, culminating in the Pensions Schemes Act 2026 and subsequent regulations. These reforms aim to strengthen LGPS governance and investment arrangements, focusing on enhanced knowledge and understanding for committee members, the appointment of Senior LGPS Officers and Independent Persons, investment strategy reviews, and pool governance. The committee was recommended to note the publication of the Pension Schemes Act 2026, delegate approval of the London CIV Investment Management Agreement to the Section 151 Officer, endorse the proposed implementation workplan, and approve the commencement of a review of the Fund's Investment Strategy Statement. Officers were also requested to develop a Training Strategy and Knowledge & Understanding programme. The report detailed key implications for Redbridge Pension Fund, including the need for an Investment Strategy Review, an updated Investment Strategy Statement (ISS), and the development of a Governance Strategy. New statutory requirements for the appointment of an Independent Person and LGPS Senior Officer were highlighted, with specific prohibitions on the LGPS Senior Officer holding certain other senior roles simultaneously. The report also addressed asset pooling, emphasising the continued responsibility of Pension Fund Committees for setting investment objectives while asset pools manage implementation. The execution of a revised Investment Management Agreement (IMA) with London CIV by 30 September 2026 was noted as a critical milestone. The committee was also informed about the requirement for Independent Governance Reviews and the development of a Training Strategy to ensure members possess the necessary skills and knowledge. An Administration Strategy will also be prepared. A phased implementation programme was proposed, with progress to be monitored and reported regularly. Risks associated with governance, investment, reputation, and training were outlined, along with potential financial implications requiring additional specialist support.

London CIV Update

Representatives from London CIV (LCIV) provided an update on the fund's investments managed through the pooling arrangement. The presentation covered an overview of LCIV, key developments, performance of the fund's investments, pooling activities, relevant market developments, and Responsible Investment (RI) matters, including stewardship, engagement activity, and climate-related issues. The committee was recommended to receive and consider this presentation.

Pension Fund Quarterly Update to the 30 June 2026

The committee received a report on the Pension Fund's investment performance for the quarter ending 30 June 2026. The total value of the fund increased to £1,251m, with a strong positive return of 8.44% for the quarter, outperforming the benchmark return of 7.41%. Global equities, particularly technology-related sectors and companies linked to AI, were strong performers. Over the one-year period, the fund returned 15.64%, slightly below the benchmark. Longer-term performance showed mixed results, with outperformance over three and ten years, but underperformance over five years. The report detailed the performance of individual investment mandates, with Schroders Emerging Markets Equity being the strongest performer for the quarter. The fund's asset allocation remained broadly aligned with its strategic benchmark, with some overweight positions in Legal & General Global Equity ex UK, Low Carbon Equity, UK Equity, and Emerging Markets Equity. Underweight positions were noted in Baillie Gifford Global Equity, Buy & Maintain Bonds, Real Estate Long Income, Multi-Asset Credit, UK Housing, and Index Linked Gilts. The fund's cash balances decreased to £484k. The report also included appendices detailing market indices, investment mandate allocations, and performance charts.

The meeting also included an apology for absence from Councillor B. Brewer and Councillor B. Chattaway, who was substituted by Councillor M. Sachs. Councillor H. S. Bal was elected as Vice-Chair for the municipal year 2026-2027. The minutes of the previous meeting held on 17 June 2026 were agreed. There were no public questions or urgent items raised. The date of the next meeting was confirmed as 23 September 2026.