The Pensions Investment Committee was scheduled to meet on 12 June 2025 to discuss a general update on pension fund related matters, the draft annual business plan, climate risk and net zero, and pooling - LGPS reform report and update. The meeting was also scheduled to discuss investment monitoring and a general update report in closed session.

General Update Report

The committee was scheduled to receive a general update report on several pension fund related matters. The report included updates on the Lewisham Pension Fund draft Accounts for 2024/25, the triennial valuation process for 31 March 2025, and the pension administration team. The report also noted that the Chair of the Pension Investment Committee had been appointed the Council's shareholder representative for the London CIV¹, and that the London Borough of Lewisham had invested an additional £70,312 into the London CIV Ltd for 70,312 B Shares. Fund manager updates and a manager engagement progress summary were also scheduled to be discussed. The committee was also scheduled to review and agree the updated Risk Register.

The report pack noted that the Council (as Employer) had included as part of its proposed savings for 2026/27 a reduction in the Employer's pension contribution of 1% from 21.5% to 20.5%, with an expected annual saving for the General Fund of £1.2m and £0.125m for the Housing Revenue Account. This was scheduled to be brought to the Committee for agreement as part of the December 2025 meeting papers.

The report pack also detailed a plan to conduct an LGPS member survey, with the following process:

• Define Objectives
• Design the Survey
• Segment the Audience (or ability to segment the outputs)
• Pilot the Survey (TBC based on advice from third party provider)
• Distribute the Survey
• Collect and Analyse Responses
• Report Findings
• Take Action
• Evaluate and Repeat

The risk register had been updated, and its design was based on a template provided by the Pensions Regulator. Risk ratings fall into four categories: Red, Amber/Red, Amber/Green and Green.

The report pack also noted that recent Counsel advice provided to the London Government Association by Nigel Giffin KC was clear that the views of its members must be reflected within its ESG² policies, and not those of its trustees (the Committee).

Draft Annual Business Plan

The committee was scheduled to consider and agree the Lewisham Pension Fund Business Plan 2025/26. The plan sets out the work to be undertaken by the committee during 2025/26 and the plan of work for the forthcoming three years. The Business Plan is reviewed and updated annually.

The key high level objectives of the fund are:

1. Optimise Fund returns consistent with a prudent level of risk
2. Ensure that there are sufficient resources available to meet the investment Fund's liabilities, and
3. Ensure the suitability of assets in relation to the needs of the Fund.

The plan included a timetable of key documents to be considered by the Pension Investment Committee, including the Annual Report, Funding Strategy Statement, Investment Strategy Statement, Communications Policy, and Governance Compliance Statement.

The plan also included a list of major milestones for the Pension Fund in 2025-26, including updates on the LGPS reform and transition to Pooling, the Triennial Valuation, and a Data Improvement Plan.

Climate Risk and Net Zero

The committee was scheduled to receive a report on climate risk and net zero. The report summarised the main findings as:

• Climate Risk Performance: The Fund's investments are performing well in terms of climate risk, having cut their absolute emissions by about 93% since 2019.
• Net Zero Pathway Challenges: Despite the efficiency of the Fund's portfolio, it's unlikely to achieve Net Zero by 2030 or 2040.

Pooling - LGPS Reform Report and Update

The committee was scheduled to receive a report and update on pooling and LGPS reform. The report provided an update on the government's proposals for LGPS reform, including the requirement for all funds to be fully pooled by March 2026.

Exclusion of Press and Public

The committee was asked to exclude the press and public from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined in paragraphs 3, 4 and 5 of Part 1 of Schedule 12(A) of the Local Government Act 1972:

• Investment Monitoring Q1 2025 cover report
• General Update Report Part 2
• Climate risk and Net Zero cover report
• Pooling LGPS Reform report and update