The Pensions Committee of the City of London Corporation met to discuss the Local Government Pension Scheme (LGPS), including reviewing the committee's terms of reference, processes for transfers out of the scheme, and a consultation on fair access. The committee was also scheduled to discuss the pension scheme administrator's update, and a review of the investment strategy.

Investment Strategy Review and Training

The committee was scheduled to consider a report from the Chamberlain regarding an investment strategy review and training.

Draft Funding Strategy Statement

The committee was scheduled to discuss the draft Funding Strategy Statement (FSS).

London Collective Investment Vehicle (LCIV) Update

The committee was scheduled to receive an update on the London Collective Investment Vehicle (LCIV)^1, the asset pool operator for London LGPS Funds. They were also scheduled to discuss the transition of assets to the London CIV, and the admittance to the London CIV, including a request for delegated authority.

Admitted Body Status

The committee was scheduled to consider a request for delegated authority regarding the admitted body status of the City Academies Trust^2.

Local Government Pension Scheme Transfers-Out

The committee was scheduled to discuss a report regarding transfers out of the Local Government Pension Scheme, including processes and precautions. The report pack included a revised document outlining procedures and precautions for transfers out of the scheme. The original version of this document was brought to the committee on 22 September 2025, but committee members requested that section 3.2, 'Due Diligence and Scam Prevention', be expanded with further details added in respect of escalation procedures.

The revised document in the report pack stated that:

The Pensions Office plays a critical role in safeguarding scheme members' pension rights during transfers. By adhering to regulatory requirements, conducting thorough due diligence, and prioritising scheme member protection, administrators ensure the integrity of the scheme and the financial security of its scheme members

The document outlined actions and precautions to be taken when transferring benefits out of the pension scheme, including eligibility and conditions for transfer, required actions by the Pensions Office, due diligence and scam prevention, escalation procedures, financial advice requirements, and scheme member communication.

The document divided risks into red and amber flags:

• Red flags: Indicators of high scam risk. If a red flag is identified the transfer must be refused. Examples include:

  • Member pressured to transfer quickly;
  • Receiving scheme offers incentives or loans;
  • Evidence of scam activity.

• Amber flags: Indicators of potential risk. If an amber flag is identified, the scheme member must obtain guidance from MoneyHelper before the transfer can proceed. Examples include:

  • Complex investment structures;
  • Overseas investments;
  • Unclear or inconsistent information from the receiving scheme.

Local Government Pension Scheme 'Fair Access' Consultation

The committee was scheduled to discuss a report on the Local Government Pension Scheme 'Fair Access' Consultation. According to the report, the consultation sought to address key administrative and benefits-related issues, including proposals that have been anticipated for some time, such as Fair Deal, and newer initiatives such as the re-admission of councillors into the scheme.

The consultation covered four key proposals:

• Normal Minimum Pension Age (NMPA): The government proposes implementing the increase in the Normal Minimum Pension Age from 55 to 57 from 6 April 2028, except for ill-health retirements.
• LGPS Access for Elected Mayors and Councillors: The government proposes extending LGPS access to councillors and mayors in England, recognising their vital public service roles. This includes all English mayors, deputy mayors, and councillors of principal English local authorities, including the Common Council of the City of London.
• Academies and Employer Consolidation: The consultation proposes changes to LGPS employer consolidation rules, particularly for multi-academy trusts (MATs).
• New Fair Deal: The government seeks to implement New Fair Deal in local government, ensuring continuity of LGPS membership for staff outsourced to contractors.

Pension Scheme Administrator's Update

The committee was scheduled to receive a report of the Chamberlain concerning the standing update on pension administration activities.

The report included a summary of general information around a range of topics in relation to the administration of the Scheme since the last committee meeting on 22 September 2025.

The report stated that the Pensions Office had rolled out an online member portal which allows members to access their pension record, make amendments to selected personal data and to run their own retirement estimates. One of the main facilities that was expected to be added to the portal was the ability to upload pensioner payslips and P60s and make these available to pensioner scheme members.

The report also provided an update on the Public Sector Pensions Legal Challenge, also known as 'McCloud'. With effect from April 2015 (April 2014 for the LGPS) all public sector pension schemes were subjected to reforms that changed the way benefits were accrued and the date from which they would become payable. However, the legality of these reforms was successfully challenged and they were found to be discriminatory on the grounds of age. The report stated that for active scheme members retiring after the implementation date, their McCloud eligibility is assessed by the Pensions Office and if appropriate their benefits are based upon the terms of the Remedy. In addition, from 2025 onwards, all Annual Benefit Statements issued to active and deferred members must include details in respect of the Remedy and how it affects their individual benefits.

The report included key performance indicators (KPIs) for the Pension Scheme Administration. At the June 2024 Committee meeting, members agreed to change the target for the initial payment of retirement benefits from 5 to 10 working days.

The report also provided an update on Pensions Dashboards, designed to provide an online platform that will allow individuals to access details of their accrued pension benefits from multiple sources in one place. The deadline for public sector pension schemes to connect to the national infrastructure was 31 October 2025, and the City of London met this deadline.

Annual Review of the Committee's Terms of Reference

The committee was scheduled to conduct an annual review of its terms of reference. The report of the Town Clerk stated that this review enables any proposed changes to be considered in time for the annual reappointment of Committees and Boards by the Court of Common Council.