The Havering Council Pensions Committee was scheduled to meet to discuss the fund's valuation, performance, and climate-related disclosures, as well as updates on the government's Fit for the Future proposals for the Local Government Pension Scheme (LGPS). The committee was also expected to consider the initial results of the 31 March 2025 triennial valuation and a draft Funding Strategy Statement (FSS).

Here's a breakdown of the key items on the agenda:

Fit for the Future Update

The committee was scheduled to receive an update on the implementation of the government's Fit for the Future proposals, following the publication of the government's Pension Investment Review on 29 May 2025. The report pack noted that on 20 November 2025, the government had published a technical consultation on the LGPS: Fit for the Future transition plan.

The report pack stated that the government's proposals would:

require administering authorities (AAs) to delegate the implementation of their investment strategy to their asset pool require AAs to take principal investment advice from their pool require all assets to be controlled and managed by the relevant asset pool provide backstop powers for the Secretary of State to direct AAs to participate in specific pools, and for specific pools to facilitate participation establish minimum standards for pools, including FCA authorisation and capacity to manage local investments require compliance from 1 April 2026, subject to passage of the Pension Schemes Bill through Parliament and with limited flexibility in specific cases

As of 30 September 2025, approximately 40% of the Pension Fund’s assets were directly invested with the London CIV¹. The report pack stated that officers had been engaging with the London CIV to agree an asset transition plan to ensure that all assets are pooled by 31 March 2026.

The committee was asked to delegate authority to the Strategic Director of Resources, in consultation with the Chair of the Committee, to oversee the finalisation and approval of an Investment Management Agreement (IMA) with the London CIV and associated asset transition plans, to comply with the LGPS regulations.

Taskforce for Climate-Related Financial Disclosures (TCFD)

The committee was scheduled to review the fund's position concerning the 11 climate-related disclosures under the scope of the Taskforce on Climate-related Financial Disclosures (TCFD) for the year ending 31 March 2025.

The TCFD was established in 2015 by the Financial Stability Board to improve climate-related financial reporting². Its final recommendations, published in 2017, introduced a framework based on four pillars: Governance, Strategy, Risk Management, and Metrics & Targets, comprising 11 disclosures.

The report pack stated that this would be the fund's fourth TCFD report, summarising its position across the 11 disclosures. The committee was asked to agree the 31 March 2025 TCFD report.

Pension Fund Performance Monitor

The committee was scheduled to receive a report on the pension fund performance for the quarter ended September 2025. The report pack noted that the total value of the Fund's assets increased by approximately £51.3 million to £1,096.4 million as at 30 September 2025, and that the overall fund performance was 5.0% over the quarter.

The committee was asked to consider a performance report from Hymans Robertson, note an analysis of cash balances, and consider quarterly reports sent electronically by each fund manager.

Valuation Update and Draft Funding Strategy Statement

The committee was scheduled to discuss the initial results of the 31 March 2025 triennial valuation³, summarising the underlying actuarial assumptions, and consider a draft Funding Strategy Statement (FSS).

The report pack stated that every three years, Local Government Pension Scheme (LGPS) administering authorities have a statutory duty to carry out an actuarial valuation of their pension fund. The primary objective of the valuation is to establish employer contribution rates for the three-year period beginning one year after the valuation date, i.e. from 1 April 2026 to 31 March 2029.

The significant assumptions underpinning the valuation, detailed in the report pack, include:

• A discount rate (assumed future investment return) of 5.5% (85% prudence margin)
• CPI inflation (benefit revaluation) of 2.6% (best estimate)
• Longevity assumptions using the CMI 2024 model

The committee was asked to note the initial whole fund results report, including the proposed valuation assumptions, and to approve the draft Funding Strategy Statement.