The Pension Fund Committee of Redbridge Council met on Wednesday, 25 February 2026, to review the fund's performance and strategic direction. Key discussions included the draft Funding Strategy Statement, the administration of the Local Government Pension Scheme (LGPS) function, the 2024/25 draft Pension Fund Annual Report and Accounts, a draft Responsible Investment Policy, the Pension Fund Annual Business Plan for 2026/27, and a quarterly update on the fund's investments as of 31 December 2025.

Draft Funding Strategy Statement

The committee received a presentation on the draft Funding Strategy Statement (FSS) from Barry Dodds of Hymans Robertson, the Fund's Investment Actuary. The FSS outlines the strategy for managing the pension fund's assets and liabilities to ensure long-term solvency and cost efficiency. The triennial valuation process, which informs employer contribution rates, was discussed. The FSS has been updated to comply with new guidance, including increased prudence due to heightened uncertainty, and specific measures for councils and academies regarding contribution reductions. The strategy aims to balance the interests of various employers within the fund and manage risk effectively.

Administration of the Council's LGPS Function

Maureen S Jones, Pensions Manager, provided an update on the administration of the Local Government Pension Scheme (LGPS) function for the period ending 31 December 2025. The report highlighted the team's work on business as usual activities, including retirement cases, transfers, and deaths, noting improvements in turnaround times with new staff in post. The migration from Member Self Service (MSS) to Engage was mentioned, along with the ongoing rollout of online payslips for pensioners. Work is continuing on the McCloud Judgement¹ and the 2025 fund valuation. The team met its performance targets for the period.

2024/25 Draft Pension Fund Annual Report and Accounts

Hilary Taylor, Principal Accountant, presented the draft 2024/25 Pension Fund Annual Report and Accounts. The report, which has been audited by EY, details the fund's financial statements, administration, solvency, and investment management. Key points included the fund being cashflow positive, an increase in the investment portfolio's value, a revised investment strategy to reduce risk, and a commitment to invest in the Natural Capital Fund managed by the London CIV (LCIV). The report also outlined the fund's governance, investment, and administration arrangements, as well as membership information.

Draft Responsible Investment Policy

The committee reviewed the draft Responsible Investment Policy, which complements the Investment Strategy Statement. This policy outlines the fund's approach to incorporating Environmental, Social, and Governance (ESG) factors into investment decisions to manage risk and generate sustainable long-term returns. The fund believes in long-term investing, engagement with investee companies, and considers sustainability relevant to fiduciary duty. The policy specifically addresses climate change, advocating for a Just Transition and aiming for net-zero emissions within the investment portfolio by 2050 or earlier. It also emphasises transparency, disclosure, and reporting.

Pension Fund Annual Business Plan 2026/27

The committee considered the Pension Fund Annual Business Plan for 2026/27, which outlines the fund's objectives, core work, and how these will be achieved. The plan details progress on key tasks from the 2025/26 business plan, including investment strategy reviews, performance monitoring, and corporate governance activities. The 2026/27 plan includes objectives for monitoring and review, governance and compliance, administration, risk management, and training. A budget for 2026/27 was also presented, projecting sufficient income to meet expenditure.

Pension Fund Quarterly Update to 31 December 2025

This report provided an update on the Pension Fund's investment performance for the quarter ending 31 December 2025. While individual portfolios showed mixed returns, the overall Pension Fund investments outperformed the benchmark over all measurable periods except for the 5-year period. Global equity markets saw increases, particularly in the healthcare, communications, and technology sectors. Bond yields were mixed, with UK yields falling and prices rising. The report detailed the fund's asset allocation, showing commitments to the LCIV UK Housing Fund and the Nature Based Fund. Performance figures indicated that the fund had underperformed its benchmark over the quarter and the 1-year and 5-year periods, but outperformed over the 3-year and 10-year periods.