The Pensions Committee of Bexley Council was scheduled to discuss a range of important financial and investment matters concerning the Bexley Pension Fund. Key topics included updates on the fund's administration, actuarial valuation results, funding strategy, investment strategy, and overall investment performance. The committee was also set to review the Pension Bill's implications, the quarterly financial and fund management update, the performance of their investment consultants, and the finalisation of the London Collective Investment Vehicle Investment Manager Agreement.

Quarterly Administration Update

The committee was scheduled to receive an update on the administration of the Bexley Pension Fund. This included information on legislative and regulatory matters impacting the Local Government Pension Scheme (LGPS) administration, such as the McCloud remedy and the progress of the Pensions Dashboards initiative. An update on ongoing projects aimed at efficiency and service improvement, including the rollout of new online forms and a member message centre, was also planned. Performance metrics for the Customer Contact Centre and casework performance were to be presented, alongside data on fund membership and engagement with the PensionPoint online portal. The report also detailed employer engagement and communication activities, as well as data quality overview.

Triennial Actuarial Valuation 31 March 2025

A key item on the agenda was the triennial actuarial valuation of the Council's pension fund as of 31 March 2025. The report was expected to outline the results of this valuation, which assesses whether the fund's assets are sufficient to cover its existing and future liabilities. The committee was asked to approve these results and delegate the agreement of any final revisions to the Chair and the Section 151 Officer. The report indicated an increase in the fund's funding level since the previous valuation, resulting in a notional actuarial surplus.

Funding Strategy Statement Review

The committee was scheduled to review the Funding Strategy Statement (FSS), which outlines the fund's approach to funding its liabilities. This review is conducted in detail at least every three years as part of the triennial valuation process. The report detailed revisions to the FSS, including adjustments to key funding parameters and assumptions such as the discount rate and deficit recovery periods. It also covered wider policies on asset share, academies, termination, and a new Notifiable Events Framework to manage employer risk. The committee was asked to approve the draft revised FSS and delegate the approval of the final version to the Section 151 Officer in consultation with the Chair.

Investment Strategy Statement

The committee was to review the first draft of the Fund's revised Investment Strategy Statement (ISS), prepared in line with new regulations and statutory guidance. This statement outlines the fund's high-level financial objectives, approach to risk, responsible investment priorities, and local investment objectives. The report detailed proposed local investment objectives, including a target range of 0-3% of assets, with a preference for infrastructure, housing, and small to medium enterprise financing. The committee was asked to agree the Pension Risk Management Framework (PRMF), local investment objectives, and the draft ISS for stakeholder consultation.

Investment Performance – Quarter Ended 31 December 2025

This report provided a summary of the Bexley Pension Fund's investment performance for the quarter ending 31 December 2025. It included an overview of market conditions, the market value of the fund, and the performance of individual investment managers against their benchmarks. The report noted that the fund had marginally lagged its benchmark over the short to five-year periods, with global equities underperforming due to stock selection choices. The report also detailed the fund's asset allocation against the new Strategic Asset Allocation (SAA) targets.

Pension Bill Update

The committee was scheduled to receive an update on the changes introduced by the Pensions Schemes Bill, draft LGPS regulations, and accompanying statutory guidance. This reform marks a significant shift towards mandatory asset pooling within the LGPS, with clearer governance frameworks and stronger intervention powers. The report outlined the implications for governance structures, the future role of administering authorities and pools, and key issues and risks associated with these changes.

Quarterly Financial and Fund Management Update – 31 December 2025

This report provided an update on the Pension Fund's cashflow position, risk register, and the status of assets within the London Collective Investment Vehicle (LCIV) pool. It projected sufficient liquidity to fund liabilities until the end of the financial year. The top five risks to the fund were reviewed, with some being upgraded due to the government's Pension Review Consultation. The report also detailed the percentage of the fund's assets currently pooled and provided initial Triennial Valuation results.

CMA Investment Consultant Review

The committee was to review the performance of the fund's investment consultant, Gallagher, against agreed aims and objectives. This annual review, in line with Competition and Markets Authority (CMA) recommendations, assesses the consultant's assistance in achieving the fund's objectives, consideration of funding implications, risk management, cashflow management, and compliance with regulations. The report included a performance rating for each objective.

London Collective Investment Vehicle Investment Manager Agreement (LCIV IMA)

The final legal agreement between the fund and the London CIV pool was presented for approval. This agreement outlines the terms and conditions for managing the fund's assets from 1 April 2026, including responsibilities, fees, and investment powers. The committee was asked to approve the IMA and delegate agreement of any final revisions to the Chair and the Section 151 Officer. Appendix 1, containing the core IMA, was recommended for exclusion from publication due to containing commercially sensitive information.