The Pensions Committee of Shropshire Council was scheduled to discuss the Shropshire County Pension Fund's audit plan for 2025/26, the Pension Fund Treasury Strategy for 2026/27, and updates on pensions administration and corporate governance. The committee was also set to review the Fund's audit plan, treasury strategy, and various monitoring reports concerning administration, governance, and investments.

Audit Plan for Shropshire County Pension Fund 2025/26

Grant Thornton's report outlined the planned scope and timing for the statutory audit of the Shropshire County Pension Fund for the year ending 31 March 2026. The audit plan identified significant risks, including management override of controls and the valuation of level 3 investments. The report detailed the audit team's assessment of these risks and the planned audit procedures to address them. Materiality for the audit was set at £44.9 million for the Fund's financial statements, with specific materiality for the Fund Account set at £14.3 million. The plan also detailed the IT audit strategy, interim audit work, and the proposed audit fee of £90,404.

Pension Fund Treasury Strategy 2026/27

The report from the Head of Pensions proposed the Treasury Strategy for the Pension Fund's cash balances for the 2026/27 financial year. This strategy governs the management of daily transactions, including pension payments and contributions received. The recommendations included delegating authority to the LGPS Senior Officer to manage these cash balances, approving the Treasury Strategy, and authorising the officer to place deposits and manage the approved lending list. The report also detailed risk management, financial implications, and the background to the strategy, noting that pension fund cash must be managed separately from Shropshire Council's own cash balances since 1 April 2010. The investment policy prioritises the security of capital and liquidity, aiming for optimum returns commensurate with these priorities. Specified investments are defined as those denominated in Sterling, with less than 12 months' duration, not constituting share or loan capital, and invested in high credit quality entities. The strategy also outlined the creditworthiness policy, country limits, and investment strategy, anticipating potential reductions in the Bank Rate.

Pensions Administration Monitoring

The report from the Pensions Administration Manager provided monitoring information on the performance and issues affecting the Pensions Administration Team. It detailed team workloads, performance levels against Key Performance Indicators (KPIs), and projects such as the 2025 valuation and Pension Dashboards. The report highlighted that 10 out of 14 KPIs were meeting at least 95% of cases completed within legal time limits. It also addressed challenges such as staff resignations and maternity leave impacting specific KPIs, and outlined recruitment plans and training. Improvements in transfer KPIs were noted due to a change in resourcing. A new work allocation process for the Membership and Benefits team was introduced from February 2026, distributing cases based on individual skill sets and capacity. The report also detailed mortality screening statistics, communications performance, and employer performance regarding contributions and data submissions. Regulatory updates, including changes to death grants, survivor benefits, and qualifying additional pension arrangements, were also discussed.

Governance

The report from the Pensions Administration Manager provided information on regulatory breaches recorded from 1 April 2025 to 30 December 2025, and any Stage 1 or Stage 2 appeals received under the Internal Dispute Resolution Procedure (IDRP). It was noted that no breaches were deemed materially significant to require reporting to The Pensions Regulator. Four IDRP cases were received and completed, all of which were upheld and related to employers' decisions not to pay pension benefits on ill-health grounds. The report also detailed reviewed and updated fund policies, including the Funding Strategy Statement as part of the 2025 valuation and the Medium-Term Business Plan 2026-29. Updates on the Fit for the Future consultation were provided, outlining requirements for a senior LGPS officer, administration strategy, and changes to how strategies on governance, training, funding, and investments are published. Vacancies on the Committee and Board were also addressed, with appointments made and recruitment ongoing for other roles.

Corporate Governance Monitoring

The report from the Pensions Investment and Responsible Investment Manager informed members of corporate governance changes, including updates on the government's LGPS - Fit for the Future consultation and socially responsible investment issues arising in the quarter from 1 October to 31 December 2025. It detailed actions taken by the Fund's key stewardship partners, including voting and engagement activities by LGPS Central, Columbia Threadneedle Investments, and the Local Authority Pension Fund Forum (LAPFF). An update was provided on the Fund's position regarding the Palestine Solidarity Campaign's demands and the Scheme Advisory Board's response. The report confirmed the Fund's success in maintaining its signatory status to the UK Stewardship Code. An update to the Climate Stewardship Plan was also presented, reflecting recommendations from the Climate Risk Report.

Exclusion of Press and Public

The committee was asked to consider a resolution to exclude the press and public from discussions relating to agenda items 11 to 16, on the grounds that these items involved the likely disclosure of exempt information.

Exempt Minutes of the Previous Meeting

The exempt minutes of the meeting held on 5th December 2025 were presented for confirmation.

New Employers

An exempt report from the Pensions Administration Manager detailed new academy admissions to the Fund under Schedule 2, Part 1 (20) of the LGPS regulations 2013. It also provided details on new employer admissions under Schedule 2 Part 3 Regulation 1(d) (i) of the Local Government Pension Scheme Regulations 2013, as well as details regarding parish councils that had resolved to join the Fund under Schedule 2 Part 2 Scheme Employers.

Financial Markets Update (Including Equity Protection)

An exempt presentation from Mr Colin Cartwright and Mr Luke Hammond of Aon was scheduled to provide an update on financial markets, including equity protection strategies.

Investment Strategy Update

An exempt presentation from Mr Colin Cartwright and Mr Luke Hammond of Aon was scheduled to provide an update on the Fund's investment strategy.

Investment Strategy Implementation Update

An exempt report from the Pensions Investment and Responsible Investment Manager was scheduled to provide an update on the implementation of the Fund's investment strategy.

Investment Monitoring - Quarter to 31 December 2025

An exempt report from the Pensions Investment and Responsible Investment Manager was scheduled to provide monitoring information on investment performance and managers for the quarter ending 31 December 2025, and to report on technical meetings held with managers since the quarter end.