The Local Pension Board is scheduled to meet on Monday, 16 March 2026, to review the current status of pension fund matters as of 31 December 2025. The meeting will include an update on the performance of the Pension Fund's investments and a discussion of pension administration matters.

Current Update on Pension Fund Matters

The board will receive a report providing information on current pension scheme matters and an overview of the performance of the Pension Fund's investments as at 31 December 2025. The report details that global equity markets saw an increase during the quarter, with the UK market benefiting from large-cap equities and the healthcare sector. Similarly, the US market saw positive performance in healthcare, communications, technology, and financial sectors. Bond markets experienced mixed yields, with US Treasury yields rising and pushing bond prices down, while UK yields fell and prices rose, boosted by investor sentiment and anticipated interest rate cuts.

The report also outlines the Fund's current Investment Strategy, revised in February 2024, which includes commitments to invest in the LCIV UK Housing Fund and the Nature Based Fund. As of 31 December 2025, £25.468 million had been invested in the UK Housing Fund, with further drawdowns planned. For the Nature Based Fund, £14.432 million in drawdown payments had been made, representing a reduction from the previous quarter due to capital investment returns.

Performance figures for the Pension Fund up to 31 December 2025 are presented, showing a whole fund return of 2.34% for the quarter, against a benchmark return of 3.23%. Over one year, the fund returned 10.32% against a benchmark of 10.40%. Over three years, the fund returned 9.68% against a benchmark of 9.27%, and over ten years, it returned 7.14% against a benchmark of 6.65%. The report notes that the Fund has under-performed its benchmark over the quarter and for one and five-year periods, but has out-performed over three and ten years.

The report also covers the administration function, which is responsible for calculating and paying pensions and benefits, collecting contributions, and maintaining pension records. The team, comprising 12.25 full-time equivalents, has seen new technical officer posts filled, though a vacancy remains. The team is operating on a hybrid working model. Current work includes close collaboration with the Council's fraud team, with no new significant overpayment cases identified. The team is working on retirement cases, transfers, and deaths, with efforts to improve turnaround times. A migration from Member Self Service (MSS) to Engage has occurred, requiring members to re-register. Pensioners are now being offered online access to payslips and P60s, which is expected to reduce paper usage and postal costs. Ongoing work includes addressing the McCloud Judgement and the 2025 fund valuation results.

The administration performance indicators show that the team met all four targets during the quarter. These indicators relate to the timeliness of processing new member records, deferred members, retirements, and the issue of statutory notices.

The report also addresses fairness implications, including equality and diversity, stating that there are no implications arising from the report in relation to the duties under section 149 of the Equality Act 2010. There are also no direct staffing, child-friendly, crime and community safety, or specific legal implications arising from the report's content, beyond the general responsibilities of the Pension Board under the Local Government Pension Scheme Regulations 2013.

The meeting will also consider an exempt appendix to the report, which contains further details on pension fund matters.