The Local Government Pension Scheme Local Pension Board of Hertfordshire Council met on Friday 13 March 2026 to discuss the Pension Fund's risk register, employer risk and governance, and performance reports. The Board was also scheduled to review the Pension Fund's business plan for the upcoming financial year and consider the funding strategy statement and valuation report.

Pension Fund Risk Register Report

The Board was presented with an update on the Hertfordshire Local Government Pension Scheme (LGPS) Risk Register for the period of 1 October to 31 December 2025. The report outlined the Pension Fund's approach to managing identified risks. Three risks were noted as exceeding the tolerated risk threshold: ineffective management (governance) of the Fund, skills or knowledge gaps at the Administering Authority (Committee/Board/officers), and ineffective investment decision-making. The report indicated that the Head of Pensions' retirement at the end of March 2026 was a contributing factor to the governance and skills gap risks, with recruitment for the post underway. The move to a new asset pool by March 2026 was cited as the reason for the investment decision-making risk. The report recommended that the Board review and note the contents of the report, including the Risk Register Dashboard and Summary.

Employer Risk and Governance

A quarterly update on Employer Risk and Performance for the Pension Fund for the period 1 October to 31 December 2025 was scheduled for discussion. The report detailed the current status of risk monitoring for Scheme Employers and the performance of the Administering Authority against indicators set out in the Administration Strategy. The report indicated that the number of employers categorised as 'red' risk remained at seven. Of these, six were identified as true red risks, including ceased employers with outstanding cessation deficits and historic employers without indemnity arrangements. The report also provided an analysis of scheme employers by risk category, with 7 employers in the 'red' category, 77 in 'amber', and 523 in 'green'. The report recommended that the Board comment on and note its content.

Hertfordshire LGPS Q3 2025/26 LPPA Performance Report

This report, prepared by Hertfordshire's appointed pensions administrator LPPA, was scheduled to provide an update on performance during Q3 2025/26 and more recent activity in Q4. It included details on LPPA's performance against Service Level Agreements (SLAs), with overall operational casework performance reported at 98.7% against overall SLAs for the quarter. The report also covered updates on key projects such as the McCloud Remedy, the Pensions Dashboard, and the Efficiency and Service Improvement Programme. Customer satisfaction scores for the Contact Centre were also presented, with overall satisfaction at 79.3% and satisfaction with individual call handlers at 92.3%. The report recommended that the Pension Board note and comment on its content and appendices.

Funding Strategy Statement and Valuation Report

The Board was scheduled to receive a summary of the Funding Strategy Statement (FSS) consultation feedback and the actions approved by the Pensions Committee on 4 March 2026. The report indicated that most employers did not lodge formal responses to the draft FSS, suggesting no material concerns. Of the 12 employers and stakeholders who formally responded, 75% had no further comments. The Department for Education (DfE) raised queries regarding the target funding level and minimum contribution rate for academies, which were answered. Two employers submitted detailed concerns about investment returns, discount rates, and contribution-setting methods. The report recommended that the Board note and comment on the content of the report, appendices, and the final draft FSS and Valuation Report.

Pension Fund Business Plan for 2026-27

This report was intended to provide the Pension Board with a plan of business items scheduled for discussion during the financial year 2026-27. Key activities planned included pension fund policy updates, implementation of key projects, review of the fund's investment strategy, implementation of LGPS regulatory changes, transition of assets into the Border to Coast Pension Partnership (BCPP) pool, a review of pension fund governance effectiveness, and member training. The report recommended that the Board note its content and comment on any further items they wished to see on the forward agenda. Appendix A provided a detailed forward plan of agenda items for the Pension Board.