The Pensions Committee of Worcestershire Council was scheduled to review the Worcestershire Pension Fund's Risk Register, which details potential risks and their mitigation strategies. The committee was also set to consider updates on the Fund's business plan, governance, compliance, and training activities. Additionally, discussions were planned regarding the Investment Strategy Statement and the Climate Change Risk Strategy, alongside a review of the Fund's performance and budget forecasts.

Risk Register

The committee was scheduled to review the February 2026 Worcestershire Pension Fund Risk Register. This register is regularly updated and categorises risks based on their potential impact and probability. The report indicated that two new risks, WPF 37 (failure to meet government requirements for asset pooling) and WPF 38 (compliance with Pension Dashboard requirements), were added in February 2025. A further risk, WPF 39 (LGPSC's inability to meet Fit for Future obligations), was added to acknowledge potential resource limitations. Mitigating actions for existing risks, such as WPF07 (changes to LGPS regulations), WPF20 (insufficient staff resource), and WPF29 (failure to deliver member communications), were also updated. The report noted that a training session with Hymans Robertson's Governance and Projects (GAP) Team had taken place on 30 September 2025 to enhance officers' understanding of risk management. A draft of a new Risk Register, effective from 1 April 2026, was presented, with a training session scheduled prior to the committee meeting to support its implementation.

The risk register itself detailed numerous risks across categories including Investment/Funding, Administration, Engagement Effectiveness, Pooling, and Investment. For instance, under Investment/Funding, WPF37, concerning the failure to meet government requirements for asset pooling, was identified with a residual risk score of 60. Mitigating actions included collaboration with LGPSC to develop the Pool's Plan and engagement with government and local political groups. Under Administration, WPF07, concerning future changes to LGPS regulations, had a residual risk score of 40, with mitigating actions including resource allocation to pensions administration and implementation of the McCloud remedy.

The report also included a detailed breakdown of risks, their causes, impacts, and mitigating actions, colour-coded by risk rating (Red, Amber, Green). For example, risk WPF37 (Failure to effectively oversee LGPS Central) was rated as Red, with a current impact of Major and a current likelihood of Possible. The target rating was Amber, with a target impact of Moderate and a target likelihood of Unlikely.

Business Plan

The committee was scheduled to review the Worcestershire Pension Fund Business Plan for 2024/2025–2026/2027. This plan outlines the Fund's strategic goals, progress monitoring, and actions to achieve its objectives. It details how the Fund aims to deliver on its aims and objectives, including those related to Administration, Governance, and Investments. The plan highlighted ongoing projects such as the McCloud remedy, the member portal, the Pensions Dashboard Programme, and I-Connect implementation. Updates on administration KPIs were provided, indicating that most processes were meeting turnaround targets, with one KPI below benchmark due to workload redistribution. There were no reported breaches to The Pensions Regulator, and one case escalated to the Pensions Ombudsman had been responded to. Annual Benefit Statements for 2025/2026 were delivered online, with posted letters sent to all members to ensure communication alignment. A drop in queries was noted following the introduction of self-service uploads and video ABSs. Community Housing Group ceased as an active employer on 7 July 2025, and their surplus and exit credit amounts were accepted, with due diligence pending before payment release. The Fund was also liaising with WCC procurement regarding consultancy services for AVCs and legal services frameworks. Progress on the McCloud remedy indicated a reduction in cases requiring remedial action, with a determination to extend the completion deadline to August 2026. The Pensions Dashboard Programme was progressing, with Phase 1 and Phase 2 of the ISP implementation completed, and connection to the dashboard ecosystem approved for 31 October 2025. Data quality for members remained high, with ongoing efforts to improve address data.

Governance and Compliance Update

This update was scheduled to cover several key areas. The committee was asked to review the Good Governance Position Statement, which summarises progress on good governance workstreams in anticipation of statutory guidance. The document noted that the Pensions Schemes Bill continues its passage through parliament, with proposals relating to governance, oversight, and regulatory powers remaining as drafted. The Government had published its official response to the 'Access and Fairness' consultation, and draft LGPS (Amendment) Regulations 2026 were laid before Parliament, with a planned commencement date of 1 April 2026, dependent on the Pension Schemes Bill receiving Royal Assent. The committee was also asked to approve updates to the Terms of Reference for the Pension Board, Pensions Committee, and the Governance Policy Statement, reflecting the forthcoming Pension Schemes Bill. The appointment of an Independent Person to advise the Pensions Committee and Pension Investment Committee was also to be sought for approval. The Cyber Security Report and Review Summary were presented as exempt appendices, and a workshop with the WCC Emergency Planning Team had been held to review and strengthen the Fund's Business Continuity Plan. The Conflicts of Interest Policy was reviewed internally, and a Conflicts of Interest Declaration form had been distributed to staff.

Training Update

The committee was scheduled to review the Fund's Training Strategy, which outlines the approach to ensuring individuals involved in the management, governance, administration, and decision-making processes possess the necessary knowledge and skills. This includes core learning modules, training needs analyses, and ongoing development. The update highlighted that all Pension Board and Committee members had been issued login details for the LGPS Online Learning Academy (LOLA). A Board and Committee training day was held on 28 January 2026, covering ESG and climate-related risks, an update from LGPS Central, and LGPS governance and regulatory developments. Member portal registrations were reported, with active members showing the highest registration rate. Progress on mitigating risks such as insufficient knowledge amongst committee members, failure of officers to maintain competence, failure of business continuity planning, and incorrect benefit calculations was also detailed. Recommendations for member training included completing specific LOLA modules.

Investment Strategy Statement (ISS) and Climate Change Risk Strategy (CCRS) Update

The committee was scheduled to review the update relating to the Fund's 2026 Investment Strategy Statement (ISS) and the accompanying guidance from the Ministry of Housing, Communities & Local Government (MHCLG). The draft Climate Change Risk Strategy (CCRS) was also to be presented, along with the Fund's 6th Annual Climate Risk Management Strategy (CRMS) Report, which incorporates the Task Force on Climate related Financial Disclosures (TCFD) Report. An ESG Workshop held on 28 January 2026 and its recommended outcomes were also to be discussed. The report noted that the new LGPS investment regulations formalise the role of LGPS pools in strategy development and delivery, with a shift in responsibility from individual funds to the pool structure. The content requirements for the ISS have also expanded, mandating explicit alignment with the Funding Strategy Statement, consideration of contribution rate stability, and clearer articulation of delivery through asset pooling. A high-level local investment objective and target range are now required. The review and publication requirements for the ISS have been tightened, with a requirement to review and republish within 18 months of each actuarial valuation date. Consultation and transparency requirements are also strengthened. The Climate Risk Management Report indicated continued progress in managing climate risk, with a reduction in the overall portfolio carbon intensity. Stewardship and engagement activities were noted as increasingly targeted and outcome-focused. The report recommended continuing to embed climate metrics, refine climate-related objectives within the ISS, maintain a focus on engagement, and commission climate scenario analysis. The TCFD recommendations are now integrated into the Climate Risk Management Report.

Forward Plan

The committee was scheduled to review and approve the Forward Plan, which outlines anticipated key areas for future reporting. This plan includes regular updates on LGPS Central, ESG workshops, Climate Risk Reports, TCFD reports, the Annual Report and Accounts, Stewardship Code, Business Plan, Investment Strategy Statement, Funding Strategy Statement, Administration Strategy, Strategic Asset Allocation Review, Training Update, Investment Update, Budget, Internal Audit reports, Risk Register, Governance Update, and Pension Board/regulatory updates. The plan indicated that LGPS Central updates, ESG workshops, Climate Risk Reports, TCFD reports, Annual Report/Accounts, Stewardship Code, Business Plan, Investment Strategy Statement, Funding Strategy Statement, Administration Strategy, Strategic Asset Allocation Review, Training Update, Investment Update, Budget, Internal Audit reports, Risk Register, Governance Update, and Pension Board/regulatory updates are expected throughout 2026 and into 2027.

The meeting also included agenda items for Apologies/Named Substitutes, Declarations of Interest, Public Participation, and Confirmation of Minutes. Additionally, the committee was to consider the Pension Board and Pension Investment Sub-Committee Minutes, a Valuation Update, and the Business Plan. Items 12-15 were scheduled to be considered in an exempt session, likely due to the disclosure of exempt information relating to financial or business affairs.