This week in Sutton:

• The Pension Committee met to discuss responsible investment policies, the business plan and budget, and pension administration performance.
• The Licensing Sub-Committee was scheduled to consider a new premises licence application for Madol Doova Restaurant.
• The Pension Board reviewed the pension fund's business plan and budget, and discussed administration performance and governance.

Pension Committee - Tuesday 17 March 2026

The Pension Committee of Sutton Council met on Tuesday, 17 March 2026, to discuss a range of financial and operational matters concerning the Pension Fund. Key topics included updates on responsible investment policies, the business plan and budget for the upcoming years, and performance reports for pension administration and investments. The committee also reviewed the triennial valuation and funding strategy, alongside governance and risk updates.

Responsible Investment Update

The committee was scheduled to review and approve an updated Responsible Investment Policy for the Pension Fund. This policy aims to integrate financially material environmental, social, and governance (ESG) factors into investment decisions to manage risk and generate sustainable, long-term returns. The updated policy includes new sections on how the Fund invests, its approach to exclusions and divestment versus engagement, and its stance on human rights and conflict-affected high-risk areas. It also outlines the Fund's approach to climate change, including targets for reducing carbon emissions and investing in climate solutions, and identifies four key UN Sustainable Development Goals (SDGs) as priority areas: Climate Action, Economic Growth, Good Health and Wellbeing, and Reduced Inequalities. The policy also commits to annual reporting on its implementation through the Annual Stewardship Report.

Business Plan 2026-29 and Budget 2026-27

The committee was presented with the draft business plan for the London Borough of Sutton Pension Fund for 2026-29 and a draft budget for 2026-27. The business plan distinguishes between Business as Usual statutory obligations and strategic medium-term priorities. Key themes for the business plan include Governance, focusing on compliance with the Pensions Regulator's General Code of Practice, system reprocurement, and implementing changes arising from LGPS reforms. Administration and Communication priorities include the completion of the McCloud Remedy project and establishing a Business as Usual operating model for Pensions Dashboards. Investments and Funding priorities centre on ensuring the London Collective Investment Vehicle (LCIV) implements the Fund's investment strategy and continuing the transition to pooled assets. The proposed Pension Fund Budget for 2026/27 is £6.727 million, representing a net increase of £258,000 against the approved 2025/26 budget, primarily driven by administration costs and oversight and governance expenses, partially offset by a reduction in forecasted investment management fees.

Pension Administration Performance Update

An update was scheduled on the key administration performance of the Shared Pensions Administration Service. The report indicated a reduction in the total number of outstanding processes, primarily due to the clearance of Leaver processes following the academic year end. Performance against Service Level Agreements (SLAs) was noted as positive, with a strong improvement over the last 12 months. The report also stated that no breach of law incidents had been reported, and there were no open Internal Dispute Resolution Procedure (IDRP) cases.

Pension Administration Projects Update

This item was scheduled to provide an update on key administration projects. A significant focus was on Data Improvement, with the report detailing the Fund's data scores for Common Data and Scheme Specific Data, showing a material improvement in Scheme Specific Data. The policy has been updated to align with new regulations, strengthen cyber security, support strategic projects like the McCloud Remedy and Pensions Dashboards, and modernise data collection. An update on the McCloud Remedy project indicated it was on track for completion by 30 June 2026, with data collection and validation progressing well. Other updates included information on the annual pensions increase, year-end data returns, the Pensions Dashboard Programme, pensioner P60s, and the transition to digital payslips and P60s for overseas pensioners.

Governance and Risk Update

The committee was scheduled to review the Fund's risk register and approve a draft Conflict of Interest Policy and a draft Training Policy & Strategy. The Risk Register overview indicated that Administration risks were rated amber overall, while Funding & Investments and Governance risks were rated green. One red-rated risk concerning the software provider Civica's failure to provide compliant software remained unchanged. Several amber risks were also detailed, including operational resource strain from legislative changes, committee and board member skills, cyber security, climate change and biodiversity loss, adverse market movements, and uncertainty around fit for the future pension reforms. The draft Conflict of Interest Policy aimed to clarify definitions, elevate responsibility, expand the gifts and hospitality section, and introduce a new operational procedure. The updated Training Policy & Strategy aligns with draft statutory guidance on Fund Governance, focusing on nine core technical areas and outlining a training plan for the upcoming municipal year.

Work Programme Update

A draft programme of work for Pension Committee meetings over the next year was presented for review. This indicative agenda included items such as training sessions, updates on the Pension Board's work, administration performance and projects, governance and risk, investment performance, and pension reforms.

Triennial Valuation and Funding Strategy Statement Update

The committee was scheduled to review the draft final results of the 31 March 2025 triennial valuation and approve the resulting draft Funding Strategy Statement (FSS). The valuation results indicated a significant improvement in the Fund's financial health, with the funding level increasing to 114% and a surplus of £117 million. This improvement was primarily attributed to revised expectations for future investment returns. The FSS had been updated to align with new guidance from CIPFA and the Scheme Advisory Board, with changes including structural alignment, standardised terminology, and an enhanced governance commitment. A consultation with scheme employers and the Department for Education had been concluded, with feedback considered in the report.

Pension Fund Accounts 2024-25 Audit Outcomes Report

This report presented the Annual Auditors Report for the 2024/25 Pension Fund Accounts, completed by KPMG. The report indicated that the audit was complete and an unmodified opinion was expected. It noted a control deficiency regarding the lack of a formal two-step authorisation process for journal approvals, which had been mitigated by a manual process and was planned to be addressed by a system upgrade. Two recommendations from the 2023/24 audit report had been fully addressed.

Quarterly Investment Performance

The committee was scheduled to review the investment performance of the Fund for the quarter ended 31 December 2025. The market value of the Fund's assets had increased to £1,091.4 million. The report detailed the Fund's performance against its benchmark, noting an underperformance over the quarter and the one, three, and five-year periods. The underperformance was attributed to specific funds, including the LCIV Global Equity Fund and Invesco Property. An update on the London Collective Investment Vehicle (LCIV) was also provided, covering its pooling position, fund development, and the Fit for the Future reforms. The report also included details on asset allocation, manager performance, and market background information for equities, bonds, commodities, and currencies.

Investment Strategy Implementation

This item was scheduled to discuss the implementation of the Fund's investment strategy. The report detailed the revised strategic asset allocation agreed in December 2025 and the actions being taken to realign the portfolio. Updates on the London Collective Investment Vehicle (LCIV) included its pooling position, fund development, and the Fit for the Future reforms, which are expected to formalise the roles and responsibilities between partner funds and LCIV. The report also covered the expansion of the pool to include Buckinghamshire Pension Fund, the contractual relationship with LCIV, and progress on local investment strategies. Governance updates and environmental, social, and governance (ESG) ratings were also included.

The meeting also included agenda items for the exclusion of the public and press for specific exempt information, and a work programme update.

Licensing Sub-Committee - Friday 20 March 2026

The Licensing Sub-Committee is scheduled to consider a new premises licence application for Madol Doova Restaurant. The committee will also review the procedure for licensing sub-committee hearings.

New Premises Licence Application for Madol Doova Restaurant

A significant item on the agenda is the application for a new premises licence for Madol Doova Restaurant, located at 79 Manor Road, Wallington, SM6 0DE. The application seeks authorisation for the retail sale of alcohol for both on and off-site consumption, with proposed hours from 10:00 am to 00:00 am Sunday to Thursday, and extending to 01:00 am on Friday and Saturday mornings.

Additionally, the restaurant is seeking permission for the provision of live and recorded music between 10:00 am and 23:00 pm Sunday to Thursday, and until 01:00 am on Friday and Saturday. The application also includes the provision of late-night refreshment, from 23:00 pm to 00:00 am Sunday to Thursday, and until 01:00 am on Friday and Saturday nights.

The report pack includes several appendices related to this application. Appendix 1 provides details of the restaurant and its location, while Appendix 2 outlines the proposed hours of operation. Appendix 3 details conditions arising from the applicant's operating schedule, and Appendix 4 contains a redacted representation from a responsible authority. Appendix 5 includes a redacted representation from another person. The main report detailing the application can be found in the Committee Report - Madol Doova Restaurant.

Licensing Sub-Committee Hearings Procedure

The committee is also scheduled to review the procedure for licensing sub-committee hearings. This review will be informed by the 2021 - Procedure FINAL update Licensing Sub Hearing Committee Procedures approved 27 09 21 document. This procedure outlines the established methods for conducting hearings within the Licensing Sub-Committee.

The meeting is scheduled to take place at the Civic Offices, St Nicholas Way, Sutton, SM1 1EA. The agenda also includes standard procedural items such as the election of a Chair, declarations of interest, and the approval of minutes from previous meetings held on 5 March 2026 and 12 March 2026, the minutes for which are available in the Minutes 05032026 Licensing Sub-Committee.pdf and Minutes 12032026 Licensing Sub-Committee.pdf documents. The committee will also consider any urgent business that may arise.

Pension Board - Thursday 19 March 2026

The Pension Board of Sutton Council met on Thursday, 19 March 2026, to discuss the pension fund's business plan and budget, review administration performance and projects, and consider updates on governance, risk, valuations, and responsible investment. Key decisions included the approval of the draft business plan and budget for 2026-2029 and 2026-2027 respectively, and the noting of various performance and project updates.

Business Plan and Budget for 2026-2029 and 2026-2027

The Board reviewed the three-year business plan and the budget for the upcoming financial year. The business plan has been restructured to differentiate between business as usual activities and strategic projects. The budget for 2026-2027 is £6.727 million, an increase from the previous year, largely due to increased corporate costs being recharged to the pension fund. Discussions highlighted the significant cost of fund management fees, which are dependent on the fund's asset value. Concerns were raised about the resourcing implications of the upcoming pensions administration software re-procurement, with assurances given that the main procurement costs would fall in the 2027-2028 financial year. The Board also discussed the timing of training for newly elected members following upcoming local elections, and the potential impact of these changes on the committee's relationship with the London Collective Investment Vehicle (LCIV).

The Board noted the draft business plan for 2026-2029 and the draft budget for 2026-2027.

Pension Administration Performance Update

Tom, Head of Pensions Administration, presented a positive update on pension administration performance. Outstanding cases have fallen significantly, and the team is meeting performance targets, with no cases overdue by 31 days or more. SLA performance has increased to 91%. The team acknowledged the cyclical peaks in workload, particularly following the end of the academic year, and detailed how these are managed. The Board congratulated the team on their hard work and significant improvements.

The Board noted the update on pension administration performance.

Pension Administration Projects Update

Tom provided an update on key pension administration projects. The data improvement project has seen significant progress, with scheme-specific data quality reaching 96%, leading to a risk rating being downgraded from amber to green. A review of the data improvement policy is underway, focusing on strategic projects and data minimisation. The McCloud remedy project remains on track for delivery by June 2026, with data collection now at 100% and data validation progressing well. The Board discussed the importance of named responsibilities for data owners and the frequency of policy reviews. The potential use of AI to streamline administrative tasks was also a key discussion point, with assurances that AI would be used to support, not replace, human oversight and quality assurance.

The Board noted the update on pension administration projects.

Governance and Risk Update

Tom presented a comprehensive update on governance and risk. The risk register has been reviewed, with a consolidation of funding and investment risks under market conditions and market volatility. Updates were made regarding the pension dashboard programme and monitoring of fit for the future reforms. The conflict of interest policy was reviewed and found to be largely unchanged, with a new declaration form introduced for members and officers. The training policy strategy and plan have been updated to reflect upcoming elections and the fit for the future reforms, with an emphasis on annual reviews and responsibilities for substitute members. Updates were also provided on consultations regarding access and fairness, the gender pensions gap, and access for elected members to the Local Government Pension Scheme (LGPS).

The Board noted the governance and risk update.

Work Programme Update

Tom presented the updated work programme for the board, highlighting the revised training programme in light of upcoming elections. The training will be available to all board members, including online induction training in July.

The Board noted the updated work programme.

Triennial Valuation and Funding Strategy Statement Update

Tom provided an update on the triennial valuation and funding strategy statement. The fund remains 114% funded with a surplus of £117 million, unchanged from previous reports. Crucially, no employer contribution rates have increased; they have either remained the same or decreased. The increased prudence level of 85% was noted as a protection against market volatility. The report also included an update on the gender pensions gap, with a slimline version of reporting for this year. The draft funding strategy statement has been consulted on with employers, with minor wording changes made to clarify the fund's position on academies. The Board discussed the potential for an easy read version of the funding strategy statement and the implications of the fund's strong funding position on employer contributions. The Board also discussed how Sutton's funding level compares to other LGPS funds.

The Board noted the update on the Triennial Valuation and Funding Strategy Statement.

2024-25 Pension Fund Accounts Audit Findings

Catherine Gray, Head of Pensions Investments and Treasury, reported on the successful conclusion of the 2024-25 accounts audit, which resulted in an unmodified audit opinion. The final accounts were largely unchanged from the draft, with the exception of a post-balance sheet event concerning a property fund, Invesco, which is undergoing liquidation due to redemption requests. This has led to a revaluation of the fund's assets. The Board noted the timeliness of the audit process and the ongoing efforts to separate the pension fund accounts from the council's main accounts to improve efficiency.

The Board noted the 2024-25 Pension Fund Accounts Audit Findings.

Pension Committee Update

Catherine provided an update from the Pension Committee, highlighting that the fund's assets performed well during a volatile quarter, with a return of 2% for the quarter and 10.4% over three years. However, there was some underperformance in equity and property funds, which is being addressed with the London CIV. The committee is on track to sign the investment manager agreement with the London CIV by the end of March, which will see the LCIV take over the management of assets. The Board discussed the evolving role of the committee and the need for independent advice, particularly given the potential conflict of interest with the LCIV providing both advice and products. The performance of specific managers and the capacity of the LCIV were also discussed.

The Board noted the Pension Committee Update.

Responsible Investment Update

Catherine presented the revised Responsible Investment Policy, which strengthens the fund's approach through engagement with companies. Divestment is considered a last resort. Key changes include clarifying the roles of the London CIV and the fund, detailing the engagement process, and outlining the fund's approach to human rights and conflict-affected areas. The policy commits to the annual publication of a stewardship report. The policy was unanimously approved by the committee.

The Board noted the updated Responsible Investment Policy for the Fund.

The meeting moved into a private session to discuss the Investment Strategy Implementation.