The Pension Board of Westminster Council met on Thursday 9 July 2026 to discuss updates on pension administration, LGPS projects, and the performance of the Council's pension fund. Key decisions included the appointment of Councillor Paul Fisher as Chair and Terry Neville OBE as Vice-Chair, and the approval of the minutes from the previous meeting. The Board also noted ongoing work regarding the McCloud remedy, pension gaps research, and the performance of the London CIV.

Election of Chair and Vice-Chair

Councillor Paul Fisher was elected as the Chair of the Pension Board for the 2026-2027 municipal year, and Terry Neville OBE was appointed as Vice-Chair. The Board also noted an error in the previously published membership details, correcting John Muldoon's representative status from Employer Representative to Scheme Member Representative.

Terms of Reference and Pooling Reforms

The Board reviewed its Terms of Reference, originally adopted in 2015, and discussed the implications of the Fit for the Future reforms to the Local Government Pension Scheme (LGPS). These reforms, implemented through new regulations, aim to strengthen governance, pooling arrangements, and investment management. Patrick Rowe, Strategic Manager for Tri-Borough Treasury and Pensions, highlighted that the Board's role as a scrutiny and oversight body has been enhanced, with a greater emphasis on governance, accountability, and training.

The Board discussed the evolving relationship between the Pension Board, the Pension Committee, and the London CIV, the pooled investment vehicle for several London boroughs. Concerns were raised about how the Board would maintain its governance and scrutiny responsibilities following the transfer of investment implementation to the London CIV. Members stressed the importance of ensuring the Fund's interests were adequately represented and safeguarded. The Board agreed that further consideration would be given to appropriate reporting and oversight arrangements with the London CIV, with an update to be provided at a future meeting. The need for clear and accessible reporting, along with comprehensive training for Board members on regulatory, governance, and administrative aspects of the LGPS, was also emphasised. The review of the Terms of Reference will also address provisions related to periods of office and re-nomination.

Pension Administration Update

Sarah Hay, Strategic Pension Lead, presented an update on pension administration performance, noting that Hampshire Pension Services (HPS) achieved 100% compliance with Key Performance Indicators (KPIs) for the period March to May 2026. A total of 449 cases were completed within agreed timescales. The number of cases on hold stood at 350, which was considered proportionate to the workload.

The Board was informed that changes to the Government's SCAPE discount rate had necessitated a review of actuarial factors, potentially impacting retirement and transfer calculations. Members were advised that revised factors were being issued, and estimates provided to members were subject to change.

All annual returns from employers had been received, and officers were working through outstanding queries, with a significantly lower number than in previous years. Members supported the use of the Fund's administration strategy, including enforcement measures, to ensure employers met their responsibilities.

Opportunities to improve digital engagement with employers and members were discussed, with ongoing efforts to encourage greater use of the member portal. The Board noted that the forthcoming Pensions Dashboard programme was expected to improve member engagement. The positive feedback received, including seven compliments in April 2026, was acknowledged, and the value of reviewing themes from both compliments and complaints for service improvement was highlighted. The Pensions Annual Meeting, held on 30 March 2026, was well-attended, and suggestions were made to hold future meetings earlier in the day.

LGPS Projects and Governance Update

Diana McDonnell-Pascoe, Project and Governance Lead, provided an update on various projects aimed at improving the administration of the City of Westminster Pension Fund (COWPF) LGPS.

The McCloud remedy programme remained on track for the 2026 Annual Benefit Statement, with most pensioner cases reviewed and only minor amendments required. However, some outstanding cases were dependent on external data and guidance from other schemes, including the Teachers' Pension Scheme (TPS). The Board expressed concern about these external dependencies and requested continued monitoring.

Progress on the Pension Gaps Research Project was welcomed, with the project expanded to include ethnicity and disability alongside gender. The qualitative phase of interviews was complete, and quantitative data analysis was due to commence, with publication planned for September 2026. This project was recognised as innovative and significant for the LGPS.

A new Power BI dashboard has been developed to enhance performance monitoring and governance by enabling more detailed interrogation of pension administration data. A draft Cyber Security Policy has been prepared, and a meeting with HPS was scheduled to review business continuity arrangements following a recent cyber incident.

A coordinated Pensions Awareness Week campaign is being developed for September 2026, focusing on improving member understanding and participation, particularly among younger employees. Proposals include targeted communications, digital engagement, and educational activities, with a focus on making pensions information more accessible and engaging. The Pensions Dashboard Programme continues to progress without material risks identified.

Performance of the Council's Pension Fund

Patrick Rowe, Strategic Manager for Tri-Borough Treasury and Pensions, presented the Pension Fund's investment performance as of 31 March 2026. The Fund delivered a negative absolute return of 2.95% for the quarter, underperforming its benchmark. This was primarily attributed to the LCIV Global Equity Quality Fund, managed by Morgan Stanley, from which the Fund had resolved to divest. The transition to BlackRock's passive global equity fund was completed in April 2026, at a lower cost than anticipated.

The Fund's estimated funding level had reduced from 140% to 126% between March 2025 and March 2026. Officers explained this was mainly due to a reassessment of liabilities following revisions to actuarial modelling assumptions and the discount rate, rather than a material weakening of the Fund's financial position.

In discussing the risk register, members considered the impact of inflation, geopolitical instability, and economic uncertainty. Risks are managed through strategic asset allocation and diversification, including investments in infrastructure and other assets that may offer protection against inflation. Climate change was identified as a significant long-term financial risk, and the Board noted that the Scheme Actuary incorporates climate scenario analysis into funding valuations.

The evolution of the relationship with the London CIV was discussed, with officers noting improvements in governance and leadership. Members stressed the importance of continuing to monitor the effectiveness of pooling arrangements and associated benefits. The Board requested that future performance reports include a greater emphasis on long-term investment performance. A more detailed risk register will be submitted to a future meeting.

The Board also discussed the implications of the Pension Scheme Bill and the forthcoming appointment of a statutory Senior Responsible Officer role under new LGPS governance arrangements.

Any Other Business

In closing the meeting, Councillor Paul Fisher, Chair, thanked members and officers for their contributions, commending the quality of discussion and the constructive challenge provided. He expressed his appreciation for the expertise on the Board and looked forward to working together to ensure the effective governance of the Pension Fund. The meeting concluded at 8:11 pm.