The Pension Board of Westminster Council met on Thursday 9 July 2026 to discuss the terms of reference for the board, updates on pension administration, and the performance of the council's pension fund. Key decisions included the election of Councillor Paul Fisher as Chair and Terry Neville OBE as Vice-Chair, and a commitment to review the board's terms of reference and the implications of new LGPS regulations.

Election of Chair and Vice-Chair

Councillor Paul Fisher was elected as the Chair of the Pension Board, and Terry Neville OBE was elected as the Vice-Chair.

Membership Changes

John Muldoon was welcomed as the new scheme member representative, replacing an incorrect identification as employer representative. Marilyn Stanton was also welcomed as a shadow member.

Declaration of Interests

Councillor Chris Smith declared an interest as a recipient of benefits from the London Borough of Revolution Pension Scheme in a dual capacity as an officer and a former councillor. Councillor Terry Neville OBE and Councillor Christopher Smith noted that their tenure on the board might exceed the standard three-year term with a possible extension, and it was agreed that Sarah Craddock, the Director of HR, would investigate this matter further.

Terms of Reference and Pooling Reforms

The board reviewed its existing terms of reference, which were established in March 2015, and discussed the implications of the new Local Government Pension Scheme (LGPS) (Amendment) (Governance) Regulations 2026. These regulations aim to strengthen governance, accountability, and oversight within local pension funds. The report highlighted the introduction of new statutory roles, including a senior LGPS officer responsible for pension functions and an independent person for external oversight. The board acknowledged that its current terms of reference are outdated and require updating to align with the new legislation. Discussions also touched upon the role of the board in scrutinising the relationship with the London CIV (LCIV), the pooled investment vehicle for London local government pension funds, and ensuring effective governance in light of asset pooling reforms. Concerns were raised about the LCIV's ability to retain staff and make sound investment decisions, with a commitment to explore how the board could better scrutinise this relationship.

Pension Administration Update

Sarah Hay, Head of Operational People Services, presented an update on pension administration performance. Key points included:

• Key Performance Indicators (KPIs): For the period March to May 2026, Hampshire Pension Services (HPS) achieved 100% compliance with all agreed KPIs, processing 449 cases within target timescales.
• Work in Progress: At the end of May 2026, there were 350 cases on hold, a slight increase from previous months. This was partly attributed to a change in the SCAPE discount rate, which required a review of actuarial factors.
• Member Portal: Portal registrations continued to rise, reaching 55.43% of total membership.
• Compliments and Complaints: No complaints or data breaches were recorded during the period. Seven compliments were received in April 2026.
• Annual Returns: All annual returns for 2026 had been received, with officers working to resolve approximately 160 queries.
• AGM and Recruitment: The Pensions Annual Meeting on 30 March 2026 was well-attended. The board was asked for input on future AGMs, including preferred timing. John Muldoon had been appointed as an additional member representative, and Marilyn Stanton joined as a shadow member.

Discussions also covered the challenges of obtaining accurate data from schools and academy chains, the potential for digital solutions to improve data submission, and the importance of learning from both compliments and complaints. The upcoming introduction of pension dashboards was also mentioned as a potential tool to increase member engagement.

LGPS Projects and Governance Update

Diana McDonnell-Pascoe, Pension Project and Governance Lead, provided an update on various projects:

• McCloud Remedy: The McCloud remedy project remained on track for the 2026 Annual Benefit Statement, with a small number of residual cases. The dependency on external data and guidance for certain cohorts, particularly from the Teachers' Pension Scheme, was noted.
• Pensions Dashboards Programme (PDP): Data preparation and integration for the PDP were progressing as expected, with the City of Westminster Pension Fund's connection date set for 31 October 2025.
• Pension Gaps Research Project: This project, which expands beyond gender to include ethnicity and disability, was nearing completion of its data collection phases. A report was planned for publication in September 2026.
• Data and Insight Capability: A Power BI dashboard had been developed to enhance the fund's ability to analyse data and improve governance.
• Cyber Security, Business Continuity and Resilience: A draft Cyber Security Policy had been created. Following a recent cyber incident, a review of payroll and pension processes was underway. Discussions with Hampshire Pension Services regarding business continuity arrangements were scheduled.
• Pension Communications and Engagement Programme: A coordinated Pensions Awareness Week campaign was being developed for September 2026, focusing on basic pension education and engagement, particularly for younger members.

Concerns were raised about the certainty of meeting the McCloud deadline and the potential consequences of any delays, particularly given the reliance on external data. It was agreed that a detailed update on the exact consequences would be provided offline.

Performance of the Council's Pension Fund

Patrick Rowe, Tri-Borough Director of Treasury and Pensions, presented the performance of the Pension Fund's investments up to 31 March 2026.

• Investment Performance: The fund delivered a negative absolute return of 2.95% for the quarter ending 31 March 2026, underperforming its benchmark. This was largely attributed to the LCIV Global Equity Quality Fund, from which the fund has now divested. The transition to BlackRock's passive global equity fund was completed in April 2026 and was reported to have been successful and cost-effective.
• Funding Level: The fund's estimated funding level fell to 126% as at 31 March 2026, from 140% the previous year. This was primarily due to a reduction in the funding discount rate, which was a result of revisions to the actuarial model used by Hymans Robertson.
• Risk Register: The top five risks to the Pension Fund were reviewed, with significant volatility and negative sentiment in global investment markets due to geopolitical and economic uncertainty identified as the primary risk. Other key risks included investment managers failing to achieve targets, potential deterioration in funding levels, regulatory and compliance risks related to the Pension Scheme Bill, and price inflation exceeding expectations.
• London CIV (LCIV) Update: The value of Westminster Pension Fund investments managed by LCIV was £503.9m (23% of total assets) directly, and £1,457.9m (65%) including passive assets. Discussions focused on the ongoing collaboration with LCIV, including finalising investment management agreements and developing local investment strategies. Concerns were reiterated regarding the LCIV's operational capacity and the board's ability to scrutinise its performance.
• Climate Change Risk: The board raised concerns about climate change as a significant risk. It was noted that the fund invests in renewable energy infrastructure and that fund managers are being questioned on their exposure to physical climate risks. The board expressed a desire to see climate change more explicitly reflected in the risk register.

The board also discussed the impact of inflation on liabilities and the strategies employed to mitigate this risk, such as diversification and investments in assets with implicit inflation hedges.