The Pensions Committee of Bromley Council met on Wednesday 3 June 2026 to review the performance of the Pension Fund and discuss its triennial valuation. The meeting also included updates on pension scheme regulations and the appointment of a new board member.

Pension Fund Performance Q4 2025/26

The committee was scheduled to review the investment performance of Bromley's Pension Fund for the fourth quarter of the 2025/26 financial year. The report detailed the fund's market value, which stood at £1,593.2m at the end of March 2026, a decrease of £25.2m from the previous quarter. The report also outlined the fund's investment strategy, which had seen adjustments to its asset allocation, with a revised allocation agreed in December 2025 and a further amendment in March 2026. This revised strategy included a significant increase in Fixed Income allocation to 30% and Global Equities to 60%, with UK Property at 10%.

Performance data for the quarter showed a total fund return of -1.08% against a benchmark of -0.63%. While medium and long-term returns were noted as strong overall, the report indicated underperformance against benchmarks in recent years. The fund's long-term rankings were presented, showing it ranked second over 20- and 30-year periods to 31 March 2025. The report also included information on early retirements and proposed attendance of fund managers at future meetings.

Triennial Valuation 2025

A key item on the agenda was the outcome of the 2025 actuarial valuation for the Bromley Pension Fund. The report presented details of the fund's financial position, comparing its assets to its liabilities. The valuation indicated that the fund's assets had increased to £1,486m by 31 March 2025, with further growth to £1,618m by 31 December 2025. The valuation was based on the 31 March 2025 position, with a reduction in liabilities contributing to an improved funding position. Bromley's Pension Fund was described as one of the strongest funded Local Government Pension Scheme (LGPS) funds in the sector.

The report proposed a draft Funding Strategy Statement (FSS) and discussed a surplus management approach for council contributions, which would result in a contribution rate of 4.6% and a strain cost reserve of £9.2m. A discussion was scheduled regarding the proposed 30% sustainability reserve for employers.

Local Pension Board - Appointment of Board Member

The committee was asked to approve the appointment of a Scheme Member representative to the Local Pension Board. The report sought approval to formally appoint David McCabe as a Scheme Member representative for the remainder of a four-year term ending 10 September 2027.

Updates from the Chairman/Director of Finance/Pensions Investment Advisor

Updates were provided on recent developments related to pensions. This included the submission of consultation responses to the Government's Fit for the Future Technical Consultation and the Draft LGPS Statutory Guidance. In light of geopolitical developments, advice was given that pension fund investments, managed for the long term, should not be acted upon in response to short-term market movements.

Pension Schemes Act 2026 and LGPS Updates

The meeting was scheduled to discuss the implications of the new Pension Schemes Act 2026, which had received Royal Assent. This legislation introduces significant changes for the LGPS, including provisions for asset pooling, Financial Conduct Authority (FCA) regulation of pool companies, and requirements for investment strategy statements. The Act also mandates independent governance reviews and allows for the merger of pension funds. The government has provided assurances regarding the primacy of fiduciary duties and that it cannot direct LGPS investments. The new regulations were expected to come into force by the end of June 2026, with further deadlines for governance and administrative strategies.

Additionally, updates were provided on the LGPS (Miscellaneous Amendments) (Member Benefits) Regulations 2026, which introduce changes to survivor benefits, death grants, and address the gender pensions gap. These changes include the equalisation of survivor benefits, removal of age limits for death grants, and provisions for making certain absences pensionable. The regulations also introduce mandatory gender pensions gap reporting.

The committee was also to consider the LGPS (Amendment) (Elected Member Pensions) Regulations 2026, which allow councillors to opt into the LGPS, providing them with similar retirement benefits to other LGPS members, with some specific exclusions for office holders.

Exempt Business

The meeting agenda indicated that the press and public would be excluded during the consideration of certain items due to the likely disclosure of exempt information, relating to the financial or business affairs of any particular person. This included the confirmation of exempt minutes from the meeting held on 3 March 2026 and further discussion on the 2025 Triennial Valuation and Pension Fund Performance Q3 2025/26.