The Pension Board of Worcestershire Council met on Friday 19 June 2026 to review the Worcestershire Pension Fund's Business Plan, Risk Register, and Governance and Compliance Update. The Board was also scheduled to consider the Pension Fund's unaudited annual accounts for 2025/26 and an updated submission for the UK Stewardship Code 2026.

Business Plan

The Board was scheduled to review the Worcestershire Pension Fund Business Plan for 2026/2027. This plan serves as a comprehensive reference for activities within the fund and the wider Local Government Pension Scheme (LGPS) landscape. It outlines the fund's structure, aims, and objectives, and details the work plan for 2026/2027 across administration, governance, and investments. The plan also includes updates on administration KPIs, noting that two key performance indicators (KPIs) were below the internal benchmark of 90% in the last quarter. These were related to the notification of joining dates and the turnaround time for processing transfer-in quotes, attributed to increased workload and officer time spent on cases. The report also highlighted employer movements, with A and E Services - Endeavour (Crabbs Cross Academy) joining the fund in April 2026. The Pensions Team is reported as fully resourced following recent recruitment, with a focus on training new members. Data quality remains a key priority, with a dedicated team established to support the Pensions Dashboards Programme. The Business Plan also detailed the fund's policy review timetable, with several policies due for review within the next year, and noted two ongoing Internal Dispute Resolution Procedure (IDRP) cases.

Risk Register

The Board was scheduled to review the Worcestershire Pension Fund Risk Register. Following an update in May 2026, three changes were identified: Compliance and Legal Risk 4 was updated to include internal controls, Compliance and Legal Risk 5 was updated to include failure to implement findings from Independent Governance Reviews, and Operational and Technological Risk 8 was updated to reflect increased administration work due to Local Government Reorganisation and survivor benefit remediation. Mitigating actions for these risks were also updated. The review did not result in any changes to the overall risk scores. The register categorises risks into Compliance and Legal, Operational and Technological, Engagement Effectiveness, Pooling, and Investment.

Governance and Compliance Update

This update was scheduled to inform the Board about topical LGPS England and Wales developments. Key points included the Pension Schemes Act 2026 receiving Royal Assent, which provides the legislative framework for LGPS reforms, and the implementation of the first phase of Access and Fairness reforms from April 2026, including changes to survivor benefits and provisions addressing the gender pension gap. Regulations enabling eligible councillors and mayors to join the LGPS came into force on 11 May 2026. The LGPS (Amendment) Regulations 2026, which came into force on 1 April 2026, introduce governance changes, including the requirement to appoint a Senior LGPS Officer by October 2026. The Board was also to be updated on the UK Pensions Commission's interim report, published on 19 May 2026, and the Scheme Advisory Board's (SAB) thirteenth Annual Report for 2025. The government response to the Fit for the Future technical consultation was also to be discussed, indicating that most proposals remain largely unchanged. Progress on the appointment of an Independent Person and an LGPS Senior Officer was to be reported, alongside the timing of the first Independent Governance Review (IGR). A review of the Pensions Administration Strategy and the new Risk Management Policy was also scheduled.

Pension Fund Unaudited Annual Accounts 2025/26

The Board was scheduled to review the unaudited Pension Fund Annual Accounts for 2025/26. Key highlights from the accounts included a revenue surplus of £17.7m before net investment returns, driven by an increase in membership and market value of investments. Employer contributions decreased slightly, but overall membership income increased due to transfers into the fund. Benefit payments increased, reflecting a rise in pensioners and lump sum payments. Management expenses saw a slight increase, attributed to the performance of actively managed funds. Payments to and on account of leavers increased, influenced by staff movements to employers outside the fund and the impact of pension freedoms. Investment income increased significantly due to improved market conditions. The net assets of the fund at 31 March 2026 were £4.553 billion, an increase of £0.54 billion from the previous year. The report also detailed the process for valuing Level 3 investments, which are considered illiquid and difficult to value, noting that timing differences in valuation data can lead to variances.

UK Stewardship Code 2026 Updated Submission

The Board was scheduled to review the Worcestershire Pension Fund's updated submission for signatory status under the UK Stewardship Code 2026. This revised code introduces a more rigorous, outcomes-focused framework, with increased emphasis on demonstrating tangible stewardship outcomes, strengthening accountability, providing evidence of long-term value creation, and enhancing transparency. The submission, covering the period to 31 December 2025, was structured to align with the new requirements, distinguishing between policy and activities/outcomes reporting, and enhancing descriptions of stewardship integration, engagement, voting, and oversight of LGPS Central and external managers. The Fund's previous applications have been successful, and officers anticipate hearing the outcome of this latest submission in August 2026.

Forward Plan

The Board was asked to comment on and approve the Forward Plan, which outlines anticipated future reporting items. These include regular updates on the LGPS Central Update, Annual Report, Funding Strategy Review, UK Stewardship Code, Business Plan, Pensions Administration Strategy Review, Actuarial Valuation Update, Annual Investment Strategy Statement, Climate Change Risk Strategy, Training Update, Budget, Risk Register, Governance Update, and regulatory updates from the Scheme Advisory Board (SAB). The plan noted that due to forthcoming government-led regulatory changes to the LGPS, the plan may be subject to change.

The meeting also included a verbal update on the Scheme Advisory Board (SAB) and a review of the Agenda and Minutes of the Pensions Committee meeting held on 18 March 2026. Discussions were also scheduled regarding the exclusion of the public and press for specific agenda items relating to LGPS Central Update and the Draft Investment Strategy Statement, due to the likely disclosure of exempt information.