The Pension Board of Worcestershire Council is scheduled to convene on Friday, 19 June 2026, to review a range of financial and operational matters concerning the Worcestershire Pension Fund. Key discussions are expected to include the fund's business plan, risk register, and annual accounts, alongside updates on governance, communications, and investment strategy.

Business Plan

The Board will consider the Worcestershire Pension Fund Business Plan as of May 2026. This plan serves as a comprehensive reference for activities within the fund and the wider Local Government Pension Scheme (LGPS) landscape. It details the fund's structure, aims, and objectives, and includes a work plan for 2026/2027 covering administration, governance, and investments. The report notes that The Business Plan has had some amendments to ensure that it is clear in how the structure of Worcestershire Pension Fund supports the delivery of the Fund aims and objectives as detailed within the plan.

Pension Fund Unaudited Annual Accounts 2025/26

The unaudited Pension Fund Annual Accounts for 2025/26 are scheduled for review. These accounts are a key component of the Annual Report, which is required by the CIPFA Code of Practice on Local Authority Accounting. The report highlights a pleasing surplus of £518.8m on investment returns compared to the surplus of £37.2m in 2024/25 which is a result of the markets recovering from a turbulent conditions and geopolitical challenges during 2024. The Board will also consider the process for valuing Level 3 investments, which are described as financial assets and liabilities considered to be the most illiquid and hardest to value.

Risk Register

The Board will review the Worcestershire Pension Fund Risk Register, which has been updated following an officers' review in May 2026. The register categorises risks into key areas: Compliance and Legal, Operational and Technological, Engagement Effectiveness, Pooling, and Investment. Changes from the previous iteration include the addition of internal controls to Compliance and Legal Risk 4 and the inclusion of failure to undertake or implement findings from Independent Governance Reviews to Compliance and Legal Risk 5. Operational and Technological Risk 8 has been updated to reflect an increase in administration work due to Local Government Reorganisation and survivor benefit remediation.

Governance and Compliance Update

This agenda item will provide updates on topical LGPS England and Wales matters, including the Pension Schemes Act 2026, Access and Fairness reforms, and the LGPS (Amendment) Regulations 2026, which mandate the appointment of a Senior LGPS Officer. The report also notes the publication of the UK Pensions Commission's interim report and the Scheme Advisory Board's Annual Report for 2025. Progress on the Fit for the Future reforms and good governance initiatives, such as the appointment of an Independent Person and an LGPS Senior Officer, will also be discussed.

UK Stewardship Code 2026 Updated Submission

The Board will consider 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, and providing clearer evidence of how stewardship activities support long-term value creation. The submission covers the reporting period to 31 December 2025 and highlights achievements such as reduced financed emissions and weighted average carbon intensity, alongside extensive engagement and voting activity.

Communications and Training Update

This update will cover the Fund's communication activities, including tailored communications for councillors, employer newsletters, and the Pensions Administration Strategy consultation. Website usage statistics will be reviewed, showing popular search terms and accessed pages, indicating a focus on member support and digital self-service. The update will also detail training delivered to active members, the pensions team, and Board and Committee members, including access to the LGPS Online Learning Academy (LOLA).

LGPS Central Update

This item will provide an update on LGPS Central, the collective investment vehicle for several LGPS funds. The report notes that As at 31 March 2026, approximately 64% of the Fund's assets by market value were managed through LGPSC. The update will likely cover the continued development of its investment implementation capabilities, governance structures, and reporting transparency in line with evolving regulatory requirements.

Draft Investment Strategy Statement

The Board will review a draft of the Investment Strategy Statement. This document outlines the fund's approach to managing its investments to meet long-term funding objectives and risk appetite. The strategy is underpinned by the 2025 actuarial valuation, which indicated a strong funding position with assets exceeding liabilities. The statement will likely detail the fund's target investment return and its approach to asset allocation, risk management, and responsible investment.

Forward Plan

The Board will consider the Forward Plan, which outlines anticipated agenda items for future meetings up to June 2027. This includes regular updates on LGPSC, the Annual Report, funding strategy reviews, the UK Stewardship Code, the Business Plan, and governance matters. The plan notes that it may be subject to change due to forthcoming government-led regulatory changes to the LGPS.