The Pension Fund Committee is scheduled to meet on Thursday 18 June 2026 to review the fund's investment performance, discuss risk management, and consider updates on legislative changes affecting the Local Government Pension Scheme. Key topics for discussion include the Fit for the Future update, a comprehensive risk management review, and the administration report.

Fit for the Future Update

The committee will receive an update on significant legislative and regulatory changes impacting the Local Government Pension Scheme (LGPS), particularly those stemming from the Pension Schemes Act 2026, which received Royal Assent in April 2026. These changes are due to take effect from 30 June 2026. The report will outline key requirements and deadlines for the Fund to ensure compliance, such as the requirement for assets to be under pool management by 30 September 2026 and the appointment of an LGPS Senior Officer and Independent Person by 31 December 2026. The committee will be asked to note these changes and consider the necessary steps for compliance.

Risk Management Review

A review of the Pension Fund's risk registers will be presented, detailing the risks associated with the scheme's management. This includes updated administration and governance risk registers, which are reviewed quarterly. The report will outline the evaluation of risks using a four-point scale for likelihood and impact, plotted on a risk matrix. Specific attention will be given to updates on administration risks, including an increase in the risk score for ADM07, The Local Pensions Board and Pension Fund Committee do not have the level of pension knowledge to perform their role effectively, reflecting changes introduced by the Pensions Act 2026. The committee will be asked to note the most recent updates to these registers.

Administration Report

This report will provide the committee with updates on the West Yorkshire Pension Fund's (WYPF) administration performance, including key metrics such as SLA performance, workload, and member portal registration. It will also detail compensation payments made to members experiencing poor service or maladministration, as guided by The Pensions Ombudsman's (TPO) guidance on Redress for Non-Financial Injustice. Legislative updates will be covered, including progress on the Pensions Schemes Act 2026 and the LGPS 'Access and Protections' consultation, which proposes changes to the Normal Minimum Pension Age and extends LGPS access for elected members. An update on the 2025 Triennial Valuation will also be provided, noting a funding level of 130% and reduced employer contribution rates. The report will also address the cessation of an employer from the fund, detailing the process for calculating and making an exit credit payment.

Pension Fund Investment Performance Report

The committee will receive an update on the Pension Fund's investment performance and activity for the quarter ending 31 March 2026. The Fund's investment portfolio was valued at £1.86 billion at the end of the quarter, achieving a net negative return of -0.8%, underperforming its benchmark by -0.4%. The report will include detailed investment monitoring reports from Hymans Robertson, the Fund's investment consultants, and an overview of the private credit market. It will also provide an update on the strategic asset allocation and the progress of recent investment strategy decisions, including the modification of the cash management strategy and the introduction of an Index Linked Gilts allocation. The Investment Management Agreement with London CIV, signed in May 2026, will also be noted, confirming the Fund's compliance with pooling requirements.