The Pension Fund Committee of Durham County Council met on Thursday 11 June 2026 to review the overall value and performance of the pension fund's investments. The meeting agenda also included discussions on the audit strategy, regulatory updates, and the pension fund's service plan for the upcoming years.

Overall Value of Pension Fund Investments to 31 March 2026

The committee was scheduled to receive an update on the overall value of the Pension Fund's investments as of 31 March 2026. The report indicated that the total value of the fund was £3.995 billion, with a cash balance of £43.013 million held in the Durham County Council Pension Fund bank account. Fund managers also held an additional £35.622 million in cash. The report noted a decrease of £79 million (1.94%) in the fund's value during the fourth quarter of the 2025/26 financial year. The report also detailed the allocation of new investment money and the withdrawal of investment money to manage estimated shortfalls, with a working cash balance requirement calculated between £33 million and £35 million.

Performance Measurement of Pension Fund Investments to 31 March 2026

A report from the Fund's custodian, Northern Trust, was scheduled to provide an overview of the investment performance of the Pension Fund up to 31 March 2026. This report was expected to detail the performance of individual fund managers against their personalised benchmarks, as well as the total fund performance for the quarter and over longer periods, including the last 1, 3, 5, and 10 years, and since inception.

Pension Fund Audit Strategy Memorandum (Draft) Year Ending 31 March 2026

The committee was to consider the draft Audit Strategy Memorandum for the year ending 31 March 2026. This document, prepared by Forvis Mazars LLP, outlined the planned scope and timing of the audit, identified significant and enhanced audit risks, and discussed materiality levels. The memorandum also detailed the proposed audit fees and confirmed the auditors' independence. Key risks identified included management override of controls and the valuation of investments within level 3 of the fair value hierarchy.

Regulatory Update

A report was scheduled to brief the committee on developments in both LGPS-specific matters and other relevant non-LGPS issues. This included updates on new LGPS regulations, such as the LGPS (Miscellaneous Amendments) (Member Benefits) Regulations 2026, which introduced changes to survivor benefits, death grants, and McCloud remedy amendments. The regulations also addressed LGPS membership for councillors and mayors, with an opt-in provision from 11 May 2026. Further updates were expected on the LGPS (Amendment) (Governance) Regulations 2026, which mandate the appointment of a senior officer and an independent person, and the LGPS (Pooling, Management and Investment of Funds) Regulations 2026, which govern asset pooling and investment strategies. The report also covered changes to SCAPE factors for public service pension schemes and the progress of the national Pensions Dashboard initiative.

Local Pension Board Annual Report 2025/26

The committee was to receive an overview of the work completed by the Local Pension Board during the 2025/26 year. The Board's role is to assist the Administering Authority in ensuring compliance with LGPS regulations and the effective governance and administration of the scheme. The report was expected to detail the Board's activities, including discussions on membership, performance reports, regulatory updates, and investment strategies. It also included summaries of the Fund's performance against Pension Administration Key Performance Indicators (KPIs).

Pension Fund Service Plan 2026-27

The committee was presented with the Pension Fund's Service Plan for the three-year period from 2026/27 to 2028/29. The plan outlines the Fund's aims, objectives, and intended actions to ensure sustainable service delivery and operational resilience, taking into account external factors such as regulatory changes and investment market uncertainty. The plan details key areas of focus, including administration, governance, and investment, and sets out high-level strategic actions and service-level actions for the coming years.

Other Scheduled Discussions

The agenda also included several items for discussion in Part B, which were considered exempt or confidential. These included minutes from previous meetings, reports from the Independent Adviser, the Pension Fund Adviser, and various investment managers such as Alliance Bernstein, CBRE Global Investment Partners, Foresight, and LGIM. Additionally, the committee was scheduled to review the Annual Review of Equities and the Border to Coast Pensions Partnership Quarterly Performance Report.