The Pensions Committee of Staffordshire Council met on Friday 26 June 2026 to discuss the Staffordshire Pension Fund's audit plan for the upcoming financial year, review the outturn of the 2025/26 business plan, and consider updates on the Pensions Schemes Act 2026. The committee also reviewed the fund's risk register and risk management policy, as well as its communication policy.

Staffordshire Pension Fund Audit Plan 2025/26

KPMG LLP presented their audit plan for the Staffordshire Pension Fund's accounts for the year ending 31 March 2026. The plan outlined KPMG's approach to their responsibilities as external auditors, including their assessment of key risks that could affect the audit. The report indicated that preparatory work was underway, with the main audit activities scheduled to commence in July 2026. It was also noted that all outstanding external audits for previous years had been concluded.

Staffordshire Pension Fund Business Plan Outturn 2025/26

A report detailing the outturn of the Staffordshire Pension Fund Business Plan for the financial year 2025/26 was presented. The report highlighted a good level of achievement against the plan's objectives, although some key development activities were carried forward into the 2026 three-year Business Plan due to ongoing challenges with the McCloud Pensions Remedy and the National Pensions Dashboard Programme. Key achievements were detailed across pension fund administration, employer engagement, and investment management. The report also provided an overview of the administration team's service standards, noting a consistent high level of service delivery, with 17 out of 18 published standards meeting their 90% performance target. The one standard that did not meet the target was the issue of deferred benefit options, which achieved 88%. The report also discussed ongoing workloads, the impact of increasing scheme complexity, and the need for potential additional resources in pensions administration.

Pensions Schemes Act 2026 - Update

An update was provided on the Pensions Schemes Act 2026, which received Royal Assent on 29 April 2026. This Act introduces significant reforms to pensions in the UK, including the Fit for the Future reforms for the Local Government Pension Scheme (LGPS). From 1 April 2026, LGPS Central has been acting as the Fund's 'Principal Adviser' with Fiduciary Management Agreement and Power of Attorney over the Fund's investments. The report detailed that secondary legislation, including The LGPS (Pooling, Management and Investment of Funds) Regulations 2026 and The LGPS (Amendment) (Governance) Regulations 2026, would come into effect from 30 June 2026. Key milestones were outlined, including requirements for appointing an LGPS Senior Officer and Independent Person, publishing an Investment Strategy Statement, and conducting Independent Governance Reviews.

Staffordshire Pension Fund Risk Register & Risk Management Policy

The committee reviewed the Staffordshire Pension Fund's Risk Register and Risk Management Policy. The report highlighted that risk management is central to the Fund's operations and is integrated into key documents such as the Funding Strategy Statement and Investment Strategy Statement. The Risk Register categorises risks across Governance, Funding, Administration, and Investment. The report detailed the process for identifying, assessing, and managing risks, including the use of a Red-Amber-Green (RAG) rating system. The Local Pensions Board's review of the Risk Register was also noted, with a recommendation for the Board to continue its active role in the ongoing review process. The committee was asked to approve the updated Risk Management Policy.

Staffordshire Pension Fund Communication Policy Statement

The committee considered the revised and updated Communication Policy Statement for the Staffordshire Pension Fund. This policy outlines the Fund's approach to communicating with its key stakeholders, including scheme members, scheme employers, prospective members, pension fund officers, elected members, and other bodies. The policy details various methods of communication, including the Pensions Portal (Engage), the Fund's website, email, post, and webinars. It also sets out how the Fund will communicate with different stakeholder groups, emphasizing clear, jargon-free, and timely information. The policy also addresses data protection and confidentiality.

Appointment of Members to the Pensions Panel

The committee was asked to appoint five members to form the Pensions Panel for the 2026/27 municipal year. The Chairman and Vice-Chairman of the Pensions Committee would serve in the same roles on the Panel. The report noted that plans were in place to review the function of the Pensions Panel following the implementation of the Pensions Schemes Act 2026.

New Employer Admissions 2025-26

Details were provided of the 41 employers admitted to the Fund during the 2025/26 financial year. This included 16 academy schools, 23 private contractors, and 2 parish councils.

Staffordshire Pension Fund Business Plan Progress Update

A progress update on the Staffordshire Pension Fund Business Plan was provided, detailing key development activities and their progress. This included work on existence checking for pensioner members, the Pensions Dashboards Programme, the My Member Portal/Engage, and the McCloud Pensions Remedy. Updates were also given on governance, scheme member communications, and employer communications.

Staffordshire Pension Fund - Climate Related Disclosures Report

A report and presentation from LGPS Central on the Staffordshire Pension Fund's Climate Related Disclosures Report were considered. The report covered an introduction to climate risks and reporting, climate metrics, data quality, and the Fund's climate stewardship activities. Discussions included the measurement of Scope 3 emissions, the priority given to climate metrics versus financial performance, and the challenges of attributing long-term performance solely to climate factors.

Staffordshire Pension Fund - Climate Change Strategy

The committee received a report on the Staffordshire Pension Fund's Climate Change Strategy. The strategy, introduced in 2022 and updated in 2025, aims for a net-zero investment portfolio by 2050, with interim objectives for 2030. The report noted progress against these objectives, including a reduction in the carbon footprint of equity investments. The committee was asked to decide whether to approve the continuation of the current Climate Change Strategy or replace it with a wider Responsible Investment and Stewardship Policy. The committee voted in favour of developing a wider Responsible Investment and Stewardship Policy.

Staffordshire Pension Fund - Report on the Actuarial Valuation at 31 March 2025 and Funding Strategy Statement

The committee considered the Actuarial Valuation Report at 31 March 2025 and the Funding Strategy Statement. The valuation results were described as positive, with a strong funding position and reduced contribution rates for most scheme employers. Discussions included the impact of market volatility, the possibility of shortening the valuation cycle, and the approach to local government reorganisation. The Funding Strategy Statement, updated following consultation, was presented for approval.

Staffordshire Pension Fund - Service Standards 2025-26

The Pensions Administration Team's Service Standards for 2025/26 were presented, noting a consistent high level of service delivery. The report highlighted that 17 out of 18 published standards achieved their 90% performance target, with the exception being the issue of deferred benefit options at 88%. The report also discussed ongoing workloads and the increasing complexity of the scheme.