The Pension Committee of Sutton Council met on Tuesday 30 June 2026 to review the work of the Pension Board, receive updates on pension administration performance and projects, and discuss governance and risk. The committee was also scheduled to consider quarterly investment performance, an update on the Fit for the Future pension reforms, and the committee's work programme.

Report on the Work of the Pension Board 2025-26

The committee was scheduled to receive a report on the work undertaken by the Pension Board during the municipal year 2025-26. The Pension Board's role is to support the pension fund in complying with Local Government Pension Scheme (LGPS) rules, pensions legislation, and guidance from the Pensions Regulator. The report was expected to detail the Board's activities, including scrutiny of administration software delivery, review of the 2025 Triennial Valuation process, and oversight of digital transformation and data quality initiatives. The Board's work programme for 2026/27 was also anticipated to be outlined, with a focus on Fit For the Future requirements and the procurement of the pensions administration system.

Pension Administration Performance Update

An update on the key administration performance of the Shared Pensions Administration Service was scheduled for discussion. This included statistics on benefits processing performance up to May 2026, noting an increase in outstanding processes largely due to a rise in leavers, which is typical in the spring. The report was expected to detail performance against targets for overdue cases and cases overdue by more than a month, and outline plans to manage workloads and recover overall overdue Service Level Agreement (SLA) performance.

Pension Administration Projects Update

The committee was due to receive an update on key administration projects. This included an update on the annual year-end data collection project, which requires employers to submit accurate member payroll and contribution information for Annual Benefit Statements. A significant focus was also on the McCloud Remedy, a statutory requirement to rectify age discrimination in the 2014 LGPS reforms. The report was expected to detail the progress of data collection, validation, and loading onto the administration system, as well as the revised project deadline due to software delivery delays. Additionally, an update on the LGPS Regulations 2026 – Access & Fairness was scheduled, outlining changes to survivor benefits, death grants, and gender pensions gap reforms, along with a detailed project plan for their implementation. Other updates were expected on Annual Benefit Statements and the Pension Dashboard Programme.

Governance and Risk Update

A review of the Fund's risk register was scheduled. Risks were categorised under Administration, Funding and Investments, and Governance. The report was expected to highlight a red rated risk concerning the software provider's failure to deliver systems compliant with LGPS regulations, particularly regarding the McCloud remedy and the new Access and Fairness regulations. Several amber rated risks were also to be discussed, including the potential financial liability from retrospective legislative changes, the skills and knowledge of committee and board members, cyber security, the financial impact of climate change, adverse market movements, and the uncertainty surrounding the Fit for the Future pension reforms. Updates on access for elected members to the LGPS and administration charges were also anticipated.

Work Programme Update

The committee was scheduled to review a draft programme of work for Pension Committee meetings over the next year. This indicative list of agenda items would be subject to change based on developments.

Quarterly Investment Performance

The committee was to review the investment performance of the Fund for the quarter ended 31 March 2026. The market value of the Fund's assets at that date was £1,064.8m, a decrease from the previous quarter. The report was expected to detail performance against benchmarks, the drivers of quarterly underperformance, and provide an update on the London Collective Investment Vehicle (LCIV). The Fund's asset allocation, funding level, and strategic cashflows were also to be presented.

LGPS Fit for the Future Update

An update on the Fit for the Future pension reforms was scheduled for discussion. This included the implications of the Local Government Pension Scheme (Pooling, Management and Investment of Funds) Regulations 2026 and the Local Government Pension Scheme (Amendment)(Governance) Regulations 2026. The report was expected to outline new regulatory requirements for governance, including training strategies and the appointment of a senior LGPS officer, as well as requirements for investment pooling and local investment.

The meeting was scheduled to begin with welcome and introductions, followed by apologies for absence and declarations of interest. The minutes of the previous meeting were to be approved, and any urgent business considered. The meeting also included a provision for the exclusion of the public and press for specific items of business that might involve the disclosure of exempt information.