The Local Pension Board of Wandsworth Council met on Thursday 02 July 2026 to discuss a range of pension fund matters. Key topics included an update from the Joint Pensions Committee, a review of pensions administration, and reports on the Chair's activities and the Pension Fund's annual performance for 2025/26. Discussions also covered responsible investment strategies and governance updates.

Update from the Joint Pensions Committee

The Board was scheduled to receive an update from the Joint Pensions Committee, which had met on 10 March 2026 and 8 June 2026. The Joint Pensions Committee had considered various matters, including the Pension Fund Valuation, the Responsible Investment Policy, the Pension Fund Budget, and general pensions matters. They also reviewed quarterly investment performance and proposals for expanding the Pensions Shared Service. The Board was asked to review these agenda items and pass any comments or concerns to the Joint Pensions Committee's next meeting.

Pensions Administration Update

A report was presented on the performance of the Pensions Shared Service (PSS), highlighting an excellent standard maintained across key work items, customer satisfaction levels, and a minimal number of complaints. Ongoing work included Guaranteed Minimum Pension (GMP) reconciliation, the development of pension dashboards, and the implementation of the Altair Pensioner Payroll system, which was on schedule for November 2026. Achievements for the year included the completion of end-of-year contribution and pay reconciliations, the successful application of the annual pension increase, and the distribution of LGPS opt-in information to councillors. The report also detailed employer performance, with 24% of employers submitting data with no errors and 59% with minor errors. Invoices raised for late or high error-rate submissions amounted to £23,325.00. There were no breaches of the law reported since the last meeting.

Chair's Report: 2025/26

The Chair's report provided an overview of the Local Pension Board's work for the year 2025/26. The Board, established in accordance with the Public Service Pensions Act 2013, assists in ensuring compliance with governance and administration requirements for the Wandsworth Pension Fund. The report detailed the Board's activities, including training sessions on the triennial valuation process, updates on governance and pooling issues, and reviews of the Risk Register. The Board had also considered thematic issues such as upcoming changes to LGPS regulations under the Fit for the Future agenda, ethical investing concerns, and the performance of the pensions administration team.

Pension Fund Annual Report: 2025/26

The Pension Fund Annual Report for 2025/26 was presented for scrutiny by the Local Pension Board prior to its approval by the Joint Pensions Committee. The report detailed the Fund's financial performance, governance, investments, funding, and administration. The external audit for the 2024/25 accounts had provided an unqualified opinion, and the 2025/26 accounts were undergoing audit by Ernst & Young LLP. The report noted that the overall performance of the Fund was disappointing, with an annualised net return of 6.1% against a Local Authority average of 9.7%, largely due to active equity managers underperforming their benchmarks. However, this return still exceeded the discount rate of 4.4%. The actuarial valuation as at 31 March 2025 showed the Fund was 121% funded, an improvement from the 2022 valuation.

Responsible Investment

An update was provided on the Joint Pensions Committee's actions regarding the revision of the Fund's responsible investment policy. This followed deputations concerning divestment from companies linked to violations of international law, particularly in relation to the conflict in Gaza. Legal advice from King's Counsel confirmed the Fund's fiduciary duty and the conditions under which non-financial criteria could be considered in investment decisions. Mercer's analysis indicated that proposed pillars of responsible investment were unlikely to have a material adverse financial impact, but stakeholder views would be sought. The consultation aimed to gather views on themes such as human rights, fossil fuels, and environmental impact. The Board was asked to comment on the consultation process, particularly regarding engagement with Fund employers.

Governance and Investment Update

This report updated the Board on the progress of the government's Fit for the Future agenda and the implementation of recent regulatory changes. The Fund had signed an Investment Management Agreement (IMA) with London CIV, transferring control of all Fund investment assets. The Pension Schemes Act 2026, passed in April 2026, mandated LGPS funds to invest only via their local pool, with all assets to be managed by the pool by 30 September 2026. Statutory Instruments covering pooling, management, and investment of funds, as well as governance requirements, were due to come into force on 30 June 2026. The report detailed progress on implementing these changes, including the appointment of a Senior Responsible Officer and the ongoing review of the Investment Strategy Statement and other governance documents.

Risk Management

The Board reviewed the revised risk register for the Pension Fund. Updates since the previous meeting included new information on financial data sharing for implementation assurance and adjustments to the Fit for the Future Transition risk. The register highlighted key risks such as incorrect financial information, poor investment performance, and cyber security threats. Controls in place included regular reviews by the Joint Pensions Committee and the Local Pension Board, engagement with specialist advisors, and adherence to regulatory requirements. The transition to London CIV management and the implementation of Fit for the Future legislation were noted as areas requiring ongoing monitoring.