The Pension Board of Harrow Council is scheduled to convene on Thursday 30 April 2026. The meeting's agenda includes a review of the Pension Fund's administration performance, an update on investment pooling and the Local Government Pension Scheme (LGPS), and a discussion on the Pensions Regulator's (TPR) Code of Practice.

Pensions Administration Update with Key Performances

The Board will receive an update on the administration performance of the Harrow Pension Fund for the quarter ending 31 December 2025. The report details membership figures, showing a slight increase in total members to 21,178. Performance metrics indicate that 65.62% of tasks were completed within the Key Performance Indicator (KPI) target time during this quarter, a decrease from the previous quarter's 71%. This dip in KPI achievement is attributed to ongoing staff absences and vacancies within the Pensions Administration Team. The report also notes two complaints received regarding the suspension of pensions due to the life certificate exercise, which were addressed. Progress on the procurement of a new pensions administration system is nearing completion, with a standstill period in effect before the award is made. A re-organisation of the Pensions Administration Team is planned, with a consultation to be launched in April.

Review of Pension Fund Committee Items

The Board is scheduled to review items considered by the Pension Fund Committee at its meeting on 17 November 2025. These include the final report on the 2025 Triennial Valuation, which shows a strengthened funding position with a surplus of £78 million and a funding level of 108%, leading to reduced contribution rates for many employers. The report also covers an update on the London Collective Investment Vehicle (LCIV) and the LGPS, outlining the government's reforms to pooling and access and fairness within the scheme. Additionally, the Board will consider the next steps for the Investment Strategy Statement, the admission of Buckinghamshire Pension Fund to the LCIV, and the investment manager performance as of December 2025.

The Pensions Regulator (TPR) Code of Practice

The Board will scrutinise reports detailing the Harrow Pension Fund's compliance with the Pensions Regulator's (TPR) General Code of Practice (GCOP), which came into force in March 2024. These reports, prepared with assistance from consultants Hymans Robertson, assess compliance across 14 chapters of the Code. The self-assessment indicates full compliance in some areas, such as Advisers and Service Providers, but highlights areas requiring action, particularly in Knowledge & Understanding, Scheme Governance, and Scheme Administration, where compliance is currently at 0%. Actions to achieve full compliance include reviewing and updating various policies, such as the Conflicts of Interest policy, Training policy, and Breaches policy, as well as developing new policies like a Data Protection policy and a Risk Management policy. The Board is asked to scrutinise these reports and provide feedback to the Pension Fund Committee.

Responsible Investment Policy

The Board will be presented with the London Borough of Harrow Pension Fund's Responsible Investment Policy, updated in November 2025. This policy outlines the Fund's approach to integrating environmental, social, and governance (ESG) considerations into its investment processes. Key principles include the financial materiality of ESG factors, a long-term investment horizon, managing negative consequences of investments, and a commitment to a net zero target by 2050. The policy details the Fund's approach to ESG risk monitoring, expectations for investment managers, and the exercise of stewardship rights, including voting and engagement. The Fund expects the London CIV and appointed asset managers to adhere to these principles, with regular training provided to the Committee on RI matters.

Funding Strategy Statement

The Board will review the draft Funding Strategy Statement (FSS) for the London Borough of Harrow Pension Fund, effective from 1 April 2026. This statement sets out the Fund's strategy for meeting its long-term pension liabilities and outlines objectives such as ensuring long-term solvency, promoting cost efficiency, and maintaining stable employer contribution rates. It details how employer contributions are calculated, the approach to employer events such as joining or leaving the fund, and the management of risks. The FSS has been prepared in consultation with stakeholders, including participating employers, and reflects the outcomes of the 2025 actuarial valuation.

Investment Strategy Statement Next Steps

The Board will be updated on the next steps for drafting and finalising the Investment Strategy Statement (ISS). Guidance from the government, effective from 1 April 2026, requires funds to revise their ISS to include financial objectives, responsible investment policies, local investment beliefs, and a strategic asset allocation. The Harrow Pension Fund is required to publish a revised ISS by 30 September 2026. A draft ISS will be presented to the Committee in June 2026, followed by a period of consultation with employers and unions, with the final ISS to be presented in September 2026. A training session on setting an ISS will be held prior to the June meeting.

Pension Fund Key Risk Register

The Board will review the Pension Fund's Key Risk Register, which identifies and assesses financial, demographic, regulatory, and governance risks. The register details measures in place to manage these risks, such as diversification of asset classes, regular monitoring by the Pensions Committee, and contingency plans. Risks related to market volatility, investment portfolio performance, changes in LGPS benefits, pay and price inflation, cashflow management, cybersecurity, knowledge concentration, and compliance with pension regulations are all outlined. The register also includes an assessment of climate change risks and the Fund's approach to TCFD reporting.

Buckinghamshire Pension Fund Admission to London Collective Investment Trust

The Board will consider the proposal for Buckinghamshire Pension Fund (BPF) to join the London Collective Investment Trust (LCIV). This move is in response to government requirements for LGPS funds to pool their assets. BPF, formerly part of the rejected Brunel pool, has approached LCIV to join as an equal shareholder. The business case highlights governance and compliance strengths, investment alignment, and geographic fit as reasons for BPF's desire to join. Economically, BPF's admission is expected to be financially neutral to existing shareholders, increase LCIV's scale, and potentially reduce costs over time. The Strategic Director of Finance will be delegated authority to review and agree the necessary legal documentation.