The Pension Board met on Thursday 16 July 2026 to discuss the performance of pension administration, ongoing projects, and governance and risk matters. Key decisions included noting the updates on pension administration performance and projects, and agreeing to note the governance and risk update and the updated work programme.

Pension Administration Performance Update

Tom Taylor, Head of Pensions Administration, presented an update on the performance of the pensions administration team. He reported a slight increase in outstanding processes, from 604 to 623 as of the end of May 2026, rising to 625 by the end of June. This increase was primarily attributed to the annual return exercise, where employers provide data for member statements. Mr Taylor reassured the board that no cases were overdue by more than 31 days, and all priority cases, such as deaths and retirements, were up-to-date. The board noted the update, with members acknowledging the overall positive performance despite the highlighted areas.

Pension Administration Projects Update

Tom Taylor also provided an update on ongoing pension administration projects. The annual returns exercise was on schedule, with all 76 employer returns received and data loading progressing well. The McLeod Remedy project, addressing age discrimination in LGPS reforms, had seen 89.17% of data loaded onto the system. However, Mr Taylor flagged a risk of not meeting the 31 August deadline for issuing annual benefit statements due to delays in software releases from Civica, the software provider. He explained that issuing statements with slightly undervalued amounts for a small number of members was preferable to issuing none at all.

The Access and Fairness update detailed new legislation aimed at tackling age and gender discrimination within the LGPS. The project involved notifying all members of scheme changes, identifying those in scope, and processing benefits. While most deadlines were met, the processing of survivor pensions and death grants relies on software releases from Civica, with a target of spring 2027.

The board discussed the implications of potential breaches of law regarding statement deadlines. Mr Taylor explained that the regulator expects openness and a clear plan for correction, and that fines are unlikely given the industry-wide nature of the Civica software issues. The risk of system software delays in the Access and Fairness project was noted as likely to be upgraded to red .

Governance and Risk Update

Tom Taylor presented the governance and risk update, highlighting one red risk: the ability of the software provider to deliver compliant software, particularly concerning the McLeod Remedy and Access and Fairness regulations. Several amber risks were also discussed, including governance skills and knowledge of committee and board members, the potential financial liability from retrospective legislative changes, and the risk of cyber-attacks. The board was informed about recruitment efforts to fill vacant member and employer representative positions. An update was also given on the change in the SCAPE discount rate, which would likely reduce early retirement reductions, and the ongoing process of issuing transfers and divorce quotes. The board noted the report.

Work Programme Update

Tom Taylor provided an update on the Pension Board's work programme. He noted that the Fit for the Future reforms would necessitate updates to several policies, likely changing the work programme for upcoming meetings. The importance of capturing training records for board and committee members was also highlighted as a new requirement. The board was asked to note the updated work programme.

Pension Committee Update

Katherine Gray provided an update on the Pension Committee's activities, including investment performance. She reported a difficult quarter for investments, with the fund's value decreasing and underperforming its benchmark. However, three-year returns remained positive. Ms Gray discussed the actions being taken by the London Collective Investment Vehicle (LCIV) to address underperformance in active equity managers, including the launch of a multi-manager equity fund. She also provided an update on the Fit for the Future regulations, which are now in force, and the upcoming appointments of a senior LGPS officer and an independent person, both with strict deadlines. The board noted the report.