The LGPS Local Pension Board of Lincolnshire Council met on Thursday 16 July 2026 to review the fund's effectiveness, financial performance, and compliance. Key decisions included approving changes to the Board's terms of reference and noting the pension fund update and compliance reports.

Board Effectiveness Review

The Board reviewed its existing arrangements and effectiveness, focusing on its terms of reference and the information it receives. Recommendations were made and approved to simplify and strengthen the Board's core functions, grouping responsibilities under four key themes: governance, investments and funding, administration, and communication. A revised reporting schedule was also approved, introducing a quarterly compliance report to provide greater visibility of fund activity and decisions.

Pension Fund Update

The Board received an update on fund matters for the quarter ending 31 March 2026. There were no changes to the risk register. An update on asset pooling highlighted ongoing integration work with seven new partner funds into the Border to Coast Pensions Partnership, with the first joint committee meeting of all 18 partners having taken place. The report also detailed the 2025-26 pension fund budget outturn, noting an underspend in administration costs due to lower-than-anticipated per-member costs, but an overspend in investment management expenses primarily due to earlier-than-planned asset movements into the Border to Coast UK Real Estate Fund and higher transition costs within the Global Equity Alpha sub-fund.

Compliance Report

This report provided assurance on the Fund's compliance with regulations and procedures. Two new breaches were logged: late receipt of new employer contributions and late payment of contributions, neither of which were deemed material enough to report to the Pensions Regulator. Updates were provided on Fit for the Future compliance, with no red-rated items identified and amber items having mitigation or compliance plans. The report also detailed Pensions Committee meetings, the tender process for actuarial, benefits, and governance services, and the draft Investment Strategy Statement, which the Board was asked to provide feedback on. The Fund was noted as compliant across all areas in the Scheme Advisory Board's annual report on compliance.

Pensions Administration Report

West Yorkshire Pension Fund (WYPF), the Fund's administrator, presented its quarterly report for January to March 2026. Several Key Performance Indicators (KPIs) were below target, primarily due to system updates related to the McCloud remedy, historic cases, and the Oracle-to-SQL migration impacting processing times. Efforts to address these included transitioning work to the linkings team and testing a new MP3 server environment. Membership numbers showed an increase in active and pensioner members. The report also detailed progress on the Pensions Dashboard connection, the launch of a new member portal, and updates on regulatory changes affecting member benefits. An internal audit report on pensioner payroll was noted as partially effective due to procedural documentation issues, though payments were confirmed as timely and correct. The shared service budget forecast indicated an increase for 2026/27, largely due to staffing and IT resource costs.

The Pensions Regulator (TPR) Data Quality Report

The Board received an update on the data quality scores for Lincolnshire Pension Fund, reported annually to the Pensions Regulator. The scores for common data were 96.47% and scheme-specific data were 93.81% when including legacy data. When considering current data only, these scores increased to 98.32% and 99.40% respectively. Several data issues were highlighted, including missing addresses for deferred members and inconsistencies in start dates, though many of these showed a decrease from previous periods. A data improvement plan has been developed by WYPF to address these issues, with ongoing work including the use of a tracing agency to locate lost contact members.

Annual Report and Accounts 2025/26

The Board was presented with the draft Pension Fund Accounts for the year ended 31 March 2026, noting that these might be subject to change due to outstanding valuations for unquoted assets. The draft Pension Board Annual Report for 2025/26 was also presented for approval, to be included in the main Fund Annual Report. The external auditor's plan and strategy for the 2025/26 audit were noted, with KPMG confirming their independence and outlining their planned audit approach, including a focus on Level 1, 2, and 3 investments and contributions.

TPR General Code

This report provided an annual update on the Fund's compliance with the Pension Regulator's General Code of Practice. Overall, the Fund was found to be generally compliant. An essential action remains to update the scheme of delegation, pending finalisation of Fit for the Future legislation. The Fund has a Cyber Security Policy, and WYPF has provided assurance on meeting IT system standards. Climate change reporting was noted as an area for improvement, marked as partially met due to outstanding regulatory requirements.

Work Plan and Training Needs

The Board reviewed its future work programme and training needs. A training assessment questionnaire, delayed due to the Fit for the Future guidance, was to be circulated over the summer, with results and a revised training strategy to be presented in October. All Board members had completed mandatory induction and LOLA training, with refreshers due at various points over the next few years. The Board was encouraged to attend external training and share key learnings. The work plan for future meetings was also presented for consideration.

Pension Board Appointments

The Board welcomed Karen Daft as the new scheme employer representative, appointed following the retirement of Peter Allan. Karen Daft is the CEO of the Welland and Deepings Drainage Board.

Minutes of the meeting held on 22 January 2026

The minutes of the previous meeting were confirmed as a true and fair record.

Apologies for Absence

No apologies for absence were received.

Declarations of Interest

Members declared their usual interests as pensioner or contributing members of the scheme. George Graham declared an interest as holding an advisory role with Border to Coast Pensions Partnership. Karen Daft declared an interest as CEO of the Welland and Deepings Drainage Board.