The Lincolnshire County Council Pensions Committee met on Thursday 16 July 2026 to discuss the pension fund's performance, administration, and financial accounts. Key decisions included the delegation of the appointment of actuarial, benefits, and governance services to a senior officer following a working group's decision, and the approval of the draft pension fund accounts for 2025/26.

Pension Fund Update Report

Jo Kempton, Head of Lincolnshire Pension Fund, presented an update on the fund's performance for the quarter ending 31 March 2026. The fund's invested assets decreased by £30.7m to £3,906.0m, with a funding level of 116%, up from 110% the previous year, largely due to investment gains. There were no material breaches of regulations reported, and the fund is compliant with the Fit for the Future reforms. The committee agreed to delegate the appointment of actuarial, benefits, and governance services to the Senior LGPS Officer, following a decision by a working group including committee members. Proposed training for the upcoming September and October meetings included sessions on externally managed equities with Border to Coast and the role of the independent person introduced by new regulations.

Report by the Independent Chair of the Lincolnshire Local Pension Board

George Graham, Independent Chair of the Lincolnshire Local Pension Board, provided an update on the board's activities. He noted that the board's last meeting in March was inquorate, but discussions covered the administration service's performance, the fund's business plan, Fit for the Future reforms, and the triennial valuation. The board received a briefing on cybersecurity measures implemented by West Yorkshire Pension Fund, which provided assurance regarding the protection of the fund's data. The board gained assurance in several areas, including administration performance, the delivery of Fit for the Future reforms, the valuation process, and cybersecurity defences. Future assurance will be sought on the response to internal audit work concerning member contributions and records, and the implementation plans for the Fit for the Future reforms.

Pensions Administration Report

Matt Mott, Head of Governance and Business Development at West Yorkshire Pension Fund (WYPF), presented the quarterly administration report for January to March 2026. While many Key Performance Indicators (KPIs) were met, some areas underperformed, including Deferred Benefits Into Payment Quote and Interfund Out Actual and Quote, primarily due to the complexities of the McCloud remedy¹ and software updates. WYPF has recruited additional staff and is implementing automation to improve efficiency. The report detailed the shared service budget, with a projected increase in cost per member for 2026/27. The Pensions Regulator (TPR) data quality scores for Lincolnshire Pension Fund were reported as 96.47% for common data and 93.81% for scheme-specific data for legacy cases, and 98.32% and 99.40% respectively for current data. The report also noted that elected members, including councillors and mayors, are now eligible to join the LGPS again from 11 May 2026.

Annual Report and Accounts 2025/26

Claire Machej, Accounting, Investments and Governance Manager, presented the draft Pension Fund Accounts for the year ended 31 March 2026. The accounts, prepared in accordance with the Code of Practice on Local Authority Accounting, show the fund's income, expenditure, and investment assets. The value of the fund's investments at 31 March 2026 was £3,906.0m. The draft accounts are subject to audit by KPMG, with final results to be presented to the committee in October. The committee approved the draft pension fund accounts and noted the external auditor's plan and update.

KPMG representatives presented their audit plan and strategy for the year ended 31 March 2026. They outlined their planned audit approach, including materiality levels and risk assessments. Key risks identified included management override of controls, inaccuracies in investment records and valuations, and issues with contributions. The audit team will be utilising specialists for actuarial valuations and investment reviews. The audit fee for the year is set at £98,500, with potential variations for the triennial valuation and the change of custodian. KPMG confirmed their independence and objectivity as auditors.

Consideration of Exempt Information

The committee resolved to exclude the press and public from the meeting for agenda item 9, Pensions Administration Shared Service Update, on the grounds that it involved the likely disclosure of exempt information.