The Pensions and Investments Committee of Derbyshire Council met on Wednesday 3 June 2026 to discuss the Derbyshire Pension Fund's investment performance, actuarial valuation, and administration. The committee was scheduled to review reports on the fund's investment strategy, climate risk management, and the implementation of the 'Fit for the Future' reforms for the Local Government Pension Scheme.

Investment Report

The committee was scheduled to review the Fund's Investment Report, which would have provided an analysis of asset allocation, investment activity since the previous meeting, and long-term performance. The report was also expected to seek approval for the investment strategy based on recommendations from the Director of Finance and the Fund's independent external adviser, Mr. Anthony Fletcher. This report detailed market returns, the Fund's performance against its benchmark, and the economic and market outlook, including the potential impact of geopolitical events on various asset classes. Recommendations for asset class weightings for the upcoming quarter were also to be presented.

Derbyshire Pension Fund Actuarial Valuation

A key item on the agenda was the Derbyshire Pension Fund Actuarial Valuation report, conducted as of 31 March 2025. This triennial valuation determines the fund's financial health, including its assets and liabilities, and sets employer contribution rates for the period from April 2026 to March 2029. The report was expected to show a significant improvement in the fund's funding level since the previous valuation in 2022, moving from 100% to 135%, with a surplus of £1,733 million. The valuation also included an analysis of risks and sensitivities, such as the impact of changes in investment returns, inflation, and life expectancy.

LGPS Fit for the Future Implementation

The committee was scheduled to receive an update on the implementation of the 'Fit for the Future' reforms for the Local Government Pension Scheme (LGPS). This included changes to the governance of the LGPS and the management of its investment assets, stemming from the Pension Schemes Act 2026 and associated regulations. The report was to detail the strengthening of LGPS governance arrangements, including the appointment of a Senior LGPS Officer and an Independent Person. It was also to outline the updated terms of reference for the Pensions and Investments Committee to reflect these policy changes, and note the proposal for the Chair of the Committee to be involved in the selection process for the Independent Person. The report also covered the expansion of the LGPS Central Pool, which now includes additional partner funds.

Half-Year Pension Administration Performance Report

This report was to provide an overview of the pension administration activities undertaken by the Derbyshire Pension Fund's administration team for the period 1 October 2025 to 31 March 2026. It was expected to detail performance levels achieved against key performance indicators, including the calculation and payment of benefits, transfers, employer services, and the maintenance of member records. The report was also to address the impact of staff vacancies and ongoing training initiatives, as well as the progress of the 'Backlog Management Project' aimed at reducing outstanding casework in areas such as aggregations and deferred membership. Updates on the Guaranteed Minimum Pension (GMP) reconciliation, data quality, and employer contribution payment performance were also scheduled.

Risk Register

The committee was to consider the Derbyshire Pension Fund's Risk Register, which identifies and assesses key risks to the fund's objectives. The register details risk items, their descriptions and potential impacts, current and target risk scores, mitigation controls, and risk owners. Four high-risk items were highlighted for discussion: systems failure/cybercrime attack, LGPS Central Limited related underperformance, insufficient cyber-liability insurance, and the impact of the McCloud judgement on administration.

Climate Risk Management Report

The committee was scheduled to review the public Climate Risk Management Report prepared by LGPS Central Limited. This report analyses the fund's approach to managing climate-related risks and opportunities, following the structure recommended by the Task Force on Climate-related Financial Disclosures (TCFD). It was to include an assessment of carbon risk metrics for listed equities, fixed income, and private market funds, as well as progress against the Fund's Climate Strategy targets, which include aiming for net zero carbon emissions by 2050.

Local Government Pension Scheme Investment Pooling

A report was scheduled to provide further details on the Local Government Pension Scheme Investment Pooling arrangements. This would likely cover the ongoing development of the LGPS Central Pool, including updated governance documents and the expansion of the pool to include additional partner funds. The report was also expected to detail the Fund's investment management arrangements through LGPSC vehicles and legacy investments subject to LGPSC discretionary management.

Summary of AADPs and Ombudsman Escalations During 2025/26

This item was to present a summary of applications for the Adjudication of Disagreements Procedure (AADP) and any cases escalated to The Pensions Ombudsman during the 2025/26 financial year. This would provide an overview of any formal disputes or appeals raised by scheme members or employers regarding decisions made by the Fund or its participating employers.

Exclusion of the Public

The agenda indicated that the committee would move to exclude the public from the meeting for a specific item, the 'Climate Risk Management Report Confidential Appendix'. This was due to the potential disclosure of exempt information if members of the public were present, with the public interest in maintaining the exemption outweighing the public interest in disclosure.