The Local Pension Board of Leicestershire Council met on Wednesday 29 July 2026 to discuss the administration of the pension fund, regulatory changes, and financial reports. Key decisions included noting the Pension Fund Annual Report and Accounts for 2025/26, approving the Local Pension Board Annual Report for 2025/26, and noting the risk management and internal controls report.

Pension Fund Administration Report

The Board considered the Pension Fund Administration Report for April to June 2026, which detailed administrative actions and performance indicators. Members noted that while the majority of retrospective McCloud remedy cases had been completed, the Fund would be unable to meet the national deadline of 31 August 2026 for all outstanding work. A position statement would be submitted to The Pensions Regulator¹ for transparency. Significant discussion focused on administrative workload pressures, increasing employer onboarding requirements, and the impact of employers changing payroll providers. Members urged officers to adopt a firmer approach with employers who failed to meet their obligations. The Board resolved to note the report and requested a future report outlining workload trends, resource requirements, and future service pressures. Members' comments regarding KPI reporting, employer engagement, and service pressures were to be referred to the Local Pension Committee².

Fit for the Future Update

An update was provided on the progress of regulatory changes in the Local Government Pension Scheme (LGPS) under the Fit for the Future reforms. Members noted the implementation of new governance requirements, including the need to appoint a Senior LGPS Officer and an Independent Person by 31 December 2026. Recruitment for the Independent Person role was underway, with advertising on the pension fund website and LinkedIn. The Board resolved to note the report.

Pension Fund Annual Report and Accounts 2025/26

The Board reviewed the draft Pension Fund Annual Report and Accounts for 2025/26. Members sought clarification on the report's audience and purpose, with officers explaining it served as a statutory requirement and an important source of information and assurance regarding Fund performance and governance. Suggestions were made for a concise executive summary in future reports, highlighting key issues, trends, and performance information. Clarification was provided regarding investment performance against benchmarks, with officers explaining that benchmarks were intentionally set at a challenging level and overall returns remained comfortably ahead of those required to meet funding objectives. The Board resolved to note the report, provide comments to the Local Pension Committee, and requested an executive summary be produced in future years.

Annual Board Report 2025/2026

The Board considered its own Annual Report for 2025/26, which detailed the work undertaken by the Board during the year, including oversight of governance, administration, McCloud implementation, pension dashboards, employer monitoring, and actuarial valuation activity. The Chairman thanked Board members and officers for their commitment and professionalism. The Board resolved to approve its Annual Report for 2025/26.

Risk Management and Internal Controls

The Board reviewed the Pension Fund's risk register, which covers administration and investment risks. Officers highlighted the ongoing use of monthly mortality checks and the upcoming National Fraud Initiative³ data matching exercise in October 2026. Members questioned whether the current RAG⁴ ratings adequately reflected the risks associated with failing to meet regulatory deadlines. Officers explained that risks were assessed at a whole-fund level. Members requested greater visibility of programme and delivery risks associated with major projects. Officers agreed to consider broader reporting on delivery risk and the possibility of undertaking periodic deep dives into specific risks at future meetings. The Board resolved to note the report.

Dates of Future Meetings

The Board noted the dates for future meetings scheduled for 14 October 2026, 3 February 2027, 19 May 2027, 28 July 2027, and 17 November 2027.