The Teesside Pension Board met on Monday 6 July 2026 to review the draft annual pension fund accounts for 2025/2026, receive updates on pension administration, and discuss the draft external audit plan. The Board also received induction training and an update on work plan items, including a review of breaches of the law and discretions within the Local Government Pension Scheme (LGPS) regulations.

Draft Annual Pension Fund Accounts 2025/2026

The Board received a report presenting the draft Statement of Accounts for the Teesside Pension Fund for the 2025/26 financial year. The accounts, which remain in draft form and are subject to further review and audit, indicated a strong financial position for the Fund. The value of the Fund had increased from £5.577 billion to £6.183 billion during the year. Membership had grown to 85,862 members, with contributions totalling £134.1 million, benefits paid amounting to £206.4 million, and investment income reaching £177.2 million. A Member sought clarification on management expenses, and was advised that a more detailed analysis would be considered by the Teesside Pension Fund Committee. The Board noted that a final version of the accounts would be prepared following the completion of the external audit process.

Pension Administration Report

A report on pension administration performance was presented, detailing the transfer of the Fund's administration to Tyne and Wear Pension Fund (TWPF) on 1 June 2025. The report highlighted ongoing work to address inherited data quality issues, with performance against statutory and LGPS Scheme Advisory Board indicators being impacted by these challenges. Despite this, there was welcome news regarding an increase in member registrations for online services. The report noted that while service delivery measures, such as call handling performance, were not yet at the desired level, additional resources had been introduced and performance was improving. A temporary reduction in performance during February and March was attributed to increased year-end demand. The Board heard that work was ongoing to improve the quality and completeness of member contact information, and that communications campaigns were underway to encourage members to provide personal email addresses. Queries were also raised regarding the provision of employer performance data and the reasons for late submissions, with the Board being informed that employers are subject to statutory deadlines and that the expansion of Monthly Data Collection arrangements was a positive development.

Draft External Audit Plan

The Draft External Audit Plan for 2025/26 was presented, with Forvis Mazars confirmed as the Fund's external auditors. The audit plan had previously been considered by the Teesside Pension Fund Committee. The Board noted that the audit identified two significant risks: management override of controls and the valuation of Level 3 investments, including private market assets. Overall audit materiality was set at £61.173 million, with a proposed audit fee of £120,098 for 2025/26. A Member queried the governance process for the audit, and was advised that the plan would also be considered by the Council's Audit Committee and was presented to the Pension Fund Committee and Pension Board for information.

Update on Work Plan Items

An update on items within the Board's Work Plan was provided, including information on reportable breaches and regulatory developments. It was noted that all breaches continued to be recorded and assessed in accordance with Pensions Regulator guidance, and that two breaches had been identified during the reporting period, neither of which met the threshold for reporting to the Pensions Regulator. Work was continuing to support compliance with the Pension Schemes Act 2026 and associated regulations. Future work plan items will include ongoing monitoring of governance, knowledge and understanding requirements, and administration performance. The Board also received information on discretions within the LGPS Regulations, highlighting areas where administering authorities and employers can exercise choices, and the complexity arising from changes in regulations over time.

Induction Training

The Head of Pensions Governance and Investments delivered an induction training session for Board Members, covering an overview of the Local Government Pension Scheme (LGPS), governance arrangements for the Teesside Pension Fund, the roles of the Pension Fund Committee and Pension Board, pension fund funding and actuarial valuations, investment strategy, Border to Coast Pension Partnership, responsible investment and climate-related considerations, the role of the Pensions Regulator, and knowledge and understanding requirements for Board Members. Members were advised of the enhanced governance, knowledge, and training requirements arising from the Pension Schemes Act 2026. In response to a question regarding employer contribution payments, Members were informed that these are monitored by the Fund's administrators through monthly employer data submissions.

Minutes of Previous Meetings

The minutes of the Teesside Pension Board meeting held on 31 March 2026 were submitted and approved as a correct record. Copies of the minutes from the Teesside Pension Fund Committee meetings on 7 May 2026 and 4 March 2026 were also submitted for information. An update was sought regarding actions arising from a previous minute, and the Head of Pensions and Investments confirmed that due diligence, including a legal review, had been completed, and that only management fees were payable, with investment income accruing to the Fund.