The Teesside Pension Fund Committee met on Wednesday 29 July 2026. The Committee approved the admission of The Northern College of Art into the Teesside Pension Fund. The Committee noted proposed amendments to its Terms of Reference, which will be reported to the Constitution and Member Development Committee and then to Full Council for approval.

Admission of The Northern College of Art

The Committee approved the admission of The Northern College of Art into the Teesside Pension Fund. This follows a restructuring of The Northern School of Art, which is an existing employer in the Fund. The Northern School of Art is transitioning to become a higher education institution, and its further education provision will be delivered by a new subsidiary, The Northern College of Art.

While The Northern School of Art is a scheduled body with automatic eligibility for the Local Government Pension Scheme (LGPS), The Northern College of Art requires specific approval for admission. The report highlighted that The Northern College of Art is a not-for-profit charity delivering publicly funded further education and, as a subsidiary of The Northern School of Art, meets the community of interest definition for admission. Crucially, the admission is covered by the Department for Education (DfE) Crown Guarantee, meaning any financial risks to the Fund are mitigated. This admission is important to prevent issues for existing members transferring from The Northern School of Art to The Northern College of Art.

Teesside Pension Fund Committee Terms of Reference

Members received a report detailing proposed changes to the Teesside Pension Fund Committee's Terms of Reference. These Terms of Reference, last updated in 2017, needed to be revised to reflect significant changes in the LGPS landscape, including the Pensions Act 2026 and updated pooling arrangements with Border to Coast Pensions Partnership.

Key proposed changes include:

• Aligning the Terms of Reference with new legislation, such as the introduction of an LGPS Senior Officer role and requirements for a governance strategy, training strategy, and conflicts of interest policy.
• Reflecting the evolving role of the Committee in relation to investment pooling, with implementation now largely the responsibility of Border to Coast.
• Removing the Committee's role in selecting, appointing, and dismissing fund managers.
• Updating the quorum requirements to align with other Middlesbrough Council committees.
• Clarifying the role of the Chief Finance Officer (Section 151 Officer) as the shareholder representative for Border to Coast Pensions Partnership.

The proposed amendments will be reported to the Constitution and Members' Development Committee and then to Full Council for final approval. Minor grammatical and formatting errors were noted and will be corrected before the final submission.

Draft Annual Pension Fund Accounts 2025/2026

The Committee reviewed the draft unaudited Pension Fund Accounts for the year ended 31 March 2026. It was noted that the Fund's value had increased to £6.18 billion, an increase of approximately £606 million over the year, with a reported funding level of 141%. Members discussed a discrepancy in the reported increase in the Fund's value and a number of grammatical and formatting errors within the document, which will be amended prior to final publication.

Members also raised questions regarding the strong reported funding level, the reasons for Teesside Pension Fund's position appearing stronger than some other funds within Border to Coast, and the costs associated with early retirements. Clarification was provided that the funding level is influenced by actuarial assumptions and that early retirement costs are met by the relevant employers. Concerns were also raised about the unexpected final fees from XPS, the previous administration provider, and it was acknowledged that contract management could have been more effective. Suggestions were made to simplify the Statement of Accounts for better accessibility and to include a summary report to highlight key information.

The Committee noted the draft accounts and that any identified errors or amendments would be resolved before the final publication.

Declarations of Interest

Several members declared non-pecuniary interests as members of the Teesside Pension Fund. Councillor David Coupe declared a pecuniary interest as a Non-Executive Director of Border to Coast Pensions Partnership Ltd.

Minutes of Previous Meeting

The minutes of the Teesside Pension Fund Committee meeting held on 17 June 2026 were approved as a correct record, with a minor grammatical amendment to be made.