The Local Pension Committee meeting scheduled for 11 September 2026 was set to cover a comprehensive review of the Pension Fund's investments, governance, and administration. Key discussions were expected to include updates from LGPS Central on its presentation and private market investments, a detailed valuation of the Pension Fund's investments, and an update on the Fit for the Future reforms impacting the Local Government Pension Scheme (LGPS). The committee was also scheduled to review the Responsible Investment Report, Risk Management and Internal Controls, and the Pension Fund Annual Report and Accounts for 2025/2026.

LGPS Central Presentation

The committee was scheduled to receive a presentation from LGPS Central, a company jointly owned by Leicestershire County Council and seven other local authorities. LGPS Central aims to reduce costs, enhance investment returns, and expand asset classes for the benefit of local government pensioners, employees, and employers. The presentation was expected to cover new services to the Fund resulting from the Fit for the Future reforms, a private markets overview, and details on the Fund's investments in infrastructure, property, private credit, and private equity. The report highlighted that the Fund was underweight in the private credit asset class, with commitments made to close this gap.

Valuation of Pension Fund Investments

A report was scheduled to provide the committee with an update on investment markets and the performance of individual asset classes, as well as the total value of the Fund's investments as of 30 June 2026. The report was also to include a draft scope for the 2027 Strategic Asset Allocation (SAA) for comment. Market performance in the second quarter of 2026 was noted as positive, with global equities advancing strongly, credit spreads tightening, and most fixed income markets generating positive returns. The report also discussed the outlook for markets, including the influence of inflation, interest rate expectations, and commodity markets.

Fit for the Future Update

This agenda item was intended to update the committee on regulatory changes within the LGPS and LGPS Central's governance arrangements in light of the Fit for the Future reforms. Key requirements from the statutory guidance included enhanced knowledge and understanding for pension committee members, the mandatory appointment of an LGPS Senior Officer and an Independent Person, and arrangements for independent governance reviews. The report detailed the progress on these requirements, including the training strategy for committee members and the interim arrangements for the Senior LGPS Officer role.

Responsible Investment Report

The committee was scheduled to receive an update on progress against the Responsible Investment (RI) Plan 2026, as well as the Fund's quarterly voting report and stewardship activities. The report defined responsible investment as the integration of financially material Environmental, Social, and Governance (ESG) factors into investment processes. It noted that government guidance is consistent with the Fund's existing approach, emphasizing the primary obligation to act in the best financial interests of the fund and to consider ESG factors where they are financially material. The report also included details on the Fund's voting record from January to March 2026, with LGPS Central voting on behalf of the Fund at 805 meetings.

Risk Management and Internal Controls

This report was intended to inform the committee of any changes relating to the risk management and internal controls of the Pension Fund, as stipulated in the Pension Regulator's Code of Practice. The report detailed the Fund's risk register, which categorises risks into six areas: Investment, Liability, Employer, Governance, Operational, and Regulatory. A new risk concerning changes resulting from Local Government Reorganisation (LGR) was to be discussed, highlighting the potential administrative and legal burdens during the transition to two new unitary councils.

Pension Fund Annual Report and Accounts 2025/2026

The committee was asked to consider the appended Annual Report and Accounts of the Pension Fund for the financial year 2025/2026. The report, which follows guidance from the Scheme Advisory Board and other bodies, covers overall Fund management, governance and training, financial performance, fund accounts, investment and funding, administration, actuarial reports, external audit opinion, and additional information. The report noted that the accounts are subject to external audit by Grant Thornton LLP.

Board Annual Report 2025/2026

This item was to present the Annual Report of the Local Pension Board for the financial year 2025/2026. The report summarises the Board's work, including monitoring administration targets, scrutinising the 2025 actuarial valuation and Funding Strategy Statement, overseeing McCloud Remedy implementation, and preparations for the Pensions Dashboards Programme. The Board reported no significant issues of concern but noted a discussion regarding the 3% cap on employer secondary rates.

Leicestershire Total Fund Summary and LGPS Central Quarterly Investment Report

These items, along with numerous other quarterly reports from various fund managers including Adams Street Partners, Fulcrum, Legal and General Investment Manager, and others, were scheduled to be considered as exempt from publication. This was in accordance with Section 100(A)(4) of the Local Government Act 1972, likely due to the disclosure of exempt information.

Date of Future Meetings

The committee was asked to note the date of the next meeting, scheduled for 4 December 2026 at 10:00 am, and future meeting dates for 2027. The dates for the Fund's Annual General Meeting were also noted.

Exclusion of the Press and Public

The agenda indicated that the press and public would likely be excluded from the meeting for the remaining items of business, as they were expected to involve the disclosure of exempt information.