The Pension Fund Committee of Harrow Council met on Monday 7 September 2026 to discuss the administration of the pension fund, its financial health, and the governance of the scheme. Key discussions included a drop in administrative performance, the fund's actuarial funding position, and the annual report of the Pension Board.

Pensions Administration Update with Key Performances

The committee received an update on the performance of the Pensions Administration Team, which reported a fall in the percentage of tasks completed within target time, from 72.95% in the previous quarter to 65.16% for the quarter ending 30 June 2026. This decline was attributed to ongoing vacancies within the team, particularly at supervisor level, making it difficult to recruit experienced staff. Despite this, there were no new breaches or ombudsman appeals during the quarter, although two complaints were received regarding delays in responding to queries.

A significant issue highlighted was the failure to meet the statutory deadline of 31 August 2026 for informing members about the McLeod remedy, an uplift in pensioners' payments. This breach has been reported to the Pensions Regulator, and the council is working with an external organisation to address the backlog. The report also noted that 24 out of 56 councillors had opted into the Local Government Pension Scheme (LGPS) since legislation changed to allow councillors to join. The committee requested updated statistics on councillor membership and for a message to be sent to councillors who may not be aware of their eligibility.

Quarterly Actuarial Funding Position Update

The committee reviewed the quarterly actuarial funding position of the Harrow Pension Fund. As of 30 June 2026, the fund's estimated funding level stood at 108%, the same as at the previous valuation on 31 March 2025. The report indicated that while both assets and liabilities had grown, the surplus remained consistent. The required investment return to achieve 100% funding had slightly decreased to 4.8% from 5.1% at the 2025 valuation. The likelihood of achieving this return remained high at 84%. The report noted that the liabilities are sensitive to changes in the real discount rate and longevity assumptions.

Pension Board Minutes

The committee was presented with the minutes from the Pension Board meeting held on 30 July 2026. The Pension Board, an advisory body focused on governance and compliance, discussed various matters including the administration of the fund, the Pension Fund Committee's agenda items, and the upcoming implementation of new legislation. The minutes highlighted that the Pension Board had experienced difficulties with quoracy in the past due to member attendance but had since resolved this issue with a full complement of members. They also noted that the Pension Board would now have access to confidential material presented to the Pension Fund Committee.

Review of the Draft Pension Board Annual Report 2025-26

The committee reviewed the draft annual report of the Pension Board for the year 2025-26. The report detailed the Board's activities, including its role in assisting the council with the governance and administration of the LGPS, ensuring compliance with regulations, and overseeing the fund's operations. The draft report acknowledged challenges faced during the year, such as difficulties in achieving quoracy for meetings due to member attendance and a vacancy in an employer representative role, which has since been filled. The report also highlighted the Board's interest in actuarial valuations, employer contributions, fund performance, investment manager performance, and environmental, social, and governance (ESG) issues. The draft report is scheduled to go to Full Council for approval.

Fund Valuation and Performance Monitoring Report June 2026

The committee was due to receive the Fund Valuation and Performance Monitoring Report for June 2026. However, the detailed discussion of this item, including confidential appendices relating to investment performance, was moved to a private session, requiring the exclusion of the press and public. This report typically covers the fund's financial performance, investment returns, and the overall valuation of assets and liabilities.