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 Pension Board. Key decisions included noting the current funding position of the pension fund and agreeing to review the draft annual report of the Pension Board.

Pensions Administration Update with Key Performances

The committee received an update on the administration performance of the Harrow Pension Fund for the quarter ending 30 June 2026. Patrick Kilgallen, Interim Head of Pensions and Treasury, presented the report, noting a decrease in the percentage of tasks completed within the Key Performance Indicator (KPI) target, falling from 72.95% in the previous quarter to 65.16%. This decline was attributed to ongoing vacancies within the administration team, particularly at supervisor level.

Despite these challenges, there were no new breaches of regulations during the quarter, and only two complaints were received, both related to delays in responding to queries. The report also highlighted that 24 out of 56 councillors had opted into the Local Government Pension Scheme (LGPS) following recent legislative changes allowing councillors to join.

A significant issue discussed was the delay in implementing the McCloud Remedy, a government initiative to rectify unlawful age discrimination in public sector pension reforms. The statutory deadline of 31 August 2026 for notifying members of the remedy's impact was not met due to capacity issues. The council has reported this breach to the Pensions Regulator and is working with an external organisation to expedite the calculations and inform affected members. Councillor Ajay Agrawal raised concerns about the performance drop and suggested that salary reviews for supervisory roles might be necessary to attract and retain staff.

The committee noted the report, agreeing to the recommendation to do so.

Quarterly Actuarial Funding Position Update

The committee reviewed the quarterly actuarial funding position of the Harrow Pension Fund as of 30 June 2026. The report, presented by Patrick Kilgallen, indicated that the funding level remained stable at 108%, the same as at 31 March 2025. The value of the fund's assets had increased to £1.23 billion, while liabilities had risen to £1.14 billion, resulting in a surplus of £0.09 billion.

The report noted a slight decrease in the required investment return to achieve 100% funding, from 5.1% to 4.8%, although the likelihood of achieving this return had marginally decreased from 85% to 84%. Councillor Roger [surname not provided] inquired about a technical adjustment of 1.2% related to inflation projections, and it was agreed that further clarification would be sought.

The committee noted the report and agreed to the recommendation to do so.

Pension Board Minutes

The committee received the minutes from the Pension Board meeting held on 30 July 2026. Honorary Alderman Richard Romain, an Independent Adviser, introduced the minutes, explaining that the Pension Board is an advisory body focused on governance and compliance. He confirmed that issues with meeting quorum had been resolved. The committee noted the report and agreed to the recommendation to do so.

Review of the Draft Pension Board Annual Report 2025-26

Richard Romain also presented the draft Pension Board Annual Report for 2025-26. He highlighted that the past year had been challenging due to difficulties in achieving a quorum for meetings, with two scheduled meetings being inquorate. This was partly due to a vacancy in an employer representative role, which has since been filled. The report detailed the Board's work in scrutinising governance, compliance, and administration of the pension fund.

Councillor David Perry, Leader of the Labour Group, asked about the reasons for the difficulties in achieving quorum, specifically whether it was due to pensioner members or employee representatives. Richard Romain explained that pensioner representatives had been consistent, but employee representatives had faced challenges due to other committee commitments. He also confirmed that the Board had discussed the possibility of having reserve members but was advised it was not appropriate for the Pension Board.

The committee noted the report and agreed to the recommendation to do so.

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 presentation of this item, along with its appendices, was moved to Part II of the meeting, which would be held in private. This was to allow for the exclusion of the press and public due to the confidential nature of the information contained within the appendices, which related to the financial and business affairs of particular persons. Patrick Kilgallen indicated that the report would be presented by different individuals, including an independent advisor and representatives from Mercer and LSIV, focusing on investment performance.