The Local Pension Board of Durham County Council met on Wednesday 9 September 2026 to discuss a range of important matters concerning the management and administration of the Pension Fund. Key topics included updates on pension administration performance, regulatory changes affecting the Local Government Pension Scheme (LGPS), the progress of asset pooling through Border to Coast Pensions Partnership, and the implementation of the McCloud remedy.

Pension Administration Report

The Board was scheduled to receive an overview of the Pension Fund's administration and service provision to its members. The report detailed Key Performance Indicators (KPIs) for the first quarter of 2026/27, covering areas such as retirement processing, deferment cases, transfer requests, and helpline support. It also highlighted the increasing use of the Fund's online portal by scheme members. The report noted that while most KPIs were met, there were some delays in processing retirements due to late information from employers. Additionally, the report outlined the implementation of new Scheme-Standard KPIs, which are being adopted across the LGPS to ensure consistent performance monitoring. Updates were also provided on scheme employer communications, the development of an online Employer Hub, and member communications regarding annual benefit statements and scheme changes. The report also touched upon Additional Voluntary Contributions (AVCs) and the ongoing work related to the McCloud remedy and the upcoming Pensions Dashboard initiative.

Regulatory Update

A significant portion of the meeting was dedicated to discussing regulatory developments impacting the LGPS. This included new guidance on LGPS regulations, pooling, and investment frameworks that came into effect on 30 June 2026. These changes necessitate increased evidence retention by administering authorities regarding competence, resourcing, independent assurance, investment advice, and the division of responsibilities between the Fund and its asset pool, Border to Coast Pensions Partnership (BCPP). Specific guidance covered fund governance, requiring the appointment of an LGPS Senior Officer, statutory knowledge and understanding expectations for committee members and officers, the appointment of an Independent Person, and the preparation of a Governance Strategy, Training Strategy, and Conflicts of Interest Policy. Investment Strategy Statement (ISS) guidance was also updated, requiring a new ISS to be published by 31 March 2027, with a focus on long-term returns, risk appetite, and responsible investment. The report also detailed the ongoing implementation of the McCloud remedy, which addresses unlawful age discrimination in public service pension schemes, and noted that while most annual benefit statements were issued by the statutory deadline, some contained understated McCloud remedy information due to software issues. Updates on The Pensions Regulator's (TPR) strategy and corporate plan signalled a more active, data-led supervisory approach, which should inform the Fund's governance, data improvement, and risk management arrangements. The report also confirmed that the Fund was connected to the Pensions Dashboard initiative, with ongoing work focused on data cleansing and quality improvement.

The Pensions Regulator (TPR) Single Code

The Board was scheduled to receive an update on the Fund's progress towards compliance with The Pensions Regulator's (TPR) General Code of Practice. This code consolidates previous codes into a single framework for scheme governance and administration. The report indicated that an initial gap analysis had identified areas for improvement, and the Fund had engaged with Aon to utilise a compliance tool to assess adherence, identify weaknesses, and track progress. The Fund was also working to incorporate additional requirements arising from the Good Governance review into this assessment.

Governance Strategy, Training Strategy and Code of Conduct

This item focused on the legislative and regulatory background to the Fund's draft Governance Strategy, Training Strategy, and Code of Conduct. These documents form a single governance framework designed to strengthen requirements for leadership, competence, independent challenge, and assurance within the LGPS. The Governance Strategy clarifies responsibilities and decision-making, the Training Strategy establishes knowledge and understanding requirements, and the Code of Conduct sets out fund-specific standards for integrity and objectivity. The report outlined the proposed consultation and approval arrangements for these documents, with a plan for their implementation and review.

Pooling Update

The Board was to receive an update on Border to Coast Pensions Partnership's (BCPP) preparations for the strengthened LGPS pooling framework. The report explained that following the Pension Schemes Act 2026, pools are taking on greater responsibility for implementing investment strategies, while Partner Funds retain responsibility for setting objectives and overseeing delivery. BCPP has made significant progress in integrating new Partner Funds and transitioning remaining assets into pool management. The report detailed the evolution of BCPP's investment implementation model, its governance and oversight arrangements, and its 2030 Customer Strategy aimed at fostering strong relationships and mutual trust. Updates were also provided on progress in UK and local investment, including the development of a Local Investment Playbook.

McCloud Update

This agenda item provided a detailed overview of the McCloud remedy, stemming from a court ruling that found transitional protections for older members in public service pension schemes unlawfully discriminatory. The LGPS remedy requires funds to compare career average and final salary benefits built up during a specific period and pay the higher amount where applicable. The report outlined the impact on LGPS funds, including the need to identify affected members, cleanse data, recalculate benefits, and update member communications. It detailed the progress made by Durham County Council Pension Fund in processing these cases, including the issuance of Annual Benefit Statements, and highlighted areas where challenges remain, particularly concerning software limitations and data completeness.

Observations and Feedback from Pension Fund Committee

The Board was scheduled to receive observations and feedback from the Pension Fund Committee meeting held on the same day. This would provide insights into decisions and discussions from the Committee's perspective.

Local Pension Board Workplan

The Board was to consider its Workplan for 2026/27, which outlines the planned activities and thematic deep dives for the year. The workplan is designed to support the Board in its role of assisting the Administering Authority in securing compliance with regulations and ensuring effective governance and administration of the Fund.

Date of Next Meeting

The date for the next Local Pension Board meeting was scheduled for 7 December 2026.