The Pensions Committee of Shropshire Council met on Friday 18 September 2026 to review the Shropshire County Pension Fund's financial performance and governance. The meeting agenda included reports on internal and external audits for the 2025/26 financial year, the fund's annual accounts, corporate governance monitoring, and pensions administration.

Third Line of Assurance: Internal Audit Outturn Report for Shropshire County Pension Fund 2025/26

The committee was scheduled to consider the Internal Audit Outturn Report for the Shropshire County Pension Fund for the year ending 31 March 2026. This report was intended to provide a summary of the internal audit work undertaken and the Chief Audit Executive's year-end opinion on the fund's internal control environment. The report indicated that the fund's governance, risk management, and internal control processes were considered sound and working effectively, with a substantial year-end opinion anticipated. The report detailed that four out of five planned audits were completed within the financial year, with one audit deferred due to delays in the implementation of Multi-Factor Authentication on the pensions system. A total of 17 recommendations were made across five audit reports, with one significant recommendation relating to IT cyber self-assessment. Customer feedback surveys for the internal audit service were reported as positive, with 100% excellent or good responses across various scoring criteria.

External Audit: The Audit Findings for Shropshire County Pension Fund 2025/26

The committee was scheduled to receive the Audit Findings Report from Grant Thornton UK LLP for the Shropshire County Pension Fund for the year ended 31 March 2026. This report was expected to outline the observations arising from the audit that are significant to those charged with governance. The report indicated that the audit work was substantially complete, with an anticipated unmodified opinion on the financial statements. Outstanding matters included the valuation of Level 3 investments, receipt of IAS 19 responses, and review of the final Annual Report and Annual Governance Statement. Grant Thornton identified a small number of classification and disclosure changes with no impact on the value of assets, and one recommendation for management regarding member data movements. The report also detailed the audit approach to materiality, setting headline materiality at £44.90m.

Pension Fund Annual Accounts 2025/26

The committee was scheduled to review the Shropshire County Pension Fund Annual Accounts for 2025/26. The report indicated that the fund increased in value by £169 million during the year, reaching £2.795 billion. Draft accounts were prepared to meet statutory deadlines, with valuations for certain portfolios based on December quarterly statements adjusted for cashflows. The audit of the accounts by Grant Thornton was substantially complete, with a draft unqualified opinion issued. The report also detailed contribution income, benefit payments, scheme membership trends, management expenses, and interest charged on overdue contributions. A list of contributing employers and the amounts of contributions received was provided.

Corporate Governance Monitoring

The committee was scheduled to receive a report on corporate governance issues for the quarter 1 April 2026 to 30 June 2026. This included updates on voting and engagement activity by LGPS Central, Columbia Threadneedle Investments, and the Local Authority Pension Fund Forum (LAPFF). The report also provided an update on correspondence with the Palestine Solidarity Campaign (PSC) regarding investments in conflict-affected areas and confirmed the fund's intention to apply for continuation of its UK Stewardship Code credentials under the new 2026 framework. The committee was asked to note and accept the position outlined in the report and to delegate authority to the Chair to agree the response to the PSC.

Pensions Administration Monitoring

The committee was scheduled to receive an update on pensions administration performance, team capacity, key project delivery, and recent regulatory changes. The report indicated that most Key Performance Indicator (KPI) measures met the 95% target during the first quarter, with targeted action underway for those below target. Progress on the Pension Dashboard implementation, Annual Benefit Statements, McCloud remedy work, Access and Fairness changes, employer performance, and communications activity was to be summarised. The report highlighted challenges with data quality, particularly when employers change payroll providers, and noted that no breaches had been recorded for the fund itself. The committee was asked to note the KPI chart, progress on key activities, and the Pension Dashboard implementation update.

Governance

The committee was scheduled to receive an update on governance matters, including regulatory breaches recorded in the breaches log from 1 April 2026 to 30 June 2026. The report also covered any stage one or stage two appeals received under the Internal Dispute Resolution Procedure (IDRP). Additionally, fund policies reviewed in the last quarter were presented for approval, including a new Workforce Strategy. The report highlighted the extensive work required to implement new governance requirements stemming from the Fit for the Future legislative changes.

The meeting also included items related to exempt minutes, new employers, investment portfolio updates, local investments, and investment strategy updates, which were scheduled to be discussed in private session due to the likely disclosure of exempt information.