The Pension Fund Committee of Barnet Council met on Monday 14 September 2026 to discuss the external audit and accounts, administration updates, and governance reforms. Key decisions included noting the draft statement of accounts and the progress of the external audit, and approving the updated draft Investment Strategy Statement for consultation.

External Audit and Accounts

Hassan Shirwani presented the external audit and accounts for the year ending 31 March 2026. The draft accounts showed an increase in net assets from £1.7 billion to £1.86 billion. Contributions rose by 3.9% to £76.3 million, while benefits increased by 6.2% to £81.2 million, reflecting the increasing maturity of the fund. Investment returns significantly improved, increasing from £52.8 million to £137.8 million. Grant Thornton's audit was nearing completion, with a positive outlook for an acceptable opinion this year, a marked improvement from the previous year's disclaimer of opinion. The committee noted the draft statement of accounts, the progress of the audit, and Grant Thornton's draft Audit Findings Report.

Administration Update

Mark Fox, Pensions Manager, provided an update on the administration performance by the West Yorkshire Pension Fund (WYPF), which administers the Barnet Fund. WYPF's service KPI performance was 95.8% in July 2026, continuing a positive trend above 90%. Data quality also remained strong, exceeding the Pensions Regulator's benchmark. Annual benefit statements were largely issued by the deadline, with a minor breach for approximately 70 members, which would be logged but not reported to the Pensions Regulator. A breach of regulations regarding the McLeod judgment¹ recalculations would need to be reported to the Pensions Regulator due to a delay in software provision from their provider. Members affected would still receive their due pension, backdated to the correct date. The committee noted the administration performance levels and updates on administrative and legislative matters.

Knowledge and Understanding

Mark Fox also presented on the new knowledge and understanding requirements introduced by the Pensions Schemes Act 2026 and subsequent regulations. These reforms place a greater emphasis on ensuring those involved in pension fund governance have the appropriate knowledge and skills. A training needs analysis questionnaire had been sent to committee members, and the responses were being reviewed to identify knowledge gaps and inform future training plans. The committee noted the new statutory governance training requirements and that officers were reviewing the training needs analysis to develop future training plans.

Risk Management Review

The committee reviewed the updated Pension Fund risk register, which now combines previous administration and governance risk registers into a single document. This register details 23 strategic and operational risks, with most assessed as low or moderate after existing controls. The highest residual risks, which remain a key focus for officers, include investment strategy, asset allocation and performance, cyber security breaches, strategic supplier failures, business continuity, and GDPR compliance. The committee noted the updated risk register and was invited to provide feedback for its ongoing development.

Oversight and Scrutiny of LCIV

Anisa Darr, Executive Director of Resources, presented on the oversight frameworks for the London CIV (LCIV), the asset pool for London LGPS funds. The report outlined existing mechanisms for scrutinising LCIV, such as shareholder rights and direct engagement, and identified potential gaps. The committee was asked to authorise officers to develop an appropriate oversight governance framework for LCIV's activities. The committee noted the existing oversight governance frameworks and options for enhanced frameworks, and authorised officers to develop an appropriate oversight governance framework for LCIV's activities.

Fit for the Future Update

Tim, presenting on the Fit for the Future update, highlighted the statutory guidance that came into effect on 30 June 2026, clarifying roles and responsibilities between administering authorities and pools like LCIV. The London CIV would take on implementation responsibilities, while the committee would remain responsible for setting the investment strategy. The report also confirmed the appointment of a Senior LGPS Officer and progress on appointing an Independent Officer, both required by 31 December 2026. The committee noted the fund's current position regarding compliance with the revised LGPS regulatory framework.

Investment Strategy Statement Update

The committee considered an updated draft Investment Strategy Statement (ISS), which had been reviewed against the 2026 statutory guidance. The report noted that there had been no material changes to the fund's investment strategy, strategic asset allocation, or high-level investment objectives since the previous approval in March 2026. The committee approved the updated draft ISS for consultation and delegated authority to the Executive Director of Resources to finalise it following consultation.

Quarterly Investment Report

The committee received the quarterly investment report for the period ending 30 June 2026. The fund's value increased to £1.95 billion, with a net return of +5.7% for the quarter, although this underperformed the benchmark. The report detailed the strategic asset allocation and fund investment activity, including the reinvestment of proceeds from the Insight Secured Income disinvestment into LCIV credit funds. Nick, providing market commentary, noted a generally positive quarter for growth assets, with equity markets being strong performers. The committee noted the fund's investment performance and activity for the quarter.

Local Pension Board Annual Report

Paul Frost presented the Local Pension Board's annual report for 2025/26. The report summarised the board's work, including training undertaken by members and a competitive recruitment process that had filled vacancies, although one vacancy remained. The committee noted the report and appendices, and that it would be referred to the next Full Council meeting.

Pension Fund Committee - Work Programme

The committee noted the work programme for the upcoming year.