The Pension Fund Committee of Barnet Council is scheduled to meet on Monday 14 September 2026 to discuss a range of important financial and governance matters concerning the council's pension fund. Key topics include the review of the fund's annual accounts, updates on administration and investment performance, and the implementation of new regulatory requirements.

External Audit and Accounts

The committee is scheduled to consider the draft Statement of Accounts for the Barnet Pension Fund for the 2025/26 financial year. This report, prepared by Hassan Shirwani, Executive Director of Strategy and Resources (S151 officer), will be accompanied by Grant Thornton's draft Audit Findings Report. The documents will provide an overview of the fund's financial position, including net assets, contributions, and benefits paid. The report highlights that the fund's net assets increased to £1.859 billion at 31 March 2026. It also notes that the fund is now cashflow negative on an operational basis, meaning more money is being paid out in benefits than is being received in contributions, but this is compensated by investment income. The committee will be asked to note the draft accounts and the progress of the audit.

Administration Update

An update on the administration of the pension fund is scheduled for discussion. This report, from Mark Fox, Pensions Manager, will cover the performance levels of the West Yorkshire Pension Fund (WYPF), which administers the Barnet Fund. It will also provide information on recent legislative and operational developments, including compensation payments made due to service issues. The report indicates that administration performance has improved, with 95.8% of cases completed within KPI targets. However, the workload remains high, with a backlog of 760 items, expected to persist due to members receiving annual statements. The report also details legislative updates, including the Pensions Schemes Act 2026 and associated regulations, which aim to strengthen governance and pooling arrangements.

Knowledge and Understanding

The committee will receive an update on the new governance, training, and knowledge and understanding requirements introduced by the Pension Schemes Act 2026. This report, also from Mark Fox, Pensions Manager, highlights that these reforms necessitate enhanced governance arrangements for administering authorities, including statutory knowledge and understanding requirements and a mandatory Training Strategy. The report notes that officers are reviewing responses from a recent Training Needs Analysis exercise to inform future training plans. The training strategy itself, attached as Appendix A, outlines key knowledge areas such as pensions legislation, governance, funding, administration, financial management, investment, and risk management.

Risk Management Review

A review of the Pension Fund's risk register is scheduled, presented by Mark Fox, Pensions Manager. The updated register consolidates previous administration and governance risk registers into a single strategic document. It details risks associated with the management of the scheme, including current assessments and planned actions. The report identifies Investment Strategy, Asset Allocation and Performance and Cyber Security Breach as two of the highest residual risks requiring ongoing monitoring. The committee will be asked to note the updated register and provide feedback on its format and content.

Oversight and Scrutiny of LCIV

This report, from Anisa Darr, Executive Director of Resources (s151 officer), focuses on the oversight and scrutiny of the London CIV (LCIV), the asset pool responsible for managing the Barnet Pension Fund's investments since 1 July 2026. The report outlines existing mechanisms for monitoring LCIV, such as shareholder rights and direct engagement, and identifies potential gaps. It proposes options for enhanced oversight frameworks, including quarterly written requests to LCIV regarding alignment with the Investment Strategy Statement (ISS) and Investment Management Agreement (IMA), and annual reviews of advice quality. The committee will be asked to note these options and authorise officers to develop an appropriate oversight governance framework for LCIV's activities.

Fit for the Future Update

An update on the Fit for the Future reforms affecting the Local Government Pension Scheme (LGPS) will be presented by Anisa Darr, Executive Director of Resources (s151 officer). This report details the key legislative and regulatory changes stemming from the Pension Schemes Act 2026, which received Royal Assent on 29 April 2026. New regulations, effective from 30 June 2026, introduce enhanced fund governance, including the appointment of an LGPS Senior Officer and an Independent Person, and require administering authorities to prepare Governance and Training Strategies. The report provides a table outlining the fund's compliance status with requirements such as asset pooling, appointment of key roles, and publication of the Investment Strategy Statement.

Investment Strategy Statement Update

The committee is requested to approve the updated draft Investment Strategy Statement (ISS) for consultation. This report, also from Anisa Darr, Executive Director of Resources, is a requirement under the Local Government Pension Scheme (Pooling, Management and Investment of Funds) Regulations 2026. The updated ISS reflects the new LGPS investment governance and asset pooling framework and incorporates the fund's high-level investment objectives, strategic asset allocation, and approach to responsible investment. The report details the fund's return objective of at least 6.8% per annum and a strategic asset allocation with specific tolerance ranges for various asset classes. Following consultation, the final ISS will be presented for approval and publication by 31 March 2027.

Quarterly Investment Report

An update on the Pension Fund's investment performance and activity for the quarter ending 30 June 2026 will be presented by Anisa Darr, Executive Director of Resources. The report indicates that the fund's investment portfolio, valued at £1.95 billion, achieved a net return of +5.7% over the quarter, underperforming its benchmark by +6.0%. The report includes detailed performance data for various asset classes and managers, as well as a market overview. Key actions noted include the termination of Insight Secured Finance funds and the reinvestment of proceeds into existing credit funds. The report also details the fund's strategic asset allocation and current allocations, highlighting an overweight cash position of 10.8% and an underweight credit allocation.

Local Pension Board Annual Report

The committee will receive the annual report of the Local Pension Board for the 2025-2026 municipal year. This report, presented by Paul Frost, Principal Governance Officer, summarises the Board's activities, including governance and compliance matters, administration performance, and training received by Board members. The report notes that the Board's terms of reference have been updated, and a recruitment process has resulted in new appointments, including additional councillors and independent members. The Board's work programme for 2026/27 is also included. The report will be referred to the next meeting of Full Council.

Pension Fund Committee - Work Programme

A review of the Pension Fund Committee's work programme is scheduled. This report, also from Paul Frost, Principal Governance Officer, outlines the planned agenda items for future meetings, including updates on administration performance, investment reports, risk management, and regulatory changes. The work programme details topics to be discussed up to May 2027, ensuring a structured approach to the committee's oversight responsibilities.

Any item(s) that the Chairman decides is urgent

This item allows for any urgent matters, not previously included on the agenda, to be raised at the discretion of the Chair, Councillor Elliot Simberg.