The LGPS Pension Fund Sub-Committee of Warwickshire Council met on Monday 14 September 2026 to discuss a range of important matters concerning the management and future of the Warwickshire Pension Fund. Key topics included the implications of Local Government Reorganisation, a comprehensive review of the Fund's governance, and updates on business plan monitoring and pension administration performance.

Local Government Reorganisation - LGPS

A significant portion of the meeting was dedicated to discussing the implications of Local Government Reorganisation (LGR) for the Warwickshire Pension Fund. The report outlined the government's decision to establish two new unitary authorities in Warwickshire, with a vesting day of 1 April 2028. A dedicated sub-workstream, co-led by Chris Norton, Head of Investments, Audit and Risk for Warwickshire County Council, and Paul Sutton, Corporate Director Governance & Resources for North Warwickshire Borough Council, is addressing LGPS pension fund matters. The report highlighted that the workload associated with LGR is in addition to existing pension fund reform activities and that additional resources will be required to manage these changes. Several options for the future operating model of the Fund were presented, including one of the new authorities becoming the administering authority, the Fund becoming a separate Special Purpose Pensions Authority, or merging with another fund. Decisions on these options will be made by the two shadow authorities, with consultation required with the Ministry for Housing, Communities and Local Government (MHCLG) by specific deadlines in early 2027.

Pension Fund Governance Report

The committee was presented with a report summarising the key governance issues affecting the Warwickshire Pension Fund. This report combined information previously presented to the Staff and Pensions Committee and the Pension Fund Investment Sub Committee. It detailed the Fund's three-year forward plan, covering policy reviews and strategic projects. The report also provided an update on the Fund's Risk Register, highlighting a new 'Red' risk score of 16 for Local Government Reorganisation. Other significant risks identified included governance failure and climate change, both with residual risk scores of 16. The report also outlined the Governance Key Performance Indicators, with most targets being met or on track. Updates on policy reviews, including the draft Administration Strategy 2026, the Internal Dispute Resolution Procedure (IDRP), and the Governance Compliance Statement, were also provided. The committee was invited to comment on the draft Administration Strategy and was to be asked to approve the updated IDRP and Governance Compliance Statement.

Governance Action Plan

An update was provided on the implementation of the LGPS Governance Action Plan, which aims to ensure compliance with The Pension Regulator's General Code of Practice and new regulations arising from the Pension Schemes Act 2026. The report noted that 93 actions were originally identified, with an additional 18 from the Pension Schemes Bill. The plan is being expanded to include activities related to Local Government Reorganisation. The report acknowledged that not all activities had progressed as quickly as planned and that additional capacity is required, specifically in the form of dedicated project management support and a new Governance Officer post. The first Independent Governance Review (IGR) is anticipated in 2027.

Business Plan Monitoring Quarter 1

This report detailed the progress made against the Warwickshire Pension Fund's Business Plan for 2026/27 as at the end of the first quarter. The majority of activities were rated as 'Green' or 'Amber'. Items related to the Investment Strategy Statement (ISS) and local investment requirements were rated 'Amber' due to legislative deadlines moving, with consultation on the updated ISS planned for September 2026. The report also presented a draft 2026/27 Budget and Medium-Term Financial Plan for the first time, which indicated a projected cash flow negative position over the planning period, to be funded from existing reserves or investment redemptions. The report highlighted the need for additional resources, including three Pension Officers and one Pension Assistant for the Administration Team, a Governance Officer, and a Project Manager, to address increased demand and governance requirements.

Pension Administration Activity and Performance Update

The committee received an update on key developments in pensions administration and the performance of the Pensions Administration Service (PAS). The report highlighted the continued growth in the use of the Engage self-service portal by active, deferred, and pensioner members. Key performance indicators (KPIs) for the period April to June 2026 were presented, with nine out of sixteen KPIs meeting the 95% target. The report noted a period of staff changes and increased workload, which had impacted performance on some KPIs, but indicated expected improvements. The PAS is reviewing staffing resources, with a proposal to increase FTEs to meet demand and facilitate service improvement. Updates were also provided on the Pensions Dashboard Programme, regulatory changes related to Access and Fairness, and the SCAPE rate change.

Other Scheduled Discussions

The meeting also scheduled discussions on:

• Review of the Public Minutes of the Warwickshire Local Pension Board Meeting of 7 July 2026: This item would have involved reviewing the public minutes of the previous meeting of the Warwickshire Local Pension Board.
• Pension Fund Governance Report: This report, detailed above, provided a comprehensive overview of the Fund's governance arrangements.
• Governance Action Plan: This item, also detailed above, focused on the progress of implementing actions to improve the Fund's governance.
• Business Plan Monitoring Quarter 1: This report, detailed above, provided an update on the progress of the Fund's business plan.
• Pension Administration Activity and Performance Update: This report, detailed above, covered the performance and activities of the Pensions Administration Service.
• 2025 Valuation - National Picture: This item would have provided an overview of the national context for the 2025 pension fund valuations.
• Warwickshire Pension Fund Annual Report 2025/26: This would have been a review of the Fund's annual report for the previous financial year.
• Employers Joining and Leaving the Pension Scheme: This item would have addressed the processes and implications of employers joining or leaving the scheme.
• Annual check on contribution rates and security requirements for Admitted Bodies: This would have involved a review of contribution rates and security for admitted bodies.
• BCPP Voting, Stewardship and Corporate Governance Update: This would have provided an update on voting, stewardship, and corporate governance matters related to the Border to Coast Pensions Partnership (BCPP).
• Climate Policy and Net Zero Strategy: This item would have focused on the Fund's policies regarding climate change and its strategy for achieving net zero emissions.
• Investment Strategy Statement: This would have involved a discussion and potential approval of the Fund's investment strategy.
• General Activity Update: This would have provided a broader update on the Fund's activities.
• LGPS Pooling Update: This would have provided an update on the progress of LGPS pooling arrangements.
• Quarterly Investment Monitoring Report: This report would have provided a detailed review of the Fund's investment performance.
• Exempt Minutes of Previous Meetings: These minutes would have contained confidential information discussed in previous meetings.
• Review of the Exempt Minutes of the Warwickshire Local Pension Board Meeting of 7 July 2026: This would have involved a review of confidential information from the Local Pension Board meeting.

The meeting also included standard procedural items such as apologies, declarations of interest, and the confirmation of minutes from the previous meeting. A resolution was scheduled to exclude the public from discussions involving exempt or confidential information.