The Pension Fund Panel of Hounslow Council met on Tuesday 22 September 2026 to discuss the annual business plan, quarterly performance reports, and the fund's risk register. The meeting also covered updates on pension fund administration, regulatory matters, and investment strategies.

Annual Business Plan 2026/27 and Training Update

The Panel was scheduled to consider the proposed work programme for the 2026/27 financial year. This included an anticipated increase in policy and strategy documents due to changes in the Local Government Pension Scheme (LGPS) regulations, which necessitate updates to existing policies and the development of new ones. Panel members were expected to actively participate in structured learning and development to meet strengthened knowledge and skills requirements, with LGPS Fundamentals training scheduled between October and December 2026. The training log, detailing sessions undertaken by panel members, the Pension Board, and officers, was also to be reviewed.

Quarterly Overview and General Matters

This item was scheduled to provide an overview of the Pension Fund's investment performance and market value as at 30 June 2026. The report indicated that the Fund's net assets were valued at £1,503.2 million, an increase of £105.5 million from the previous quarter. The report also included an update on general administrative and regulatory matters, as well as income and expenditure for the first quarter of the 2026/27 financial year.

Key points from the report included:

• Investment Performance: The overall Fund return for the quarter ending 30 June 2026 was 7.9%, outperforming the benchmark of 7.6%.
• Market Value: The market value of the Fund's investments at 30 June 2026 was £1,498.9 million.
• Late Contributions: The late payment register for April to June 2026 was to be reviewed, with officers working with late payers to minimise future occurrences.
• Annual Benefit Statements: 99.8% of scheme members received their annual benefit statements ahead of the statutory deadline, including McCloud remedy information. However, other aspects of the McCloud remedy, such as retrospective pension amendments, were not met due to software unavailability, which was to be reported to the Pensions Regulator.
• PIRC Voting Report: The report detailed proxy voting activity at 496 company meetings, covering 7,383 resolutions. Opposition votes were noted in areas such as gender diversity at board level and remuneration-related items.
• Net Dealing with Members: A table detailed the Pension Fund's net dealings with members from 2023/24 to 2026/27, showing total member income and expenditure.
• Breaches Register: The report outlined the requirement to report breaches to the Pensions Regulator and detailed the Fund's Breaches Policy. Breaches related to late contribution payments and the non-issuance of all annual benefit statements by the statutory deadline were noted.
• McCloud Remedy: The report detailed the progress and challenges in implementing the McCloud remedy, including the inability to complete retrospective pension amendments due to software issues, which would be reported to the Pensions Regulator.
• Pensions Dashboard: The Hounslow Pension Fund had successfully completed its connection to the Pensions Dashboard Programme, with public launch expected in the 2027/28 tax year.

Pension Fund Administration Performance Report and Update on Regulatory Matters

This item was scheduled to present a monitoring report from West Yorkshire Pension Fund (WYPF), which administers the Hounslow Pension Fund's services. The report covered performance and benchmarking for the period 1 April 2026 to 30 June 2026.

Key aspects of the report included:

• Key Performance Indicators (KPIs): Performance data across various work types was to be reviewed, with a focus on Priority 1 areas such as retirement quotes and actuals, and death processes.
• McCloud Remedy Impact: The McCloud remedy, workload volumes, and staffing levels were noted as impacting performance in several areas, with bottlenecks caused by the need for manual calculations and software limitations.
• Outstanding Processes: A table was to show the number of outstanding processes by aging, from less than 1 month to greater than 12 months.
• Internal Dispute Resolution Procedure (IDRP): The report was to detail cases processed through the IDRP, a two-stage process for resolving disputes.
• Customer Survey Results: Summaries of customer survey results from all funds in the shared service were to be presented.
• Employer Training: Details of training sessions delivered to employers on topics such as year-end queries, blocks and quarantines, and the employer portal were to be provided.
• Member Training: Information on webinars delivered for councillors and mayors regarding LGPS membership was to be included.
• Shared Service Costs: A detailed breakdown of shared service costs, including a five-year cost projection, was to be presented, along with the cost per member.
• Technical Issues: An update on current technical issues affecting the LGPS administration was to be provided.
• Web Registrations: Data on member registrations for the online member website was to be presented.

Pension Fund Risk Register

The Panel was scheduled to review the updated Pension Fund Risk Register for the period ending 30 June 2026. The report highlighted changes to specific risks:

• Geopolitical Risk (Risk 3.1): The likelihood of this risk was upgraded from 3 to 4, increasing the overall risk level from 12 to 16 (Medium High). This was attributed to the UK Government's recent announcement on sanctions related to the occupation of Palestinian territory. Further analysis of the implications was underway.
• Council and Pool Specialist Resourcing (Risk 17): The severity of this risk was raised from 3 to 5 due to the statutory requirement to appoint an Independent Person and a Senior LGPS Officer by 30 December 2026. The overall score increased from 12 to 15 (Medium High).

The report also provided a headline risk dashboard, detailing the top risks, key changes during the period, risk distribution, and key actions planned. The pooling of assets remained a high-rated risk, with the final draft investment management agreement to be presented for approval. The funding level remained at a Medium High rating, with a surplus noted from the March 2025 valuation. Cyber risk and data quality were also identified as Medium High risks.

Other Scheduled Items

The meeting was also scheduled to include:

• Minutes of the previous meeting held on 18 June 2026.
• Confidential minutes of the meeting held on 18 June 2026.
• Pension Board public and confidential minutes from the meeting held on 8 July 2026.
• An update on the LCIV IMA (Investment Management Agreement) and a review of expected returns.
• A presentation on the LCIV Pool Update.
• The Investment Adviser's Quarterly Report.
• The date of the next meeting, scheduled for 2 December 2026.
• A session for the exclusion of press and public to discuss confidential matters.