The Pensions Board of Staffordshire Council met on Friday 25 September 2026 to discuss the Staffordshire Pension Fund Risk Register, focusing on governance. The board also received updates on the Local Government Association (LGA) and Scheme Advisory Board (SAB) activities.

Staffordshire Pension Fund Risk Register - Governance

The board was scheduled to review the governance risks within the Staffordshire Pension Fund Risk Register. This included a discussion of two high-level risks: the failure to have appropriate advisors in place and the need to monitor and report their performance, particularly concerning LGPS Central's role as Principal Investment Adviser. The report highlighted that under the LGPS Fit for the Future reforms, an independent person is required to support the LGPS Senior Officer and the Pensions Committee, with the appointment process on track for the statutory deadline of 30 December 2026.

Twelve medium-level risks were also identified, including:

• Regulatory Change: The need to keep pace with evolving legislation, governance standards, and regulatory requirements, including changes from the Fit for the Future reforms and the Pension Schemes Act 2026.
• Asset Safeguarding and Custody (LGPS Central): The necessity of maintaining effective oversight and appropriate governance arrangements for LGPS Central as pooling arrangements mature.
• Pensions Committee Knowledge and Understanding: Ensuring members of the Pensions Committee possess the necessary skills and knowledge as required by statutory guidance that came into effect on 30 June 2026.
• Legislative Compliance: The importance of updating systems and processes for legislative changes, training staff, and communicating these changes to Scheme employers. The board was awaiting consultation responses on phase 2 of the Access and Fairness and Access and Protections consultations, which could introduce further regulatory changes.

The report indicated that while these medium-risk areas were considered well-managed with appropriate controls, the scores reflected the uncertainty of regulatory and legislative changes and the likelihood of events occurring. The full list of governance risks was presented in Appendix 1 of the report for the board's consideration.

Local Government Association (LGA) and Scheme Advisory Board (SAB) Update

The board was scheduled to receive an update on current issues being addressed by the Local Government Association (LGA) and the Scheme Advisory Board (SAB). This update included information on government consultations regarding Access and Fairness and Access and Protection.

Under the Access and Fairness to-do list, key actions included disclosing regulatory changes to all scheme members by 30 June 2026. Specific timelines were outlined for addressing survivor pension equalisation, including identifying in-scope records by 1 July 2026 and establishing contact with survivors by 30 September 2027, with rectification by 1 January 2028. Similarly, for the removal of the Death Grant age 75 cap, actions included identifying in-scope records by 1 July 2026 and calculating amounts due to beneficiaries by 1 October 2026, with rectification by 1 January 2028. Software updates were noted as necessary for revised benefit calculations. The update also touched upon the Gender Pensions Gap and unpaid leave, with compulsory contributions applying from 1 April 2026.

The LGA update on government consultations for Access and Fairness indicated that phase two proposals were expected later in 2026, covering forfeiture guidance, 5-year refunds for post-2014 leavers, and the mandatory collection of opt-out data.

Regarding Access and Protection, elected members (councillors) became eligible to join the LGPS from 11 May 2026, with the first waivers joining on 1 June 2026. Website updates and new starter letters were issued, and software updates were noted as required for benefit calculations. Phase two proposals for Access and Protection were also anticipated later in 2026, potentially covering Normal Minimum Retirement Age (protections), the New Fair Deal (replacing admitted bodies and broadly comparable schemes with deemed employers), and Academy Consolidations (with a value for money assessment favouring consolidation).

A Fit for the Future update detailed that regulations were due to come into force on 30 June 2026, supported by statutory guidance on Pooling, Fund Governance, and the Investment Strategy Statement. This guidance covered preparing an Investment Strategy Statement, Fund Governance (including Knowledge & Understanding, LGPS Senior Officer, Independent Person, and Independent Governance Review), and asset pooling.

An update on Local Government Reorganisation (LGR) noted that guidance for LGPS Administering Authorities was published on 31 July 2026. Considerations for selecting a new administering authority included governance, operational capacity, cyber security, service for scheme members and employers, and potential for future mergers. A deadline for submitting proposals was set, with a pause and review of LGR announced by the government on 7 September 2026.

The Scheme Advisory Board (SAB) published a report on 14 July 2026 summarising the results of the 2025 valuation, showing funding levels at 122% and a surplus of £72.9bn. Membership had increased to 7.2 million, with average employer contribution rates decreasing. The Gender Pensions Gap was reported at 30% for CARE and 40% for FS.

General updates for the Staffordshire Pension Fund (SPF) included a Pensions Awareness Week webinar delivered to over 250 scheme members on 16 September 2026, and the publication of Annual Benefit Statements on 31 August 2026. Regarding the McCloud remedy, the report noted that The Pensions Regulator (TPR) had contacted funds regarding expectations and breach reporting requirements. Discretion was applied for the 2024/25 Annual Benefit Statements not to include estimated McCloud underpin for approximately 2,000 members. Operationally, around 33,000 records were in scope, with 93% reviewed, and 371 pensions increased as part of rectification. The fund, along with most LGPS Funds, intended to report the breach and provide a McCloud update to TPR by the end of September.

The meeting was scheduled to conclude with an Exclusion of the Public section to discuss exempt information, including exempt minutes and the Staffordshire Pension Fund Breaches Log 2025/26, and Internal Audit Reports & Recommendations Progress Log.