The Pensions Committee of Havering Council met on Tuesday 29 September 2026 to discuss updates on pension scheme reforms, the investment strategy, and the fund's performance and business plan.

Fit for the Future Update

The committee received an update on the Fit for the Future reforms introduced by the government, which aim to strengthen governance, improve asset pooling, and enhance investment decision-making within the Local Government Pension Scheme (LGPS). These reforms, stemming from the Pension Schemes Act 2026 and associated regulations, came into force on 30 June 2026. The report detailed the final regulatory requirements, including strengthened governance, the requirement for an LGPS Senior Officer and an Independent Person to be appointed by 31 December 2026, and the publication of the first Investment Strategy Statement by 31 March 2027. Havering Pension Fund was noted to be on track to meet these requirements, with asset pooling already completed and recruitment for the new officer roles in progress.

Investment Strategy Statement Update

The committee was asked to approve a revised draft Investment Strategy Statement (ISS) for consultation, reflecting the updated LGPS regulations and a new approach to local investment. The revised strategy defines local as the geographical area covered by the London CIV pool, including the London Borough of Havering, and proposes a maximum allocation of up to 10% to local investments, subject to suitable opportunities. This represents an increase from the previous 5% allocation. The strategy also outlines high-level investment objectives, including a return objective of at least 5.5% per annum and a risk objective to maintain a funding level above 100% with at least a 75% likelihood over a 20-year horizon. The committee noted the draft ISS as the basis for consultation and delegated authority to the Strategic Director of Resources, in consultation with the Pensions Committee Chair, to finalise and publish it.

Performance Monitoring Report

The committee reviewed the Pension Fund's investment performance for the quarter ending 30 June 2026. The total value of the fund's investment portfolio stood at £1.18 billion, achieving a net positive return of 6.1% over the quarter. This performance was largely driven by strong global equity markets. While the fund delivered positive returns across all periods, it slightly underperformed its benchmark. The report also noted that an Investment Management Agreement with London CIV had been executed in July 2026, formalising London CIV's role in managing the fund's assets. A strategic implementation plan from London CIV was expected within 90 days of signing.

Business Plan 2026-2030

The committee considered the Havering Pension Fund Business Plan for 2026-2030, along with its budget and detailed work programme for 2026/27. The plan outlines how the fund will meet its statutory responsibilities and strategic objectives, with key priorities including strengthening governance and regulatory compliance in response to LGPS reforms, improving data quality and readiness for Pensions Dashboards, overseeing investment performance and pooling arrangements, and managing funding risks. The proposed budget for 2026/27 is £6.724 million, an increase of 7.6% from the previous year, reflecting increased requirements in governance, regulatory compliance, administration, and investment oversight.

Pensions Administration Budget 2026-27

The committee was asked to consider moving to a closed session to discuss the pension administration budget of £0.753 million for 2026/27, which is to be paid to Lancashire County Council via Local Pensions Partnership Administration (LPPA). This represents a 1.79% increase compared to the 2025/26 budget. The budget is based on a cost-per-member rate and is subject to full cost recovery by LPPA.