The Pensions Committee of Worcestershire Council met on Tuesday 29 September 2026. The committee reviewed the Risk Register, the Fund's Business Plan for 2026/2027, and the Communications and Training Update.

Risk Register (Agenda item 9)

The committee reviewed the recommendations within the Risk Register. The register, reviewed in August 2026, identified changes to three risks: Compliance and Legal Risks 1 and 2, which saw their impact rating increase from 'Low' to 'Moderate' due to pending training completion. Compliance and Legal Risk 5 was amended to reflect the appointment of the LGPS Senior Officer and policy updates for 'Fit for Future' compliance. Engagement Effectiveness Risk 13 had its internal controls and mitigations narrative updated to reflect the 2026 member survey. These changes did not alter the overall Red, Amber, Green (RAG) risk rating for any of the identified risks.

Business Plan 2026/2027

The committee reviewed the Worcestershire Pension Fund Business Plan for 2026/2027. The plan outlines the Fund's priorities and planned activities, focusing on governance, administration, communications, and investment. Key ongoing projects include the McCloud remedy, Pensions Dashboards Programme, Survivor Pension Equalisation, and an AVC review. The plan also details employer movements and the Fund's resourcing, data quality, and governance activities. The committee was asked to consider the move to a new AVC provider following the AVC review.

Communications and Training Update

The committee reviewed the Communications and Training Update. The Fund has continued to deliver a programme of communication activity, including the distribution of Annual Benefit Statements, a member survey, an investment survey, and consultation on the draft Investment Strategy Statement. Website usage insights were presented, showing members are primarily seeking support and access to services, with a steady increase in member portal registrations. The update also detailed training delivered to active members and the Pensions Team, alongside upcoming conferences and training opportunities for Board and Committee members. The national knowledge assessment for Board and Committee members was also highlighted.

2025 Valuation Update

The committee received an update on the 2025 actuarial valuation. The report compared Worcestershire Pension Fund's position to the national LGPS picture in England & Wales. The Fund's reported funding level was 127%, ranking 36th out of 86 funds, with an average employer contribution rate of 16.6% of pay. The report noted that the improvement in funding levels and reduction in contribution rates were primarily driven by higher assumed future investment returns. The analysis indicated that the Fund's funding strategy meets regulatory requirements for solvency and long-term cost efficiency.

Risk Register

The committee reviewed the August 2026 Worcestershire Pension Fund Risk Register. As noted in the Business Plan update, changes were made to Compliance and Legal Risks 1 and 2, and Engagement Effectiveness Risk 13. The report detailed the updated mitigating actions for these risks and confirmed that these amendments did not alter the overall RAG risk rating.

Governance and Compliance Update

The committee received an update on governance and compliance matters. This included information on Local Government Reorganisation in Worcestershire, the Data (Use and Access) Act 2025, and the appointment of an Independent Person and an LGPS Senior Officer. The report confirmed that the Fund had no areas of non-compliance identified in the General Code of Practice review, with opportunities for further strengthening of the governance framework. A cyber security review, including an impact analysis and war game exercise, was also discussed. Policy reviews for Breaches of Law and Personal Data Retention were completed, with updates made to reflect current legislative requirements.

Forward Plan

The committee reviewed and commented on the proposed Forward Plan for upcoming agenda items. The plan outlines anticipated topics for future meetings, including Investment Governance Updates, LGPS Central budget and business plan, ESG reports, Annual Reports and Accounts, Stewardship Code updates, the Business Plan, Investment Strategy Statement updates, Funding and Administration Strategy reviews, Strategic Asset Allocation Review updates, Training updates, Investment Portfolio updates, Budget reviews, Internal Audit reports, Risk Register updates, Governance updates, and Pension Board/regulatory updates.

Communications and Training Update

The committee reviewed the Communications and Training Update. This included details on the ongoing distribution of Annual Benefit Statements, the member survey, and the investment survey. The update also highlighted the progress on the Pensions Dashboards Programme, Survivor Pension Equalisation, and the removal of the age 75 limit on Death Grants. Training activities for Board and Committee members, including LOLA modules and pre-meeting sessions, were also detailed, alongside the upcoming national knowledge assessment.