The Local Pension Board was scheduled to consider updates on the performance of the Pension Fund's investments and to review the implementation of significant reforms to Local Government Pension Scheme (LGPS) governance and pooling. The meeting was also scheduled to address the current state of pension fund matters as of June 2026.

Current Update on Pension Fund Matters

The Board was scheduled to receive an update on the Pension Fund's financial position as at 30 June 2026. The report indicated that the total value of the Fund had increased to £1,251 million, with a quarterly return of 8.44%, outperforming its benchmark. The report detailed the performance of various investment mandates, noting strong returns from equity holdings, particularly those linked to technology and artificial intelligence. It also outlined the Fund's asset allocation, highlighting areas where the Fund was overweight or underweight compared to its strategic targets. The report was also scheduled to provide information on cash balances and the Fund's income and expenditure for the quarter.

The report also detailed ongoing work within the pension administration function, including the migration to a new Member Self Service platform called Engage, and the review of council discretions policies. Updates were scheduled on the McCloud Remedy, which addresses historical discrimination in pension calculations, and the preparation of Annual Benefit Statements. The report was also to cover the reintroduction of councillors' access to the LGPS and adjustments to SCAPE¹ rates, which affect pension calculations.

LGPS Governance and Pooling Reforms: Implementation Update and Workplan

The Board was scheduled to be updated on the implementation of the Pensions Schemes Act 2026, which introduces significant changes to LGPS governance and investment arrangements. These reforms aim to strengthen accountability, improve governance standards, and ensure pension fund assets are managed efficiently. Key areas scheduled for discussion included enhanced knowledge and understanding requirements for Board members, the appointment of Senior LGPS Officers and Independent Persons, and the review of investment strategies and statements.

The report was scheduled to outline a workplan for ensuring compliance with the new regulations, which include updating the Investment Strategy Statement (ISS) and preparing a Governance Strategy. The ISS is to detail the fund's investment objectives, approach to risk, responsible investment policies, and asset allocation, with new requirements for setting local investment objectives. The Governance Strategy will set out governance structures, delegations, and decision-making processes.

The reforms also place emphasis on asset pooling, with a focus on the relationship between the Pension Fund and its pool, London CIV². The Board was scheduled to consider the execution of a revised Investment Management Agreement (IMA) with London CIV, which delegates day-to-day investment management while retaining fiduciary responsibility with the administering authority. The report was also to cover the requirement for independent governance reviews and the development of a training strategy to ensure Board members possess the necessary skills and knowledge.