The Pensions Committee of Lewisham Council met on Thursday 15 October 2026 to discuss the draft annual report and statement of accounts, receive updates on the fund's administration and investments, and consider changes resulting from new guidance on LGPS governance. The committee approved the draft Pension Fund Annual Report for publication by the statutory deadline of 1 December 2026. They noted that any amendments to the statement of accounts or the annual report, following the completion of the external audit by KPMG, would be brought back to the committee.

Draft Annual Report and Draft Statement of Accounts 2025/26

The committee approved the draft Pension Fund Annual Report for publication by the statutory deadline of 1 December 2026. They noted that any amendments to the statement of accounts or the annual report, following the completion of the external audit by KPMG, would be brought back to the committee.

General Update Report - Part One

This report covered several key areas for the committee.

Administration Team Update: Katharine Nidd, Director of Finance, provided an update on the administration team, noting that despite some staff departures, continuity arrangements were in place. Recruitment for vacant positions was ongoing, and the team had successfully completed year-end accounting exercises ahead of schedule. The committee was informed that the 2026 Annual Benefit Statements were issued electronically for the first time, with a strong uptake in portal registrations. Data quality testing showed a pass rate of 92.6%, with ongoing efforts to improve this. The Pensions Dashboard project was progressing well, with high matching data quality, although public launch is now anticipated for 2027/28. Annual Allowance calculations were complete, and Pension Saving Statements were being issued to members who had breached or were close to breaching allowances.

Draft Training Strategy and Draft Training Plan: A new requirement under LGPS fund governance guidance is the development of a formal Training Strategy. The draft strategy and plan, developed with input from committee members and in consultation with London CIV, aim to ensure that all individuals involved in the fund's governance maintain appropriate knowledge and understanding. The plan outlines training themes including core induction, governance and regulatory training, investment and pooling, administration, and funding and actuarial training. The committee noted the draft strategy and plan, with further review by London CIV anticipated.

Investment Updates: Officers, working with London CIV (LCIV), have finalised an implementation plan for the revised Investment Strategy Statement (ISS). This plan includes reducing the fund's exposure to listed equities and increasing allocations to credit assets and UK Government bonds. A key transaction involved moving £95 million from the LCIV Passive Paris Aligned Equity Fund (PEPPA) to the LCIV All Maturities Buy & Maintain Credit Fund. Further allocations to index-linked government bonds were also planned. Investment activity continued in private markets, with capital calls received for the LCIV Private Debt II Fund and the LCIV Buy & Maintain Fund.

London CIV Services: The fund is procuring LCIV's Pension Advisory and Support Service (PASS) to enhance support for investment strategy, governance, and regulatory compliance. This service aims to reduce reliance on multiple external consultants and provide integrated support. The fund is also utilising LCIV's service to review its Investment Strategy Statement to ensure alignment with new regulations and pooling arrangements. LCIV is providing training sessions for officers and committee members on the new LGPS regulations. Additionally, the fund will receive a Climate Analytics Service from LCIV at no cost, providing detailed assessments of climate-related metrics for listed equity and corporate fixed income holdings.

Pension Board Update: The report highlighted the Pension Board's oversight role in ensuring compliance with LGPS regulations and best practice. The Board met on 21 September 2026 and discussed the Pension Fund Annual Report and Accounts, administration updates, pooling with LCIV, new LGPS guidance, and LCIV's quarterly performance report. The Board's membership is changing, with efforts underway to fill two vacancies.

Changes Resulting from New Guidance

This report detailed the significant changes arising from new LGPS fund governance and asset pooling guidance issued in June 2026.

LGPS New Guidance: The statutory guidance mandates participation in a single FCA-authorised asset pool, with pools responsible for investment implementation. Administering authorities retain responsibility for setting high-level objectives. Local investment targets are now required, and pools must support these while ensuring fiduciary duties are met. Enhanced governance, transparency, and accountability are expected, with pools required to publish annual reports.

LGPS Senior Officer: A new statutory role of LGPS Senior Officer has been created, responsible for overall management of pension functions, including administration, investments, funding, governance, and communications. This role must be held by a senior officer, separate from the Section 151 Officer, and appointed by the Chief Executive Officer by 31 December 2026. Lewisham Council is in the process of appointing its LGPS Senior Officer.

Independent Person: A mandatory Independent Person role has been introduced to provide independent expertise, challenge, and scrutiny to pension committees and senior officers. This role requires appropriate qualifications or experience and must be appointed by 31 December 2026. Lewisham Council is considering whether to advertise for this role or procure it from a pension advisory firm.

Changes to Terms of Reference: The terms of reference for both the Pensions Committee and the Pension Board have been revised to align with the new LGPS governance framework and recent legislation. These changes, approved by Full Council on 23 September 2026, include renaming the Pensions Investment Committee to the Pensions Committee, incorporating the Independent Person as a non-voting member, formally recognising the LGPS Senior Officer role, and updating legislative references. The committee's responsibilities now explicitly include fiduciary duty, overseeing administration, maintaining key fund strategies, adopting a Training Strategy, overseeing Independent Governance Reviews, and ensuring compliance with all relevant legislation. The responsibility for appointing fund managers has been removed, as this function now lies with the pool.

Update Report on Responsible Investment (RI)

The committee reviewed a report responding to the Chair's request for a review and potential updates to the Fund's Responsible Investment Beliefs Statement. The proposal, driven by recent international conflicts and sanctions, seeks to screen and exclude companies and sovereign issuers involved in war crimes, crimes against humanity, genocide, violations of human rights, and exploitation in occupied territories. The committee agreed to ask officers to undertake further work, including obtaining specialist legal and London CIV advice, conducting necessary assessments and consultations, and to formally report back on progress at each meeting.

The meeting also confirmed the committee's start time for the municipal year 2026/27 would remain at 7 p.m. and noted the date of the next meeting as 3 December 2026.