The Pension Board of Gloucestershire Council is scheduled to convene on Wednesday 21 October 2026. The meeting's agenda includes a review of the Gloucestershire Pension Fund's audit and financial statements for the 2025-26 period, alongside updates on the implementation of LGPS regulatory reforms and the development of the Fund's investment strategy.

Pension Fund Audit and Financial Statements 2025-26

The Board is scheduled to receive an update on the progress and findings of the external audit for the Gloucestershire Pension Fund's financial statements for the 2025-26 year. This will include a review of the Draft Audit Findings Report from KPMG. The audit is reported to be well-progressed, with KPMG expecting to issue an unmodified audit opinion, subject to the satisfactory resolution of a few outstanding procedures. Key audit findings to date have not identified any material misstatements or significant issues affecting the financial statements. One control recommendation was raised concerning the late receipt of a deficit contribution payment from Gloucester City Council, which has since been rectified. Two historic SAP-related control recommendations concerning system access, segregation of duties, and journal controls remain under review following the implementation of a new cloud-based SAP system.

Pension Fund Annual Report and Taskforce on Climate-Related Financial Disclosures Report 2025-26

The Board is scheduled to note the Pension Fund Annual Report for 2025-26, which incorporates the Pension Board Annual Report approved in July. The report is required to be published by 1 December 2026. Additionally, the Board will be informed that the Fund's Taskforce on Climate-Related Financial Disclosures Report 2025-26 has been published on the Fund's website. This report details the Fund's approach to climate-related risks and opportunities, noting progress in areas such as achieving net-zero emissions by 2045 and reducing the carbon footprint of its listed equity portfolio. Challenges regarding data quality, particularly in private markets and for Scope 3 emissions, are also acknowledged.

LGPS Regulatory Reforms

A significant portion of the meeting is dedicated to the implementation of the 2026 LGPS governance reforms. The Board is scheduled to receive an update on progress, including proposed constitutional changes, the recruitment of an Independent Person, and the development of the Governance Strategy. Furthermore, the commencement of consultation on the draft Investment Strategy Statement and Investment Policy Statement will be noted. The Board is invited to provide comments on these governance and investment documents for consideration by officers and the Pension Committee. Key reforms include the appointment of an LGPS Senior Officer, revised Pension Committee Terms of Reference, and the development of a comprehensive Governance Strategy. The draft Investment Strategy Statement outlines the Fund's high-level investment objectives, strategic asset allocation, and approach to responsible investment, while the Investment Policy Statement provides further detail on implementation preferences.

Gloucestershire Pension Fund Update – Governance & Operations

The Board is scheduled to receive an update on various governance and operational matters. This includes noting the draft Pension Committee minutes from 29 September 2026, an update on employers admitted to and exiting the Fund, and the Fund's approach to Local Government Reorganisation. A review of the Risk Register will be presented, highlighting a revised framework categorising risks into Governance, Funding and Investment, and Operational. Several risks are identified as being above the Fund's target position, including those related to Pension Committee and Local Pension Board governance, officer capacity, key person dependency, supplier oversight, and the uncertainty surrounding Local Government Reorganisation. The report also covers the 2026/27 budget forecast, which indicates a projected underspend, and progress against the 2026/27 business plan. Operational updates will include information on the production of Annual Benefit Statements, Pension Awareness Week activities, and Key Performance Indicators, which show a slight fall below target in transfer out and dependant benefits due to SAP system implementation issues.

Gloucestershire Pension Fund Update - Funding & Investments

The Board is scheduled to receive an update on the Fund's funding position, investment performance, strategic asset allocation, and transition activities. The estimated funding level at 30 June 2026 is reported as strong at 156%. Investment performance over the quarter to 30 June 2026 saw an increase in the Fund's total market value, although performance over the last 12 months and three years has underperformed the strategic benchmark. The report details the completion of asset transitions from Brunel Pension Partnership to LGPS Central, with aggregate costs for underlying asset transitions amounting to approximately £2.74 million. An update on the Brunel Pension Partnership closure is also provided, indicating anticipated liquidation in late 2026. The Responsible Investment update includes information on LAPFF engagement activities and LGPS Central's stewardship efforts.

The meeting will also address the Pension Fund Audit & Financial Statements 2025-26, with the Board asked to note the progress and findings of the external audit and the Draft Audit Findings Report.

The agenda also includes the Pension Board minutes from the meeting held on 29 July 2026 for noting.

Finally, there is a scheduled item for the exclusion of the press and public to discuss exempt minutes from the 29 July 2026 meeting.