The Pension Board is scheduled to convene on Thursday 29 October 2026 to review the performance of the Pension Administration Service, discuss ongoing projects, and examine the Annual Report and Accounts for 2025/26. The meeting will also cover updates on governance, risk, and the LGPS Fit for the Future initiative.

Pension Administration Performance Update

The Pension Administration Performance Update report is scheduled for discussion. This report will provide an overview of the key administration performance statistics for the Shared Pensions Administration Service up to August 2026. It is noted that the total number of outstanding processes has risen, attributed to the annual year-end return exercise and the suspension of SCAPE rate transfer processing. Despite these pressures, the report indicates that Priority One cases have maintained Service Level Agreement (SLA) compliance. The report also highlights that the Sutton and Kingston Shared Pensions Administration Service has been shortlisted for the Pension Administration Award at the 2026 LAPF Investments Awards.

Pension Administration Projects Update

The Pension Administration Projects Update will provide information on key administration projects. This includes an update on the Annual Benefit Statements for 2026, noting that while statements for active and deferred members have been produced, those in scope of the McCloud Remedy do not yet feature individual underpin calculations due to industry-wide software delays. The report details the McCloud Remedy legislation, which aims to rectify age discrimination in the Local Government Pension Scheme (LGPS) reforms. Data collection, validation, and loading phases for the McCloud Remedy are complete, but a regulatory breach has occurred due to the inability to include statutory McCloud underpin calculations in the initial statements. This breach has been reported to The Pensions Regulator. Updates on the LGPS Regulations 2026 – Access & Fairness project and the Pension Dashboard Programme are also scheduled.

Annual Report and Accounts 2025/26

The Pension Fund Annual Report and Statement of Accounts for 2025/26 are scheduled for review. The report indicates that the net assets of the Fund exceeded one billion pounds for the first time, reaching £1,081 million. The Fund returned 9.1% over the year, slightly behind the LGPS universe average. Membership numbers increased, and the Fund has increased its proportion of assets pooled with the London Collective Investment Vehicle (LCIV) to 91%. The cost per member for administering the scheme has reduced further to £272. The draft 2025/26 Annual Report is available, with the final report due by 1 December 2026.

Governance and Risk Update

The Governance and Risk Update will provide an overview of key governance activities and a review of the Fund's risk register. Risks are categorised under Administration, Funding and Investments, and Governance. Administration risks are currently rated amber overall, while Funding & Investments and Governance risks are rated green. A significant risk highlighted is Risk 21 (Administration), rated red, concerning the software provider's failure to deliver compliant software, leading to a regulatory breach regarding McCloud-compliant annual benefit statements. Updates on other amber risks, including legislative changes, committee and board member knowledge, cyber security, climate change impact, adverse market movements, and the implementation of Fit for the Future reforms, will also be discussed. The report also notes that the contract for the pensions administration software is due to expire in August 2027, and a procurement project is underway.

Work Programme Update

A draft work programme for the Pension Board's meetings over the next year is scheduled for discussion. This programme outlines indicative agenda items, which may be varied based on developments. The proposed items include training sessions on Pensions Governance, Pension Administration Performance and Projects Updates, Budget Monitoring, Governance and Risk Updates, the Pension Fund Accounts Audit Findings, Pension Committee Updates, and Responsible Investment and Stewardship Updates.

Pension Committee Update

The Pension Board is invited to note the finance and investment papers from the Pension Committee meeting held on 29 September 2026. Highlights include the Pension Committee's draft work plan for the year ahead, which incorporates standard quarterly updates and additional items such as budget monitoring and the Fit for the Future Pension Reforms Update. The report details the Fund's investment performance as at 30 June 2026, showing a market value of £1.14 billion, an increase of £80 million over the previous quarter. While the quarterly return was 7.2%, the Fund underperformed its benchmark by -1.4%. The report also discusses the Fund's asset allocation, noting an overweight position in Listed Equity and underweight positions in Private Equity, Property, Infrastructure, and Private Credit. Actions to address these discrepancies are outlined, including transitioning active equity holdings to the new LCIV Core Equity Fund. Updates on London CIV's pooling position and the implications of the Fit for the Future regulations are also provided.

LGPS Fit for the Future Update

This report provides an update on the implications of the 2026 regulations and guidance for the LGPS Fit for the Future initiative. The legislation focuses on three key areas: Asset Pooling, Investment Strategy Statement (ISS), and Fund Governance. It confirms that high-level strategic decision-making remains with partner funds, while implementation responsibility transfers to investment pools. The report details minor amendments required for the Fund's Investment Strategy Statement to comply with the new regulations, including adding expected returns and clarifying text on local investment. Significant challenges are noted in the area of Fund Governance, particularly concerning the new Senior LGPS Officer role, the appointment of an Independent Person, and stringent knowledge and training requirements for committee members and officers. Key actions for the remainder of 2026 include making these appointments and updating constitutional documents and policies.

The meeting is scheduled to take place virtually at 10:00 am on Thursday, 29 October 2026.