The Pension Board of Harrow Council met on Thursday 22 October 2026 to discuss the Pensions Administration Performance and Monitoring report for the quarter ending September 2026, and to review three draft pension fund strategies. The Board also reviewed items previously considered by the Pension Fund Committee.

Pensions Administration Performance and Monitoring

Yvette Salthouse, Head of Payroll and Pensions, presented the Pensions Administration Performance and Monitoring report for the quarter ending September 2026. She highlighted an improvement in the performance of the administration team, with a nearly 25% increase in efficiency compared to the previous quarter. This improvement was attributed to the recruitment of two permanent staff members and the internal filling of another post, although two vacancies still remain.

However, the report also noted an increase in complaints, with four received in the last quarter, primarily due to delayed responses. A significant issue raised was a breach concerning the Annual Benefit Statement (ABS), where specific member-specific details regarding the McCloud remedy were not included. This breach has been reported to the Pensions Regulator, and external support is being sought to address the backlog, with a target completion date of 31 March 2027.

During the discussion, Gerald Balabanoff, Scheme Members' Representative (Pensioners), inquired about the current size of the admin team, which was confirmed to be 10 people plus Yvette Salthouse. Binitta Shah, Employer Representative, asked about feedback from the Pensions Regulator regarding the breach, to which it was stated that no feedback had been received yet. Concerns were also raised about potential historical data issues emerging as the McCloud remedy work progresses, with an estimated 2,000 individuals potentially affected.

Draft Pension Fund Strategies

Sharon Daniels, Director of Finance, presented three draft strategies for the pension fund: a Conflicts of Interest Policy, a Governance Strategy, and a Training Strategy. These strategies are required under the Local Government Pension Scheme (Amendment) (Governance) Regulations 2026.

The Draft Conflicts of Interest Policy was discussed, with Gerald Balabanoff noting that while an existing policy was updated in March 2022, this draft represents a complete rewrite. He suggested adding the newly appointed independent person to the application of the policy. Binitta Shah raised concerns about ensuring potential conflicts are identified, disclosed, and managed, particularly as the fund becomes more reliant on external advisors. Sharon Daniels confirmed that external advisors would need to adhere to the policy. Questions were also raised about the process for investigating alleged undeclared conflicts, with Sharon Daniels stating she would follow up on this.

The Draft Governance Strategy outlines how the fund is governed, how decisions are made, and how they are overseen. It covers fund delegations, the Pension Fund Committee, the LGPS senior officer role, and the appointment of an independent person. The strategy noted that the first appointment of an LGPS senior officer would be made within six months of the regulations coming into force, by 31 December 2026.

The Draft Training Strategy addresses how officers, board, and committee members will meet knowledge and understanding requirements. It acknowledges the complexity of the pensions world and the need for ongoing training. A recent training session on local investment was highlighted as beneficial but also indicated a desire for more in-depth training. The strategy mentions an e-learning toolkit from The Pensions Regulator and outlines expectations for Pension Fund Committee members, Pension Board members, and officers.

The Board was asked to provide any comments on these draft strategies, which would then be forwarded to the Pension Fund Committee for consideration.

Review of Pension Fund Committee Items

The Board reviewed items previously considered by the Pension Fund Committee. This included the Quarterly Actuarial Funding Position Update for the quarter ending 30 June 2026, which showed a stable funding level of 108%. The Fund valuation and performance monitoring report for June 2026 was also discussed, noting that while the last quarter's performance was slightly above benchmark, the one-year and three-year performance figures were under the benchmark.

Concerns were raised about the underperformance of the London CIV¹ for an extended period, although the most recent quarter's figures were welcomed. Binitta Shah questioned why a strong investment return of 15.04% had not translated into a further improvement in the funding level, and clarification was sought on the period to which this figure related.

The Board also noted the ongoing wind-down of the LaSalle Property Fund of Funds, with an anticipated completion by the end of 2026, though this could extend into 2027 depending on market conditions.