The Pension Fund Committee was scheduled to consider a range of important financial and strategic matters concerning the management and performance of the council's pension fund. Key discussions were scheduled to include updates on pension administration and projects, the fund's financial management and performance reports, and the annual report and statement of accounts for 2025/26. The committee was also scheduled to review investment strategy options, including the performance measurement of illiquid private markets allocations and the responsible investment policy.

Pension Administration Update

The committee was scheduled to receive an update on pension administration, noting the continued strong performance of Hampshire Pension Services. The report was to cover casework, member portal engagement, employer data, and preparations for monthly pension returns. It was also scheduled to address the retrospective review arising from the April 2026 Access and Fairness changes, which included equalisation of survivor benefits and the removal of the age 75 limit for death grants. Hampshire Pension Services had identified 748 Westminster records requiring calculation or further review as part of this process.

Pension Projects and Governance Update

A report on pension projects and governance was scheduled to update the committee on various statutory and other projects. This included a breach affecting five members whose 2026 Annual Benefit Statements could not include complete McCloud underpin information by the statutory deadline. Officers assessed this breach as not materially significant, as available calculations indicated none of the five members was due an underpin. The report was also scheduled to provide an update on the Teachers' Pension Scheme, noting that Hampshire Pension Services had identified 463 excess-service cases nationally, with no breakdown by fund or employer available yet. The Pensions Dashboards Programme was reported to be on track for the statutory connection deadline of 31 October 2026. Other projects scheduled for discussion included research on the diversity pension gap, cybersecurity, business continuity plans, data protection and retention, and the pension communications and engagement programme.

Fund Financial Management

The committee was scheduled to consider the Fund's principal risks and cashflow position. The risk register was to be updated to reflect CIPFA guidance, with the top five risks highlighted. These included significant volatility in global investment markets due to geopolitical and economic uncertainty, investment managers failing to achieve benchmark targets, global investment markets failing to perform in line with expectations, the Pension Scheme Bill's reforms impacting asset pooling, governance, and local investment, and price inflation remaining above anticipated levels. The cashflow forecast for the next three years was to be updated, with actuals shown to 30 June 2026 for the Pension Fund bank account and cash held at custody.

Quarterly Performance Report

A quarterly performance report was scheduled to be presented, detailing the performance of the Fund's investments and the updated funding position as at 30 June 2026. Members were to be advised that the funding level remained strong, notwithstanding movements in the estimated figure, and that more recent market movements were expected to be reflected in the next quarterly report. The committee was also scheduled to discuss the measurement of private market performance, noting that short-term reported returns could be affected by the J-curve and long investment periods associated with those assets.

Pension Fund Annual Report and Statement of Accounts 2025/26

The committee was scheduled to consider the draft Pension Fund Annual Report and Statement of Accounts for the year ended 31 March 2026. The report indicated that the Fund's net assets were £2.234bn as at 31 March 2026, a net increase of £138.5m from the previous year. This increase was largely due to positive performance within global equity mandates. The Fund returned 6.6% over the financial year, underperforming its benchmark by 4.6% net of fees. The estimated funding level decreased to 126% at 31 March 2026, compared with 140% at 31 March 2025. Management expenses increased by £3.958m to £19.776m, primarily due to higher investment management fees.

Performance Measurement of Illiquid Private Markets Allocations: Best Practice for Pensions

This paper was scheduled to set out best practice for measuring private markets performance, apply it to a worked example from Westminster's own 31 March 2026 quarterly performance report, and compare how other LGPS funds and pools are approaching these questions. Private markets, including private equity, private credit, infrastructure, and real assets, form a meaningful and growing share of most pension funds' strategic allocations. These illiquid allocations are pursued for diversification, an illiquidity premium, and access to opportunities not available in listed markets. Because these assets are not continuously priced, standard listed market performance tools do not apply, nor do they transfer cleanly.

Investment Strategy Options

The committee was scheduled to consider additional asset allocation options for discussion with Isio and London CIV representatives. These options were formulated by Isio to provide a range of approaches to improving asset diversification and reducing risk while maintaining the Fund's listed global equity allocation at 55%. The options included increasing allocations to Multi Asset Credit, Index-Linked Gilts, Long Lease Property, and other illiquid assets. The report was to outline the key features and merits of each option, considering the Fund's long-term objectives, risk and return requirements, and funding position.

Independent Pension Appointment

Approval was sought to regularise and continue the appointment of Kristen Weldon as the Pension Fund's Independent Adviser for the period 25 June 2026 to 31 December 2026, and to appoint her as the Fund's statutory LGPS Independent Person with effect from 31 December 2026. This appointment was intended to provide continuity of independent professional challenge while implementing new governance requirements. The statutory Independent Person role has a broader governance remit than the previous independent investment adviser role, supporting the LGPS Senior Officer and Pension Fund Committee across investment, governance, and administration.

LGPS Governance and Pooling Reforms

The committee was scheduled to be informed of the completed appointment of the LGPS Senior Officer, the associated job description and constitutional amendments, and the wider governance and pooling changes. These reforms give investment pools a substantially greater role in implementing Pension Fund investment strategies while strengthening senior officer accountability within administering authorities. The Section 151 Officer had exercised delegated powers to amend the Tri-Borough Director's job description and appoint the existing postholder, Phil Triggs, as LGPS Senior Officer.

Private Markets: Current Portfolio and LCIV Transition Assessment

This report was scheduled to analyse the Westminster City Council Pension Fund's existing private markets investments and the London CIV's current and future private markets offering. It was also to discuss potential issues related to the transition of the Fund to the London CIV. The report noted that private markets allocations were modestly underweight their targets, largely because newer vintages were in their early drawdown phase. The performance of these mandates was mixed. From 31 March 2026, implementation authority was to pass to the London CIV, with existing off pool private market managers permitted to run off and future commitments directed to LCIV's pooled private markets funds.

Temporary Investment Consultancy Arrangements During Transition to the London CIV

Approval was sought for the appointment of Isio for a strictly limited six-month period from 1 October 2026 until 31 March 2027. This appointment was intended to bridge the transition between the expiry of the Fund's existing investment consultancy framework and the point at which London CIV expects to provide its complete investment advisory offering. Isio would be available only to undertake discrete pieces of commissioned specialist work where London CIV confirms that the required capability is not yet available.

Responsible Investment Policy 2026

The committee was scheduled to consider a revised Responsible Investment (RI) Policy for the Westminster City Council Pension Fund. The Policy had been substantially updated to reflect the new statutory framework for the LGPS, the strengthened role of London CIV in implementing investment strategy, the Government's position on matters of national policy, and the developing London CIV Responsible Investment framework. The revised Policy aimed to provide a clear and durable statement of Westminster's approach, founded on fiduciary duty, financial materiality, appropriate stewardship, and consistency with UK law, statutory guidance, and UK Government policy.

Training Strategy 2026-2029

This report presented a revised LGPS Committee Member Training Strategy 2026-2029 Policy for the Westminster City Council Pension Fund. The Strategy was designed to set out how Pension Committee members would develop the knowledge, skills, and understanding needed to meet fiduciary, governance, and regulatory responsibilities while overseeing the Pension Fund in a complex investment environment. It was to reflect the 2026 LGPS governance requirements, the Pensions Regulator's General Code, the CIPFA framework, and emerging Fit for the Future reforms.