This meeting covered an update on the status of the government's consultation on pensions reform and a summary of the performance of the investments held by the London Borough of Sutton Pension Fund. It also included an update on the performance of the council in administering the pensions scheme.

Government Pension Reform

The committee was scheduled to receive an update on the government's ongoing consultation on pension reform. The consultation was launched by the Minister for Pensions, Emma Reynolds, and is titled [Local Government Pension Scheme (England and Wales): Fit for the future](https://moderngov.sutton.gov.uk/documents/s90121/Appendix+B+-+Local+Government+Pension+Scheme+England+and+Wales_+Fit+for+the+future+-+GOV.UK+1.pdf). The changes being proposed by the government include:

• The transfer of all assets held by the Fund to its asset pool, the London CIV, by 31 March 2026.
• Full delegation of investment decisions to the asset pool.
• A requirement for the Fund to set out its approach to local investment and set a target range, giving consideration to the local growth plans, in the Investment Strategy Statement.
• New governance requirements, including the participation by the Fund in a biennial independent governance review, and a requirement for committee members and officers to have an appropriate level of knowledge about the pensions scheme.

Investment Performance

The committee was scheduled to receive a report by Mercer, the Fund's investment advisers, on the performance of the Fund's investments for the quarter ending 30 September 2024. This included a summary of performance against benchmark, changes to the Fund's asset allocation, and an update on the funding level of the scheme as at the end of the quarter.

Pension Administration Performance

The committee was scheduled to be provided with an update on the administration of the pensions scheme. This included:

• An update on progress towards implementing the government's Pensions Dashboard scheme, which will allow scheme members to see information about all of their pension benefits in one place. The report described the work that has been done to cleanse the council's membership data to ensure that it is accurate.
• Progress on resolving issues related to the McCloud Remedy.
• An update on the reconciliation of members Guaranteed Minimum Pensions (GMPs), which will require a change to the benefits being paid to 375 members and the payment of arrears to 29 members.

Governance and Risk

The committee was scheduled to be given an update on the governance of the pensions scheme, including a summary of the Fund's risk register. This included a discussion of the risks and benefits of reverting back to the ‘Expected Budget Approach’ for calculating payments for members who retire early on the grounds of ill-health. The committee was also scheduled to discuss the performance of scheme employers in providing accurate information to the council. The report stated that five employers have been levied administration charges since the last meeting for failing to meet the deadlines set in the scheme's administration strategy.