The Pension Fund Committee of Harrow Council met on Monday 3 March 2025 to review the audited annual report and accounts for 2023-24, receive an update on the fund's actuarial funding position, and discuss investment pooling arrangements. The committee approved the audited Pension Fund Annual Report and Accounts for 2023-24 for publication and noted the improved funding position as at 31 December 2024.

Audited Pension Fund Annual Report and Accounts for 2023-24

The committee received and approved the Audited Pension Fund Annual Report and Accounts for the financial year 2023-24 for publication. It was noted that the audited report was substantially the same as the draft presented in November 2024, with only minor changes requested by the auditors, Mazars. The auditors' report highlighted the high quality of the working papers and identified no significant risks requiring further improvement.

Quarterly Actuarial Funding Position Update at 31 December 2024

The committee reviewed the interim funding level update for the Harrow Pension Fund as of 31 December 2024. The report indicated an improved funding position of 135%, a significant increase from the 96% recorded at the 2022 triennial valuation. Independent advisers discussed the interpretation of life expectancy changes and their potential impact on accrued liabilities. The committee also considered the potential market reactions to increased pension contributions. Harrow's response to a consultation on the future of the Local Government Pension Scheme was also provided.

Update on London CIV and Investment Pooling Arrangements

An update was provided on the current status of the fund's investments within the context of government requirements for pooling and developments at London CIV. The report included a non-confidential appendix for noting.

Review of Pension Fund Risk Register

The committee reviewed the updated Pension Fund Risk Register as at 3 March 2025. It was noted that risk scores had not been altered as no substantial changes had occurred in the preceding six months. The Pensions Regulator's General Code of Practice requires separate cyber risk and conflict of interest policies, which the fund is currently not compliant with. A report addressing these gaps will be presented later in 2025. Investment Consultants, Mercer, suggested that members would benefit from cyber security training, which is to be arranged.

Minutes of the Pension Board

The committee received and noted the minutes of the Pension Board meeting held on 12 December 2024, which detailed key discussions and points from that meeting.