The Hounslow Council Pension Fund Panel met to discuss the fund's business plan, investment performance, administration, risk management and compliance, and to set objectives for the investment consultant. The panel approved the proposed strategic objectives for the fund's investment consultants.

Annual Business Plan 2025/26

The Pension Fund Panel reviewed the proposed work programme for 2025/26, as detailed in the Annual Business Plan 2025-26 and associated Training Log. Members were asked to identify any additional areas for consideration. The training log included updates on training undertaken by members of the Pension Board, Pension Fund Panel, and officers, as well as upcoming training opportunities.

Quarterly Overview and General Matters

The panel reviewed the Quarterly Overview and General Matters report, which provided an overview of the current valuation, general administrative and regulatory matters, and an update on income and expenditure for Quarter 3 of the financial year 2024/25.

Key points from the report included:

• As of December 2024, the fund's net assets were valued at £1,396.2m.
• A late payment register for the period of 1 April to 31 December 2024 was included, with confirmation that all late contributions had been received.
• An update on the Pensions Dashboard Programme was provided, noting the connection staging date for public service schemes as 31 October 2025.
• An Employer's Forum was held on 27 February at Hounslow House, with positive feedback from attendees.

The report also touched on regulatory changes proposed for the Local Government Pension Scheme (LGPS) pooling and investment decision-making, as outlined in the Chancellor's Mansion House statement of 14 November 2024.

Pension Fund Administration Performance Report and Update on Regulatory Matters

The Pension Fund Panel reviewed the Pension Fund Administration Performance Report from West Yorkshire Pension Fund (WYPF), covering the period 1 October 2024 to 31 December 2024, along with an update on regulatory matters.

Key discussion points included:

• WYPF's monthly target of completing a minimum of 85% of processes within the allotted time was met in all three months of the reporting period.
• Trends, performance, and areas needing attention for priority 1 work areas (retirement quotes/actuals and death processes) were analysed.
• The impact of the McCloud remedy¹, workload volumes, and staffing levels on performance in medium and low priority work areas was noted, particularly in Interfund Linking, Transfer processes, and Early Leavers.
• Officers are monitoring both the total number and the aging of outstanding processes.
• An underspend of £506k was reported, including in staffing, computer services, and invest-to-save initiatives.
• The report included updates on employer work, audits, staffing, member and employer contact, internal dispute resolution procedures, and current technical issues.

5a. Pensions Administration Report, 5b. Appendix 1 - KPI Narrative, 5c. Appendix 2 - Age profile of the scheme, 5d. Appendix 3 - Customer Survey, 5e. Appendix 4 - Current Technical Issues

Pension Fund Risk Register

The panel reviewed the updated Pension Fund Risk Register for the quarter ending 31 December 2024. The register was updated to align with comparable LGPS Funds and the corporate risk register, grouping risks under appropriate headings and reviewing the scoring matrix and mitigation options. A new heading, Resources and Skills, was added, and the risk associated with pooling of assets was elevated from amber to red due to government consultations on transferring investment decision-making to pools.

General Code of Practice Update

The Pension Fund Panel received an update on the General Code of Practice (GCOP) review. The panel noted the completed modules of the code compliance toolkit that was reviewed by the Pensions Board on 30 January 2025, and the timetable for reviewing the remaining modules of the code compliance toolkit. The GCOP sets out the standards of conduct and practice expected of governing bodies to comply with their duties under pensions legislation. Hymans Robertson, the GCOP tool provider, conducted a mini review of the completed areas and confirmed that the responses were as expected, also providing suggestions to make the responses more robust. 7a. General Code - Compliance Report December 2024 Review, 7b. General Code - Compliance Report Appendix December 2024 Review, 7c Hymans mini assessment comments

CMA - Investment Advisor Objectives

The Panel approved the proposed strategic objectives for the fund's investment consultants, in line with the requirements outlined by the Competition and Markets Authority (CMA). The Investment Consultant Aims and Objectives Proposal 2025-26 included broad objective headings such as initial fund appraisal, delivery of specialist processes, governance and costs, proactivity of advice, support with investment monitoring and compliance, and relationships and service standards.