Here is a summary of the scheduled discussions for the Hackney Council Pensions Committee meeting on 11 June 2025, based on the provided agenda and report pack.

The meeting covered a range of topics relating to the management and performance of the council's pension fund, including investment strategy, risk management, and responsible investment policies. A key focus was on ensuring the fund's long-term financial stability while also considering environmental, social, and governance factors.

Here are the main topics that were scheduled to be discussed:

2025 Triennial Valuation and Contribution Rates

The committee was scheduled to discuss the assumptions used in the 2025 triennial valuation of the pension fund. This valuation is a key process, required every three years under LGPS Regulations, to assess the fund's financial health and set employer contribution rates.

Specifically, the committee was asked to consider and agree on:

• The level of prudence to apply when determining the valuation discount rate¹. The report pack noted that the Fund Actuary recommended increasing the prudence level from 72% to 80% to account for increased market volatility. This would result in a valuation discount rate of 6.4% per annum.
• The approach to setting assumptions for benefit revaluation and pension increases, with a recommendation to continue using CPI projections from the Fund Actuary's Economic Scenario Service (ESS) model.
• An inflationary salary increase assumption, with a recommendation to set this at 0.5% above inflation.
• The life expectancy assumption, including whether to use the default life expectancy improvements assumption.
• Other demographic assumptions proposed by the Fund Actuary.

The report pack also included modelling of contribution rates for Hackney Council over the 2026/29 period, with a proposed reduction in the council's contribution rate phased in over three years.

Quarterly Investment, Funding and Strategy Update

The committee was scheduled to receive an update on the fund's investment performance, funding levels, and overall investment strategy. This included:

• A review of the economic environment and market trends, with a presentation from Redington Consultants (Appendix 1 - 12 - Appendix 1 _Q2 2025 Market Update_Final_20250523.pdf).
• An analysis of investment manager and pool performance as of 31 March 2025 (Appendix 2 - 12 - Appendix 2 - March 25 Qtr Manager Performance Report.pdf). The report pack noted that the Hackney Fund return of -2.6% under performed benchmark return by 1.3%, while the year to date performance of 3.5% underperformed benchmark by 1.5%.
• An update on the London CIV's pooling position and governance structures.
• A report on engagement activity from the Local Authority Pension Fund Forum (LAPFF) for Q4 (Appendix 3 - 12 - Appendix 3 - LAPFFQER012025_fnl.pdf).
• An update from the Responsible Investment Working Group (RIWG) (Appendix 4 - Exempt).
• Training on Task Force on Climate-related Financial Disclosures (TCFD) risk management and reporting (Appendices 5 and 6 - 12 - Appendix 5 - Introduction to TCFD Risk Management Training.pdf, 12- Appendix 6 - TCFD Risk ManagementFinal20250523.pdf).

Responsible Investment Scheme Member Survey and Policies

The committee was scheduled to discuss the results of a scheme member survey on responsible investment, and to consider updated policies reflecting the survey's findings. The survey, conducted in January 2025, gathered feedback from over 1,000 members on their views on ESG issues and investment priorities.

The committee was asked to approve for publication:

• A detailed report of the Scheme Member Survey results (Appendix 1 - 14 - Appendix 1 Hackney Pension Scheme Member Survey - Consultation Report.pdf).
• A summary report of the survey results, incorporating feedback from the Pensions Board, London CIV, and fund managers (Appendix 2 - 14 - Appendix 2 - Summary RI Scheme Member Survey Results post March Committee.pdf).
• An updated Responsible Investment Policy (Appendix 3 - 14 - Appendix 3 - Responsible Investment Policy Final.pdf).
• An updated Investment Engagement Policy (Appendix 4 - 14 - Appendix 4 - Investment Engagement Policy.pdf).
• A set of frequently asked questions (FAQs) related to responsible investment (Appendix 5 - 14 - Appendix 5 - Hackney Pension Fund_Survey FAQs.pdf).

The report pack noted that the updated policies incorporate key themes from the survey, such as climate change, human rights, and corporate governance.

Reinvesting Fund Cash and Rebalancing

The committee was scheduled to discuss options for reinvesting excess cash held by the fund and rebalancing the asset allocation. The report pack noted that the Fund currently had a significant allocation to cash and short-dated bonds, due to private markets allocations currently being underweight vs the strategic asset allocation.

The committee was asked to:

• Approve the interim investing of excess cash from Permira and Churchill private market funds distributions to Columbia Threadneedle Investments Bond Mandate
• Delegate the authority to allow rebalancing to take place outside of Committee cycles to Councillor Kam Adams, Chair of the Pensions Committee and Councillor Robert Chapman, Cabinet Member for Finance, Insourcing and Customer Service, Vice-Chair of the Pensions Committee.

Employer Admissions and Cessations

The committee was scheduled to receive an update on employers joining and leaving the pension fund. This included:

• Noting the employers admitted to the fund between 1 April 2021 and 31 March 2025, including academies and admitted bodies.
• Approving the sealing of admission agreements for new employers.
• Noting the employers that had ceased participation in the fund during the same period.
• Agreeing in principle to the admission application for Clapton Park Management Organisation Limited (CPMOL), a tenant management organisation managing social housing on behalf of the council.

2024/25 Pension Fund Audit Plan

The committee was scheduled to receive the external audit plan from Forvis Mazars for the 2024/25 financial year. The plan outlines the scope, approach, and timeline for the audit of the pension fund's accounts.

The report pack noted that the audit fees for 2024-25 were proposed at £83,963, which included additional fees in respect of revised auditing standards.

Other Business

• The committee was also scheduled to note the terms of reference for the Pensions Committee for the 2025/26 municipal year (2 - Terms of Reference of Pensions Committees 2025_26 1.pdf).
• The minutes of the Pensions Board meeting held on 15 April 2025 were to be noted (5. PB Public Minutes 15.04.2025.doc.docx.pdf).
• The minutes of the previous Pensions Committee meeting held on 11 March 2025 were to be considered (6 - Pensions Committee Minutes 11.03.25.doc.pdf).
• The committee was also scheduled to discuss a quarterly update on pensions administration and projects (10 - Quarterly Pensions Administration Update Cover Report 1.pdf).
• A quarterly business plan and governance update was also scheduled, with a number of appendices (Supplementary Paper 1 Wednesday 11-Jun-2025 18.30 Pensions Committee.pdf, _PC 11 March 2025 - Business Plan and Governance Update REPORT.pdf, PC 11 June 2025 - Appendix 1 A - Admin and Comms Risk Register - pdf.pdf, PC 11 June 2025 - Appendix 1 B - Governance Risk Register - June 2025.pdf, PC 11 June 2025 - Appendix 1 C -Funding Investment Risk Register.pdf, PC 11 June 2025 - Appendix 2 - Conflicts of Interest Policy v3_9th June approved.docx.pdf, PC 11 June 2025 - Appendix 3 - Governance Compliance Policy and Compliance Statement - approved June.pdf).

It was also scheduled that the press and public may be excluded from the meeting to discuss certain items, due to the likely disclosure of exempt information as defined in the Local Government Act 1972. These items included updates on the Pensions Administration Function Migration Project, further discussion of the 2025 Triennial Valuation, and an update on the Quarterly Investment, Funding and Strategy.