The Pension Fund Committee of Harrow Council met on Monday 16 June 2025 to review the fund's work plan for the upcoming year, discuss its actuarial funding position, and consider updates on investment pooling arrangements. Key decisions included the approval of the 2025-26 work plan and noting the improved funding position of the pension fund.

Harrow Pension Fund Committee Work Plan 25-26

The Committee reviewed and approved the work plan for the Harrow Pension Fund Committee for the 2025-26 municipal year. A significant focus of this plan will be the actuarial valuation of the fund as at 31 March 2025. This triennial revaluation will necessitate the approval of a new funding strategy and a review of the investment strategy, which are expected to dominate the committee's work over the coming year.

Quarterly Actuarial Funding Position Update

The committee received an update on the pension fund's actuarial funding position as at 31 March 2025. The report indicated a significant improvement since the last triennial valuation in March 2022, with the funding level rising from 96% to an estimated 133%. This improvement is attributed primarily to a reduction in liabilities, alongside asset growth. The report, based on projecting the 2022 valuation forward using approximate methods, was noted by the committee.

LCIV Engagement and Accountability

The committee received a report detailing the governance structure of the London Collective Investment Vehicle (LCIV) and outlining how clients and shareholders can engage with its management to ensure accountability. This report was prepared following a committee request to explore how the Pension Fund could achieve this. The committee noted the report.

Update on London CIV and Investment Pooling Arrangements

An update was provided on the London Collective Investment Vehicle (LCIV) and investment pooling arrangements, reflecting government consultations and responses regarding the future of the Local Government Pension Scheme (LGPS). An Independent Adviser highlighted significant changes expected by March 2026, including the LCIV taking full control of investment strategy implementation, with the committee's role restricted to setting very high-level objectives. The committee's involvement in strategic asset allocation will now require taking principal advice from the LCIV, and their input will be limited to nine broad asset classes. The LCIV will also be responsible for due diligence on local investments, and the committee will need to appoint a Senior LGPS officer and an Independent Adviser, with investment consultants like Mercer only to be used in exceptional circumstances. The committee noted the report.

Review of Pension Fund Risk Register

The committee reviewed the Pension Fund Risk Register as at 16 June 2025. The register outlines risks associated with the fund's investment, funding, and administration workstreams, as well as overarching risks such as cyber security, conflicts of interest, major emergencies, and governance. An Independent Adviser questioned whether Risk 12, related to the fund's cash flow and the LCIV's experience with strategic asset allocation, should be downgraded. An officer clarified that this would be addressed in a separate LCIV-specific risk. The committee noted the report.

Pension Board Minutes - 20 March 2025

The committee received the minutes from the Pension Board meeting held on 20 March 2025, which detailed key discussions and points raised. The committee noted the report.

Investment Manager Performance March 2025

The committee received the Investments and Manager's Performance Review Report as at March 2025, which included confidential appendices. The committee noted the report and appendices.