The Worcestershire Council Pension Committee was scheduled to meet on 24 June 2025 to review several key documents, including the fund's annual accounts, business plan, and risk register. Councillors were also expected to discuss the fund's compliance with the UK Stewardship Code and receive updates on governance, training, and investment performance.

Pension Fund Unaudited Annual Accounts 2024/25

The committee was scheduled to consider the unaudited annual accounts for the 2024/25 financial year. The report pack included a recommendation from the Chief Financial Officer to approve the accounts.

The report pack noted that under regulations from the Chartered Institute of Public Finance and Accountancy (CIPFA), Local Government Pension Scheme (LGPS) pension funds in England and Wales are required to publish an annual report, including audited financial statements, by 1 December each year.

According to the report pack, the key points to note in the accounts were:

• The fund had a revenue surplus of £7.7 million before the net return on investments.
• Employer contributions totalled £137.5 million.
• Benefit payments increased by £20 million to £157.8 million.
• Management expenses decreased slightly to £18.8 million.
• Investment income increased to £54.6 million.
• The fund incurred a surplus of £347.9 million on investment returns.
• The value of net assets as at 31 March 2025 was £4.016 billion, an 11% increase year-on-year.

The report pack also included a review of level 3 investments¹, which are considered the most illiquid and hardest to value.

Pensions Committee are asked to note the process on how level 3 investments are shown at fair value in the final accounts and agree that these were a fair assessment at the time the draft accounts were provided to the auditors.

UK Stewardship Code Updated 2025 Submission

The committee was scheduled to review the fund's application to the Financial Reporting Council (FRC) for signatory status to the UK Stewardship Code. The report pack noted that the Stewardship Code sets standards for those investing money on behalf of UK savers and pensioners.

The report pack stated that the fund had been a signatory to the code since 2018 and that the latest submission covered the reporting period from 1 January 2024 to 31 December 2024.

The report pack summarised that responsible investment was a core part of the fund's stewardship, and that the fund recognised that financial markets would be impacted by climate change.

The report pack also summarised that in January 2025, the fund's fifth annual Climate Risk Management Report delivered a view of the climate risk of the fund's asset portfolio, accompanied by proposed actions the fund could take to manage and reduce that risk.

Business Plan

The committee was scheduled to review the Worcestershire Pension Fund Business Plan as of May 2025. The report pack stated that the business plan was designed to be a one-stop reference shop for everything going on at Worcestershire Pension Fund and in the wider LGPS landscape.

The report pack stated that the business plan had been amended to ensure that it was clear how the structure of Worcestershire Pension Fund supported the delivery of the fund aims and objectives.

The report pack also noted that the fund had been liaising with Worcestershire County Council's procurement team and had started the process of gathering information from providers in respect of consultancy services associated with Additional Voluntary Contributions (AVCs).

The report pack stated that the team had successfully implemented phase 1 of the Integrated Service Provider (ISP) implementation, working alongside Heywoods, and had received approval from the Pensions Dashboard Programme (PDP) to connect to the eco system on 31 October 2025.

Risk Register

The committee was scheduled to review the May 2025 Worcestershire Pension Fund Risk Register. The report pack noted that the February 2025 review had added two new risks:

• WPF 37: The fund fails to meet the government's requirements in relation to asset pooling contained within the Pensions Review Final Report, published on 27 May 2025.
• WPF 38: Compliance associated with Pension Dashboard requirements.

The report pack stated that the May 2025 review resulted in no changes to the risk scores, but that mitigating actions had been updated in relation to WPF38.

Governance Update

The committee was scheduled to review the Worcestershire Pension Fund Governance and Compliance Update and the Good Governance Position Statement. The report pack included a recommendation to approve an updated Privacy Notice to reflect the McCloud remedy².

The report pack noted that the Ministry of Housing, Communities and Local Government (MHCLG) had launched a consultation on 15 May 2025 to promote 'access and fairness' to its scheme members.

The report pack also noted that the Pensions Scheme Bill was expected to be laid in parliament before summer 2025 and would include mandatory connection deadlines for schemes to the Pensions Dashboards Programme.

Training Update

The committee was scheduled to review the Training Update, including the Training Policy and Programme. The report pack noted that the training delivered since the last Training Update had included:

• 'Pensions Basics' training sessions for members of the pension scheme.
• One-to-one appointments for staff at Bromsgrove and Redditch District Councils to run through individual annual benefit statements and answer any other pension related questions.

The report pack also noted that on 14 March, Hymans Robertson held a session to help members better understand the valuation and its progress.

Forward Plan

The committee was scheduled to comment on and approve the Forward Plan.

Exclusion of Public and Press

The committee was scheduled to exclude the public and press from the meeting for agenda items 14 - 16, as it was likely that exempt information relating to the financial or business affairs of particular persons (including the local authority holding that information) would be disclosed. The exempt items were:

• Pension Investment Update
• LGPS Central Update
• 2025 Valuation Update