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Pension Policy & Investment Committee - Wednesday, 30th July, 2025 10.00 am
July 30, 2025 View on council websiteSummary
The Enfield Council Pension Policy & Investment Committee convened to discuss key aspects of the borough's pension fund, including updates on government consultations, endorsement of triennial valuation assumptions, and future investment strategies. The committee endorsed the assumptions to be used in the 2025 triennial valuation. They also noted the contents of a report and appendix regarding an update on government consultation.
Triennial Valuation Assumptions Endorsed
The committee endorsed the proposed assumptions for the 2025 triennial valuation1, a statutory requirement for all Local Government Pension Scheme (LGPS) funds conducted every three years.
These assumptions are vital for determining the financial position and future funding needs of the pension fund. According to the meeting agenda, the fund actuary, Hymans Robertson, applies a set of agreed actuarial assumptions to estimate future cashflows, investment returns, life expectancy, inflation and other relevant factors.
Key decisions regarding these assumptions included:
- Discount Rate: A rate of 5.9% per annum, maintaining a prudence level of 80% to recognise market uncertainty and other risks like climate risk.
- Benefit Increases/CARE Revaluation: A rate of 2.3% per annum, aligning with medium-to-long term consensus expectations.
- Salary Increases: Maintained at 3.8% per annum, based on CPI2 plus 1.5%.
The committee also reviewed longevity assumptions, adopting the latest Club Vita analysis and CMI 2023 model3 to reflect the fund's membership profile and future improvements in longevity.
Update on Government Consultation
The committee reviewed the government's response to a consultation on the future of the LGPS, as detailed in the report, Government Final Response to Consultation. The review, launched in July 2024 by the Chancellor of the Exchequer, aims to reduce fragmentation, improve sustainability and governance, and enhance fund performance through increased pooling.
Key proposals from the government's response include:
- Requiring all Administering Authorities (AAs) to delegate investment strategy implementation and principal investment advice to their pool, transferring all assets to the pool's management.
- Establishing pools as investment management companies regulated by the FCA4, with the capability to conduct due diligence on local and regional investments.
- Implementing LGPS Good Governance recommendations, with minor amendments.
The report, Appendix A - Pension Investments Review - Final Report, attached as an appendix, contained additional details on the government's response.
The committee noted that officers would collaborate with London CIV5 to transition private market assets to London CIV management by 31 March 2026.
Dates of Future Meetings
The committee noted that the next meeting was scheduled for 15 October 2025, with further meetings planned for 19 November 2025, 28 January 2026 and 25 March 2026.
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The triennial valuation assesses the ongoing financial health of the fund, determining if it has sufficient assets to meet long-term pension liabilities and to set employer contribution rates for the coming period. ↩
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CPI refers to the Consumer Price Index, a measure of the average change over time in the prices paid by urban consumers for a basket of consumer goods and services. ↩
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The Club Vita analysis uses member level lifestyle factors to determine baseline longevity, while the CMI (Continuous Mortality Investigation) model projects future improvements in longevity based on historical data and trends. ↩
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FCA refers to the Financial Conduct Authority, a regulatory body in the United Kingdom that oversees financial firms and protects consumers. ↩
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London CIV (London Collective Investment Vehicle) is a collaboration of London local authorities pooling their pension fund assets to reduce costs and improve investment returns. ↩
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