At a meeting of the Powys Pensions and Investment Committee, members approved an updated Funding Strategy Statement, and noted updates on Local Government Pension Scheme [LGPS]¹ governance, administration matters, and the Wales Pension Partnership [WPP]². The committee also reviewed the Compliments and Complaints Policy, and received an Employer Update.

Draft Funding Strategy Statement

The committee approved the updated draft Funding Strategy Statement (FSS), which, along with the Employer Policy and Investment Strategy Statement (ISS), provides an overview of the fund's funding and strategic approaches. The current ISS and Employer Policy will be reviewed soon, but the FSS is worded to avoid requiring updates each time these additional documents are revised. The draft version of the FSS will be shared with employers for consultation and consideration for at least 28 days.

The purpose of the fund is to collect and invest monies in respect of contributions, transfer values and investment income, and pay out monies in respect of scheme benefits, transfer values, costs, charges and expenses as defined in the regulations.

The aims of the fund in relation to the funding strategy include:

• Securing solvency and long term cost efficiency
• Management of liabilities and payment of benefits
• Management of employer liabilities and stability of employer contributions
• Link to investment strategy
• Risk profile of the Fund
• Integrated funding framework

Administration and Governance Update

The committee received an update on LGPS governance and administration matters, including:

• 2026 LGPS Governance Conference: The conference will take place on 29 and 30 January 2026 in Cardiff.
• McCloud remedy:³ The council has decided to exercise the discretion not to reflect McCloud protection in 2025 annual benefit statements (ABSs) for cases where it has not been possible to include the underpin values. Members have been informed that the McCloud remedy would be automatically calculated and applied when benefits are paid. The Pension Board considered this matter on 18 July and agreed with the decision.
• Pension Schemes Bill 2024/25: The bill, which sets out proposed changes to the LGPS following the government's response to the 'Fit for the Future' consultation, was introduced in Parliament on 5 June 2025.
• Pensions Commission revived: The government revived the Pensions Commission on 21 July to address a growing retirement crisis. The commission will review the UK pension system and is due to report in 2027.
• Third State Pension age (SPa) review: The government also launched the third review of the SPa on 21 July. The report is due before 30 March 2029.
• SAB statement: Following the government's response to the Fit for the Future consultation, the Scheme Advisory Board [SAB]⁴ made a statement covering good governance recommendations, pressure on funds, SAB support, and developing guidance.
• SAB consultation: The SAB launched a consultation on proposed changes to the LGPS Code of Transparency on 14 July, which closed on 15 August.
• The Pensions Regulator (TPR): TPR has updated its pensions dashboards guidance. There has not been a further review of the fund's compliance with TPR's General Code of Practice since the last meeting, but a comprehensive review will be undertaken once the new governance resource is in place.
• Resourcing within the Pensions Team: A recruitment exercise is underway to increase resources within the pensions team.
• Risk Register: The Pension Board considered the administration pillar of the risk register on 18 July 2025. Officers intend to develop a fund-specific cyber security policy once additional governance resource has been recruited.
• Breaches Register: The Pension Board reviewed the breaches register at its meeting on 18 July 2025, and there were no amendments.

Wales Pension Partnership Update

The committee received a quarterly update on the WPP, including progress against the business plan, operator updates, and investment performance. All eight constituent authorities have now approved the WPP Investment Management Company (IM Co), including its submission to the Financial Conduct Authority [FCA]⁵ for formal authorisation. The government approved the WPP's business case in April 2025.

Compliments and Complaints Policy

The committee approved the updated Compliments and Complaints Policy, which was developed and published in March 2022 and reviewed by the Pensions Board on 21 May 2025. The updates are minor and include clarifying that a complaint must have progressed through the Internal Disputes Resolution Procedure before being considered by the Pensions Ombudsman.

Employer Update

The committee was advised that the last remaining active member of the LGPS employed by Theatr Brycheiniog has left their employment. The pension fund actuary has provided the results of the cessation valuation, which showed that the assets held in the fund are equal to the future liabilities, meaning there is no surplus or deficit.