The Pensions Board of Lambeth Council met on Thursday 30 October 2025 to review the Fund's performance and risk management. Key discussions included the Pensions Administration Performance Report, the Risk Register, a General Update on various pension matters, the Draft Annual Report, and the Investment Performance Report.

Pensions Administration Performance Report

The Pensions Administration Performance Report for July to September 2025 indicated that the number of cases completed on the pensions software system (Altair) was 1,648. Performance indicators showed that 99.6% of cases were completed within target. The report also highlighted an increase in active members using the 'Engage' self-service platform, with 51.39% registered users. Annual Benefit Statements and Newsletters were issued to active and deferred members, and retirement planning courses were fully booked, with additional sessions planned for the new year. Six breaches of the law were reported this quarter, relating to the late submission of contribution schedules and late payment of contributions from employers. There was one complaint regarding a member challenging a directive to refuse a pension transfer due to being within one year of normal pension age. The report noted that the Fund's website had seen 732 new users and 862 page views in September 2025.

Risk Register Update

The Risk Register update showed no changes to current risk ratings, with seven amber-rated risks remaining. These included insufficient resources to support the Pensions Committee and Board (PA1), insufficient knowledge and understanding of LGPS legislation (PA2), pay and price inflation being significantly higher than anticipated (PA12), investment risk (PA15), investment underperformance (PA16), climate change (PA19), and a qualified audit opinion of the Fund's financial statements (PA22). Changes had been made to the descriptions of risks PA18 (Insufficient attention to ESG risks) and PA20 (Poor stewardship practices) to specifically reference the Fund's exposure to conflict zones such as the Occupied Palestinian Territories. The inherent rating for PA22 had been updated from green to red, reflecting the risk of accounts not giving a true and fair view.

General Update

The General Update covered several key areas. The transition of off-pool assets to the London Collective Investment Vehicle (LCIV) was progressing, with Investment Management Agreements (IMAs) in the final stages of development, aiming for completion by March 2026. Buckinghamshire Pension Fund was announced as a new partner for the LCIV. A governance review by Hymans Robertson was underway, with members being asked to complete surveys and interviews. The Fund's accounts for 2024/25 had been published on 15 July 2025, with the external audit scheduled to begin in mid-November 2025. Ann Biddle was successfully reappointed as the Pensioner Representative on the Board. The report also highlighted the government's Access and Fairness consultation, which included proposals to amend the normal minimum pension age to 57 in 2028 and extend LGPS access to more mayors and councillors. Concerns were raised about the potential loss of influence over investment decisions as responsibilities shifted to the LCIV, and the need for robust governance arrangements and contingency plans. Members agreed to raise concerns with the Pensions Committee regarding LCIV governance, performance accountability, and the need for exit or performance review mechanisms.

Draft Annual Report 2024/25

The Draft Annual Report for 2024/25 was presented, incorporating the draft statement of accounts. The external audit by Mazars was delayed and expected to commence in mid-November 2025. The Fund's draft accounts were published on 15 July 2025, exceeding the statutory deadline of 30 June 2025 due to resourcing issues. The report noted that the Fund's net assets remained static, increasing by £0.8m to £1,800m. Income from contributions and transfers totalled £78.9m, while benefits and transfers out amounted to £88.1m, resulting in a net cash outflow of £9.1m. Investment income was £75.1m, offset by a £54.7m loss on the market value of assets, resulting in a net return of £20.4m. The report recommended that the Pensions Committee note the draft Annual Report and delegate approval of the final audited report to the Chair.

Investment Performance Report - Quarter 2 2025

The Investment Performance Report for the quarter ending 30 June 2025 showed that the Fund's assets increased by £61.3m to £1,859.8m. The Fund outperformed its benchmark by 0.1%, returning 3.4%, largely due to strong performance in global and emerging market equity funds. However, performance over the one-, three-, and five-year periods fell short of benchmarks. The actuary's estimated funding level as at 30 June 2025 was 127%. The report highlighted that the Fund was overweight in Multi-Asset Credit and Global Equity, and underweight in Private Equity and Private Debt, with these positions needing to be addressed in the upcoming Investment Strategy Review. UK exposure within existing mandates was 22.5% (£418.5m). Fund management fees for the quarter were estimated at £1.8m. Fossil fuel exposure was at least 0.33% (£6.1m). The estimated funding level as at 30 June 2025 was 127%, a significant increase from the 96% at the March 2022 valuation. The report recommended noting the performance report.