The Pension Board meeting on 27 November 2025 discussed updates on pension administration, project governance, fund performance, and the initial results of the triennial actuarial valuation. Key decisions included deferring the actuarial valuation report to January to allow for better attendance and expert input, and noting the positive overall funding level of the pension fund.

Pension Administration Update

Sarah Hay, Pensions Officer for People Services, presented an update on pension administration, highlighting that Key Performance Indicators (KPIs) remained at 100% compliance between August and October 2025. The number of cases on hold had decreased, with interfund transfers being the largest category. Portal membership continued to increase, with a target to reach 70% active user registration. Data scores had also improved, with further work planned to address remaining errors. The Pension Committee had agreed to suspend the £1,000 penalty for three years of poor data quality for employers, opting instead to increase the charge for missing joiners and leavers to £150. The annual benefit statements were largely complete, with only 16 outstanding, primarily due to issues with schools and academies.

LGPS Project and Governance Update

Diana McDonnell-Pascoe, Pension Project and Governance Lead, provided an update on various projects. The McCloud project was on track for delivery by August 2026, and the Pension Dashboard Programme was expected to connect by the statutory deadline of 31 October 2026. A draft cybersecurity policy for the fund had been created and would be reviewed by year-end. A business continuity exercise was planned for the quarter, with engagement from Hampshire Pension Services. Communications and engagement efforts included a well-attended annual event on understanding annual benefit statements, with analytics showing improvements in member understanding. The Fund was also exploring website analytics and developing a formal communications strategy.

Pension Fund Annual Report and Statement of Accounts 2024/25

Phil Triggs, Tri-Borough Director of Treasury and Pensions, presented the draft annual report and statement of accounts for the year ending 31 March 2025. The Fund's net assets stood at £2.095 billion, an increase of £81.8 million, largely due to positive performance in equity mandates. The Fund delivered a positive absolute return of 4.8% over the financial year, placing it in the upper quartile of LGPS fund returns. The estimated funding level had increased to 181% as of 31 March 2025. Investment management costs had decreased by 32%.

Performance of the Council's Pension Fund

Phil Triggs also reported on the performance of the Pension Fund's investments up to 31 March 2025. The Fund returned -1.5% net of fees over the quarter, underperforming its benchmark. However, over the longer three-year and five-year periods, the Fund delivered positive absolute returns. The Board noted disappointment at not receiving the latest data and was assured that more up-to-date information would be provided in future. The underperformance of Baillie Gifford had led to a decision to transition into a passive fund with BlackRock, resulting in significantly lower fees. The report also highlighted the government's reversal of one policy regarding LGPS reforms, but no change requiring government underwriting of losses. Confidence in the London CIV's ability to recruit adequate staff had increased.

Actuarial Valuation: Initial Outcome Results

Phil Triggs presented the initial results of the 2025 triennial actuarial valuation. The overall funding level had risen to 140% from 128% in 2022, driven by expectations of higher inflation and a better investment outlook. A significant change in assumptions was a slight increase in the discount rate. The report noted that these were initial results and final outcomes, including employer contribution rates, would follow. The Board proposed deferring a full discussion of this report to the January meeting to ensure better attendance and the presence of actuarial advisors.

Other Matters

Councillor Matt Noble, Vice-Chair of the Pension Board, was appointed as Chair for the 2025-2026 municipal year. Apologies were received from Councillor Noble, Serena Simon, and Chris Smith. There were no declarations of interest. The minutes of the previous meeting on 8 September 2025 were approved.

The meeting also discussed the ongoing cyber attack impacting council services, with assurances that all efforts were being made to maintain business as usual. The preliminary nature of the actuarial valuation paper was clarified, with a more comprehensive report to follow. The Board also discussed the importance of having actuarial representatives present for such significant discussions.

The issue of papers being sent to the wrong address was raised, and an apology was given, with an assurance that the matter would be investigated. Concerns were also raised about the accessibility of papers online due to the cyber attack.

The annual benefit statement process was discussed, including the suspension of a £1,000 penalty fine for three years of bad data, replaced by an increased charge for missing joiners and leavers. The Emlico Academy was highlighted as a concern due to increasing query numbers.

The annual general meeting (AGM) was scheduled for 30 March 2026. Pension Board recruitment was also discussed, with a proposed timetable for applications and interviews.

A significant portion of the meeting was dedicated to discussing the performance of the Pension Fund's investments, including the transition of the Baillie Gifford mandate to BlackRock, resulting in lower fees. The potential impact of mandatory pooling on individual funds and the loss of independence in investment advice was a key concern. The performance of the Fund was noted as strong, with a significant increase in the funding level.

The meeting concluded with well wishes for Christmas and the New Year.