The Pension Committee of Waltham Forest Council met on Wednesday 26 November 2025 to discuss a range of important financial and investment matters. Key decisions included the approval of the updated Property Gift Review Policy and the agreement for Buckinghamshire Pension Fund to become a shareholder in the London CIV. The committee also noted the ongoing progress in pension administration services and reviewed the fund's performance and expenses.

Pension Administration Service Report

The committee received an update on the pension administration partnership with the Pension Shared Service (PSS). Performance statistics for the second quarter of 2025/26 showed that overall performance was maintaining a high standard, exceeding targets. The report highlighted achievements such as the completion of end-of-year reconciliations, issuance of annual statements, and the application of the yearly pension increase. The committee was also informed about the upcoming launch of a new member portal, Engage, expected in mid-January 2026, which aims to improve member engagement and reduce administrative burdens. The report confirmed that all public service pension schemes, including Waltham Forest's, had connected their pension data to the national pension dashboards by the deadline of 31 October 2025. No breaches were reported in the period.

Pension Expenses and Performance Report

The committee reviewed the pension fund's expenses for the quarter ending September 2025 and its investment performance. As of 30 September 2025, the Pension Fund investments were valued at £1,180.6 million, an increase of £41.8 million from the previous quarter. However, the fund's performance for the quarter underperformed its benchmark by 2.4%, and over the 12 months to 30 September 2025, it underperformed by 5.7%. This underperformance was attributed to several factors, including the drag on returns from the LCIV Global Equities Focus Fund and the Darwin Property Leisure Fund, as well as other illiquid assets. The committee noted that the fund was not currently on target to meet its overall strategic objective of recovering its deficit, which was set at CPI + 2.25% following the 2022 triennial valuation. The committee agreed to a total cost budget of £2.339 million for the year 2026/27, excluding sub-fund costs and investment management fees.

Consultation: LGPS in England and Wales: Scheme Improvements (access and protections)

The committee was informed about a government consultation on proposed improvements to the Local Government Pension Scheme (LGPS) in England and Wales, focusing on access and protections. The consultation, which closed on 22 December 2025, included proposals to amend the normal minimum pension age to 57, extend scheme access to mayors and councillors in England, formalise criteria for academies to consolidate participation in a single fund, and implement new Fair Deal protections for outsourced workers. A response to this consultation would be prepared by officers and advisors for review and approval before submission.

More Homes JV1: Gifting to the Pension Fund

The committee considered the annual confirmation from the Council regarding the Property Gift arrangement with More Homes Waltham Forest LLP. This arrangement involves the Council gifting its share of Capital Return Allocations from the joint venture to the Pension Fund upon the LLP's winding up, expected in 2058, to help meet the Council's pension obligations. The committee accepted the confirmation from the Council and the updated Property Gift Review Policy, which now includes the requirement for an independent valuation of the properties underlying the gift, as recommended by MHCLG and GAD.

Training Report

The committee received a report on the training undertaken by members of the pension board, committee, and officers. All Pension Committee Training Needs Assessments had been completed. The report noted that members were required to complete refreshed Hymans online training modules within the next three months, with annual revisits recommended. The committee agreed that members would complete any outstanding training modules ahead of the next meeting.

Presentation - London CIV

A verbal report was provided on the London CIV, highlighting discussions around the Responsible Investment Matrix and the desired direction for Waltham Forest's investments. The London CIV confirmed the use of S&P Global Standard Screening definitions and noted that a Sustainability Working Group had been formed to provide feedback on the matrix. The committee noted the ongoing engagement with the London CIV and other partner funds to develop the matrix's pillars, with a focus on including all partner funds. The potential creation of a new Passive Equity Progressive Paris-Aligned (PEPPA) fund within the third pillar was discussed, requiring investment from several funds.

LCIV Shareholder Agreement and Articles of Association

The committee was asked to agree to Buckinghamshire Pension Fund becoming a shareholder in the London CIV. The report indicated that Buckinghamshire Pension Fund had formally approached the London CIV to join as a partner fund. The committee was recommended to agree to this, and also to approve the Strategic Director of Resources signing the revised Shareholder and Articles of Association from the London CIV.

Presentation - Mercer: Valuation

The committee received a presentation from Mercer on the valuation outcomes for the pension fund. This included results for the whole fund, key employer groups, the Mears Joint Venture property gift, and engagement approaches with employers. Mercer confirmed that the fund was on track to meet its statutory deadlines.

Investment Strategy Statement

The committee reviewed the Investment Strategy Statement and Investment Objectives. They noted the intention to make a provisional commitment to the new PEPPA 2 fund and assess its viability, with Pillar 3 including exclusions for human rights abuses. The committee agreed that all equity investments would transfer to the PEPPA 2 fund, with a commitment to LCIV based on a Mercer paper. They also agreed that where possible, investments would be aligned with LCIV Pillar 3 investment options, provided they were in line with the fund's Investment Objectives and Strategic Asset Allocations. The committee also agreed the draft Responsible Investment Policy, with specific reference to the exclusion of investments linked to human rights abuses.

Pension Administration Service Report

This report provided an update on the pension administration partnership with the Pension Shared Service (PSS). It covered performance statistics, complaints, and quality questionnaires for Q2 September 2025. The report indicated that overall performance was maintaining high standards and exceeding targets. Key achievements included the completion of year-end reconciliations, issuance of annual statements, and the application of the yearly pension increase. The committee was also informed about the upcoming launch of a new member portal, Engage, expected in mid-January 2026, which aims to improve member engagement and reduce administrative burdens. The report confirmed that all public service pension schemes, including Waltham Forest's, had connected their pension data to the national pension dashboards by the deadline of 31 October 2025. No breaches were reported in the period.

Pension Expenses and Performance Update

The committee reviewed the pension fund's expenses for the quarter ending September 2025 and its investment performance. As of 30 September 2025, the Pension Fund investments were valued at £1,180.6 million, an increase of £41.8 million from the previous quarter. However, the fund's performance for the quarter underperformed its benchmark by 2.4%, and over the 12 months to 30 September 2025, it underperformed by 5.7%. This underperformance was attributed to several factors, including the drag on returns from the LCIV Global Equities Focus Fund and the Darwin Property Leisure Fund, as well as other illiquid assets. The committee noted that the fund was not currently on target to meet its overall strategic objective of recovering its deficit, which was set at CPI + 2.25% following the 2022 triennial valuation. The committee agreed to a total cost budget of £2.339 million for the year 2026/27, excluding sub-fund costs and investment management fees.