The Pension Fund Committee of Hammersmith and Fulham Council met on Tuesday 25 November 2025 to discuss key performance indicators for pension administration, updates on the pension fund, responsible investment policies, and investment proposals. Key decisions included the approval of an updated Responsible Investment Statement and noting the fund's performance and business plan outturn.

Pension Administration Performance and Member Satisfaction

The committee reviewed the key performance indicators (KPIs) for the pension administration service provided by the Local Pension Partnership Administration (LPPA) for July to September 2025. While overall KPIs remained above the 95% target, concerns were raised about a dip in the quality of service, specifically regarding the timely and accurate provision of key information and reports. Eleanor Dernis, who presented the report, noted that this decline in quality might be linked to staff turnover at LPPA and the onboarding of a new client, which has potentially diverted resources. She also highlighted a decrease in member satisfaction, with active retirements falling from 7% to 28% and deferred retirements from 28% to 16%. Councillor Adam Peter Lang expressed concern about a potential glitch in the members' portal, where users transitioning from council to private login details were experiencing issues with the system reverting to their LBHF login. Eleanor Dernis assured the committee that this would be escalated.

Pension Fund Updates and Legislative Changes

Eleanor Dernis also provided an update on the pension administration and operations of the fund, including LPPA's initiatives and the significant pensions legislative agenda. A notable issue was LPPA missing the regulatory deadline for connecting to the pensions dashboard, with a revised date expected in mid-December. This delay, attributed to their software provider Civica, was a source of frustration, as obtaining definitive timelines from LPPA had been challenging. The committee discussed the upcoming changes to the Local Government Pension Scheme (LGPS) in 2025, which will impact areas such as retirement age, academy conversions, governance, and pooling. These changes are expected to come into effect post-April 2026. Councillor Peter Parkin highlighted the effectiveness of the H&F-1 pre-retirement sessions, run by Affinity Connect, which he described as fantastic and well-attended, providing valuable information to members.

Responsible Investment Policy Update

The committee approved an updated Responsible Investment Statement, which incorporates an addendum on conflict and human rights, and a three-tier classification system for fund managers. This statement aims to integrate environmental, social, and governance (ESG) considerations into the fund's investment approach. The report detailed the fund's exposure to defence-related holdings and geopolitical investments, with a traffic light system used to classify investments. Elbit Systems was identified as a red investment, meaning it was at odds with the fund's investment principles, with an exposure of approximately £1,500. Councillor Adam Peter Lang commended the progress made and the traffic light approach, noting that it was a positive way to address a complicated topic. The committee discussed the complexities of divestment, particularly for passive index-tracking funds, and the associated costs. It was suggested that the fund explore options through the London CIV's approach and potentially bring a paper to the next committee meeting to discuss this further.

Pension Fund Business Plan and Financial Performance

The committee reviewed the Pension Fund Business Plan Outturn for 2024/25, assessing performance against objectives, key projects, service delivery, governance, and financial management. An omission in the report regarding the ELSI of absolute return fund's fees was noted, with explanations provided for lower-than-budgeted fees due to updated fee structures and fewer transition costs than anticipated. The committee also observed an increase in Freedom of Information (FOI) requests, with a significant portion relating to pension investments, particularly in light of the current geopolitical climate. The overall investment performance for the quarter ending 30 September 2025 showed a market value increase of £43 million, bringing the total to £1.482 billion, which was met with positive reception from the committee.

Investment Proposals

The committee considered proposed adjustments to the fund's investment portfolio, including the decision not to continue with the Resonance investment top-up to the Quinbrook renewables fund and a potential divestment from the ELSI mandate. The report indicated a significant increase in the market value of assets over the quarter, generating £43 million. Councillor Peter Parkin and Councillor Adam Peter Lang praised the fund managers and advisors for this performance, highlighting it as a positive outcome for fund members.