The LGPS Local Pension Board of Lincolnshire Council met on Thursday, 22 January 2026, to review the fund's performance, administration, data quality, and policies. Key discussions included updates on the Pension Fund, administration reports highlighting performance targets and recruitment efforts, and a review of the Pensions Regulator's data quality report. The Board also considered the annual policies review, including the Pensions Administration Strategy and a new Cybersecurity Policy, alongside the annual employer monitoring and engagement report. Finally, the Board discussed its work plan and training needs.

Pension Fund Update Report

The Board received an update on the Lincolnshire Pension Fund's performance for the quarter ending 30 September 2025. No material breaches were reported during this period. The consultation for the Funding Strategy Statement concluded with only one response, and no changes were deemed necessary. Preparations for the Fit for the Future reforms are progressing, with integration work for seven new partner funds joining Border to Coast Pension Partnership from 1 April 2026 proceeding well. The Board noted that Local Government Reorganisation (LGR) remains an ongoing risk, with early planning underway to assess its implications. The Board resolved to note the report and support the Fund's current Business Plan for 2026/27, requesting additional information on LGR outcomes and planning.

Pensions Administration Report - 1 July 2025 to 30 September 2025

This report detailed current administration issues, with officers explaining that performance targets had been missed due to staff shortages, training demands, and manual processing related to the McCloud remedy. Significant progress had been made in reducing backlogs for interfund transfer cases, although some manual calculations were still necessary due to system limitations. Employee training initiatives, including sessions for employers on various topics and the employer portal, were progressing well. Only a small number of Internal Dispute Resolution Procedure (IDRP) cases and Pension Ombudsman matters remained outstanding, with some Pension Ombudsman cases showing progress after follow-up. Recruitment efforts were ongoing, with plans to hire a Continuous Improvement Manager and 12 additional staff. Budget monitoring indicated an underspend, and per-member administrative cost forecasts had decreased. The Board resolved to note the administration service's activity and performance, and requested updates on discussions with HMRC regarding temporary bank accounts and clarification on core administration costs.

The Pensions Regulator (TPR) Data Quality Report

The Board reviewed the data quality scores for the Lincolnshire Pension Fund, as reported to The Pensions Regulator (TPR). The reported scores were 90.67% for common data and 89.57% for scheme-specific data. Officers explained that when legacy data was excluded, these scores increased to 98.87% and 98.75% respectively. The Board noted that while TPR aims for 100% accuracy, this is not practically achievable. Issues such as missing addresses and inconsistent start dates were highlighted, with assurances that these are investigated before benefits are paid. The Board requested clarification on the impact of missing address information on the Pensions Dashboard and was informed that matching relies on multiple criteria, with members prompted to contact the administrator if only a partial match is achieved. Dashboard activity is also expected to aid in data cleansing. The Board resolved to note the report and the actions being taken.

Lincolnshire Pension Fund Annual Policies Review

The Board reviewed two key Fund policies: the Pensions Administration Strategy and a new Cybersecurity Policy. Officers explained that the Pensions Administration Strategy had been updated to align Key Performance Indicators (KPIs) with Scheme Advisory Board guidance, and that the updated strategy had been consulted on with employers, with no changes required as a result. The new Cybersecurity Policy was developed to meet the requirements of The Pensions Regulator's General Code of Practice. The Board discussed the importance of cybersecurity, especially in light of increasing cyber-attacks nationally. It was confirmed that Lincolnshire remains the data controller, and all data breaches are reportable to the Council's Data Protection Officer. Regular cybersecurity testing, including penetration testing by third parties, was confirmed. The Board agreed to recommend the approval of both the updated Pensions Administration Strategy and the new Cybersecurity Policy to the Pensions Committee.

Annual Employer Monitoring and Engagement Report

This report provided an overview of employer activity and engagement within the Lincolnshire Pension Fund over the past year. The Board heard that the Fund had seen a significant increase in employers, including new academies and town and parish councils, while four employers exited the Fund. The most frequent issue identified was the late submission of monthly data by employers. The full rollout of the MP3 portal was completed, requiring employers to provide accurate contribution data at the point of submission. Work was ongoing to improve the timely reporting of deaths in service and retirements. The report indicated that fines could be issued for late contributions or data submissions, with only one fine issued during the reporting year. Employers had received their 2025 valuation results and were offered meetings with the Fund for further assistance. The Board discussed the possibility of collecting employer contributions by direct debit but was advised that this was not currently planned due to the associated workload. Assurance was given that employer declaration compliance was increasing and expected to reach 100% by the deadline. The Board resolved to note the report.

Work Plan and Training Needs

The Board reviewed its training policy and work programme. Members confirmed they were progressing with their required training modules, with several having completed outstanding modules. No additional training needs were identified by Board members at this time. Officers reported that a review of the Board's Terms of Reference had commenced, with proposed revisions to be shared for consideration. The Board agreed that a draft Terms of Reference should be prepared and circulated, with a subsequent meeting to discuss the document. The Board approved the Work Plan and the training policy.

Consideration of Exempt Information and Training: Member and Employer Digital Services and Interactions

The Board resolved to exclude the press and public for this agenda item to discuss exempt information related to a training session on member and employer digital services and interactions. Following a discussion of the exempt report and presentation, the Board resolved to note the report.