The Pension Fund Committee of Barnet Council met on Tuesday 13 January 2026 to discuss the administration of the pension fund, its investment strategy, and upcoming regulatory changes. Key discussions included updates on administration performance, risk management, and the Fit for the Future initiative. The committee approved the admission of four new organisations and noted updates on risk management. Decisions were made regarding changes to the fund's investment strategy, including a specific strategy for Middlesex University and modifications to the cash management and secured finance allocations.

Administration and Admissions Update

The committee noted the ongoing satisfactory performance of West Yorkshire Pension Fund (WYPF) as administrators, with a low number of complaints and internal dispute resolution cases. Progress was also reported on the triennial valuation, with draft contribution rates issued to employers. Two new policies were approved: a Cessations Policy, which outlines the fund's approach to employers leaving the scheme, and a Prepayments Policy, detailing how employers can prepay their contributions.

The committee approved the admission of Capita Business Services Limited, HCL (Cromer Road School), Atlas (Ashmole Academy), and Apcoa into the Barnet Pension Fund. Updates were provided on outstanding admission agreements and ongoing cessation valuations, with some employers being chased for outstanding cessation debts.

Risk Management Review

The committee noted the updated administration and non-administration risk registers. Several risks within the administration register saw their scores reduced due to improved processes and staffing levels at WYPF, and the successful implementation of pass-through arrangements for new admitted bodies. A new risk, Fit for the Future regulations, was added to the non-administration register due to the strict timescales imposed by the upcoming legislation.

Fit for the Future Update and Investment Strategy

A significant portion of the meeting was dedicated to the Fit for the Future initiative, which will introduce substantial legislative and regulatory changes to the Local Government Pension Scheme (LGPS) from 1 April 2026. The committee was updated on the progress of the Pension Schemes Bill and the draft regulations concerning pooling, management, and investment of funds, as well as governance changes.

To comply with these new regulations, the committee delegated authority to the Executive Director of Resources to oversee the finalization of the Investment Management Agreement (IMA) with the London CIV, the council's asset pool. This IMA will facilitate the transfer of the remaining 36% of the fund's assets to London CIV, ensuring full compliance. The committee noted that Buckinghamshire Pension Fund had requested to join London CIV and that their business plan received unanimous approval, leading to revised shareholder agreements.

In relation to the investment strategy, the committee approved a change to a Moderate de-risk strategy specifically for Middlesex University, a significant employer within the fund. This change aims to protect the fund's surplus and maintain stable employer contribution rates. The committee also approved modifications to the fund's cash management strategy and reallocated the fund's secured finance allocation to LCIV MAC and LCIV Private Debt.

Investment Performance Report

The committee received an update on the Pension Fund's investment performance for the quarter ending 30 September 2025. The fund's investment portfolio was valued at £1.79 billion, showing a net positive return of 3.4% over the quarter. While long-term returns have been consistent, there was an acknowledgement of underperformance against the strategic benchmark over some longer-term reporting periods. The report detailed progress on implementing recent investment strategy decisions, including the transition of Barings High Yield investments to LCIV MAC and commitments to LCIV Private Debt II. As of 30 September 2025, 64% of the fund's assets were directly invested through London CIV, with an additional 15% under pool management.

Work Programme

The committee noted its work programme for January to June 2026, which includes regular updates on administration, investment performance, risk management, pooling, and responsible investment. A key item for the March meeting will be the approval of the updated Training Strategy and Policy, revised to comply with new LGPS regulatory requirements.