The Pension Fund Committee of Barnet Council met on Tuesday 13 January 2026 to discuss the administration of the pension fund, legislative changes affecting the Local Government Pension Scheme (LGPS), and the fund's investment strategy. Key decisions included the approval of new admission agreements for several organisations, the adoption of updated cessation and prepayment policies, and the delegation of authority to finalise investment management agreements with the London CIV.

Administration Update and Policy Approvals

The committee received an update on the administration performance of West Yorkshire Pension Fund (WYPF), which was noted as satisfactory. Updates on administrative and legislative matters were also provided, including progress on the 2025 triennial valuation. Two key policies were approved: the draft Cessation Policy, which outlines the fund's approach to employers leaving the fund, and the draft Prepayments Policy, which details the circumstances under which employers can prepay their contributions.

Admissions and Cessations

Progress on outstanding admission agreements was noted, with the committee approving the admission of Capita Business Services Limited, HCL (Cromer Road School), Atlas (Ashmole Academy), and Apcoa into the Barnet Pension Fund. Updates on ongoing cessation valuations were also provided, with several cases highlighted as awaiting payment of cessation debts or awaiting actuarial calculations.

Risk Management Review

The committee reviewed the updated administration and non-administration risk registers for the Pension Fund. Several risks saw their scores reduced due to improved controls and processes, including those related to operational disaster, incomplete data, and the commercial viability of suppliers. A new risk, Fit for the Future regulations, was added with a high-risk score due to the strict timescales imposed by the upcoming legislative changes.

Fit for the Future Update and Investment Strategy

A significant portion of the meeting was dedicated to the Fit for the Future initiative, which aims to reform the LGPS through new legislation and regulations effective from 1 April 2026. The committee noted the key legislative and regulatory changes and delegated authority to the Executive Director of Resources to finalise the Investment Management Agreement (IMA) with the London CIV and associated asset transition plans. This IMA will enable the London CIV to assume investment management responsibilities for the fund's assets, ensuring compliance with the new regulations. The committee also approved the proposed admission of Buckinghamshire Pension Fund to the London CIV.

The committee also reviewed the Pension Fund's Investment Strategy, considering alternative options for its strategic asset allocation. Following advice from Hymans Robertson, the committee approved a Moderate de-risk strategy for Middlesex University, noting its impact on the overall fund's asset allocation. Authority was delegated to the Executive Director of Resources to implement this change.

Investment Strategy: Asset Pooling and Performance

Further discussions focused on asset pooling, with the committee approving recommendations to reallocate the Secured Finance allocation to LCIV MAC and LCIV Private Debt funds. The current cash management strategy was also modified to align with new pooling guidelines, with authority delegated for implementation.

The committee received the Pension Fund Investment Performance Report for the quarter ending 30 September 2025. The fund's investment portfolio was valued at £1.79 billion, showing a 3.4% net positive return over the quarter. While the fund has delivered consistent long-term returns, it has underperformed against its strategic benchmark over some longer-term periods. The report detailed the asset allocation, manager performance, and market background.

Triennial Valuation and Work Programme

The committee considered the 2025 Triennial Valuation Report, which included an overview of the fund's funding level, contribution requirements, and key assumptions. Employers will be notified of revised contribution rates. The committee also approved the Funding Strategy Statement (FSS) for April 2026 to March 2029.

Finally, the Pension Fund Committee Work Programme for January to June 2026 was noted, outlining upcoming agenda items including administration reports, investment performance reviews, and updates on pooling and risk management.